Trustee Sues Madoff Insider, Says He Must Have Known

A trustee overseeing the liquidation of Bernie Madoff's assets filed a lawsuit against one of the Ponzi schemer’s investors yesterday, accusing investment manager Stanley Chais of getting such “implausibly high” returns that he should have known they were a sham. Chais and his family withdrew “untold” funds from their Madoff accounts, including $1 billion since 1995, the New York Times reports.

The trustee also accused Chais of raking in money from false tax losses on those Madoff accounts. A lawyer for Chais said he was “saddened” by the suit. “Mr. Chais and his family have suffered astounding and ruinous losses from the Madoff scheme,” he said. The lawsuit seeks to recover the money paid to Chais and use it to compensate other Madoff victims. (More Bernard Madoff stories.)