Madoff Web May Extend To Clients
Philanthropists Jeffrey Picower and Stanly Chais, among those being investigated, allegedly would tell Madoff how much profit they wanted on their investments. Those returns would soon materialize in their accounts, sources familiar with the probe said.
Madoff pleaded guilty to fraud in March and is awaiting a June sentencing hearing, which could result in a 150-year prison term. The investigation into Madoff's family members and employees has continued in order to ascertain who was aware of the Ponzi scheme. While no investors have been accused of any criminal wrongdoing, that investigation has apparently extended to them.
Picower and Chais were named in a civil lawsuit last week by Irving Picard, the trustee overseeing the bankruptcy proceedings of Madoff's company. Picard alleges Picower and Chais asked for and received better returns than other Madoff clients — sometimes in the range of 950 percent a year. Picard claims the two men, who have denied the accusations, should have known the returns were fictitious and fraudulent.