California Wins A Fraction Of Bernard Madoff Fraud Recovery

SACRAMENTO, Calif. (AP) — California is recovering $15 million related to the massive Ponzi scheme engineered by Bernard Madoff.

It's part of a larger agreement liquefying the $277 million estate of a Beverly Hills investment adviser who defrauded hundreds of often elderly clients.

The settlement announced Friday ends a 7-year-old lawsuit by the state attorney general against Stanley Chais. He charged what officials call astronomical fees to invest millions of dollars from more than 460 victims.

The $15 million works out to about $33,000 per victim, although an administrator will determine each victim's compensation.

Chais collected nearly $270 million in fees between 1995 and 2008 while presenting himself as an "investment wizard."

Officials say he instead funneled investors' life savings to the now-imprisoned Madoff, whose financial pyramid collapsed in 2008.

Chais died in 2010.