Stanley Chais | Accused with Madoff, 84

Stanley Chais, 84, a once-esteemed investment manager and philanthropist whose reputation was marred by accusations he steered hundreds of millions of his clients' dollars to con man Bernard Madoff, died Sunday in New York, his wife said.

Pamela Chais declined to disclose the cause of death. A spokeswoman for New York City's medical examiner said he died of natural causes.

Mr. Chais had moved to New York in recent years, where he was undergoing treatment for myelodysplasia, a blood disorder. He had lived for years in Beverly Hills, Calif., where he was known as a lavish supporter of Israeli nonprofits.

The Securities and Exchange Commission brought civil fraud charges against Mr. Chais in 2009, alleging he falsely told investors he was personally managing nearly $1 billion in three funds. The SEC said he was actually a middleman for Madoff, turning over the assets while collecting more than $250 million in fees. The SEC called him one of the biggest feeders of funds to Madoff.

Mr. Chais' attorney, Eugene Licker, said that his client was "solely a victim" and that the allegations created a "distorted and false picture" of him.

The SEC accused Mr. Chais and members of his family of withdrawing about $500 million more than they had invested with Madoff, who is serving a 150-year prison sentence for defrauding investors out of billions of dollars in the largest Ponzi scheme in U.S. history. - AP