NEW YORK (Reuters) – A brokerage firm and a Hollywood investment adviser that were key middlemen for Wall Street thief Bernard Madoff were hit with civil fraud charges yesterday, accused of steering new clients into the swindler’s lair as he sought to keep his massive Ponzi scheme running.
The US Securities and Exchange Commission filed fraud charges against Cohmad Securities Corp, which Madoff and his brother, Peter, partially owned; Cohmad’s chairman, Maurice Cohn; and executives Marcia Cohn and Robert Jaffe.
In another suit, the SEC charged Stanley Chais, known for handling investments for Hollywood’s elite including director Steven Spielberg. It said Chais oversaw three funds that invested all of their assets with Madoff, ignoring red flags that Madoff’s returns were false.
