The estate of investment adviser Stanley Chais must face claims by the trustee liquidating Bernard L. Madoff Investment Securities that Chais and related entities fraudulently received more than $1 billion from Madoff’s Ponzi scheme.

US Bankruptcy Judge Burton Lifland refused to dismiss trustee Irving Picard’s lawsuit seeking to recover allegedly fraudulent withdrawals made by Chais and his family partnerships during a 13-year period starting in 1995, according to the ruling yesterday.

Lifland did dismiss Picard’s claim seeking the immediate turnover of transferred funds. Picard sued Chais and related entities in May 2009, saying Chais was a beneficiary of the Ponzi scheme for at least 30 years.

Chais, who was among Madoff’s largest investors, denied wrongdoing and said he was duped by Madoff. Chais died in September at age 84.