Judge Orders Starr Money To Stay Put

Jun 8 2010 | 10:17am ET

The hedge fund manager allegedly bilked by investment-advisor-to-the-stars Kenneth Starr can’t have his or her money back—and neither can any of Starr’s other clients.

U.S. District Judge Sidney Stein said the fact that Starr allegedly ran a $30 million Ponzi scheme means that his client account statements may have no basis in reality, and that the money will remain in his accounts—now safely in the hands of a court-appointed receiver—until “the state of play” becomes clear.

Stein’s ruling does not only cover the $40,000 left in the accounts of Starr Investment Advisors and Starr & Co., but also the $700,000 held in Starr’s own accounts. Prosecutors say they fear Starr illegally “co-mingled” his own funds with that of his clients, who included such Hollywood royalty as Goldie Hawn, Ron Howard, Martin Scorsese, Wesley Snipes, Sylvester Stallone and Uma Thurman.

One of Starr’s clients was a hedge fund manager who has not been identified.

According to prosecutors, Starr would assume control over his clients’ financial lives, using that access to enrich himself and his friends. He allegedly solicited money for investments that he then stole, as well as simply stealing money from client accounts, in addition to running the Ponzi scheme.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.