Tuesday, 28 June 2016
Last updated 31 min ago
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.