Monday, 2 March 2015
Last updated 39 min ago
Jun 11 2010 | 11:21am ET
Kenneth Starr, the New York money manager to the stars, has been formally indicted on fraud charges for allegedly stealing at least $59 million from his clients.
That figure is nearly twice the $30 million prosecutors estimated he stole when he was first arrested last month. Prosecutors also now allege that he ripped off 11 clients, rather than seven. One of those clients is an unidentified hedge fund manager.
Starr was charged by a federal grand jury in New York today with 20 counts of wire fraud, as well as securities fraud, money laundering and fraud by an investment adviser. If convicted, he faces up to 20 years in prison on the wire fraud charges.
It could yet get worse for Starr, as well. U.S. Attorney Preet Bharara said that the investigation into Starr’s alleged crimes was ongoing.
Over the years, Starr Investment Advisors and Starr & Co. advised such Hollywood names as Goldie Hawn, Ron Howard, Martin Scorsese, Wesley Snipes, Sylvester Stallone and Uma Thurman. Assuming control over some of their financial lives, Starr then used that access to enrich himself and his friends, the criminal complaint alleges. According to prosecutors, he solicited money for investments that he then stole, as well as simply stealing money from their accounts. He also ran a Ponzi scheme, using client money to repay clients who wanted out.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…