Sunday, 29 March 2015
Last updated 1 day ago
Sep 13 2010 | 11:37am ET
Kenneth Starr, the homophonically-pleasing money manager to the stars, has pleaded guilty to defrauding those very celebrities.
Starr admitted to ripping off his clients, who included an unidentified hedge fund manager, to the tune of between $20 million and $50 million. His plea deal calls for up to 12-and-a-half years in prison when he is sentenced on the wire fraud, money laundering and investment-adviser fraud charges.
Starr has also agreed to forfeit his S7.5 million New York condominium, and prosecutors say they may still seek $100 million in forfeitures and restitution. Starr’s lawyer told said that she was in talks with the government about the forfeiture and that it would likely be substantially less than that.
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.
“I used a portion of the money for my own purposes,” Starr told U.S. Magistrate Judge Theodore Katz.
“He made a colossal error in judgment,” Starr’s lawyer, Laura Edwards, said. “He’s paying a very, very heavy price.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…