Friday, 25 July 2014
Last updated 16 hours ago
Dec 2 2010 | 6:54pm ET
Andrew Stein, the former New York City official and associate of fraudster Kenneth Starr, has pleaded guilty to tax evasion.
Stein faces up to one year in prison on the misdemeanor failure to pay income taxes count. He was accused of not paying taxes for the year 2008; he was not charged in the Starr case despite allegations that Starr spent some of the up to $50 million he stole on Stein's "extravagant personal expenses."
Starr pleaded guilty to ripping off his clients, including an unidentified hedge fund manager and several Hollywood luminaries, in September. Starr allegedly moved investor money through a shell company set up by Stein, Wind River LLC.
At his own plea hearing Wednesday, Stein admitted that he "stupidly did not pay the taxes" for 2008, when he "had taxable income in excess of $1 million," according to the charge.
"I was wrong, your honor," Stein, who served both as Manhattan borough president and president of the New York City Council, told U.S. Magistrate Judge Ronald Ellis. "I take full responsibility for it."
Stein was released on his own recognizance, pending his sentencing.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…