Starr Associate, Ex-NYC Official Guilty In Tax Case

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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of