Starr Gets Seven-And-A-Half Years For Scam

Mar 3 2011 | 10:51am ET

Ponzi schemer Kenneth Starr, the financial adviser who peddled his wares to celebrities and at least one hedge fund manager, has been sentenced to more than seven years in prison.

Starr had been facing up to 12½ years under federal sentencing guidelines, but U.S. District Court Judge Shira Scheindlin in New York imposed a relatively lenient seven-and-a-half years owing to Starr's good works.

"He seemed to have lost his moral compass partly as a result of infatuation with his young fourth wife," the judge added.

Starr pleaded guilty last year to ripping off clients to the tune of $20 million and $50 million. 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 can't believe I did what I did," Starr offered yesterday.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...