Thursday, May 27, 2010

SEC vs. Starr - NY Financial Advisor Charged

A New York financial adviser to the rich and the famous was charged Thursday of running a $30 million investment fraud and using the funds to enrich himself and friends, including a former New York City politician.

Kenneth I. Starr, who at one time advised actors Wesley Snipes and Sylvester Stallone, allegedly used his access to famous and powerful clients to "burnish an image of trustworthiness" and, in some cases, assume total control over his clients' financial lives, according to a criminal complaint filed by federal prosecutors in the U.S. Attorney's Office in Manhattan.

The criminal complaint didn't have details on the alleged victims, but it described them as an unnamed hedge-fund manager and well-known philanthropist, an actress, a former executive of a talent agency, an elderly heiress and a jeweler who is a convicted felon.

Both Mr. Stein, 65 years old, and Mr. Starr, 66, were expected to appear in federal court in Manhattan later Thursday. Their lawyers didn't immediately return phone calls seeking comment.

Mr. Starr isn't the Kenneth Starr who served as prosecutor in the Whitewater investigation.

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