0

The next Madoff?

Investment advisor to the rich and famous busted for allegedly running a Ponzi scheme


 

Ken Starr (the Manhattan investment guru, not the former Clinton prosecutor) was arrested by the IRS this morning for allegedly running a Ponzi scheme that siphoned millions from his high-profile clients—a list said to include Uma Thurman, Henry Kissinger, Caroline Kennedy Schlossberg, Martin Scorsese and the financially beleaguered Annie Lebowitz. The complaint alleged Starr solicited investments from his clients and then diverted the money to himself, his family and close associates. Where Starr exercised direct control over the personal bank accounts of his clients, he allegedly made unauthorized transfers to himself and associates. Charges are expected to include investment fraud, tax fraud, NBC New York reports. Also arrested was Andy Stein, the former Manhattan borough president and New York City Council president, who is expected to face charges for allegedly lying to law enforcement officials conducting the probe. According to investigators, Starr was depositing money in a Wind River LLC account that was linked to a credit card used by Stein.

NBC


 
Filed under:

Sign in to comment.