Manhattan investment advisor Kenneth I. Starr arrested for fraud

May 28th, 2010 - 1:26 am ICT by Aishwarya Bhatt  

New York, May 27 (THAINDIAN NEWS) Manhattan investment advisor Kenneth I. Starr has been arrested. He was arrested on Thursday, because he committed fraud and also swindled his clients to the tune of millions of dollars. Kenneth’s clients included top Hollywood celebs like Uma Thurman, Martin Scorsese, Goldie Hawn, Candice Bergen, Ron Howard and Wesley Snipes. Apart from the Hollywood heavyweights, his clients also included photographer Annie Leibovitz, as well as former Secretary of State Henry Kissinger and Caroline Kennedy amongst many other high profile celebs.

Kenneth is the chairman and the CEO of Starr & Company, and he had established the company in 1989. He executed a $30 million Ponzi scheme and cheated his numerous clients. According to the documents from the US Southern District of New York, he has been charged on five counts. These five counts are ‘wire fraud scheme to obtain property; fraud by an investment advisor; money laundering; making false statements on an IRS filing; and making false statements to a federal officer’.

He used the funds of his clients to splurge on luxuries for himself. He had recently bought a 5-bedroom Upper East Side condominium, for a price tag greater than $7.5 million. To pay for the condominium, Starr used the funds of an ‘elderly heiress’.

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