Kenneth Starr, the Ponzi scam artist whose clients included top Hollywood celebrities, pleaded guilty today in Manhattan federal court to one count each of wire fraud, money laundering and investment adviser fraud.
Kenneth Starr, the Ponzi scam artist whose clients included top Hollywood celebrities, pleaded guilty today in Manhattan federal court to one count each of wire fraud, money laundering and investment adviser fraud.
Mr. Starr faces a recommended prison sentence of 10 to 12½ years. He will be sentenced in December.
Mr. Starr admitted that on a number of occasions he stole his clients' money to use for his own purposes. The total loss associated with his fraud was between $20 million and $50 million, according to the U.S. Attorney's Office for the Southern District of New York.
Mr. Starr, 66, was arrested in May. The federal indictment charged that Mr. Starr “used his access to powerful and famous clients to burnish an image of trustworthiness, which led his clients to entrust him with management and control of their financial affairs,” sometimes assuming “total control” over their financial lives.
His past clients included action stars Sylvester Stallone and Wesley Snipes, actress Uma Thurman and heiress Rachel “Bunny” Mellon.
In a brief court appearance in June, he denied any wrongdoing.
