Kenneth Ira Starr, the New York investment adviser who represented actors including Sylvester Stallone and Wesley Snipes, was indicted

Kenneth Ira Starr, the New York investment adviser who represented actors including Sylvester Stallone and Wesley Snipes, was indicted on Thursday on charges of stealing at least $59 million from clients, almost double the amount previously thought.<br />Untangling a Ponzi Scheme With a Hollywood Twist (June 7, 2010)<br />The indictment by a grand jury in New York alleges 20 counts of wire fraud, a count of securities fraud, money laundering and fraud by an investment adviser against Mr. Starr, 66, of Manhattan.The indictment replaces a May 27 criminal complaint filed by federal prosecutors in the office of the United States attorney, Preet Bharara. That complaint claimed that Mr. Starr stole at least $30 million from seven clients. The new indictment expands the number of victims to 11.“In the less than two weeks since Kenneth Starr’s arrest, this investigation has maintained its velocity,” Mr. Bharara said in a statement. “The scope of the alleged fraud has doubled and is now up to $59 million and counting.”If convicted of wire fraud, Mr. Starr faces as long as 20 years in prison.<br /><br />Abbe Lowell, a lawyer representing Mr. Starr in a civil lawsuit brought by the Securities and Exchange Commission, could not immediately be reached for comment. Peggy Cross, a public defender appointed to represent Mr. Starr, did not immediately return a voice mail message left at her office after regular business hours.<br /><br />Mr. Starr was arrested May 27 and accused of defrauding clients, including the heiress Rachel Mellon, known as Bunny, in a scheme to buy a $7.5 million Manhattan apartment. He has been held in jail since his arrest.<br /><br />The government said earlier that Mr. Starr used his access to famous and powerful clients “to burnish an image of trustworthiness, leading his clients to entrust him with management and control of their financial affairs,” sometimes assuming “total control” over their financial lives.

Kenneth Ira Starr, the New York investment adviser who represented actors including Sylvester Stallone and Wesley Snipes, was indicted

Kenneth Ira Starr, the New York investment adviser who represented actors including Sylvester Stallone and Wesley Snipes, was indicted on Th...

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