Source:
Business WeekMay 27 (Bloomberg) -- Kenneth Ira Starr, a New York investment adviser who has represented actors including Sylvester Stallone and Wesley Snipes, stole millions of dollars from heiress Rachel “Bunny” Mellon and other clients in a scheme to buy a $7.5 million apartment, prosecutors said.
Starr was arrested today in New York and accused of fraud in what federal prosecutors said was a $30 million scheme that involved socialites, celebrities and athletes. Charged at the same time was Andrew Stein, the former borough president of Manhattan and New York City Council president, who is accused of a tax crime and lying to investigators.
Starr, the manager of more than $700 million, “systematically defrauded his clients,” Robert Beranger, an agent with the Internal Revenue Service, said today in a criminal complaint in Manhattan federal court.
“He 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,” Beranger said in court papers.
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http://www.businessweek.com/news/2010-05-27/financial-adviser-starr-charged-with-fraud-by-u-s-update6-.html