Austin News.Net   Sunday 12th September, 2010

http://www.austinnews.net/story/683974

Celebrity financial adviser Kenneth Starr, who has admitted to cheating wealthy clients, has pleaded guilty to fraud charges.

Saying he bilked wealthy clients, including Wesley Snipes, Sylvester Stallone and Martin Scorsese, out of tens of millions of dollars, Starr, 66, entered his plea in the US District Court in Manhattan.

He has been charged with wire fraud, money laundering and investment adviser fraud and has been in jail since being arrested in May.

Starr has now admitted to committing investment adviser fraud, losing between $20 million and $50 million of his clients’ money.

Sentencing has been set for December 15th, when his lawyer said she would cite the numerous charitable deeds her client had performed over decades to try to lighten his sentence, which could be up to 20 years with a maximum $50 million in fines.

Prosecutors have alleged Starr diverted investors’ money into risky investments or into his own pockets without their knowledge.