Read the Ken Starr complaintThu May 27, 2010 @ 12:24PM PST
By Matthew Belloni
We were as surprised as everyone to read that moneyman Ken Starr was arrested in New York this morning and charged with running a Ponzi scheme. Starr has repped Hollywood figures like Ron Howard, Uma Thurman and former WMA head Jim Waitt, and he had good relationships in the entertainment law community.
Read the full indictment here, or below is the gist of the government's case:
- "First, on some occasions, Starr solicited investments from his clients in entities or businesses that he represented as sure deals, and then diverted all or some of the investment monies to himself, to his close associates, or to risky investments in which he, his wife, and/or his close associates held undisclosed financial interests."
- "Second, where Starr exercised direct control over the personal bank accounts of his clients, Starr used that control to make unauthorized transfers of funds to himself and/or his closest associates. Furthermore, when Starr's clients made demands for payments that Starr could not meet, he transferred funds from one client to another client."