Kenneth Starr, celebs' financial adviser, jailed for fraud

Citing a statement from the U.S. Attorney for the Southern District of New York, CNN reports that Starr was sentenced Wednesday to seven and a half years in prison after pleading guilty last year to defrauding his celebrity clients and other investors.

The 67-year-old former high-flying advisor’s A-list clients reportedly once included Oscar-winner Natalie Portman, Martin Scorsese, actors Sylvester Stallone and Al Pacino, photographer Annie Leibovitz and fashion designer Isaac Mizrahi.

U.S. District Judge Shira Scheindlin in Manhattan issued the sentence Wednesday, sending the investment advisor behind bars for stealing millions of dollars from clients' funds.

Fraud celebrity advisor behind bars
The judge sentenced him to 90 months behind bars, which fell between Starr’s request for 60 months and prosecutors’ recommendation of 121 months to 151 months.

Judge Shira said although the victimized clients were wealthy and not financially devastated by the fraud, but it was emotionally devastating to several victims as they had entrusted him with every aspect of their financial lives.

According to Wall Street Journal news, Starr’s victimized clients include Jim Wiatt, the former chief executive of talent agency William Morris; celebrity jeweler Jacob Arabov; and Rachel Lambert Mellon, the widow of philanthropist Paul Mellon, whose father is industrialist Andrew Mellon. Actress Uma Thurman also was also reportedly a victim.

"These people worked with Mr. Starr for years," she said. "This isn't a faceless relationship."

The judge also ordered Starr to pay forfeitures and restitution of $29.1 million.

According to Wall Street Journal news, Starr’s victimized clients include Jim Wiatt, the former chief executive of talent agency William Morris; celebrity jeweler Jacob Arabov; and Rachel Lambert Mellon, the widow of philanthropist Paul Mellon, whose father is industrialist Andrew Mellon. Actress Uma Thurman also was also reportedly a victim.

“I stand before you a contrite man and an ashamed man,” Starr told Scheindlin. “I have no one to blame but myself.”

Starr’s guilty plea
Starr pleaded guilty in September to defrauding nine celebrities out of $33.3 million. He admitted secretly diverting his nine wealthy and elderly clients’ money into risky investments or his own pockets.

Prosecutors claim he used the fraudulent money to fund a luxury lifestyle, both for himself and his former stripper wife, whom he lavished with jewelry.

Starr allegedly told his clients he would put their money in low-risk investments, but instead, funneled money into his own personal accounts.

"Kenneth Starr pretended he had the Midas touch, but he was in reality peddling fool's gold," CNN quoted Manhattan U.S. Attorney Preet Bharara as saying.

The ex-investment advisor apologized to his victims and his family at his sentencing hearing in New York, and pleaded guilty to wire fraud, money laundering and investment adviser fraud.