News recently broke that the government has charged Kenneth Ira Starr, the New York investment adviser used by many of the stars, with fraud. This alleged investment fraud equates to about $30 million. The federal complaint makes the allegation that Mr. Starr used his clients’ money to purchase luxury items for himself, which supposedly included a five-bedroom Manhattan apartment that cost $7.5 million. Some of Mr. Starr’s celebrity clients include Uma Thurman, Martin Scorsese and Wesley Snipes. Mr. Starr also advised New York jewelry store owner Jacob Arabov, who was convicted in 2008 of falsifying records and making false statements in a federal investigation. Mr. Arabov was nicknamed “the King of Bling,” and “Jacob the Jeweler.” According to the complaint against Mr. Starr, he allegedly promised Mr. Arabov and other victims that he would invest their money in sure things. However, it was alleged that he used their money for investments that he had an interest in or used the money for his own gain. Nearly half of the money that Mr. Starr allegedly stole belonged to Mr. Arabov and his wife. The complaint states that Mr. and Mrs. Arabov started to become suspicious of Mr. Starr when he began providing “shifting and farfetched” explanations regarding returns on some of their investments. They, therefore, started to record some of the conversations they had with Mr. Starr. The Arabovs’ plan to pursue all legal remedies available under the law to recover their money, according to their lawyer. The charges against Mr. Starr reflect that he did more than handle investments for his clients, as he also assisted approximately 200 families with taxes and bill payment.
Recovering Losses Caused by Investment Misconduct.