Starr Investment Advisors
Zamansky & Associates has launched an investigation into an alleged Ponzi Scheme orchestrated by Kenneth Starr through his investment advisory and accounting businesses, Starr Investment Advisors and Starr & Co. We are investigating whether any of the numerous financial institutions Starr did business with may have been grossly negligent with regard to their due diligence responsibilities.
According to the complaint, Mr. Starr allegedly bilked his ultra high net worth and celebrity clients out of approximately $30 million by allegedly advising clients to make investments in businesses or entities that he represented as virtually risk free, but instead diverted the money to himself and/or his family and close associates.
Moreover, the complaint alleges that in certain cases when Mr. Starr was given direct control over his clients bank accounts he transferred funds to himself and/or his family and close associates. Starr allegedly used the money to fund his lavish lifestyle which included the purchase of a 7.5 million New York City apartment.
The complaint states that Mr. Starr used several large financial institutions to operate his business including Wells Fargo & Co., which served as Starr & Co.’s primary bank. Zamansky & Associates has determined that Ponzi schemes often need the explicit or implicit support of large banking entities in order to orchestrate their frauds. We are looking into whether any of the banks mentioned in the complaint were derelict in their duties to properly perform due diligence on Mr. Starr and his transactions.