A Ponzi Scheme Targeting Hollywood's Elite

Investigators are only now beginning to piece together the complex investment and fraud network of Kenneth I. Starr, a former bookkeeper and administrative assistant to various celebrities who eventually transformed himself into a high stakes con artist to the stars. The aptly-named Mr. Starr did in fact have contacts in the celebrity world as well as some acquaintances in top Wall Street circles. His strategy, it seems, was to play the two groups with one another in selling his schemes.

As an expert name dropper, Starr would let his Wall Street friends know that he was in close contact with certain high-profile celebrities and Hollywood players. That would always pique their interest and draw them into investment opportunities for upcoming film projects and other deals that people outside the entertainment industry would not be able to access. On the other side of the coin, Starr would speak to celebrities in great detail about his close relationships with top executives on Wall Street and explain to them how he could help get them into great financial investment vehicles for their growing bank accounts.

So far, authorities can only account for about $30 million that Starr stole from his array of A list clients. But as the investigation continues, it's expected that the number of victims and the depth of the fraud will probably increase significantly. Among some of Starr's more notable clients over the years were the likes of Al Pacino, Ron Howard, Martin Scorsese and Uma Thurman. And they are just the names that jump off the list to a casual fan of Hollywood.

There are so many others on the list, from heiresses to film moguls and others who saw Starr as a smooth-talking and confidence-inspiring investor who was going to protect their assets while gaining access to high-end investment vehicles for his clients. Starr also held friends within the high-powered financial circles of Wall Street.

He was known to lunch with Pete Peterson, a founder of the Blackstone Group investment firm and a well-known philanthropist. It is believed that he used his celebrity relationships as chips to build credibility among the financiers whose investment skills Starr portrayed himself as sharing. By all accounts, it appears that Starr was an incredibly smooth operator when working his deals and creating the façade of himself as a man with all the connections and all the answers.

Although Starr was only arrested in Manhattan on May 27, court records reveal that his schemes began to fall apart as early as 2002. It was at that time that he was sued by Sylvester Stallone for failed investments relating to Planet Hollywood. In 2007, he left his third wife and began a relationship with a stripper, all while continuing to court and land high-profile clients and convince them to invest millions with him.

Starr created and maintained a lavish lifestyle throughout his fraudulent run, even purchasing a $7.5 million Manhattan apartment in recent months using investment monies he'd received from the likes of Uma Thurman. When Thurman requested to retrieve $1 million from her initial investment, Starr diverted the funds from the account of another investor to cover the request.

At this point, Mr. Starr remains incarcerated as the investigation into his dealings and his client list continues. He has been denied bail as a potential flight risk and it is likely that investigators are only scratching the surface of his A-list Ponzi scheme.