Disgraced moneyman-to-the-stars pleads guilty

A financial adviser who has worked for Wesley Snipes, Sylvester Stallone and Martin Scorsese pleaded guilty to fraud charges Friday, admitting cheating wealthy and elderly clients out of tens of millions of dollars in what his lawyer said was a "colossal error in judgment."

Kenneth Starr, 66, stood in his blue prison uniform as he entered the plea in U.S. District Court in Manhattan to charges of wire fraud, money laundering and investment adviser fraud.

He has been jailed since his May arrest, unable to meet the terms of a $10-million bail package despite his relationships with the wealthy and influential among his roster of 200 clients.

Starr admitted committing investment adviser fraud since 2005, losing between $20 million and $50 million of his clients' money.

"I used a portion of the money for my own purposes," Starr told a magistrate judge.

Starr and prosecutors agreed in court papers filed with the plea that federal sentencing guidelines call for him to spend 10 to 121/2 years in prison, though he is permitted to request an alternate sentence, which defense attorney Laura Edwards said she intends to do. Sentencing was set for Dec. 15.

Starr was originally accused of defrauding at least 11 of them, including heiress Rachel "Bunny" Mellon, out of $59 million, Bloomberg News reported Friday. Edwards and the government agreed, for sentencing purposes, that the fraud totaled $20 million to $50 million.

As part of that agreement, Starr will forfeit a $7.5-million apartment on the Upper East Side. Scheindlin will determine forfeiture and restitution amounts.