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28 May 2010

Hedge Fund Adviser & Politician Charged in Fraud Case

HedgeCo News - Hedge fund adviser Kenneth Starr has been charged with investment fraud in an alleged $30 million scheme in which Andrew Stein, a former New York City politician, has also been described as an "associate", the Wall Street Journal reports.

Starr, who has advised Wesley Snipes and Goldie Hawn, was named in a criminal complaint filed by federal prosecutors, allegedly using his access to hedge funds and celebrities, to "burnish an image of trustworthiness", according to the Journal.

"The criminal complaint didn't name the alleged victims, but described them as an unnamed hedge fund manager and well-known philanthropist, an actress, a former executive of a talent agency, an elderly heiress and a jeweler who is a convicted felon." The paper reported.

The SEC said Starr provided investment adviser services to more than 30 high net worth individuals and has AUM over $700 million.

Starr remains detained while Stein, who is accused of making false statements to the IRS, was released on a $250,000 bond.

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