Starr struck: Celebrity financial adviser slapped with suit

City National Bank has sued Kenneth Starr over a “term promissory note”

Jun 17, 2010 @ 9:28 am

By Bloomberg

+ Zoom

Kenneth Starr, the investment adviser accused in a criminal indictment of stealing at least $59 million from clients, was sued by City National Bank, according to state court records in New York.

City National's court filing yesterday refers to an agreement with Starr over a “term promissory note” dated Feb. 25 and says he is required to answer the bank's summons. A complaint with City National's allegations wasn't yet available.

Starr, 66, of Manhattan, was charged in May in a federal grand jury indictment in New York with 20 counts of wire fraud and one count each of securities fraud, money laundering and fraud by an investment adviser. The alleged victims of the fraud include an actress, a former executive of a talent agency, the stepson of a deceased heir to a business fortune, a 99-year-old heiress, and a film producer.

Starr's clients have included actors Sylvester Stallone and Wesley Snipes and heiress Rachel “Bunny” Mellon.

Sabrina Shroff, a public defender who represents Starr in the criminal case, and Abbe Lowell, a lawyer for Starr in a civil suit brought by the U.S. Securities and Exchange Commission, didn't immediately return calls seeking comment after regular business hours yesterday.

Cary Walker, a spokesman for Los Angeles-based City National, declined to comment.

The case is City National Bank v. Kenneth I. Starr, Supreme Court of the State of New York, County of New York.

Get Daily News & Intel

Breaking news and in-depth coverage of essential topics delivered straight to your inbox.