Bank of America sues adviser to the stars

Bank of America sues adviser to the stars
Kenneth Starr, who pleaded guilty in September in a $59 million fraud case, was sued by Bank of America Corp. over an unpaid $500,000 debt.
MAY 27, 2010
By  Bloomberg
Kenneth Starr, who pleaded guilty in September in a $59 million fraud case, was sued by Bank of America Corp. over an unpaid $500,000 debt. Bank of America NA, a unit of the largest U.S. bank by assets, filed the lawsuit in New York state court in Manhattan on Oct. 21. The Charlotte, North Carolina-based bank named the money manager’s firm, Starr Investment Advisors LLC, as a co- defendant. “There is now immediately due and owing to the bank,” the principal sum of $500,000, plus accrued interest and late fees of about $12,000 through the filing date, according to the complaint. Starr, 66, pleaded guilty on Sept. 10 to three criminal counts before U.S. Magistrate Judge Theodore Katz in Manhattan. Starr, whose firm’s clients included heiress Rachel “Bunny” Mellon and actors Sylvester Stallone and Wesley Snipes, told the court he had stolen as much as $50 million. He had faced 20 counts of wire fraud and one each of securities fraud, money laundering and fraud by an investment adviser. No sentencing date has been set. Bank of America alleges Starr had guaranteed the revolving line of credit extended to his firm in March and upon which it defaulted in June. Starr was indicted by a federal grand jury on June 10. Flora Edwards, Starr’s criminal defense attorney, didn’t immediately return a voice-mail message seeking comment after regular business hours. Starr was sued in June in the same court by Los Angeles- based City National Bank, which last month won a default judgment in the amount of $2.6 million that it claimed was owed on a promissory note executed in February. The case is Bank of America NA v. Starr Investment Advisors LLC, 651826-2010, New York State Supreme Court (Manhattan). The criminal case is U.S. v. Starr, 10-cr-00520, U.S. District Court, Southern District of New York (Manhattan).

Latest News

UBS bets on next-gen talent amid continued advisor exodus
UBS bets on next-gen talent amid continued advisor exodus

The bank's new training initiative aims to add hundreds of advisors as it expands its mass-affluent advice unit, according to Barron's.

PIABA slams SIFMA proposal for FINRA arbitration reform
PIABA slams SIFMA proposal for FINRA arbitration reform

The lawyers' group warns that adjudicating certain claims externally and limiting punitive damages, among other suggestions, could hurt investors.

Savant Wealth targets Silicon Valley with Parkworth acquisition
Savant Wealth targets Silicon Valley with Parkworth acquisition

With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.

InvestCloud rolls out new-generation AI solutions with Zocks, smartKYC
InvestCloud rolls out new-generation AI solutions with Zocks, smartKYC

The wealth tech giant is unveiling its new offerings, designed for advisor productivity and client engagement, as investors and experts continue to grapple with the implications of AI.

RIA moves: Aspen Standard adds $1.1B Boston RIA, Ashton Thomas enters Hawaii market
RIA moves: Aspen Standard adds $1.1B Boston RIA, Ashton Thomas enters Hawaii market

Meanwhile, Merchant is continuing to expand its support for RIAs by partnering with a South Dakota-chartered trust company.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.