Editor’s note: This article was first published in September 2010, as a news piece written when Kenneth Starr pleaded guilty. He was later sentenced, reportedly to seven and a half years in prison in 2011, which the article does not cover.
Kenneth Starr, the financial adviser to Hollywood stars, has pleaded guilty to fraud. It isn’t the biggest fraud in history (that title still belongs to Madoff), but we are certainly looking at the most glamorous swindler in history, since all of his victims come from the film world. Who are his victims, and how did he do it?
His victims
They include several film directors, among them Martin Scorsese, followed by a long list of producers and actors: Sylvester Stallone, Al Pacino, Uma Thurman, Warren Beatty and others. In all, an estimated 35 well-known film stars and some 40 people working behind the scenes in the industry fell victim to him.
How he did it
Breaking into the world of glamour and being accepted as one of them is hard enough. Getting a film star to trust you with their money and give you access to their investment accounts is harder still. This was a skilled con man who first built rapport with his victims. He went to film premieres as if he belonged, slipped into their parties and, without yet handling anyone’s accounts, earned a reputation as a good accountant.
He started the rumor himself, and it spread until he landed his first client from the film world. That was the hardest part. Once he had that, the rest was easy.
From there, all you have to do is a good job at first, as in the case of Sylvester Stallone, who trusted him because of the good references. Starr kept his books in order and invested his money very wisely, earning him a good return.
Once he had won more clients of this kind, he began investing in riskier ventures in which, one way or another, Starr had hidden interests. Whenever someone asked for their money back, there was no problem: he handed it over so as not to arouse suspicion.
He became the accountant to Hollywood’s stars. You weren’t glamorous unless Starr kept your books, so he always had around 3 billion dollars in his hands, and he went from investing in risky ventures to simply taking the money from their accounts.
When he urged Sylvester Stallone to invest in Planet Hollywood, the actor, not very enthusiastic, decided to withdraw his money, and Starr gave it back without a fuss.
When Al Pacino noticed some very odd movements in his accounts, he also decided to end his relationship with Starr, who likewise returned his money without any trouble. It’s simple: you give Stallone the money Uma Thurman has just invested, and if Uma Thurman ever wants her money back, you give her Martin Scorsese’s, and so on.
The scheme is exactly the same as Madoff’s, and so is the problem. When everyone wants their money back and no new people are putting money in, you can no longer repay anyone, and that’s when you end up behind bars.
I imagine we’ll soon see Kenneth Starr’s story on the big screen, and the actors certainly wouldn’t struggle to get into character. Directed by Martin Scorsese, starring Al Pacino and Uma Thurman. Title: Hollywood Heist.
Featured image: Thomas Wolf, www.foto-tw.de, CC BY-SA 3.0, via Wikimedia Commons.
.jpg){kind=link}