The SEC previously charged Starr, Starr Investment Advisors LLC, and Starr & Company LLC with violating securities laws pertaining to custody of clients' assets and misusing client funds to buy a multi-million dollar luxury condominium on Manhattan's Upper East Side, among other things.
Starr was arrested in May and indicted on 23 counts of fraud and money laundering involving $59 million. Starr was a financial adviser to several celebrities including Uma Thurman and Martin Scorsese.What's newsworthy today is that his attorney was charged with taking part in this crazy scheme. His attorney, Jonathan Bristol, is being accused of using his attorney trust accounts to as conduits for Starr's clients' stolen money. The SEC charged him today.
Bristol had a legal and professional responsibility not to assist Ken Starr in conduct that he knew was unlawful," said George S. Canellos, director of the SEC's New York Regional Office. "Bristol crossed the line from lawyer to conspirator when he failed to safeguard funds entrusted to him, helped Starr steal client money, and lied to the victims to perpetuate the scheme."
According to the SEC, more than $25 million belonging to Starr's clients flowed through Bristol's attorney trust accounts. Without his clients' authorization, Starr would transfer their funds into the attorney trust accounts. Bristol would then transfer the stolen funds to Starr and his two companies for Starr's personal use.Is that money laundering? I wonder what his cut was... Hmmm.