The alleged fraud perpetrated by the so-called money-man to the stars is much worse than initially reported, authorities said today.
Disgraced money manager Ken Starr stole tens of millions more than authorities first suspected, officials said.
"The scope of the alleged fraud has doubled and is now up to $59 million, and counting," U.S. attorney Preet Bharara said. "Fraud is fraud --- whether its alleged victims are wealthy or the poor, the savvy or the vulnerable."
An indictment unsealed Thursday said Starr stole $59 million dollars in his Ponzi scheme that funded his extravagant life-style on the Upper East Side. Starr faces 20 counts of wire fraud as well as securities fraud and money laundering charges. NBCNewYork.com first broke the news of the arrest back on May 27. Starr, 66, had clients that included celebrities like Uma Thurman, Sylvester Stallone, Wesley Snipes, among others.
His clients entrusted him to manage with investments, but prosecutors said Starr simply stole the funds instead and lied to clients about the accounts where the money was being held.
IRS Special-Agent-In-Charge Charles Pine cautioned investors, "Remember the old cliche,'If its too good to be true, it probably is.'"
Starr remains behind bars without bail. He is scheduled to appear in court Friday. One time New York political leader Andrew Stein was also arrested in connection with the case for allegedly making false statements to authorities probing the alleged fraud.
