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Tag: Jonathan Star Bristol

  • BULLETIN: Attorney Jonathan Star Bristol Now Under Arrest In New York; Lawyer Sued By SEC Earlier Today For Helping Kenneth Ira Starr Steal From Celebrity Clients

    BULLETIN: Attorney Jonathan Star Bristol has been arrested by federal agents and is scheduled to make an appearance in Manhattan federal court this afternoon to face criminal charges of money-laundering amid allegations he helped convicted fraudster Kenneth Ira Starr siphon money from clients though an escrow fund.

    “Today’s indictment should serve as a reminder to attorneys and others that you should always know the source, nature, and ownership of funds transferred through our financial systems,” said Charles R. Pine, IRS special agent in charge. “IRS Criminal Investigation is at the forefront of this type of investigation and will continue to hold professionals accountable in any field where they are entrusted with other people’s money and engage in money laundering transactions.”

    Bristol was sued only hours ago by the SEC. Now comes word that there also was a sealed criminal indictment in the case.

    “Jonathan Bristol, a lawyer and an officer of the court, allegedly helped his client Kenneth Starr hide the proceeds of his massive Ponzi scheme,” said U.S. Attorney Preet Bharara. “Along with our law enforcement partners, we will continue to pursue corrupt professionals in both the public and private sectors who betray their duties of trust.”

    Pine said attorneys who turn a blind eye to sources of funds risk prosecution.

    “A professional, such as an attorney, cannot knowingly use an escrow account funded with illegally obtained monies, or look the other way without questioning where the monies came from,” Pine said.

    Among the specific criminal allegations against Bristol was that his former law firm was concerned that Starr had not paid $750,000 in legal fees he had racked up.

    “In March 2010, Bristol reported to senior management that STARR would be paying $100,000 of the at least$750,000 that Starr owed,” prosecutors said. “Bristol’s law firm did receive a $100,000 payment that month, but it did not come from Starr — it came from Starr’s clients, laundered by Bristol through Bristol’s escrow accounts.”

    Bristol also was accused of using the escrow accounts to help Starr steal $7 million to acquire a luxury New York condo with five bedrooms and 6.5 bathrooms, prosecutors said.

    He also was accused of hoodwinking Starrs’ clients about how their money was being used.

    “In 2009 and 2010, Bristol  regularly used his escrow accounts to receive funds belonging to Starr clients and then transferred the monies directly to Starr & Co. to pay the company’s operating expenses,” prosecutors charged.

  • BULLETIN: SEC Says Attorney Jonathan Star Bristol Helped Convicted Ponzi Swindler Kenneth Ira Starr Steal Millions Of Dollars From Celebrity Clients

    BULLETIN: The SEC has charged attorney Jonathan Star Bristol with aiding and abetting the Ponzi and fraud scheme of convicted swindler Kenneth Ira Starr, the so-called “financial adviser to the stars.”

    Starr pleaded guilty to securities fraud, wire fraud and money-laundering in September. Among his former clients were former U.S. Secretary of State Henry Kissinger, actress Uma Thurman, actor/producer Ron Howard, singer/songwriter Carly Simon and celebrity outfitter Jacob Arabo, known as “Jacob The Jewler.”

    Bristol, according to the SEC, permitted Starr to use “attorney trust accounts” hidden from the management of a law firm for which Bristol worked “as conduits when Starr stole money from advisory clients.”

    “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.”

    When one of Starr’s victims “confronted” Bristol about an unauthorized transfer of $1 million,  “Bristol lied to the victim that the funds were being bundled with other clients’ funds for an investment with UBS Financial Services,” the SEC said. “In fact, Bristol had already used the misappropriated funds to pay a multi-million dollar legal settlement with one of Starr’s former clients.”

    Taking the deception one step farther, the SEC said, “Bristol subsequently sought to represent that same victim after the victim was contacted by SEC staff in its investigation. In addition to the fact that such representations violated the ethical obligations of lawyers, Bristol’s clear intent was to obstruct and undermine the SEC’s investigation in order to conceal the wrongdoing.”

    Read the SEC complaint.

    Kenneth Ira Starr also is known as Kenneth Starr, but he is not the same Kenneth Starr whose famous “Starr Report” led to impeachment proceedings against President Bill Clinton in 1998 and 1989 in the aftermath of the Monica Lewinsky scandal.

    That Kenneth Starr was Kenneth Winston Starr.