NEW YORK (AP) — A New York judge has appointed an interim monitor to oversee firms controlled by a financial adviser accused of stealing $30 million from a roster of celebrity clients.
Federal Judge Sidney H. Stein ruled Tuesday after a Securities and Exchange Commission lawyer said the firms didn't have enough employees to manage a flood of investors' withdrawal requests. His firms include New York-based Starr and Co. and Starr Investment Advisors LLC
Starr has denied any wrongdoing. He faces charges including wire fraud and money laundering.
The SEC has filed a related civil lawsuit.
The judge said a full receiver would "very likely" be appointed at a later date.
Starr's clients have included Wesley Snipes, Sylvester Stallone and Martin Scorsese. There's no indication they were victims of the Ponzi-like scheme.
Information from: WALL ST. JOURNAL