United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
MAY 2, 2011 ELLEN DAVIS, JERIKA RICHARDSON,
PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that attorney JONATHAN
BRISTOL pled guilty today to conspiracy to launder nearly $19
million in connection with financial adviser KENNETH STARR’s
fraud. During his plea allocution, BRISTOL admitted that he
allowed STARR to wire funds in and out of his attorney escrow
account, knowing that the funds were the proceeds of STARR’s
scheme to steal money. BRISTOL pled guilty before U.S. District
Judge DEBORAH A. BATTS.
Manhattan U.S. Attorney PREET BHARARA stated:
“Attorneys are supposed to promote respect for the rule of law.
But Jonathan Bristol abused his position as a partner at a
prominent New York City law firm to break the law over and over
again. Bristol should have been a gatekeeper; instead, he was an
enabler to Kenneth Starr and his multi-million dollar fraud.”
According to the superseding Information filed today in
Manhattan federal court, as well as statements made at the guilty
plea proceeding:
KENNETH STARR was the owner and president of Starr &
Company, LLC, which purported to be in the business of managing
the assets of, and providing financial planning advice to, high
net-worth and celebrity clients. Starr & Company, LLC, also
owned and controlled a related entity, Starr Investment Advisers,
LLC (collectively, the “Starr Entities”). On September 10, 2010,
STARR pled guilty in Manhattan federal court to wire fraud, money
laundering, and investment adviser fraud.
BRISTOL is an attorney admitted to practice in New York
and New Jersey. From November 2008 through May 2010, BRISTOL was
a partner at a prominent law firm in New York City. BRISTOL
helped STARR defraud his clients and concealed STARR’s criminal
conduct by using two separate attorney trust accounts that were
under his control to launder STARR’s defrauded funds. The money
laundering transactions BRISTOL conspired with STARR to conduct
included:
C Starr & CO: 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.
C Client Settlements: In or about January 2010,
BRISTOL used the escrow accounts to receive STARR
client funds and then transferred those funds to
pay a settlement with another former, disgruntled
STARR client.
C Purchase of a Luxury Apartment: In April 2010,
BRISTOL used his escrow accounts to help STARR
steal over $7 million in client funds and purchase
a five-bedroom, 6.5 bathroom luxury condominium.
* * *
BRISTOL, 55, pled guilty to one count of conspiracy to
commit an offense against the United States, namely, money
laundering. He faces a maximum sentence of five years in prison
and a maximum fine of $250,000 or twice the gross gain or loss
from the offense. Further, as part of his plea agreement with
the government, BRISTOL agreed to pay restitution in the amount
of $18,860,282.69.
BRISTOL is scheduled to be sentenced by Judge BATTS on
September 26, 2011, at 10:30 a.m.
Mr. BHARARA praised the investigative work of the IRS
and the U.S. Securities and Exchange Commission. Mr. BHARARA
also thanked the New York County District Attorney’s Office for
its support for and participation in the investigation.
Assistant U.S. Attorneys WILLIAM J. HARRINGTON, MICHAEL
BOSWORTH, and MICHAEL LOCKARD, of the U.S. Attorney’s Office for
the Southern District of New York are in charge of the
prosecution. Assistant District Attorneys MICHAEL KITSIS and
HOPE KORENSTEIN, of the New York County District Attorney’s
Office, also provided invaluable support and assistance to the
investigation.
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