When celebrity accountant Kenneth Starr was arrested yesterday, the feds discovered him hiding under a pile of clothes in a closet. But it didn't take them long to find him because his wife—former stripper and current pole dancer Diane Passage—let them into the apartment and whispered, "He's upstairs," the Daily News reports. Starr kept books for stars like Uma Thurman, Martin Scorsese, Wesley Snipes, Caroline Kennedy, Annie Leibovitz and Sylvester Stallone. But investigators say the high-profile Democratic party donor was actually running a $30 million Ponzi scheme.
According to the criminal complaint, Starr used clients’ money to buy a lavish Manhattan apartment, a deluxe Hamptons rental, and enrich his friends, paying for the "extravagant personal expenses" of Andrew Stein, a former New York state assemblyman and former president of the New York City Council. Stein is accused of lying to IRS investigators about his finances, including $1.6 million he received from Starr. Stein was released on bail yesterday (telling reporters, "It will be cleared up") but a judge decided Starr was a flight risk; he faces as many as 45 years in prison if convicted.
Leibovitz says she dropped Starr because she was worried about his questionable investments—and if Leibovitz thinks you're making bad investments, you've got problems. "News of Ken Starr's arrest does not come as a complete surprise to me, and I will follow this story with great interest," said the photographer in a statement. Directors Mike Nichols and Martin Scorcese are said to have "gotten out early," as did Uma Thurman, who reportedly "stormed" into Starr's office after she discovered that $1 million was transferred from her bank account to one of his associates. His amatuerish attempts to buy time during the meeting were no match for sharp Uma.
According to the complaint, "Starr returned to the room several times to say that [his associate] was unreachable and unavailable by phone or e-mail." But what Starr didn't know is that Thurman actually called the associate herself when he was out of the room, and the guy told her "he did not know the money belonged to her and that he thought it belonged to Starr." Starr then allegedly transferred the million dollars from former William Morris chief Jim Wiatt in order to pay Thurman.
Starr's wife is not charged, but Passage reportedly profited from his shady deals, working no-show jobs at two different companies and posing as a music producer. But her true calling seems to be pole dancing—you may remember her from our photo gallery of last weekend's dance parade. She was a single mom working at Scores before she met Starr, whom she calls her "knight in shining armor." But it's hard to leave the pole behind, apparently; Passage is best known for starting "Pole Superstar," an annual pole-dancing competition. "I personally am a bit reluctant to get behind the idea of toning down the image of pole dance because I find that the raciness is half the fun," Passion said in a recent interview. Yesterday she was unavailable for comment, and the doorman at her building was arrested for punching out a freelance photographer.
