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Kenneth Starr Pleads Guilty, Wife Will Lose Home

By DNAinfo Staff on September 10, 2010 1:50pm  | Updated on September 11, 2010 9:17am

By Della Hasselle and Olivia Scheck

DNAinfo Staff

MANHATTAN — Kenneth Starr, the Ponzi-scheming money manager to the stars, pleaded guilty on Friday in a deal where he will pay up to $50 million in restitution and sell the Upper East Side condo his stripper wife has been living in.

Starr confessed in Manhattan Federal Court to running a scam that was estimated to have earned him between $20 million and $50 million, prosecutors said in a statement Friday.

His guilty plea wire fraud, money laundering and investment adviser fraud charges will land him between 121 and 151 months in prison, according to the agreement.

Starr's wife Diane Passage, a former Scores stripper who has turned up to most of his hearings, wasn't in court with him on Friday.

Diane Passage ran errands while husband Kenneth Starr pleaded guilty to a massive money scheme in court Friday.
Diane Passage ran errands while husband Kenneth Starr pleaded guilty to a massive money scheme in court Friday.
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DNAinfo/Della Hasselle

Passage's lawyer Giovanni di Stefano assured DNAinfo that Starr's marriage was still going strong, despite his time behind bars.

"Everything is OK between the two of them," Di Stefano said. "She was advised by me not to go to court today."

DNAinfo caught up with Passage outside her condo. She said she spent the day running errands, and had just picked up her dry cleaning.

As part of the plea agreement, Starr also agreed to pay back the stolen money, up to $50 million, beginning with the sale of his luxury condo at 433 E. 74th St.

When a federal judge froze Starr's assets, speculation was that Passage might have to go back to work at Scores to pay the bills. Di Stefano didn't say whether Passage was headed back to the pole.

"She is more of a lady than most of the type of people that I have had to represent in the past," Di Stefano said. "She is a bright, friendly person, she is a hard worker, and will do everything possible to safeguard herself and Mr. Starr."

Di Stefano said that Passage would survive having to move out of their apartment when it was sold.

"One does the best one can under very trying circumstances." Di Stefano said. "It's  almost like a war situation, when you have to leave your home."

"Ms. Passage has support. She is not homeless, so things will be all right for her."