Kenneth Star to James Altucher: I Don't Need Your Fund, I Get 20% Returns With My Ponzi Scheme

Kenneth Starr, money manager for celebrities and sports stars, was recently arrested in Manhattan for allegedly running a $30 million Ponzi scheme.

Kenneth Starr is not the same Kenneth Starr who was a prosecutor during the Monica Lewinsky scandal.

James Altucher blogged yesterday about a meeting he had with Kenneth Starr a few years ago.

James Altucher is a hedge fund manager and the founder of stockpickr.com.

Altucher pitched a fund that mimicked the strategies of Warren Buffet, George Soros, Carl Icahn and other prominent investors. The idea of the fund was to buy whatever the best investors bought. For example, Buffett just bought Iron Mountain (NYSE: IRM), Republic (NYSE: RSG), and Becton Dickinson (NYSE: BDX), Icahn bought Motorola (NYSE: MOT), Genzyme (NASDAQ: GENZ), and Take-Two Interactive (NASDAQ: TTWO), and Soros added NovaGold Resources (NYSE: NG) and Best Buy (NYSE: BBY).

Starr turned him down, citing that "with his 20%+ returns he didn’t really need [Altucher]."

Altucher reflected on all this after news of the Ponzi scheme came out.