Former top New York official pleads guilty to tax evasion

NEW YORK (BestGrowthStock) – Former New York City Council and Manhattan borough president Andrew Stein pleaded guilty on Wednesday to failing to pay income taxes and lying the IRS in a $50 million fraud investigation.

Stein, 66, pleaded guilty in Manhattan federal court to one count of not paying federal income taxes on more than $1 million in income in 2008.

Prosecutors had charged financial manager Kenneth Starr, whose clients included prominent celebrities and philanthropists, with swindling clients out of tens of millions of dollars to support a lavish lifestyle.

Stein admitted to lying to the Internal Revenue Service about a shell company, Wind River, LLC, which he controlled and which he and Starr allegedly set up for Starr to funnel swindled funds.

Starr pleaded guilty to money laundering and wire fraud in a scheme that totaled some $50 million in September, and will be sentenced early next year.

Stein, who once served as Manhattan’s borough president, City Council president and in the state Assembly, told the judge he was wrong and stupid to have not paid the taxes, and that he accepted full responsibility.

He faces a maximum one year in prison under the plea arrangement when he is sentenced in March. Under the previous felony charges he could have received more than three years.

(Writing by Chris Michaud, editing by Greg McCune)

Former top New York official pleads guilty to tax evasion