Ken Starr—a famous investment adviser with a long list of celebrity clients, not the Clinton prosecutor—was arrested this morning and charged with running a Ponzi scheme. Also arrested: former NYC Council president Andrew Stein. Big scandal's afoot! [Updated]

NBC New York reports:

Ken Starr, who boasts a client list that includes Annie Leibovitz, Uma Thurman, Martin Scorsese, Wesley Snipes, Henry Kissinger, Caroline Kennedy and Robert Ziff among others, was arrested by IRS agents this morning and is expected to face investment fraud, tax fraud and other related charges, officials said. He is expected to appear in court later today.

This is especially terrible news for Leibovitz, who's already facing financial doom. And uh, Wesley Snipes too, we imagine? Andrew Stein (pictured), the former Manhattan borough president, city council president, and onetime boyfriend of Ann Coulter(!), was also arrested for lying to officials who were investigating Starr.

Starr's charged with ripping off his clients for millions, and buying himself a house with the proceeds. Read the full criminal complaint here.

UPDATE: Annie Liebovitz's PR rep sent us this statement from her: "News of Ken Starr's arrest does not come as a complete surprise to me and I will follow this story with great interest. Ken Starr no longer represents me and has not for some time."

Clarification: At least one source is reporting that Andrew Stein is Starr's son. This appears to be an error based on a confusing passage early in the criminal complaint. Andrew Stein is identified later in the document as the former NYC official we referred to.