Starr, 66, was arrested in May (10) and charged with wire fraud, securities fraud, money laundering and fraud by an investment adviser, and was due to stand trial in November (10) after initially entering a not guilty plea.
But he had a change of heart on Friday (10Sep10) and changed his plea during a hearing in the U.S. District Court in Manhattan.
He is now expected to be handed a 10 to 12 year prison sentence when he returns to court on 15 December (10), but could be given a harsher punishment of up to 20 years behind bars.
Starr may also be forced to pay back as much as $50 million (£33.3 million) in restitution.
He has been in jail since his arrest and his bail stands at $10 million (£6.7 million).