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EFTA01334040 Jean" Epstein in \en 1ock. 2001. /AA F:psitin% nint••@art. 5/.9110-squart- rwn Ryan houµ. Ile also 01011 a 7.5Iniaiere ranch in \en Mole/La house in Palm Reach, and a Caribbean island. Lately, Jeffrey Epstein's high-flying style has been drawing oohs and at: the bachelor financier lives in New Xork's largest private residene, claims to take only billionaires as clients, and flies celebrities including Bill Clinton and Kevin Spacey on his Boeing 727. But pierce his air of mystery and the picture changes. VICKY WARD explores Epstein's investment career, his ties to retail magnate Leslie Wexner, and his complicated past EFTA01334041 Guests are invited to lunch or dinner at the charm slip into his eyes. They are steely the town house—Epstein usually refers to the and calculating, giving some hint at the former as "tea," since he likes to eat bite- steady whir of machinery running behind size monads and drink copious quantities of them. "Let's play chess," he said to me, af- East Grey. (He does not touch alcohol or to- ter refusing to give an interview for this ami- bacco.) Tea is served in the "leather room;' de. "You be white. You get the first mow." so called because of the cordovan-colored It was an appropriate metaphor for a man fabric on the walls. The chairs are covered who seems to feel he can win no matter in a leopard print, and on the wall hangs a what the advantage of the other side. His huge, Oriental fantasy of a woman holding advantage is that no one really seems to an opium pipe and caressing a snarling li- know him or his history completely or what onskin. Under her gaze. plates of finger his arsenal actually consists of. Ile has care- sandwiches are delivered to Epstein and fully engineered it so that he remains one guests by the menservants in white glows. of the few truly baffling mysteries among Upstairs, to the right of a spiral stair- New York's moneyed world. People know n Manhattan's ane, is the "office." an enormous gallery snippets. but few know the whole. Upper Eaft Side, home to some of the spanning the width of the house. Strangely. "He's wry enigmatic: says Rosa Monck- most expensive real estate on earth. exists it holds no computer. Computers belong in ton, the tbrmer C.E.O. of Tiffany & Co. in the crown jewel of the city's residential the "computer room" la smaller room at the C.K. and a close friend since the early town houses .Mth its I5-foot-high oak door, the back of the house). Epstein has been 1980s. "You think you know him and then huge arched windows, and nine floors. it known to say. The office features a gilded you peel off another ring of the onion skin sits on—or. rather. commands—the block desk (which Epstein tells people belonged and there's something else extraordinary of 71st Street between Fifth and Madison to banker 1. P Morgan). 18th-century black underneath. He never reveals his hand. ... Avenues. Almost ludicrously out of pro- lacquered Portuguese cabinets, and a nine- He's a classic iceberg. What you see is not portion with its four- and fiw-story neigh- foot ebony Steinway "D" grand. On the what you get.- bors. it seems more like an institution than desk, a paperback copy of the Marquis de a house. This is perhaps not surprising— Sade's The illi.giutones of rinue was re- ven acquaintances sense a until 1989 it was the Birch Wathen private cently spotted. Covering the floor. Epstein curious dichotomy: Yes. he school. Now it is said to be Manhattan's has explained. "is the largest Persian rug lives like a "modern ma- largest private residence. you'll ever see in a private home—so bia. it haraja:' as Leah Kiernan, Inside. amid the flurry of mensenants must have come from a mosque." Amid one of his an dealers. puts attired in sober black suits and pristine such splendor, much of which reflects the it. Yet he is fastidiously, al- white glows. you feel you have stumbled work of the French decorator Alberto Pin- most obsessively private—he I into someone's private Xanadu. This is no mere rich person's home, but a high- walled, eclectic. imperious fantasy that to. who has worked for Jacques Chirac and fists himself in the phone book under a the royal families of Jordan and Saudi Ara- pseudonym. He rarely attends society gath- bia. there is one particularly startling oddi- erings or weddings or funerals: he considers seems to have no boundaries. ty: a stuffed black poodle. standing atop eating in restaurants like "citing on the sub- The entrance hall is decorated not with the grand piano. -No decorator wouki ever way"—i.e.. something he'd never do. There paintings but with row upon row of indi- tell you to do that." Epstein brags to visi- are mum• women in his lik. mostly young. vidually framed eyeballs: these. the owner tors. "But I want people to think what it but there is no one of them to whom he tells people with relish. were imported from means to stuff a dog:' People can't help has been able to commit. He describes his England. where they were made for in- but feel it's Epstein's way of saying that he most public companion of the last decade. jured soldiers. Next comes a marble foyer. always has the last word. Ghislaine Maxwell. 41 the daughter of the which does have a painting, in the man- In addition to the town house. Epstein late. disgraced media baron Roben Max- ner of Jean Dubuffet ... but the host coyly lives in what is reputed to be the largest well. as simply his "best friend." He says refuses to tell visitors who painted it. In any private dwelling in New Mexico. on an 518 she is not on his payroll, but she seems case. guests are like pygmies next to the million. 7.500-acre ranch which he named to organize much of his lik—recently she nearby twice-life-size sculpture of a naked "Zorro." "It makes the town hence look like was making telephone inquiries to find a African warrior. a shack:' Epstein has said. He also owns California-based yoga instructor for him. Despite its eccentricity the house is curi- Little St. James. a 70-acre island in the (Epstein is still close to his two other long- I ously impersonal, the statement of someone U.S. Virgin Islands. where the main house term girlfriends, Paula Heil Fisher, a for- who wants to be known for the scale of his is currently being renovated by Edward Tut- mer associate of his at the brokerage firm $0.0. possessions. Its occupant. financier Jeffrey tle, a designer of the Amanresorts. Them is Bear Stearns and now an opera producer, Epstein. 50, admits to friends that he likes it also a S6.8 million house in Palm Beach, and Eva Andersson Dubin. a doctor and when people think of him this may. A good- Flcaida, and a fleet of antral): a Gulfitroun onetime model. He tells people that when looking man, resembling Ralph Lauren. IV. a helicopter. and a Boeing 7:7. replete a relationship is over the girlfriend "moves with thick gray-white hair and a weathered with trading room, on which Epstein re- up. not down." to friendship status.) face, he usually dresses in jeans, knit shins, cently flew President Clinton. actors Chris Some of the businessmen who dine with and loafers. He tells people he bought the Tucker and Kevin Space), supermarket him at his home—they include newspaper house because he knew he "could never live magnate Ron Burkk. Lew• Wasserman's publisher Mort Zuckerman, banker Louis anywhere bigger." He thinks 51.000 square grandson, Casey Wasserman. and a kw oth- Ranieri. Revlon chairman Ronald Perelman. kit is an appropriately large space for some- er. on a mission to explore the problems of real-estate tycoon Leon Black. former Mi- one like himself, who deals mostly in large AIDS and economic development in Africa. crosoft executive Nathan Myhrvold. Tom concepts--especially large sums of money. Epstein is charming. but he doesn't let Pritzker (of Hyatt Hotels). and real-estate 302 : VANIIY 'AIR MARCi1 2001 SDNY_GM_02764638 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA 00251480 EFTA01334042 personality Donald Trump —sometime s seem not all that clear as to what he ac- tually does to earn his millions. Certa inly, you won't find Epstein's transactions writ- ten about on Bloomberg or talked about in the trading moms. "The trading desks don't seem to know him. It's unusual for animals 'hat big not to leave any footp rints in the ;now." says a high-level investment manager. Unlike such fund managers as George Soros and Stanley Druckenmiller, whose client lists and stock maneuverings act as their calling cards. Epstein keeps all his deals and clients secret, bar one client : bil. lionaire Leslie Wexner, the respected chair- man of Limited Bran/Is. Epstein insists that ver since he left Bear Stearns in 1981 he as managed money only for - • ho depend on him for discretion. "I was tine only person crazy enough. or arrogant enough, or misplaced clietal,. to make my limit a bil- lion dollars or more,- he tells peo- ple freely. According to him, the flat fees he receives from his clients . combined with his skill at playing currency markets "with very I ..ge sums of money.- have afforded I .m the lifestyle he enjoys today. Why do billionaires choose him as their trustee? Because the prob- lems of the mega-rich. he tells peo- ple. are different from yours and mine, and his unique philosophy is cntral to understanding those problems: parks department. His " :ery few people need any more money parents viewed educa- v ten they have a billion dollars. The UNREAL rZSTATE key tion as "the way out" h not to have it do harm more From rop. the "leather than any- for him and his young thng else. ... You don't want to lose - room" in Epstein's house. your er brother, Mark, now money. where - tea- is served working in real estate. to guests: Epstein at his Jeffrey started to play Zorro ranch in 1991 e has likened his job to the with his "best friend?' piano--for which he that of an architect —more maint Ghislainc Maxwell ains a passion—at specifically, one who spe- five, and Epstein in 1979. he went to cializes in remodeling, "I Brooklyn's /thymic High always describe fa billion- Scho "bounty hunter:' ol. He was good at aire] as someone who mathemat cling lost or stolen mon- ics. and in his started out in a small early ey for the government or for very rich home and as he became wealthier had 20s he got a job teaching physics and add- math at Dalton. the elite Manh people. He has a license to carry a firearm ons. He added on another addition, he attan pri- For the last /5 years. he's . built vate school. While there been running his a room over the garage .. . until he began tutoring business, J. Epste you have a the son of Bear Stearn in & Co. house that is usually a mess.. . . It's a s chairman Ace Since Leslie Weiner appeared in his large Greenberg and was friendly house that has been put together over with a daugh- life —Epstein has said time ter of Greenberg's. Soon this was in 1986: where no one could foretell the financ he went to Bear others say it was in ial fu- Stearns. where. under the 1989. at the earliest— tut: and their accompanying needs mentorship of he has gradually, in ." both Greenberg and current Bear Stear a way that has not Ic makes it sound as though his job ns generally made headlines. conic C.E.O. James Cayne. he did well enoug to be ac- combines the roles of real-estate agent h cepted by the Establishment. He's . ac- to become a limited partner—a a mem- countant, lawyer, money manager, rung be- ber of various commission trustee, neath full partner. Ile abruptly s and councils, and confidant. But, as with lay Gatsb departed in he is on the Trilateral y, 1981 because. he has said, he Commission, the myths and rumor swirl around Epste wanted to Council on Foreign Relat in. run his own business. ions. the New Here are some of the hard facts about York Academy of Sciences, and the Insti- Epstein—ones that he doesn't mind peopl There after the detail s reced e into shad• tute of International e ow. A few of the handful of Education. knowing: He—grew Lip middle-clas current friends His current fan club extends to Cayne. s in who have known him since Brcoklyn. His father worked for the city's the early 1980s /lent). Rosovsky, the former dean recall that he used to tell them of Har. he was a vard's Faculty of Arts and Scien '3 4 ,.C2t 2003 ces. and SDNY_GM_02764.639 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA_0025 1481 EFTA01334043 "I think we both possess the skill of seeing patterns," says Wexner. "But Jef- frey sees patterns in politics and finan- cial markets, and I see patterns in lifestyle and fashion trends. My skills are not in in- vestment strategy, and, as everyone who knows Jeffrey knows, his are not in fash- ion and design. We frequently discuss world trends as each of us sees them:' y the time Epstein met Wexner. the latter was a retail legend who had built a S3 billion em- pire —one that now in- cludes Victoria's Secret. Express, and Bath & Body Works—from 55.000 lent him by his aunt. "Werner saw in Jeffrey the type of person who had the potential to real- ize his [Jeffrey's) dreams?' says some- one who has worked closely with both men. "He gave Jeffrey the ball. "Jeffrey [knows] when and Jeffrey hit it out of the park: Wexner, through a trust. bought he is winning.... He will the town house in which Epstein now lives for a reported S 13.2 yo4:e,hoose your million in 1989. In 1993. Wex- ner married Abigail Koppel. a 31-year-old lawyer. and the weapon; says Wexner newlyweds relocated to Ohio: in 1996. Epstein moved in- to the town house. Public documents suggest that the house is still owned by the trust that bought it. SPOILS OF SUCCESS Edelnun and Murray Gd- but Epstein has said that he now owns the From kr Epstein's 70. Mann. and mathematical house. acre island. Link Sr biologist Martin Nowak. Wexner trusts Epstein so completely James. in the G.S. Virgin When these men describe that he has assigned him the power of fidu- Islands—he now calls it Link St. kir: Epstein Epstein. they talk about ciary over all of his private trusts and awn- with President Clinton in "energy" and "curiosity: as dations says a source close to Wexner. In Brunei. 2.002: Leslie well as a low for theoreti- 1992. Epstein even persuaded Wexner to Weiner with his future cal physics that they don't put him on the board of the Weiner Foun- wik. at the 1990 ordinarily find in laymen. dation in place of Weiner's ailing mother. C.F.D.A. Fashion Awards. Gell-Mann rather sweetly Bella Wexner recovered and demanded to in New York. 1991. mentions that "there arc al- be reinstated. Epstein has said they settled ways pretty ladies around" by splitting the foundation in two. when he goes to dinner the: Epstein does not care that he comes be- Larry Summers, Harvard's current presi- Epstein. and he's under the impression that tween family members. In fact, he sees it dent. Harvard law professor Alan Dersho- Epstein's clients include the Queen of En- as his job. He tells people. "I am thew to witz says. "I'm on my 20th book.... The gland. Both Nowak and Dershowitz were represent my client, and if my client needs only person outside of my immediate Ramify thrilled to find themselves shaking the hand protecting—sometimes even from his own that I send drafts to is kffrey." Real-estate of a man named "Andrew" in Epstein's family—then it's often better that people developer and philanduopist Marshall Pone• house. "Andrew" turned out to be Prince hate me. not the client: who has worked with Epstein on projects in Andrew, who subsequently arranged to sit "You've probably heard I'm vicious in New Albany, Ohio. for Weiner. says. "He in the back of Dershowitis law class. my representation of my clients," he tells .1 digests and decodes the information very Epstein gets annoyed when anyone sug- people proudly: Leah Kleiman describes his rapidly, which is to me terrific because we gests that Weiner "made him: "I had real- haggling over art prices as something like C have shorter meetings" ly rich clients before." he has said. Yet he a scene out of the movie Mad Max: Be- Also on the list of admirers are former does not deny that he and Wexner have a wend Thunderdome. Even a former mentor s senator George Mitchell and a gaggle of special relationship. Epstein sees it as a says he's seen "the dark side" of Epstein, a distinguished scientists. most of whom partnership of equals. "People have said it's and a Bear Stearns source recalls a meet- ; Epstein has helped fund in recent years. like we have one brain between two of us: ing in which Epstein chewed out a team h. Il They inditcle Nobel Prize winners Gerald 204 i VANIIY r, to each has a side." making a presentation for Wexner as - mAICH 2003 d. M SDNY GM 02764640 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA 00251482 EFTA01334044 being so brutal as to be "irresponsible." media. Right now, in the wake of the pub- Hoffenberg, says a close friend, "really One repone; m fart, received three threes hefty following his trip with Clinton, he liked Jeffrey.... Jeffrey has a way of getting from Epstein while preparing a piece. They must be in a very difficult place." under your skin, and he was under Hof- were delivered in a jocular tone, but the fenberg's." Also appealing to Hoffenberg A message was clear: There will be trouble ccording to S.E.C. and were Epstein's social connections; they in- for your family if I don't like the article. other legal documents un- cluded oil mogul Cece Wang (lather of the On the other hand, Epstein is clearly earthed by Vanity Fair, designer Vera) and Mohan Murjani, whose wry generous with friends. Joe Pagano. an Epstein may have good clothing company grew into Gloria Van- Aspen-based venture capitalist. who has reason to keep his past derbilt Jeans. Epstein lived large even then. known Epstein since before his Bear Stearns cloaked in secrecy: his real One friend recalls that when he took Cana- days. can't say enough nice things: "I have mentoc it might seem, was dian heiress Wendy Belzberg on a date he a boy who's dyslexic. and Jeffrey's gotten not Leslie Mk:trier but Steven Jude Hoffen- hired a Rolls-Royce especially for the oc- close to him over the years.... Jeffrey got berg. 5' who. for a few months before the casion. (Epstein has claimed he owned it.) him into music. He bought him his first S.E.C. sued to freeze his assets in 1993, was In 1987. Hoffenberg. according to sources. piano. And then as he got to school he had trying to buy the New York Post. He is cur- set Epstein up in the offices he still occu- difficulty ... in studying so Jeffrey got rently incarcerated in the Federal Medical pies in the Villard House. on Madison Av- him interest$ in taking flying lessons." Center in Devens. Massachusetts. serving a enue. across a courtyard from the restaurant Rosa Monckton recalls Epstein telling 20-year sentence for bilking investors out of Le Cirque. Hoffenberg hired his new pro- her that her.daughter. Domenic-a. who sub more than 5450 million in one of the lamest tege as a consultant at 525.000 a month. fess from Down syndrome. needed the sun. Ponzi schemes in American history. and the relationship flourished. "They trav- and that Rosa should feel free to bring her When Epstein met HotTenberg in Lon- eled everywhere together—on Hoffinberg's to his house in Palm Beach anytime. don in the 1980s. the latter was the char- plane. all around the world. they were aF Some friends remember that in the late ismatic, audacious head of the Towers ways together." says a source. Hoffenberg 80s Epstein would offer to upgrade the air- Financial Corporation. a collection agency has claimed that Epstein confided in him. line tickets of good friends by affixing first- that was supposed to buy debts that peo- saying. for example. that he had left Bear class stickers: the ooh' problem was that the ple owed to hospitals. banks. and phone Stearns in 1981 after he was discovered ex- stickers turned out to be unofficial. Some- companies. But Hoffenberg began using ecuting "illegal operations: times the technique worked. but other times company funds to pay off earlier investors Several of Epsteirf, Lew Steams comm• it didn't. and the unwitting recipients found and service a lavish lifestyle that included a poaries recall that Epstein left the compa- themselves exiled to coach. (Epstein has mansion on Long Island. homes on Man. ny very suddenly nithin the company there claimed that he paid for the upgrades. and hanan's Sutton Place and in Florida. and a were rumors also that he was involved in a had no knowledge of the stickers.) Many of fleet of cars and planes. technical infringement. and it was thought those who benefited from Epstein's largesse Hoffenberg and Epstein had much in that the etecutive committee asked that he claim that his generosity comes with no common. Both were smart and obsessed resign after his two supporters. Ace Green- strings attached. "I never felt he wanted with making money. Both were from Brook- berg and Jimmy Car. were outnumbered. anything from me in return." says one old lyn. Acconling to Holknberg. the two men Greenberg says he can't recall this: Cayne friend. who received a first-class upgrade. were introduced by Douglas Leese. a de- denies it hanpened. and Epstein has de- fense contractor. Epstein has said they were nied it as well. "Jeffrey Epstein left Bear IFI pstein is known about tor introduced by John Mitchell. the late attor- Steams of his own volition." says Caw eve. as a man who loves amok 71 new general. "It was never suggested that he leave by en—lots of them. moult,' Epstein had been running International any member of management. and manage- young. Model types have *Assets Group Inc. tl.A.G.). a consulting ment never looked into any improprieties Eps4E been heard saying they aigi company. out of his apartment in the Solo by him. Jeffrey said specifically. 'I don't full of gratitude to building on East 66th Street in New York. want to work for anybody else. I want to for flying them around. and Though he has claimed that he managed work for myself:" Yet. this is not the story he is a kmiliar face to many of the View- money kr billionaires only. in a 1989 dep- that Epstein told to the S.E.C. in 1981 and ria's Seem girls. One young woman recalls osition he testified that he spent 80 per- to lawyers in a 1989 deposition involving a being summoned by Ghislaine Maxwell to cent of his time helping people recover civil business case in Philadelphia. a concert at Epstein's town house. where stolen money from fraudulent brokers and In 1981 the S.E.C.'s Jonathan Harris and the women seemed to outnumber the men lawyers. He was also not above entering Robert Blackburn took Epstein's testimony by far. "These were not women you'd see into risky, tax-sheltered oil and gas deals and that of other Bear Steams employees in at Upper East Side dinners." the woman with much smaller investors. A lawsuit that part of what became a protracted case recalls. - Many seemed foreign and dressed Michael Stroll, the former head of Wil- about insider trading around a tender of a little bizarrely." This same guest also at- liams Electronics Inc.. filed against Epstein placed on March II. 1981. by the Seagram tended a cocktail party thrown by Maxwell shows that in I981 I.A.G. received an in. Company Ltd. for St. Joe Minerals Corp. that Prince Andrew attended. which was vestment from Stroll of 5450.000. which Ultimately several Italian and Swiss in- filled, she says. with young Russian mod- Epstein put into oil. In 1984. Stroll asked vestors were found guilty. including Italian els. "Some of the guests were horrified." for his money back: four years later he had financier Giuseppe Tome. who had used the woman says. received only 510.000. Stroll lost the suit, his relationship with Seagram owner Edgar "He's reckless." says a former business after Epstein claimed in court, among oth- Bronfman Sr. to obtain information about associate. "and he's gotten more so. Mon- er things, that the check for 310.000 was for the tender offer. ey does that to you. He's barking the oath a horse he'd bought from Stroll. - My net After the tender offer was announced. he made to himself—that he would never worth never exceeded four and a half mil- the S.E.C. began investigating trades in- do anything that would expose him in the lion dollars." Stroll has stud. volving St. Joe at cnNti veto cr y P‘Of 'I' MAtCH '00) VAI*1 •, IA as SDNY GM 02764641 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA 00251483 EFTA01334045 contains a parody of Affleck and Matt Da- your input when it's somebody else's project." So. is Affleck planning to N,.. .,nne the lib- mon making Good Will Hunting II. Affleck Affleck has always impressed colleagues erals answer to Ronald Frown' Ile admits says to Damon, "What do f keep telling you? with his voracious appetite for information that he entertains the You gotta do the safe picture, then you do and skills. "He has made it a point to learn thought of someday running kr Congress, alma: think there's the art picture. Then sometimes you gotta everything he can about how the business a real nobility to public service. It would be do the payback picture because your friend works—not just the craft of acting, but fun to run on a platform I really hci: says you owe him. Then sometimes you got- from the producing standpoint, from the in, without any of the kind of comprou ta go back to the well." studio standpoint." says Jon Gordon, exec- people make —without being beholden • "Sometimes you do Reindeer Games," utive vice president of production at Mira- the win-at-all-costs mentality." Damon says derisively. mar. "He knows how deals work. ft's what And the invasion of privacy would "That's just mean," Affleck whines. sets him apart. If he wanted to run a studio nothing new. "What are you going to sac But it's a pretty accurate description of at some point, he could. He's about as about me that hasn't already been said? I his area to date. "Ben takes these franchise sharp as they come." don't cheat, I don't drink. I don't do drugs. properties so he can go and experiment," I live a clean fife," Affleck says, his eyes says Haney Weinstein. 'He believes in trying to stretch himself and notlkeep doing the same thing," ob- A file& is already juggling his acting with screenwriting and such other commit- ments as Project Greenlight. the contest he twinkling. "He's only 30 years old," says Jennifer Todd, who on-produced Roder Room. "He sena Bruce Willis, who started with Affleck and Damon started to help launch the ca- gill has an enormous amount of time to in Armageddon. - He's an awesome actor, reen of young filmmakers. Aftleck's friends do things." and I think he's going to do great things." are certain hell be directing soon. "There's Time. and drive. 1 think he's incredibly Several years ago, in a televised interview no question," Weinstein says. "Both he and hungry," says Sean Bailey. who founded on Inside the Actors Studio. Affleck said that Matt. I think they're going to rewrite the the media and production company Live- his goal was to make big commercial movies. rules. These guys can fix anything. There'll Planet with Affleck. Damon, and Chris He has since revised his ambitions. "That's be home runs in both instances:* Moore. "I think the guy has very grand an adolescent aspiration, in a way. I'd But there are other thoughts tickling the aspirations. I don't think he's going to be rather be in movies like Magnolia, which I back of Affleck's mind as well. A passion- content with just being a movie star. He think is a towering achievement. Ill con- ate liberal. he campaigned for Al Gore. knows he has the potential to do very big tinue to act, but I won't act in a way that cares deeply about evlitval issues and is things." requires me to hang my name out there extremely well informed. He entertains him- Such ambitions could he derailed by am and do a lot of publicity. I'll do character self by writing imaginary. political speeches number of miscalculations. including a ph- roles and focus on writing and directing. It in his head. He would rather discuss AIDS tate life that generates too many sensational doesn't require the same kinds of sacri- in Africa than his movie career. headlines, but Aftleck has a clear idea of Ike, in terms of quality of life and person- When Lopez goes to Afflecles mother's the ultimate goal. "On my deathbed. I have al life. and it's a more holistic approach to house for dinner. aeinstein reports. "J.Lo to be one who looks back and feels I lived the process. It's become increasingly this- told me that the conversation at the table is a good and substantial and meaningful [rating for me to have my role in the story- always about politics—about government lik:' he says. telling process limited to one character. You initiatives, educational initiatives. what's go- In the meantime. howe.a. there's a wed- hate to be respectful and judicious about ing an in the day." ding to plan. Alvin Einbentler.ln his 1989 deposition Ep- nettion with your reasom for leaving the firm? Jeffrey Epstein stein recalled that the partner who had made A: I'm aware that there were many rumors. Q: What were the rumors you hard? an "issue" of the matter was Marvin David- co‘rtst to room nor los Bear Stearns son. On March 9. Epstein said. he had met A: Nothing to do with St. Joe. Q: Can you relate %chat you heard? and other firms. Epstein resigned from Bear with Tarnow/ and Einbender again, and the A: It was having to do with an illka affair Steams on March 12. The S.E.C. was tipped two punnets told hint that the menthe com- with a secretary. otT that Epstein had information on insider mittee had weighed the offense. together with Q: Have you heard any other rumors suggest- trading at Bear Steams. and it was theatre previous "carelessness- over expenses. and ing that you had made a presentation or com- obliged to question him. In his S.E.C. testi- he would be fined 52.500. munication to the Executive Committee con- mony, given on April I. 1981, Epstein claimed "There was discussion whether. in fact. I caning alleged improprieties by other mem- that he had kund "offensive" the way Bear had ever put in an airline ticket for some- bers or employees of Bear Stearns? A: I. in fact, have heard that =we but ifs been Stearns management had handled a disci- one else and not myself and I said that it from Mr. Harris in our comersation last week. plumy action following its discovery that he was possible. ... since my secretary han- Q: Have you heard it from armane else? had committed a possible "Reg D" viola- dles my expenses." Epstein told the S.E.C. A: No. tion—evidently he had lent mann to his clos- In his 1989 testimony he stated that the est friend. (In the 1989 deposition he said "Reg D" incident had cost him a shot at A little later the interview focuses on James Cayne: that he'd lent approximately S20.000 to War- partnership that year. ren Eisenskin. to buy stock.) Such an action What the S.E.C. seemed to be especially Ct: Did you ever hear while you were at Bear could have been considered improper. al- interested in was whether there was a con- Stearns that Mr. Cayne may have trader or it • though Epstein claimed he had not realized nection between Epstein's leaving and the sider information in connection with Si ' • this until afterward. alleged insider trading in St. Joe Minerals Minerals Corporation? A: No. According to Epstein. Bear Steams man- by other people at Bear Stearns: Q: Did Mr. Cayne ner have any comenation agement had questioned him about the loan with you about St. Joe Minerals? around March 4. The questioners. Epstein Q: Sic are you aware that certain rumors may A: No. said, were Michael (Mickey) Tarnopol and have been circulating around your flint in con- Q: Did you happen to overhear any comersa- molten 2003 vA%• " , .4,1 343 SDNY_GM_02764642 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA_00251484 EFTA01334046 'Jeffrey Epstein touting the schemes, although, having no he rtvut redly told the gnmd jury. "It looked broker's license, he had to rely on others to like it was free and clear but it actually make the trades. Much of Hoffenberg's sub- wasn't," he said. lions between Mr. Cayne and anyone else re- sequent testimony in his criminal case has Epstein has denied he ever had any deal- garding St. Joe Minerals? proven to be false. and Epstein has claimed ings with anyone from the insurance com- A: No. he was merely asked how the bids could be panies. But Richard Allen says he recalls And still later in the questioning comes this accomplished and has said he had nothing talking to Epstein at Hoffenberg's direction exchange: to do with the financing of them. Yet Rich- and telling him it was urgent they retrieve ard Allen, the former treasurer of United the missing bonds for a state examination. Q: Have you had any type of business deal- Fire, recalls seeing Epstein ings with Mr. Cayne? two or three According to Allen. Epstein said. "Well get A: There's no relationship with Bear Stearns. times at the company. He and another ex- them back: He had "kind of a flippant atti- Q: Pardon? ecutive say they had direct dealing with Ep- tude: says Allen. "They never came back." A: Other than Bear Steams. no. stein over the finances. And in his deposition Q: Have you been a participant in any type of of 1989. Epstein stated that he was the one business venture with Mr. Cayne? A: No. who executed "all" Hofkriberg's instructions E pstein. according to Hollenberg, also came up with a scheme to manipulate to buy and sell the stock. He called it "mak- the price of Emery Freight stock in an at- Q: Do you have any expectation of participat- ing the orders." ing inpny business venture with Mr. Cayne? He could not recall whether tempt to minimize the losses that occurred A: Nd. he had chosen the brokers used. when Hoffenberfs bid went wrong and the Q. Have you had any business participations To win approval from the Illinois insur- share price began to fall. This was alleged to with Mr. Therarn? ance regulators for Towers's acquisition of have invoked multiple clients' accounts con- A: No; nor do I anticipate any. the companies. Hofknberg promised to in- trolled by Epstein. Q: Mr. Epstein. did anyone at Bear Stearns ject S3 million of new capital into them. In Everiuzilly. in 1991, insurance regulators in tell you in words or substance that you should fact. in his grand-jury testimony Holknberg not divulge anything about St. Joe Minerals to claimed Illinois sued Holknberg. He settled the case. the staff of the Securities and Exchange Com- that he. his chief operating officer. and Epstein. who was only a paid consul- mission? Mitchell Bitter, and Epstein came up with a tant, was never deposed or accused of any A: No. scheme to steal 53 million of the insurance wrongdoing. Barry Gross. the attorney who Q: Has anyone indicated to you in any way. companies' bonds to buy Pan Am and Em- was handling the suit for the regulators. says either directly or indirectly. in words or sub- en stock. "Jeffrey Epstein and Mitch Brater of Epstein. -He was very' elusive.... It was stance. that your compensation for this past arranged the various brokerage accounts for hand to really track him down. year or any future monies canting to you front the bonds to be placed with in New York. There were a Bear Stearns wall be contingent upon your not substantial number of checks for significant divulging information to the Securities and and I think one in Chicago. Rodman & Ren- dollars that were paid to him. I remem- Exchange Commission? shaw: Hoffenberg reportedly said. Then. ber.... He was this character we never got a A: No. said Hofknberg, while making it appear as handle on. Again we presumed that he was though they were investing the bonds in involved with the Pan'Am and Emery run Despite the circumstances of Epstein's much safer financial instruments. they used that HaTenberg made, but we never got a leaving. Bear Stearns agreed to pay him his them as collateral to buy the stock. -Ep- chance to depose him." annual bonus —which he anticipated as be- stein was the person in charge of the trans- "From the government's discovery in the ing approximately S100.000. actions. and Mitchell Limier was assisting main sentencing against Hoffenberg it would The S.E.C. never brought any charges him with it in coordination on behalf of the seem the paemment was Pk:titans a bee hat:- against anyone at Bear Stearns for insider insurance companies* money." Holknberg says David Lewis. who represented Mitchell trading in St. Joe. but its questioning seems claimed at the time. Bracer. "Thev went for what they knew they. to indicate that it was skeptical of Epstein's At one point, according to Holknberg. a could get ... and that was the fraudulent answers. Some sources have wondered broker forged the documents necessary for a promissory notes the much larger and why, if he was such a big producer at Bear SI..8 million check to be written on insurance- unrelated pan of Hoffenberg's fraud, based Stearns. he would hate given it up over company funds. The check was used to buy in New York State,. What they couldn't mere S2.500 tine. more stock in the takeover targets. Mean- get. they didn't bother with." Certainly the years alter Epstein kft the while. in order to throw the insurance regula- Another lawyer involved in the criminal firm were not obviously prosperous ones. tors off. the 51.8 million was reported as being prosecution of HotTenberg says. "In a crim- His luck didn't seem to chance until he met safely invested in a money-market account. inal investigation like that. when there is a Holknberg. United Fire's former chief financial officer guilty plea. to be quick and dirty about it. Daniel Payton confirms part of Hollinarg's discovery is always incomplete.... They rieve of Epsteiffs first assignments for Hof- account. He says he recalls making one or don't have to line up witnesses: they don't fenberg was to mastermind doomed bids two telephone calls to Epstein tat Moffett- have to learn every fact that might come out to take over Pan American Wald Airways in berg's direction) about the missing bonds. on cross-examination." 1987 and Emery Air Freight Corp. in 1988. "He said, 'Oh, yeah. they still exist: But we Hofknberg claimed in a 1993 haring before found out later that he had sold those assets a grand jury in Illinois that Epstein tame up leveraged them ... [and] used some mar- E with the idea of financing these bids through gin account to take some positions in . .. cial records show pstein was involved with Holknberg in other questionable transactions. Finan- that in 1988 Epstein in- Towers's acquisition of two ailing Illinois Emery and Pan Am." says Payton. vested S1.6 million in Riddell Sports Inc., a insurance companies. Associated Life and Epstein's extraordinary creativity was. ac- company that manufactures football helmets. United Fire. "He was hired by us to work on cording to Hoffenberg. responsible for the Among his co-investors were the theater the securities side of the insurance companies purchase by the insurance companies of a mogul Robert Nederlander and attorney and Towers Financial. supposedly to make a 5500.000 bond, with no money down. '- Ep- Leonard Toboroff. A source close to this profit for us and for the companies." Hoffen- stein created a great scheme to purchase a transaction claims that Epstein told Neder- berg reportedly told the grand jury. He also 5500.000 treasury bond that would not be lander and Toboroff that he had raised his alleged that Epstein was the "technickuL" shown ... [as) margined or collateralized." share of the money from a Swiss banker. R Ca tear SCINY_G M_02764643 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA 00251485 EFTA01334047 whose identity they could not be allowed to rust as Nederlander and Toboroff were know. But Hoffenberg has claimed the mon- ey came from him, and Towers's financial creasingl growing wary of Epstein. he became in- M y invoked with Leslie Wexner. whom cies. One uch of Epstein's work is related to clean- ing up, tightening budgets. and efficien- person who worked for 9tx.ner and statements for that year show a loan to Ep- he had met through insurance executive who saw stein of 5400.000. (Epstein has said he Robert a contract drawn up between the Meister and his late wife. Epstein has two men says can't remember the details and has dis- told Epstein is involved in "every- people that he met Vibmer in 1986 in thing, not puted the accuracy of the Towers financial Palm just a little here. a little there. Beach. and that he won his confidence Everything!" reports.) In addition, he says. "Ykxner by persuading him not to invest in the stock likes Around the same time. Nederlander and market, having a hatchet man. . Whenever just as the 1987 crash was approach- there is dirty Toboroff let Epstein come in with them on a ing. work to be done he'd stick Jet His story has subsequently changed. frey on it. scheme to make money out of Pennwalt, a When . . . He has a reputation for being asked if Wexner knew about his con- ruthless Pennsylvania chemical company. The plan nection but he gets the job done." to Hoffenberg. Epstein said that he Epstein has evidently been asked to fire was to group together with two other panics began working for Wexner in 1989. and that personal-staff to take a substantial declared position in the 'it members when needed. "He was certainly not the same time.- was that mystenctis person that everyone was stock. According to a source, Epstein was Wherever and whenever it was that Ep- scared supposed tb help Nededander and Toboroff stein to death of." says a former employee. and Wexner actually met, there was Meanwhile. he is also less than popular d raise $1S million. He seemed to fad to find an immediate and strong personal chem- with other investors. say those familiar with the istry. souse people onside Wemer's company Wexner says he thinks Epstein is -very with whom deal. (Epstein has said be was merely an in- smart with he now deals. "He 'inserted' a combination of excellent judg- himself into the e vestor.) He invested SI million. which he ment construction process of Les- and unusually high standards. Also. lie Wexner's told his co-investors was his own money. he is yacht. . . . That resulted in liti- always a most loyal friend:' gation down the road between Mr. Wexner • But in his 1989 deposi- (ion he said that he put and the shipyard that in only $300.000 of his eventually built the sts- 4 own money, Where did sel:4 says Lars Forsberg. 0 the rest come from? Hof- a law-m- whose firm at 0 fenberg has said it came he 'inv. Dickerson and • from him. in a loan that y. ;as hired to deal Nededander and Toboroff with litigation stemming didn't knot. about. from the construction • Two things happened of Wexner's Limn/es:— that alarmed Nederlander at 315 feet. one of the and Toborotf. After the ktrl.iest private yachts in ■ group signaled a possible the world. Evidently. Ep- takeover. the Pennwalt stein stalled on paying management threatened to Dickenson and Reily for sue the would-be nutters. it, ac-k "Ifs pnimbly Epstein was reluctant ini- once 1 mice in nw le- tially to give a deposition gal career that I've had about his share of the to sue a client for poymem money. telling Toboroff of services that he'd re- there were "reasons - he quested and we'd per- didn't want to. Then. after the opportunity OFFICE SPACE formed .. . without issue The -office" in Epucin's house. It has no on the performance." says Forsberg. In for new investors was closed, co-investors computers. but it does have a desk that the end the matter was settled. but Ep- recall Epstein announcing that he'd found Epstein tells people once belonged to hanker one at last: Dick Any'der then C.E.O. of J. P. Morgan. and "the largest Persian rug stein claims he now has no recollection the publisher Simon .S: Scanner. who want- you'll ever see in a private home." of it. ed to put up approximately $500,000. (Nei- The incident bort of a number of disputes ther Epstein nor Snyder can now recall Epstein has become embroiled in. Sonic arc Sources say Epstein proved that Ise could few sums so the investment. Yet in the 1989 deposition be tiny as to he baling: for instance. useful to Wexner as well with "fresh" Epstein sued Epstein said that he had recruited Sny- investment adviser Herbert ideas about investments. "Abner had a cou- Glass, der. whom he had met socially. into the ple who sold him the Palm Beach house in of bad investments. and Jeffrey cleaned 1990, for SB,444- Epstein claimed this was deal.) those up right away." says a former associ- According to a source. Toboroff and Ne- ate of owed him for furnishings removed by Glass. Epstein's. In 1998 the U.S. Attorneys Office sued derlander told Epstein (hat Snyder was too Before be signed on with Wexner. Epstein Epstein late. but. without their realizing it. Hoffen- had several for illegally subletting the (triter meetings vv,th Harold Levin. then home of the deputy consul general ol Ir.un !.eig has claimed. Snyder wrote a check to head of Wexner Investments, in which he to attorney Ivan Fisher and others. Epaein Hotrenberg and bought out some of his in- enunciated ideas about currencies that Levin paid S15.000 a month in rent to the Sum: vestment. But then Snyder wanted out. found incomprehensibk. "In Eta:. says some- : • "Nederlander started to get these irate one who used to work Department, but he charged very closely with Wes- his colleagues $20.000. Though Fishere .tri calls from (Snyder.] who wasn't pan of the ner. - almost everyone at the Limited won- terms of the agreeme ta e,.. • . deal. saying he was owed all this money.- dered who nt arc Epstein was: he literally came court ruled against Epstein. ; says someone dose to the deal. Toboroff out of nowhere," Wexner offers some inwiThl HMO ar.t *derlander were baffled. -Everyone was mystified as to what his combativ wk. -Many unx-, pox :•nitially. a source close to Hollenberg appeal was." says e Robert Moreisky. .1 timmer winning and losing. Wexner • o. s .s. . .yonberg paid Snyder off vice-clmirman of the Limited. has the unusual quality Ma . )ni SDNY_GM_0276464.4 SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA 00251486 EFTA01334048 Jeffrey Epstein was "arrogant" and "not a good fit." The spokesperson admits that it is "infrequent" for board members not to be renominated he is winning. Whether in conversations or after only one tam. negotiations. he always stands back and lets Still, the recent spate of publicity Ep- the other person determine the style and stein has inspired does not seem to have FASHION manner of the conversation or negotiation. fazed him. In November he was spotted in Cris: Ben AIMck1 Doubk RL T.Pal Irri Doi* And then he responds in their style. Jeffrey the front row of the Victoria's Secret fashion PL NYC end LA. or go lo Jawpolocorn: for lea's p)ont. col 800.I15.4.1.1VI: Debaoh Wotrin Ia An sees it in chivalrous terms. He does not pick show at New York's Lexington Avenue Ar- M.0 A94.CY) a fight, but if there is a fight, he will let you mory; around the same time the usual co- P.. 14: Odom* {Mork shalom OM, * choose your weapon." terie of friends and beautiful women were Meow. NXC. ot <di 2Q-3234107: For Ray.Ban One case is rather more serious. Currently, whisked off to Little St. James (which he unglaan Gale 888-UJXOMCA Citibank is suing Epstein kr defaulting on tells people has been renamed Link St. Jell) Per 123, hew CincoWs Enpale Annani shako" Pinyon° Atmore bo~ nenowndit: loans from its private-banking arm for 320 for a long weekend. Ralph Lauren wipenden from »levied million. Epstein claims that Citibank "fraud- Thanks to Epstein's introductions. says Polo RØ Loren raw: Km Meehan for lNdlen ulently induced" him into borrowing the Martin Nowak. the biologist finds himself Sceseeler Mawrenent money kr imenments. Citibank disputes this moving from Princeton to Harvard. where Per l40:m Peter Cincces; inn charge. he is assuming the joint position of profes- b, Thom.. m: saur Giorgio Anwar* be by "HY; The legal papers for another case offer a sor of mathematics and professor of Nola- Sfirtnj con by spool war rare window into Epstein's finances. In 1995. • gy. Epstein has pledged at least 525 million from *boded Ikon Works Epstein stopped paying rent to his landlord. to Harvard to create the Epstein Program Per Hilo tau Garman ono the nonprofit Municipal Ans Society for his kr Mathematical Biology and Erolutionary Al... terdbar9 Riled by -ese office in the 'Allard House. He claimed that Dynamics, and Epstein will have an office Herd* hi* 140, SnWdbf aØ Graf lor Enis. Pc. they were breaking the terms of the lease by at the university. The program will be dedi- Par 214 Fa June Havoc's GM &none& Dnignr not krona his staff in at night. The case was cated to searching tbr nature's algorithms. a wad. gobs al ~ad en* 031978-499.205 eventually settled. However. one of the papas pursuit that is a specialty of Nowak's. For Pan 220: Ortenockett PRders's filed in this dispute is Epstein's financial state- Epstein this nub! be the summit of every- Donna Karen Nye York dews ment for NS& in which he claimed to be thing he has walked toward: he has been -2m Donne (wen Nee 'hit wires more ce ond BW9iewl worth 520 million. He listed that he owned seen proudly displaying Renard president Godroe Nine PS Snill 57 million in securities. SI million in cash. Larry Summers's letter of commitment as Women car 'om Henn Bendel zero in residential property (although he if he can't quite believe it is real. He says he WC. ond ;enc. L Crewel told sources that he had already bought the was reluctant to have his name attached to ~and goes kcal Chad home in Palm Beach). and SI) million in the program. but Summers persuaded him. cannceinnenonwde. or col BOO-550.000S; Mortise Rodrigarz saws from Jal KIRK Soria other assets. including his investment in He rang his mentor Wexner about it. and Cod a-0 Copilot OwrIcitte. Riddell. A co-inwpor in Riddell says: "The Wexner told him it was all right. Li:imbeds«, Twee taboo by rewei orde company had been bought with a huge An insatiable. restless soul. always on the Lengda" Seeo-on NYC Gleurto kelps irr - amount of debt. Ind it wasn't public. so it move. Epstein builds a tremendous amount Z.e.aid .:• ;a 900.$$7.1584. was memingless to attach a figure at that to of downtime into his hectic work schedule. Per 223: Agnes Bruckner's Tom Ford to. is it ... the price it cost was about 51.2 mil- Yet there is something almost programmed Sam Lowest tit. Gaucho den bow Kw Sr. lion." The co-investors bought out Epstein's about his relaxation: it's as if even plea- lE3<- Lan« en Gotche betncat NYC. ced Horgan share in Riddell in 1995 for approximately sure has to be measured in terms of self- Pan 22Lr Dyan Carden 53 million. At that time, when Epstein was improvement. Nowak says that. when he dried by Ind° Mein too asked, as a routine matter, to sign a paper goes to stay with Epstein in the Caribbean. andd Delta il & lasbrwai guaranteeing he had access to a kw million they'll get up at six and. as the sun rises. G Oak. Gabbard Badly /41b; PR•dor dollars in case of any subsequent disputes have three-hour conversations about theoret- by Wendy Walker. from Weed over the sale price. Wexner signed for hint. ical physics. - Then he'll 20 of and do some LA. iron oy Jimmy Choo. from Saw Epstein has explained that this wits because work. re-appear. and well talk some more:' Bitann HP. the co-investors wanted an indemnity against Another person who went to the island Pers 274-77: Rer, Mawr's Guess sire hen being sued by Wexner. One of the investors with Epstein. Maxwell. and several beautiful Gums sewn tenoned^ or go aner gans can. Venace bean from calls this "bullshit$ women remembers that the women "sat *wow bo qÆ around one night teasing him about the iiwklede. or go be r pstein's appointment to the board of kinds of grasping women who might want avow-woo oem. r..(New York's Rockefeller University in to date him. He was amused by the idea.... Or Ltd 81384YERSACE 2000 brought him into greater social promi- He's like a king in his own world." Pare 2711.-79: Da...d• RI. T.sher, nence. Boasting such social names as Nancy Many people comment there is some- 1'0,T Dot& RL NYC ad LA. Of go to Kissinger. Brooke Astor. and Robert Bass. thing innocent. almost childlike about Jef- innwoolocon Chrome Beads bng .R•Rved der. the board also includes such pre-eminent frey Epstein. They see this as ran-shine. given from Chyme Hewn. NYC... scientists as Nobel laureate Joseph Gold- the sophistication of his surroundings. Man cr 212s -n . la 374-070,7,4„ stein. "Epstein was thrilled to be elected,- Dershowitz says that. as he was getting to & y-o %9. says someone who knows him. know Epstein, his wife asked him if he would Per tMI1121ICA li Tawny HPfiger Mer one term Epstein resigned. Accord- still be close to him if Epstein suddenly filed ilck. onn ing to York magazine, this was because kr bankruptcy. Dershowitz says he replied, iltin dP ieolle0"10irl kwricsibwal he didn't like to wear a suit to meetings. A "Absolutely. I would be as interested in him TC/MMYILL Doaldr RL raw, nkapeme tlz- the Rockefeller board says as a friend if we had hamburgers on the kan NJ* RL. WC. ard LA. or see lowapcJacom: Ia tars jeans. cot .•.• • lc : became he had insufficient time boardwalk in Coney Island and talked about BCC-LISA-LEVI 'ri sommi.: a "mar.1 member recalls Mat he his ideas" 'C 346 I va., Tr 'Alt SDNY_GM_Ili‘46;1 162405' SUBJECT TO PROTECTIVE ORDER PARAGRAPHS 7, 8, 9, 10, 15, and 17 EFTA 00251487 EFTA01334049