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4ansC.-•- -z7.-7•744-f41 EFTA02729228 Jeffrey Elwyn* in lurk. 2001. 14. Epstein\ find loan knew. Ile Wtio) mirl• 7.50lbutre ranch in Nen Ink°, a house in Palm Koch. and a Caribbean Wand. Lately, leffrey Epstein's high-flying style has been drawing oohs and aahs: the bachelor financier lives in New Ifork's largest private resideece, 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 EFTA02729229 Guests are invited to lunch or dinner at the charm slip into his eyes. They arc 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 morsels and drink copious quantities of them. "Let's play chess," he said to me, af- Earl Gisy. (He does not touch alcohol or to- ter 'reusing to give an interview for this arti- bacco.) Tea is served in the "leather mom," cle. "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. /lir huge, Oriental fantasy of a woman holding advantage is that no one really seems to an opium pipe and caressing a snarling a know him or his history completely or what onskin. Under her gaze, plates of finger his arsenal actually consists of He has care- sandwiches are delivered to Epstein and fully engineered it so that he remains one guests by the menservants in white gloves. 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 case, is the "office." an enormous gallery snippets, but few know the whole. Upper EEaapp Side. home to some of the spanning the width of the house. Strangely, "He's wry enigmatic." says Rosa Mond- most ezpdtsive real estate on earth, exists it holds no computer. Computers belong in ton, the former C.E.O. of Tiffany & Co. in the crown jewel of the city's residential the "computer room" to smaller mom at the U.K. and a dose friend since the early town houses. With its IS-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 skih 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 J. P. Morgan). 18thwentury 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 five-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 Miyanunes of Hrwe was it- ven acquaintances sense a until 1989 it was the Birch Wathen private cently spotted. Covering the 9oor. Epstein curious dichotomy: Yes he school. Now it is said to be Manhattan's has explained. "is the lamest Persian rug lives like a "modem ma- largest private residence. you'll ever see in a private home—so big. it haraja: as Leah Kiernan, Inside. amid the flurry of menservants must have come from a mosquc." Amid one of his art dealers. puts attired in sober black suits and pristine such splendor, much of which reflects the it. Yet he is fastidiously. al- white gloves. you feel you have stumbled work of the French decorator .Alberto Pin- most obsessively private—he into someone's private Xanadu. This is to. who has worked for Jacques Chirac and lists himself in the phone book under a no mere rich person's home, but a high- the royal families of Jordan and Saudi Ara- pseudonym. He rarely attends society gath- walled. eclectic. imperious fantasy that bia. there is one particularly startling oddi• erings or weddings or funerals: he considers seems to hint no boundaries. ty: a stuffed black poodle. standing atop eating in restaurants like -eating on the sub- The entrance hall is decorated not with the grand piano. "No decorator would 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 many women in his vidually framed eyeballs: these, the owner tors. "But I want people to think what it but there is no one of r*. mostly young, 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. Nen comes a marble foyer, always has the last wont. Ghislaine Mansell. 41. the daughter of the which does have a painting, in the man- In addition to the town house. Epstein Late, disgraced media baron Robert Max' ner of Jean Dubutiet ... 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 SIB 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 life—recently she nearby mice-life-size sculpture of a naked "Zorro." "It makes the town house look 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- 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- ma associate of his at the brokerage firm possessions. Its occupant, financier Jeffrey tle, a designer of the Amanresorts. There 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 way. A good- Florida, and a fleet of aircraft: a Gulftutain onetime mode/. He tells people that when looking man, resembling Ralph Lauren, IV, a helicopter. and a Boeing 727. replete a relationship is over the girlfriend "mows 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 Spacey, supermarket him at his home —they include newspaper house because he knew he "could never live magnate Ron Bustle. Lew Wasserman's publisher Mon Zuckerman. banker Louis anywhere bigger." He thinks 51.000 square grandson, Casey Wasserman, and a kw oth- Ranieri. Revlon chairman Ronald Perelman, ket is an appropriately large space for some. ers on a mission to explore the problems of real-estate tycoon Leon Black. former Mi- 0 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 (or Hyatt Hotels), and real-estate a 09/12/2019 Page 2826 Agency to Agency Requet: 19-411 CONFIDENTIAL 302 !V•HITY !Alt MAtCli 2003 SDNY_GM_00331390 EFTA_00204 1 16 EFTA02729230 personality Donald Trump—sometimes seem not all that clear as to what he ac- tually does to earn his millions. Certainly, you won't find Epstein's transactions writ- ten about on Bloomberg or talked about in the trading rooms. "The trading aim don't seem to know hurt It's unusual for animals that big not to leave any footprints in the snow," says a high-laid investment manager. Unlike such fund managers as George Soros and Stanley Druciceruniller, whose client fists and stock maneuverings act as their calling cards, Epstein keeps all his deals and clients secret. bar one client: bil- lionaire Leslie Warner, the respected chair- man of Limited &grids. Epstein insists that ever since he left Bear Stearns in 1981 he has managed money only for billionaires— who depend on him for discretion. "I was the only person crazy enough, or arrogant enough. or misplaced enough, to make my limit a bil• lion dollars or more," he tells peo- pk freely. According to him, the Bat fees he receives from his clients. combined with his skill at playing the currency markets - with very large sums of money," have afforded hint 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 central to understanding those problems: parks department. His "Very kw people need any more money patents viewed educa- UNREAL ESTATE when they have a billion dollars. The key tion as "the way: out" Fown top the -leather is not to have it do harm more than any- for him and his young- room' in Epstein's house. thing else.... You don't want to lose your er brother. Mark, now where "tea" ts until to guess: Epstein at his money." working in real estate. Zorro ranch in 1991 Jeffrey started to play wth his "ben Iliend: e has likened his job to the piano—for which he Ghislaine that of an architect—more maintains a passion—at Epstein in 1979. specific*. one who spe- five, and he went to cializes in remodeling: - I Brooklyn's Laken, High "bounty hunter.- recov- always describe (a billion- School. He was good at ;- 4- c"•—• ering lost or stolen mon- aire) as someone who mathematics, and in his ey for the government or for very rich started out in a small early 20s he got a job teaching physics and people. He has a license to carry a tinorm. 2 home and as he became wealthier had add- math at Dalton. the elite Manhattan pri- For the last 15 years, he's been running his : a He added on another addition. he built vate school. While there he began tutoring business. J. Epstein & Co. - a morn Over the garage ... until you have a the son of Bear Stearns chairman Ace Since Leslie Wexner appeared in his house that is usually a mess.... It's a large Greenberg and was friendly with a daugh- life—Epstein has said this was in :986: house that has been put together over time ter of Greenberg's. Soon he went to Bear others say it was in 1989 at the earliest— where no one could foretell the financial fil- Stearns. where. under the mentorship of he has gradually, in a way that has not e tun and their accompanying needs." both Greenberg and current Bear Stearns generally mad: headlines, come to be ac- (4 He makes it sound as though his job C.E.O. James Clyne, he did well enough cepted by the Establishment. He's a mem- combines the roles of real-estate agent. ac- to become a limited partner—a rung be- ber of various commissions and councils: ;, cowman', lawyer, money manager, trustee, neath full partner. He abruptly departed in he is on the Trilateral Commission, the and confidant. But, as with Jay Gatsby, 1981 because, he has said, he wanted to Council on Foreign Relations, the New myths and rumor swirl around Epstein. run his own business. York Academy of Sciences, and the Insti- Here are some of the hard facts about Thereafter the details recede into shad- tute of International Education. Epstein—ones that he doesn't mind people ow. A kw of the handful of current friends His current fan club extends to Cayne. knowing: He-grew—actg.- middle-class in who have known him since the early 1980s Henry Rosovsky, the former dean of Har- r t Brooklyn. HIORM90069rked for the city's recall that be used to teff4890198i was a vard's Faculty brAll6t9491tzilea'alein219-411 mAtC4 2003 CONFIDENTIAL Vavi!! ;Ail 303 SDNY_GM_00331391 EFTA_00204117 EFTA02729231 "I think we both possess the skill of seeing patterns," says Planer. "But Jef- frey sees patterns in politics and linen- cial markets. and I see patterns in hist)* 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 ‘vodd 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. "Wexner 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 gale Jeffrey the ball and Jeffrey hit it out of the park: Wexner. through a trust. bought the town house in which Epstein now lives for a reported SI3.2 million in 1989. In 1991 Wex- ner married Abigail Koppel. a 31.year-old lawyer. and the 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 Edelman and Murray Gell- but Epstein has said that he now owns the a From 9µr Epswin's 70- Mann. and mathematical house. Ir acre island. little St biologist Martin Nowak. Wexner trusts Epstein so completely lames. in the LS. Vbitin When these men describe that he has assigned him the poster of fidu- Islands—he now calls it Little St. kit Epstein Epstein. they talk about ciary over all of his private trusts and foun- with President Clinton in "energy" and "curiosity," as dations. sass a source close to Wexner. In Brunei. 2002: Leslie well as a love for theoreti- 1992. Epstein even persuaded Wexner to Wexner with his future cal physics that they don't put him on the board of the Planer Foun- ssife..Abevul. at the 1990 ordinarily find in laymen. dation in place of Wexner's ailing mother. C.EDA. Fashion Awards. Gell-Mann rather sweetly Bella Wexner recovered and demanded to in New York. 1991. mentions that "there are al- be reinstated. Epstein has said they settled he ways pretty ladies around" by splitting the foundation in two. riot; when he goes to dinner the Epstein does not care that he comes be- beir Larry Summers. Harvard's current presi- Epstein. and he's under the impression that tween family members. In fact. he sees its a cx dent. Harvard law professor Alan Dersho- Epstein's clients include the Queen of En- as his job. He tells people. "I am there to 3 the • witz says. "I'm on my 20th book.... The gland. Both Nowak and Dershowitz were represent my client. and if my client needs by E. only person outside of my immediate family thrilled to find Nernst-Ives shaking the hand protecting-sometimes even from his own U that I send drafts to is Jeffrey: Real-estate of a man named "Andrew" in Epstein's family—then it's often better that people rad dedoper and philanthropist Marshall Rose, house. "Andrew" turned out to be Prince hate me, not the client." ) a littl who has worked with Epstein on projects in Andrew. who subsequently arranged to sit "You've probably heard I'm vicious in : tende New Albany. Ohio, for Wexner. says. "He in the back of Dershowitz s law class. my representation of my clients." he tells : that I digests and decodes the information very Epstein gets annoyed when anyone sug- People proudly; Leah Klcman describes his filled. rapidly, which is to me terrific because we gests that Wexner "made him." "I had real- haggling over art prices as something like els. "! have shorter meetings." ly rich clients before." he has said. Yet he a scene out of the movie Mad ,1fitc: Be- the m Also on the list of admirers are former does not deny that he and Wexner have a yond Thunderdome. Even a former mentor "It senator George Mitchell and a gaggle of special relationship. Epstein sees it as a says he's seen "the dark side" of Epstein. associ distinguished scientists, most of whom partnership of equals. "People have said ifs and a Bear Stearns source recalls a meet- ey doe Epstein has helped fund in recent years. like we have one brain between two of us: ing in which Epstein chewed out a team he mai They include Nobel Prize winners Gerald each has a sidPe." making a presentation for Wexner as do any' 09/12/2019 age 2828 Aeeney to Agency Kennet: 19-411 501 Y•NIIIV F.IR CONFIDENTIAL MARC"( 2001 1.4101 SDNY_GM_00331392 EFTA_00204 1 1 8 EFTA02729232 being so brutal as to be "irresponsible." media. Right now, in the wake of the pub- Hoffenberg, says a close friend, "really One reporter in fact, received three threats licity 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 Embers's." Also appealing to Hoffenberg message was clear: Thera. will be trouble A ecording 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- eluded oil mogul Cede Wang (father of the On the other hand, Epstein is clearly earthed by Vanity Fair, designer Wm) and Mohan Murjani, whose wry generous with friends. Joc Pagano, an Epstein may have good clothing company grew into Gloria Van- Aspen-based venture capitalist. who has reason to keep his past data Jeans. Epstein lived large even then. known Epstein since before his Bear Steams cloaked in secrecy his real One friend recalls that when he took Cana- days. can't say enough nice things: have mentor, it might seem, vas dian heiress Wendy Belzberg on a date he a boy who's dyslexic. and Jeffrey's gotten not Leslie Wexner but Steven Jude Reifen- hired a Rolls-Royce especially for the oc- close to him over the years.... Jeffrey got berg. 57 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 1991 was In 1987, Reifenberg according to sources, piano. And that as he got to school he had trying to buy the Aar NA 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 interestel in taking flying lessons." Center in Deans. Massachusetts. 'ening 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. Domenica, who sub more than 5450 million in one of the largest tégé as a consultant at 515.000 a month. fen from Down syndrome. needed the sun, Paul schemes in American history, and the relationship flourished. "They trav- and that Rosa should feel free to bring her When Epstein met Reifenberg in Lon- eled everywheie together—on Holrenberg's to his house in Palm Beach anytime. don in the 1980s. the latter was the char- plane. all around the world. they were al- Some friends remember that in the late ismatic. audacious head of the Towers ways together," says a source. Hoffenberg 80s Epstein would otter to upgrade the air- Financial Corporation. a collection agency has claimed that Epstein confided in him, line tickets of good friends by affixing fiat- that was supposed to buy debts that peo- saying. for example. that he had left Bear class stickers: the only problem was that the pk owed to hospitals. banks. and phone Steams in 1981 after he was discovered ex- stickers turned out to be unofficial. Some- companies. But HotTenbera began using ecutine "illegal operations" times the technique worked. but other times company funds to pay off earlier investors Several of Epstein's bar Stearns contem- didn't. and the unwitting recipients found and service a lavish lifestyle that included a poraries recall that Epstein left the compa- themselves exiled to coach. (Epstein has mansion on Long Island. homes on Man- ny van suddenly. 1%ithin the company there claimed that he paid tbr the upgrades, and hattan's Sutton Place and in Florida. and a were rumors also that he was invoked in a had no knowledge of the stickers] Many of fleet of ears and planes. technical infringement. and it was thought those who benefited from Epstein's largesse Floffenberg and Epstein had much in that the executive committee asked that he claim chat his generosity comes with no common. Both were smart and obsessed resign after his two supporters..Xce Green- strings attached. "1 never felt he wanted with making money. Bah were from Brook- berg and Jimmy Cmne. were outnumbered. anything from me in return." says one old lyn. According to Holfenberg. the ovo 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 happened. and Epstein has de- knse contractor. Epstein has said they were nied it as well. - JetTrey Epstein left Bear f.1 wan is known about town introduced M. John Mitchell. the late attor- Steams of his own volition." says Cayne. as a man who loves wom- ney general. "It was never suggested that he leave by en—lots of them. mostly Epstein had been running Internatienal any member of management. and manage- young. Model types have Assets Group Inc. (I.A.G.1. a consulting ment never looked into any improprieties been heard saying they are company. out of his apartment in the Solo by him. Jeffrey said specifically. 'I don't full of gratitude to Epstein building on East 66th Street in Nen York. want to work for anybody else. I want to for thing them around, and Though he has claimed that he managed work for myself— Net, this is not the story he is j 413111i:1r face to many of the Victo- money for billionaires only. in a laiee dep- that Epstein told to the S.F..C. in 1981 and ria's Secret girls. One young woman recalls osition he testified that he spent SO per- to lawyers in a 1989 deposition invoh ing 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. lie 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 Beat Steams employres in at Upper East Side dinners." the woman with much smaller investors. A lawsuit that part of what became a protracted ease recalls. "Many seemed foreign and dressed Michael Stroll, the former head of Wil- about insider trading around a tender offer a link 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 1982 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- tilled, she says, with young Russian mod- Epstein put into oil. In 1984. Stroll asked vestors were found guihy. 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 510.000 was for the tender of ey does that to you. He's breaking 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 said. volving St Joe at COVTI•LE.1) rvt:. 1, 09712/2019 Page 2829 Agency to Agency Hewer. 19-011 mAl2M 2003 CONFIDENTIAL SDNY_GM_00331393 EFTA_OO2O41 19 EFTA02729233 contains a parody of ASTleek and Man Da- your input when it's somebody else's project" mon making Good Will Hunting II. MTleek Affieck has always impressed colleagues S° Mimi Planning to nc.ome the lb says to Damon, "What do I keep telling you? with his voracious appetite for information that cals. annver to Ronald Rowan' He admits he entertains You gotta do the safe picture. then you do and skills. "He has made it a point to learn the thought of someday the art picture. Then sometimes you gotta everything he can about how the business a ^ aggress, at least: "I think theca real nobility do the payback picture because your friend works —not just the craft of acting, but fun to run to public service. It would be on a says you owe him. Then sometimes you ga- from the producing standpoint. from the in, without any platform I really be!::' ed of the kind of oompron: la go back to the well." studio standpoint." says Jon Gordon, at- people make -:5 "Sometimes you do Reindeer Games." utive vice president of production at Mira- the win-at-all -without being beholden -costs mentality" Damon says derisively. max. "He knows how deals work. It's what And the invasion of privacy would "That's just mean," Mika whines. sets him apart. If he wanted to tun a studio nothing new. "What are h: But it's a pretty accurate description of at some point, he could. He's about as about me that you going to say hasn't already been said? I ha career to date. "Ben takes these franchise sharp as they come." don't cheat. I don't drink, Idea% do drugs. properties so he can go and experiment," I live a clean life." Arnett says, his eyes says Haney Weinstein. A filed( is already juggling his acting with twinkling. "He believes in trying to stretch himself screenwiting and such other commit- "He's only 30 years old," says Jennifer and noff keep doing the same thing," ob- ments as Project Greenlight. the contest he Todd. who co-p roduced Boiler Room. "He sent Bruce Willis, who starred with AffierJr and Damon started to help launch the ca- still has an enormous amount of time to in Armageddon. "He's an awesome actor, mas of young filmmakers. Affleck's friends do things." and I think he's going to do great things." are certain he'll be directing soon. "There's lime, and drive. "I 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. Meek said that Matt. I think they're going to rewrite the the media and production company Live- his goal was to main big commercial movies. rules. These guys can fix anything. There'll Planet with ./fleck. 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. I'll 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 political issues. and is things." requires me to hang my name out there extremely well informed He entertains him- Such ambitions could be derailed by any and do a lot of publicity. I'll do character self by writing imaginary political speeches number of mrscalculanons. including a pd- roles and focus on writing and directing. It in his head. He would rather discuss .vats vale life that generates zoo man). sensational doesn't require the same kinds of sac& in Africa than his mot ie career. headlines, but Arnett has a clear idea of Ike. in terms of quality of life and person- When Lopez goes to Affleck's mother's the ultimate goal. "On ny deathbed. I hate al We. and it's a more holistic approach to house for dinner. Weinstein reports. "J.Lo to be one who looks back and feels I lived the process. It's become increasingly frus- told me that the conversation at the table is a good and substantial and meaningful trating for me to have my role in the story'- always about politics—about government lifer he say's. telling process limited to one character. You initiatives. educational initiatives. what's go- In the meantime. hone::: there's a wed- have to be respectful and judicious about ing on in the day." ding to plan. Z Jeffrey Epstein Alvin Einbender. In his 1989 deposition Ep- nation wkh your reasons for !eating the firm? stein recalled that the partner who had made A: I'm aware that there were many rumors. an "issue" of the matter was Marvin David- Q: What were the rumors you heard? CONTINCE0 /ROM PAOt 103 Bear Stearns son. On March 9. Epstein said, he had met A: Nothing to do with St. Joe. and other firms. Epstein resigned from Bear with Tarnopol and Einbender again, and the Q: Can you relate what you bead? Stearns on March 12. The S.E.C. was tipped tuo partners told him that the executive com- A: It was having to do with an illicit affair with a secretary. off that Epstein had information on insider mittee had milted the offense. together with Q: Hate you heard any other rumors suggest- trading at Bear Steams. and it was therefore previous "careiessness" 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 cerning alleged improprieties by other mem- that he had found "offenave" the way Bear had ever put in an airline ticket for some- bers or employees of Bear Stearns? Stearns management had handled a disci- one else and not myself and I said that it k L in fact. ham head that rumen but it's been plinary action following its discovery that he was possible, ... since my secretary han- from Mr. Hams in our comersation last week. had committed a possible "Reg D" viola- dles my expenses." Epstein told the S.E.C. A: No. Q: Have you heard it from anyone else? tion—evidently he had lent money to his clos- In his 1989 testimony he stated that the est friend. lin the 1989 deposition he said "Reg D" incident had cost km a shot at A little later the interview focuses on that he'd lent approximately 520.000 to War- partnership that year. James Cayne: ren Eisenswin, to buy stock.) Such an action What the S.E.C. waned to be especially Q: Did mu ever hear while you were at Bear could have been considered improper, al- interested in was whether there was a con- Steams that Mr. Came may have trader or n:. though Epstein claimed he had not realized nection between Epstein's leaving and the sider information in connection with St ' • this until aftenvard. alleged insider trading in St. Joe Minerals Minerals Corporation? According to Epstein. Bear Stearns man- by other people at Bear Steams: A: No. agement had questioned him about the loan Q: Did Mr. Cayne ever have any conversation with you about St. Joe Minerals? been around March 4. The questioners. Epstein Q: Sit are you a re t said,09(48/kfrkflmei (Mickey) Tarnopol and r • an rumors may A: • Q: ilat°pAlien ighiVitily9-ctistersa. 01411CH 2003 TANI_ " , 41` SDNY_GM_00331 394 343 EFTA_00204120 EFTA02729234 .Jeffrey Epstein ecuting the schemes, although, having no he reportedly broker's license, he had to rely on others to like it was told the grand jury. "It looked free and clear but it actually make the trades. Much of Hoffcnberg's sub- wasn't" he said. lions bitumen 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 A: No. from the insurance com- 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 Hoffenbag's direction exchange: to do with the financing of them. Yet Rich and telling him it was urgent they retrieve and Allen. the former treasurer of United the missing Q: Haw you had any type of business deal- bonds for a state examination. ings with Mr. Cayne? Fire, recalls seeing Epstein two or three According to Allen Epstein said, "We'U get There's no relationship with Bear Steams. times at the company. lie 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. Cayce? A: No. who executed "all" Hoffmberls instructions E to buy and sell the stock. He called it "mak- the price of pstein. according to Hoffenberg. also came up with a scheme to manipulate Emery Freight stock in an at- co" Do you have any expectation of participat- ing ing nippy business venture with Mr. Cayne? the orders." He could not recall whether tempt to minimiz e the losses that occurred A: Nd. he had chosen the brokers used. when HotTenberg's 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. Theram? ance regulators for Totters's acquisition of lite involved A: No: nor do I anticipate any. multiple clic& accounts con- the companies. Hoffenberg promised to in- trolled by Epstein. Q: Mr. Epstein. did anyone at Bear Steams feet 53 million of tea you in words or substance that you should new capital into them. In EVentUally. in 1991 insurance regulators in not divulge anything about a. Joe Minerals to fact. in his grand-ju ry testimony Holknberg Illinois sued Hoffenberg. He settled the case. the stall of the Securities and Exchange Com- claimed that he. his chief operating officer. and Epstein. who was only a paid consul- mission? Mitchell Bata. and Epstein came up with a tant. was never deposed or accused of arty A: No. scheme to steal S3 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 either directly or indirectly. in words or sub- ery stock. "Jeffrey Epstein handling the suit for the regulators. says and Mitch Butter of Epstein. "He was very elusive.... It stance. that your compensation for this past arranged the was year or any ttaure monies comma to you from various brokerage acaaunts for hard to really track hint down. the bonds There were a Bear Steams will be contingent upon your ma to be placed with in New York. substantial number of checks for significant divulging information to the Securities and and 1 think one in Chicago. Rodman St Ren- dollars that were paid to him. I remem- Exchange Commission? shaw." Hoffenb erg reportedly said. Then. ber.... He was this character we never A: No. said Hoffenberg, while making it appear as handle got a on. Again we presumed that Ix was though they were investing the bonds in involved with Despite the circumstances of Epstein's much safer financia the Pan Am and Emery run l instruments. they used that Hoffenberg made. but leaving. Bear Stearns agreed to pay him his them as collatera we never got a l to buy the stock. "Ep- chance to depose him.- annual bonus—which he anticipated as he- stein .as the person in chance of the trans- "From the government's discovery in the ins appravimately 5100.000. actions. and Mitchell Bruer teas assisting main sentenci The S.E.C. never brought any charges him with it in coordina ng against Hoffenbag a ssculd tion on behalf of the seem the gosemment was perhaps a bit against anyone at Bear Stearns for insider insurance compan lazy? ies money." Hotknberg mys David Lewis. who represen trading in St. Joe. but its questioning seems claimed at the ted Mitchell time. Beata. "They went for what they knew they to indicate that it was skeptical of Epstein's At one point, according to Hoffenberg. a could get ... and answers. Some sources have wondered broker forged that was the trauduient the documents necessary fix a promissory notes (i.e., the why. if he was such a big producer at Bear 51.8 million much larger and check to be written on insurance' unrelated part of Hoffenbe Stearns. he would haw given it up over a company funds. rg's fraud. based The check %vas used to buy in New York State].... What mete 53.500 fine. more stock in the takeover targets. Mean- get. they didn't they couldn't Certainly the years after Epstein left the while. in bother with." order to throw the insurance regula- Another lawyer involved in the criminal firm were not obviously prosperous ones. tors ott the 51.8 million was rammed u being prosecution of Hoffenberg says. His luck didn't seem to change until he met safely invested in a "In a crim- money-market account. inal investigation like that. when Hoffenberg. United Fire's former chief financial officer guilty plea. to be there is quick and dirty about it. Daniel Payton confirms pan of HotTenbag's discovery is always incomplete.... They O ne of Epstein's first assignments for Hof- account. He says titers was to mastermind doomed bids two telephone calls to to take over Pan American World Airways in berg's direction he recalls making one or don't have to line up witnesse Epstein (at Holten. have to learn every fact that might s: they don't come out ) 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 hearing before found out later that he had sold those assets a grand jury m Illinois that Epstein came up ... leverage with the idea of financing these bids through gin account d them ... land] used some mar- E pstein was involved with Wallenberg in other questionable transactions. Finan- to take some positions in . .. cial records show that in Tower's acquisition of two ailing Illinois Emery 1988 Epstein in- and Pan Am.- says Payton. vested .51.6 million in Riddell Sports Inc.. a insurance companies. Associated Life and Epstein's extraordinary creativity was. ac- company that manufac United Fire -He was hired by as to work on cording to Hoffenb tures football hehnets. erg. responsible for the Among his co-investors were the securities side of the insurance companies purchas the theater e by the insurance companies of a mogul Robert Nederla and Towers Financial, supposedly to make a $500.00 nder and attorney 0 bond. with no money down. "Ep- Leonard Toboroff. A source profit fa us and for the companies." Hoffen- stein created close to this a great scheme to purchase a transaction claims that berg reportedly told the grand jury. He also 5500.00 Epstein told Neder- 0 treasury bond that would not be lander and Toboroff alleged that Epstein wis the "technician." m- shown that he had raised his 09/12/2019 ... (as1 wgiikthor collateralized. shattegfirthguntsgsticirfiaguatvaksiblinker, ll 144 VAN::" CONFIDENTIAL MAa CA 2 a a3 SDNY_GM_00331395 EFTA_00204121 EFTA02729235 whose identity they could not be allowed to lust as Nederla Much nder and Toboroff were of Epstein's work is related to cam- know. But Hoffenberg has claimed the mon- growing wary of Epstein, he became in- ey came from him, and Towers's financial creasingly 'inched ias up, tightening budgets, and efficien- with Leslie Wane; whom cies. One person who worked statements for that year show a loan to Ep- he had met for Werner and through insurance executive who saw a contract stein of 5400.000. (Epstein has said he Robert drawn up between the Meister and his late wife. Epstein has two men says can't remember the details and has dis- told people Epstein is involved in "every- that he met Wexner in 1986 in thing, not just a link puted the accuracy of the Towers financial Palm Beach, here. a little there. • and that he won his confidence Everything!" In addition reports.) by persuading him not to invest in the stock likes having , he says. "Wexner K a hatchet man.... Whenever Around the same time, Nedcdander and market, just as • Toboroff let Epstein come in with them on a ing. His story the 1987 crash was approach- there is dirty work to be done he'd stick kf- • scheme to make money out of Pennwalt. a When asked has subsequently changed. frey on it.... He has a reputation for being • Pennsylvania chemical company. The plan nection if Wexner knew about his con- ruthless but he gets the job done." to Hoffenberg. Epstein said that he Epstein has evident& been asked to fire was to group together with two other panics began working for Werner in 1989, and that penonakstaff member to take a substantial declared position in the "it was s when needed. lie certain& not the same time." was that mysterious person that everyone was stock. According to a source. Epstein was Wherever and whenever it was that Ep- scared to • supposed qv help Nederlander and Toboroff stein and Wexner raise 515 million. He seemed to kit to find an immedia actually met, there was death of.- says a former employee. Meanwhile. he is also less than popular te and strong personal chem- with some people outside other investors, say those familiar with the istry. Wexner Miancis company says he thinks Epstein is "very with whom he now deal. (Epstein has said he was merely an in- smart deals. "He *inserted' with a combination of excellent judg- himself into the 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 always yacht.... That resulted in liti- a most loyal friend." gation down the road between Mr. Wexner But in his 1989 deposi- tion he said that he put and the shipyard that in only 5300.000 of his eventually built the ves- own money. Where did sel." says Lan Forsberg. the rest come from? Hof- a lawyer whose firm at fenberg has said it came the :init. Dickerson and from him. in a loan that R:'.y. was hired to deal Nederlander and Tabora( with litigation stemming didn't know about. from the construction Two things happened of Waner's Dmirlen— that alarmed Nederlander at AS feet. one of the and Toboroff. After the largest private yachts in group signaled a possible the world. Evidently. Ep- takeover. the Pennwalt stein stalled on paying management threatened to Dickerson and Reny for sue the would-be raiders. is tick "It's prttably Epstein was reluctant ini- once .'r twice in my le- tially to give a deposition gal career that I've had about his share of the to sue a client the paiment 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 Mimed ... without issue The -office" in Epstein'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 recall Epstein announcing that he'd found Epstein tells people the end the matter was settled. but Ep- once belonged to banker stein claims he now one at last: Dick Snyder. then C.E.O. of J. P. Morgan. and "the largest Persian rug has no recollection the publisher Simon & Schuster. who want- you'll ever see in a ornate home." of it. ed to put up approximately 5500.000.1Nei- The incident is art of a number of disputes ther Epstein nor Snyder can now recall Epstein has become embroiled in. Some air Sources say Epstein proved that he could for sums so tiny the investment. Yet in the 1989 deposition be useful to as to be baffling: for instance. Wexner as well. with - fresh" Epstein sued investment adviser Herbert Epstein said that he had recruited Sny- ideas about investments. - Warier had a cou- Glass. who sold him der. whom he had met socially, into the ple of the Palm Beach house in bad investments. and Jeffrey cleaned 1990. for 513444—Epstein claimed this was deal.) those up right away." says a former associ- owed him lire According to a source. Toboroff and Ne- ate of Epstein's furnishings removed by Glass. . In 1998 the L.S. Attorney's Office sued deriander told Epstein that Snyder was too Before he signed on wih Warner. Epstein Epstein thr kite, but. without their realizing it, Hoffen- had several illegally subletting the former meetings with Harold Lamt then home of the deputy consul general of Inn berg has claimed, Snyder wrote a check to head of %leaner Investments. in which he to attorney /van Fisher and cabers. Egstria Hoffenberg and bought out some of his in- enunciated ideas about IFonlinutterState currencies that Levin Dpanip da5rt ilmn 0t0. anumiontnehuninargreudnt 0n vestment. But then Snyder wanted out. found incomprehensible. "In fir." says some- veil - Nederlander started to get these irate one who used to work say closely with Wa- his colleagues 520.000. Though the calls from [Snyder,' who wasn't pan of the rt "almost everyone sealed'ev_v~ at the Limited won- utenurm nts ruokf dthe asninagnirEr:oaten:aarc 0 deal, saying he was owed all this money." dered who Epstein was he literally came 5 says someone close to the deal. Toboroff out nowhere of : art'. Nederlander were baffled. "Everyone was tIbil to what his com s *vrmtfilligefldlirce close to Hoffenberg ::enberg paid Snyder off. m iii rAttihneg lAbatner ive•She Stasitrli uan d /Qs sane tEggr slim tigu'ality thergL Itoie hi‘:..4 ."-:1 • - .wit .non 1; SDIN_GM_00331396 EFTA_00204122 EFTA02729236 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 term. negotiations, he alums 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 Cos Ion Moen Double RL T vas from Doubly And then he responds in their style. Jeffrey the front row of the Victoria's Secret fashion 81. NYC. andIA. or go to oohs; for Levi's sees it in chivalrous terms. He does not pick show at New York's Lexington Avenue Ar- otos. 031800USA-LEVI D•boroh Worm for An Mit Is. Agrcyl. a fight, but if there is a fight, he will let you mory; around the same lime the usual co- Pogo IN Chrome Wroth to Imes Chary choose your weapon." terie of friends and beautiful women were Her N.Y.C. a col 22-3270707. b. by.lon One case is rather more serious. Currently, whisked off to Little St. James (which he togas. cal 3188.LUXOffir-st Citibank is suing Epstein for defaulting on tells people has been renamed Little St. Jeff) Pogo Ws P.lyr Cmeollrs Esparto As: loans from its private-banking arm for 520 for a long weekend. ht from Cmgcno ATIVO bestrauss nonotooly. RS. Lamm .Madan from Scled million: Epstein claims that Citibank "fraud- Thanks to Epstein's introductions, says kite Robb Lana sass, Km KrothOo 10, War ulently induced" him into borrowing the Martin Nowak. the biologist finds himself Scrapkr Monormeet. money for inveamems. Citibank disputes this moving from Princeton to Harvard. where Pogo 140: ?ow CneortH tern charge. he is assuming the joint position of profes- be Thomas roar: bit The legal papers kit another case offer a sor of mathematics and professor of biolo- GS,. Annoy,: no by DKNY: Mogi cool lo• SCoCCI CoiOr rare window into Epstein's finances. In 1995. gy. Epstein has pledged at least S25 million from HOS/ 9, err pox Epstein stopped paying rent to his landlord, to Harvard to create the Epstein Program Pogo Ills L. Gleans ono the nonprofit Municipal Arts Society. kit his for Mathematical Biology and Evolutionary Mao Roylborg oyistcl by as office in the Ydlard House. He claimed that Dynamics, and Epstein will have an office limbos they were breaking the terms of the lease by at the university. The program wig be dedi- Pogo 140i Srylod by Ash, Groff be brit. Ina Pogo Mr Foe Juno Novoe's Gina Senna Doors not letting his staff in at night. The case was cated to searching kr natures algorithms. a sort enolobio M *NON ape eel 478.494-296 esentually senkd. However. one of the papas pursuit that is a specialty of Novak's. For Pogo 220: Sornodotto Poss filed in this dispute is Epstein's financial state- Epstein this mus: be the summit of every- Dos Koran Ne. VA sr ment for 1988. in Much he claimed to be thing he has worked toward: he has been mon Deeno Kora, No.b. worth S20 million. He listed that he owned seen proudly displaying Harvard president rens.do end flergoa- 5ocomon NYC: Peal Smith 57 million in securities. SI million in cash. Larry Summers's letter of commitment as woesMa from Novi Donor. zero in residential property (although he if he can't quite believe it is real. He says he NYC. ad Tnik. LA. Chat told sources that he had already bought the was reluctant to have his name attached to rootoIN and gloms ism Otcaol home in Palm Beach). and 511 million in the program. but Summers persuaded him. asp.. nestorrocio or cos SOO -53.:4005. other assets. including his investment in He rang his mentor Werner about it. and Wens Rodrigurr too. Non .4 Kr.. Some NOII•Ca, Coil. end Copnat lain VC: Riddell. A co-inwstor in Riddell says: "The Wane( told him it was all right. Lornbothon Trues haft:fing cv vat a ORir -.on company had been bought with a huge An insatiable. restless snarl. always on the ?ocgdorl GorSca NYC Glnoin ac°r "c amount of debt. and it wasn't public. so it move. Epstein builds a tremendous amount C-1440. NYC. or we' 800.ar 58- was meaningless to anach a figure like that to of downtime into his hectic work schedule. Pon 223; Are Inaelmer's Mo. seed Ice it ... the price it cost was about 51.2 mi4 Yet there is something almost programmed Saint Lawns RN* Gooch* :zoo `sot &Y- ETI ton" tan Go..zho loos" lion." The co-imestors bought out Epstein's about his relaxation: it's as if even plea- NYC o"d Heaton share in Riddell in 1995 for approximately sure has to be measured in terms of self- Pogo 22,fie Dion Cats S3 million. At that time. when Epstein was improvement. Nowak says that. when he OKI bit t.noo Meown• fop asked. as a routine matter. to sign a paper goes to stay with Epstein in the Caribbean, and WC by Oploo guaranteeing he had access to a few million they'll get up at six and. as the sun rises. Gabbana. Nom De/to dollars in case of any subsequent disputes have threeshour conversations about theorto Gobbora Birrenv Nat **Hy Dy Wendy Walker. loon weas over the sale price. Wexner signed for him. ical physics. "Then he'll go off and do some ?SW. A Atm b, NnosY Ciao. "ore Epstein has explained that this was because work. re-appear, and we'll talk some more." C`bo. Beaty Hilt the co-investors wanted an indemnity against Another person who went to the island Pogos 276-77i eon Plikcil Gs rot bar being sued by Wexner. One of the investors with Epstein. Maxwell. and astral beautiful Gans Pons nononsneo a go to tan. g-ins03fit. Yorsoco boats trom calls this "bullshit." women remembers that the women -sat Moss boobs around one night teasing him about the Soaks ago E pstein's appointment to the board of kinds of grasping women who might want New York's Rockefeller University in to date him. He vas amused by the idea. . . . 2000 brought him into greater social promi- He's like a king in his own maid." —soot can a colt 888-3a8Sna Pas 271-71: Doubly IL LIMY nence. Boasting such social names as Nancy Many people comment there is some- Flom GSM Rt.. NYC. ad LA or go to Kissinger Brooke Astor, and Robert Bass. thing innocent. almost childlike about Jef- spot:Horn. Cases Sys kag.oceved tin the board also includes such preeminent frey Epstein They see the as refreshing. given from Onyrne Sex NYC. or scientists as Nobel laureate Joseph Gold- the sophistication of his surroundings. Alan c 20427-0707 for stein. "Epstein was thrilled to be elected." Dershowitz says that. as he was getting to Ray.lon stooks col 888. says someone who knows him. LLDICRICA. know Epstein. his wok asked him if he would Pogo 21k Tents Styr Alter one term Epstein resigned. Accord- still be close to him if Epstein sudden!), filed fi'n Nebo from foamy Hflon nos ing to New Mc magazine, this was because for bankruptcy. Dershowitz says he replied. " omit/oda or co1800- he didn't late to wear a suit to meetings. A "Absolutely. I would be as interested in him TOMMY4U: Double IL f•inn •-ikttption to' the Rockefeller board says as a friend if we had hamburgers on the From Davin ft. NYC. ova LA. lifilgiarcause he had insufficient time boardwalk in Tamil/Wad an.1 talked about co go to V-owSCoN.COM lid.,rguri o corium.: a :-Yard member recalls thatcoNFIDENTIAL FbOODS t enti .0 I VANrlY FAIL SDNY_GM_00331397 EFTA_00204123 EFTA02729237