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Wed Jul 10, 2019, 12:42 PM

The Other Epstein Issue: Where did his large sums of money come from?

From Taking Points Memo

We know the outlines of charges that Jeffrey Epstein for years had procurers recruiting underaged girls for sex. We know the suspicions that various wealthy and powerful men in his vast social circle may have been part of this organized system of statutory rape. But there’s another part of this emerging story I want to focus your attention on – one which is distinct but may not at all be separate.

No one seems to have a clear idea of where Jeffrey Epstein’s money comes from.

The public story, such as it is, is that Epstein is some kind of hedge fund manager or he manages capital for people whose wealth is measured in the billions. But it’s not clear that that is really true. Hedge funds are notoriously opaque. When you operate at that scale there are next to no disclosure requirements, only qualified investors can participate, and if you’re really doing business with billionaires only that is a tiny, tiny community of people. He’s supposedly one of those college dropout math geniuses who sees the trading and metrics patterns no one else can and uses that skill to make millions and billions for his investors and later himself. (Epstein’s first job after dropping out of college was being hired to teach math at New York’s elite Dalton School – bizarrely, hired by Bill Barr’s dad, the then-headmaster.) But while there may not be much SEC disclosure, if you operate with that amount of capital it’s hard not to leave some footprint, which will likely be visible to others who play in those spaces. To be more concrete, if you’re making an investment move with hundreds of millions or even billions of dollars that’s going to leave a footprint that people will see even if there’s no official or public disclosure.

The simple fact is that none of the hedge fund types and private wealth managers who cater to that scale of wealth have any clear idea where Epstein’s wealth comes from and they don’t seem to think he’s really in the business they’re in. This is the gist of numerous articles on the man. But this part of the story has always or until recently been treated as part of his air of mystery rather than a key question to be answered in a broader story of criminal activity.

More at: https://talkingpointsmemo.com/edblog/the-other-epstein-issue

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Reply The Other Epstein Issue: Where did his large sums of money come from? (Original post)
Mrs. Overall Jul 10 OP
dalton99a Jul 10 #1
tanyev Jul 10 #4
Sneederbunk Jul 10 #5
dalton99a Jul 10 #6
Me. Jul 10 #2
zentrum Jul 10 #15
tanyev Jul 10 #3
dlk Jul 10 #7
Wellstone ruled Jul 10 #8
pecosbob Jul 10 #11
customerserviceguy Jul 10 #9
struggle4progress Jul 10 #10
pecosbob Jul 10 #12
DeminPennswoods Jul 10 #13
zentrum Jul 10 #14

Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 12:49 PM

1. How Epstein amassed his fortune: Fraud.

The origins of Jeffrey Epstein’s financial empire remain a mystery to even billionaires. But the investor’s former Wall Street mentor has one theory about how Epstein amassed his fortune: Fraud.

In a phone interview with Observer, Steven Hoffenberg alleged Epstein participated in a Ponzi scheme the two ran together in the 1980s, before using the ill-gotten gains to launch his investment company with the help of financial loans from Deutsche Bank.

“Its a very simplistic financial fraud that he concealed from everybody that gave him tainted money,” said Hoffenberg. “He never told anybody, and I literally mean anybody, that gave him any money since he left Towers, that he was part of Towers. And that’s a securities fraud because when you take money from people, you have to tell them your history.”

Hoffenberg oversaw Towers Financial, but was sentenced to 20 years in jail in 1997 for defrauding clients out of $450 million. Although Epstein was never charged in the case, a lawsuit filed last year by former Towers investors lists the financier as “an uncharged co-conspirator,” and alleges he “knowingly and intentionally utilized funds he fraudulently diverted and obtained from this massive Ponzi scheme for his own personal use to support a lavish lifestyle.”

“If Jeffrey Epstein was materially involved in the management of Towers Financial, as his former associate Steven Hoffenberg has alleged, or he substantially assisted and had knowledge of the Ponzi scheme through various corporate transactions with Towers Financial, then he would be subject to liability for that Ponzi, and further, may have committed securities fraud on his future clients by not disclosing his prior involvement,” Jeff Sonn, a securities attorney and founder of Sonn Law Group, told Observer. “The problem I see is that Hoffenberg waited some 20 years to come forward with these new allegations, and he may have reduced his 18-year sentence by implicating Epstein in the Ponzi scheme back in 1994 but didn’t do so.”

Hoffenberg said he did not tell prosecutors because he pleaded guilty at the time, but later came forward because he believed Epstein should pay restitution to Towers investors. Hoffenberg also told Observer that Deutsche Bank provided significant financial loans to Epstein.

“His lead bank is Deutsche Bank, Germany, that runs the lead on his financial trust company. They run the platform in the trading of the currencies for Epstein and with Epstein. He’s never disclosed to the investors that provide the money to Deutsche Bank his true legacy, that’s securities fraud,” said Hoffenberg. “And that makes the government available to seize all his money, literally all his money. He’s not going to be able to use his money because it’s got to go to a restitution fund because it’s tainted money.”


https://observer.com/2019/07/jeffrey-epstein-deutsche-bank-tainted-money/

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Response to dalton99a (Reply #1)

Wed Jul 10, 2019, 12:53 PM

4. Deutsche Bank again.

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Response to dalton99a (Reply #1)

Wed Jul 10, 2019, 01:01 PM

5. There has to be a Russian oligarch in there somewhere.

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Response to Sneederbunk (Reply #5)

Wed Jul 10, 2019, 01:09 PM

6. +1. Jeffrey Epstein's East Side mansion houses Russian playmates:

https://pagesix.com/2016/03/08/jeffrey-epsteins-east-side-mansion-houses-russian-playmates/
Jeffrey Epstein’s East Side mansion houses Russian playmates
By Richard Johnson
March 8, 2016 | 9:21am

Jeffrey Epstein is not letting his conviction for soliciting prostitution from a teenager interfere with his lifestyle.

But instead of having his assistants troll local high schools, the billionaire money manager — and registered sex offender — is importing his playmates from Russia, my source says.

A recent visitor tells me Epstein has a house full of young beauties at his East 71st Street mansion. “Half of them are from the former Soviet Union and the other half are a mix of Americans and Europeans,” said my source.

Epstein apparently has contacts in Moscow who provide matchmaking services for both his “orgy island” in the Caribbean (which he jokingly dubbed Little St. Jeff’s) and his Manhattan townhouse.

“When the Russian girls arrive in the city, they already have Jeffrey’s phone number,” said my source.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 12:49 PM

2. That's What I Want To Know

and my only conclusions are he made money off those girls/trafficking and money laundering and invested it. The only person who was an investment client was the owner of Victoria's Secret and that was years ago

There's a report that they found a recording from someone who said simply, "I'm at my hotel" and then gave the room number and that was all.

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Response to Me. (Reply #2)

Wed Jul 10, 2019, 03:54 PM

15. The owner of Victoria's Secret

......also owns The Limited clothing company. This guy was actually Epstein's original, primary mentor as well as an investor.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 12:50 PM

3. Curiouser and curiouser.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 01:13 PM

7. Money Laundering?

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 02:16 PM

8. The Guy is just a Bag Man for

the Maffia Boy's. Bear-Stearns was just a Legal Money Laundry operation.

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Response to Wellstone ruled (Reply #8)

Wed Jul 10, 2019, 03:28 PM

11. Ding, ding.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 03:19 PM

9. The same way just about anybody at his level did

Cheating other people. Playing games with not only money, but people's livelihoods. 99% of "investing" is just gambling at a legal casino, where you can write off losses. Just like the casinos, the sharpies always win much more than they lose.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 03:26 PM

10. Some suspicious people might suggest he's a very successful pimp with a lucrative blackmail hobby

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Response to struggle4progress (Reply #10)

Wed Jul 10, 2019, 03:28 PM

12. Ding, ding, ding.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 03:34 PM

13. Blackmail?

If he hangs out with the extremely wealthy crowd and we now know he has CDs full of pictures, is it possible a lot of his money is coming from the super rich who don't want to be identified? It would only take a few very, very rich people to finance someone else's luxuious lifestyle.

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Response to Mrs. Overall (Original post)

Wed Jul 10, 2019, 03:51 PM

14. To begin with...

...he never graduated college. But was hired at Dalton High School for Girls in 1976. A very high end upper East side private school in NYC. Taught calculus and physics. Was considered to be a "math genius".

Who hired him? None other than AG Williams Barr's father, who was Head of Dalton School.

Left the job at the girl's school---can't imagine why--- and went for a brief time to Bear Sterns. Soon after, he created his own company. The Epstein Company. By 1982 he was a billionaire. This is back in the day when only 13 billionaires existed. Being a billionaire was very very unusual. And that's only 6 years after being a math teacher.

If you invested with him you too had to be a billionaire. That was the rule. Not even someone with 750M could get in. Only a billion. Plus you had to sign over all power of attorney to him in perpetuity. He controlled everything.

It is all weird as hell.

Currently lives in the biggest private home in NYC. It has 40 rooms.

He's a very very connected guy--going back 4 decades. I doubt he'll get a severe sentence. He knows too much about powerful men.

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