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Fri Jul 12, 2019, 04:17 AM

"How did Jeffrey Epstein become a billionaire without investors and without leaving a track-record?"

Last edited Fri Jul 12, 2019, 04:59 AM - Edit history (1)

https://www.rawstory.com/2019/07/jeffrey-epstein-frantically-asks-judge-to-seal-his-finances-as-nyt-probes-his-shady-dealings/

On Thursday, The Daily Beast reported that wealth manager Jeffrey Epstein is asking the federal judge presiding over his child sex trafficking case to keep his financial disclosure to the court under seal, arguing that “the exceptional amount of publicity that has been generated by this case” merits discretion.

The request comes a day after The New York Times published a deep dive into Epstein’s financial history, suggesting that he may not actually be a billionaire as always claimed, and that he has extensive connections to Deutsche Bank, the same entity that gave President Donald Trump’s real estate empire vast loans and faces accusations of money laundering.



http://nymag.com/intelligencer/2019/07/hedge-funders-have-some-thoughts-on-what-epstein-was-doing.html

Kass was well-connected on Wall Street, where he’d worked for decades, so he began to ask around. “I went to my institutional brokers, to their trading desks and asked if they ever traded with him. I did it a few times until the date when he was arrested,” he recalls. “Not one institutional trading desk, primary or secondary, had ever traded with Epstein’s firm.”

...

For decades, Epstein has been credulously described as a big-time hedge-fund manager and a billionaire, even though there’s not a lot of evidence that he is either.

...

To begin with, there is much skepticism among the hedgies Intelligencer spoke with that Epstein made the money he has — and he appears to have a lot, given a lavish portfolio of homes and private aircraft — as a traditional money manager. A fund manager who knows well how that kind of fortune is acquired notes, “It’s hard to make a billion dollars quietly.” Epstein never made a peep in the financial world.

Epstein was also missing another key element of a typical thriving hedge fund: investors. Kass couldn’t find any beyond Epstein’s one well-publicized client, retail magnate Les Wexner — nor could other players in the hedge-fund world who undertook similar snooping. “I don’t know anyone who’s ever invested in him; he’s never talked about by any of the allocators,” says one billionaire hedge-fund manager, referring to firms that distribute large pools money among various funds.

...

Epstein launched his own hedge fund, J. Epstein & Co., later renamed Financial Trust Co. Along the way, he began pedaling the improbable narrative that he was so selective he would only work with billionaires.

...

Given this puzzling set of data points, the hedge-fund managers we spoke to leaned toward the theory that Epstein was running a blackmail scheme under the cover of a hedge fund.

...

Kass and former hedge-fund manager Whitney Tilson both emailed the thread around in investing circles and both quickly discovered that their colleagues found it quite convincing. “This actually sounds very plausible,” Tilson wrote in an email forwarding the thread to others.

“He somehow cajoled these guys to invest,” says Kass, speaking of hypothetical blackmailed investors who gave Epstein their money to invest, but managed to keep their names private.

The fact that Epstein’s fund is offshore in a tax haven — it is based in the U.S. Virgin Islands — and has a secret client list both add credence to the blackmail theory.

...

If the blackmail theory sounds far-fetched, it’s worth keeping in mind that it was also floated by one of Epstein’s victims, Virginia Roberts Giuffre. “Epstein … also got girls for Epstein’s friends and acquaintances. Epstein specifically told me that the reason for him doing this was so that they would ‘owe him,’ they would ‘be in his pocket,’ and he would ‘have something on them,’” she said in a court affidavit, according to the investigative series in the Miami Herald that brought the case back to the public’s attention late last year.

In the 2015 filing, Giuffre claimed that Epstein “debriefed her” after she was forced into sexual encounters so that he could possess “intimate and potentially embarrassing information” to blackmail friends into parking their money with him. She also said photographic and video evidence existed — an assertion that looms especially large now that federal investigators have found a trove of images in Epstein’s home safe.


The theory being passed around is simple:
1. Epstein throws lavish parties with girls and powerful men.
2. Eventually one of the men gets handsy and Epstein films the sexual encounter.
3. The man gets a simple offer: Invest in Epstein's fund, pay the quarterly fees and Epstein will keep all of this a secret.

EDIT:
4. Don't let outsiders invest in your fund, because real investors will ask questions how the fund is doing.

8 replies, 1846 views

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Reply "How did Jeffrey Epstein become a billionaire without investors and without leaving a track-record?" (Original post)
DetlefK Jul 12 OP
donkeypoofed Jul 12 #1
njhoneybadger Jul 12 #2
RDANGELO Jul 12 #3
True Blue American Jul 12 #4
True Blue American Jul 12 #5
SallyHemmings Jul 12 #7
ProfessorPlum Jul 12 #8
no_hypocrisy Jul 12 #6

Response to DetlefK (Original post)

Fri Jul 12, 2019, 04:52 AM

1. Holy shit - that's how he did it ?!?!

I'm surprised he hasn't been whacked by now, by somebody he's pissed off in a big bad way.

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Response to DetlefK (Original post)

Fri Jul 12, 2019, 04:53 AM

2. Holy Shit, this is a big fucking deal

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Response to DetlefK (Original post)

Fri Jul 12, 2019, 04:59 AM

3. This could open up a really big can of worms.

Could Trump be doing the same thing with Mar a lago.

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Response to RDANGELO (Reply #3)

Fri Jul 12, 2019, 05:14 AM

4. Now reading

James Patterson’s book. With his 3 times a day, ahem, massages I am trying to find out how he had the time to do business.

With his lavish life stye he was flat broke after leaving Bear Sterns under a cloud. His first business he claimed was huge was actually run out of his apartment. Just getting in to the financial side but so far deception seems to fit.

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Response to RDANGELO (Reply #3)

Fri Jul 12, 2019, 05:15 AM

5. The 2 partied together.

Next door neighbors, 28 Models? Epstein and Trump?

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Response to RDANGELO (Reply #3)

Fri Jul 12, 2019, 07:34 AM

7. Could the "fallout in the relationship" occurred

Because Epstein poached one of the girls that worked for Trump?

This will not end well.

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Response to RDANGELO (Reply #3)

Fri Jul 12, 2019, 09:35 AM

8. The bigger question is: Is Epstein (still) doing this to Trump?

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Response to DetlefK (Original post)

Fri Jul 12, 2019, 06:24 AM

6. Eptstein took pimping to a whole new level.

A business model not tried before.

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