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efta-02729207DOJ Data Set 11Other

EFTA02729207

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DOJ Data Set 11
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efta-02729207
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Integrity

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EFTA Disclosure
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?1 I 23/ 2009 15:04 5616404420 Aileen Josephs, P.A. Attorney at Law h`l Ovate.. :env. Sisir.. KW \Yr ralai Bench. F :...r.1/....w.Mtn.K...14; ow. January 25,2008 TO: Ms. Sanchez, Esq. RE: Mr. Epstein From Aileen Josephs, Esq. Ms. Sanchez: X PAGE 01 Aileen 'myths Monk, ./ Myron 4 I :Annie. Flinght avn Women in our County have been watching this case with great concern. I strongly suggest that you do not attack the victim(s). If you feel your client is innocent, you can file a libel suit- of course, the truth is an absolute defense to libel, and please keep in mind that not knowing the age of a child is no defense to statutory rape or any sexual enure committed against a child. Sincerely, Aileen Josephs, Esq. Cc. Ms. Lana Belohavek- State Attorney's Office Ms. La Tosha Lowe- request to place this letter in State's file Chief of Police- Palm Beach 09112/2019 P CONFIDE CONFIDENTIAL Agency to Agency Requet: 19-011 S0NY_GM_00331387 EFTA_00204093 EFTA02729207 01/23/2008 15:04 5616404420 PAC{ 02 ,t796 330 I THE PALM BEACH POST FRIDAY.AUGUST 25.2006 LETTERS TO THE EDITOR ..carnettei: show ffhappy rey i0 ;Nit be P ew iinti : ; ad 17:e tZe focus at -iluu Inc,' ch k ind ricer doz in aus couahr 4 0.17_ ENtehi cue.. Aug iv 6 _ The o wn :the16h on_ ---ign Case my . Se rats; Avo, whenPaial Beach was missuic, W• as eher lind was not sure he wog de ns lille°"te3teth Ile Pseeieed Mint° press ar nLawase * "m ow _ m bsousit st- iiC to do scliga rood uet Ming P attat .5atlp The telt' should laputatiesi kjag„._`m victims' A shady repu . ebsekezt 41419witt— Epps. 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MLEENJOSEPHS West hum Beach Parker's off: Lieberman was t** clout to the Gap In Kathleen %sec rao 09/12/2019 should hstieb kreZ to ti setee ire: apst . wowasgeolnentnawtalcit Ike avalowp.2 ewivaszt inlige. bilt 0100 PralikilTi107 While 1322 glad to see that littra:nv L_ Withsv ension r ink* these.beaeffravr ivcr leat t: lit i n cw24,:te* will be werkent 401or email Mara/tat aims firjannis emalres so more upreptiriat Skia Abe 18). I daft A CONFPITTENTIAL 1 I Agency to Agency Reguet: 19-011 SDNY_GM_00331368 EFTA_002 04094 EFTA02729208 • a. lei a 4 •. Ntrir-) !.01.71 'NS RR; Mkt, Epacin in Nen lock. 1001. 14 PravinS. ninc-Iloor.5/.900.‘quart• lian pain hone. lk Aso Oath a 7.5Mkeere rat in Sty, %Ink°. a home in Palm Haack and a arilawan island. t Lately, Jeffrey Epstein's high-flying style has been drawing oohs and aahs: the bachelor financier lives in New York's largest private residence, 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 %Atilt and his complicated past SDNY_GM_00331369 EFTA_00204095 EFTA02729209 EFTA02729210 n Manhattan's Upper Ely[ Side. home to some of the most expehsive real estate on earth, exists the crown jewel of the city's residential town houses. With its 15-trot-high oak door, huge arched windows, and nine floors. it sits on—or. rather. commands—the block of 71st Street between Fifth and Madison Avenues. Almost ludicrously out of pro- portion with its four- and five-story neigh- bors. it seems more like an institution than a house. This is perhaps not surprising— until 1989 it was the Birch Wathen private school. Now it is said to be Manhattan's largest private residence. Inside. amid the flurry of menservants attired in sober black suits and pristine white gloves, you feel you have stumbled into someone's private Xanadu. This is no mere rich person's home, but a high- walled. eclectic. imperious fantasy that seems to have no boundaries. The entrance hall is decorated not with paintings but with row upon row of indi- vidually framed eyeballs: these, the owner tells people with relish, were imported from England. where they were made for in- jured soldiers. Nat coma a marble foyer, which does have a painting, in the man- ner of Jean Dubutkt ... but the host coyly refuses to tell visitors who painted it. In any case. guests are like pygmies next to the nearby twice-life-size sculpture of a naked African warrior. Despite its eccentricity the house is curi- ously impersonal the statement of someone who was to be known for the scale of his possessions. Its occupant. financier Jeffrey Epstein, 50, admits to friends that he likes it when people think of him this way. A good- looking man. resembling Ralph Lauren. with thick gray-white hair and a weathered face, he usually dresses in jeans, knit shirts, and loafers. He tells people he bought the house because he knew he "could newer live anywhere bigger." He thinks 51,000 square let is an appropriately large space kr some- one like himself, who deals mostly in large concepts—especially large sums of money. 09/12aut9 302 1 VA wily FAIR Guests are invited to lunch or dinner at the town house—Epstein usually mks to the former as "tea: since he likes to eat bite- size morsels and drink copious quanta's of Earl Gory. (He does not touch alcohol or to- bacco.) Tea is served in the "leather mom:' so called because of the cordovan-colored fabric on the walls. The chairs are covered in a leopard print, and on the wall hangs a huge, Oriental fantasy of a woman holding an opium pipe and caressing a snarling li- onskin. Under her gaze, plates of finger sandwiches are delivered to Epstein and guests by the menservants in white gloves. Upstairs, to the right of a spiral stair- case, is the "office," an enormous gallery spanning the width of the house. Strangely. it holds no computer. Computers belong in the "computer mom" is smaller room at the back of the house). Epstein has been known to say. The office features a gilded desk (which Epstein tells people belonged to banker J. P Morgan). 18th-century black lacquered Portuguese cabinets. and a nine- foot ebony Steinway "D" grand. On the desk, a paperback copy of the Marquis de Sade's The Allsjoesunes of Orme was re- cently spotted. Covering the floor. Epstein has explained. "is the largest Persian rug you'll ever see in a private home—so big, it must have come from a mosque: Amid such splendor, much of which reflects the work of the French decorator Alberto Pin- to. who has worked -err Jacques Chirac and the royal families of Jordan and Saudi Ara- bia, there is one particularly startling oddi- ty: a stuffed black poodle. standing atop the grand piano. -No decorator would ever tell you to do that: Epstein brags to visi- tors. "But I want people to think what it means to stuff a dog." People can't help but feel it's Epstein's way of saying that he always has the last word. In addition to the town house. Epstein lives in what is reputed to be the largest private dwelling in New Mexico. on an 418 million. 7.500-acre ranch which he named "Zeno." "It makes the town house look hire a shack," Epstein has said. He also owns Little Sr. James. a 70-acre island in the U.S. Virgin islands. where the main house is currently being renamed by Edward Ma- de, a designer of the Arnanresons. There is also a 56.8 million house in Palm Beach, Florida, and a fleet of aircraft: a Gulfstream IV, a helicopter. and a Boeing 727. replete with trading room. on which Epstein re- cently flew President Clinton, actors Chris Tucker and Kevin Speech supermarket magnate Ron Burkle. Lew Wasserman's grandson, Casey Waxman, and a kw oth- ers, on a mission to explore the problems of /UOS and economic development in Africa. Epstein is chaining_ but he doesn't let Pagnzaor the charm slip into his eyes. They are steely and calculating, giving some hint at the steady whir of machinery running behind them. "Let's play chess," he said to me, af- ter refusing to give an interview kr this arti- cle. "You be white. You get the first move: It was an appropriate metaphor for a man who seems to feel he can win no matter what the advantage of the other side. His advantage is that no one really seems to know him or his history completely or what his arsenal actually consists of. He has care- fully engineered it so that he remains one of the kw truly baffling mysteries among New York's moneyed world. People know snippets, but kw know the whole. "He's wry enigmatic." says Rosa Mond- ton, the former C.E.O. of Tiffany & Co. in the U.K. and a close friend since the early 1980s. "You think you know him and then you peel off another ring of the onion skin and there's something else rinaordinary underneath. He never reveals his hand.... He's a classic iceberg. What you see is not what you get." wen acquaintances sense a curious dichotomy: Yes. he lives like a "modern ma- haraja.- as Leah Kiernan, one of his art dealers. puts it. Yet he is fastidiously. al- most obsessively private—he lists himself in the phone book under a pseudonym. He rarely attends society gath- erings or weddings or funerals; he considers eating in restaurants like -eating on the sub- way"—i.e.. something he'd never do. Them am many women in his life. mostly young, but there is no one of them to whom he has been able to commit. He describes his most public companion of the last decade, Ghislaine Maxwell. 41. the daughter of the late, disgraced media baron Robert Max- well, as simply his -best friend." He says she is not on his payroll, but she seems to organize much of his life—recently she was making telephone inquiries to find a California-based yoga instructor for him. (Epstein is still close to his two other long- term girlfriends, Paula Heil Fisher, a for- mer associate of his at the brokerage firm Bear Stearns and now an opera producer, and Eva Andersson Dubin. a doctor and onetime model. He tens people that when a relationship is over the girlfriend "moves up, not down: to friendship status.) Some of the businessmen who dine with him at his home—they include newspaper publisher Mort Zuckerman. banker Louis Ranieri. Revlon chairman Ronald Perelman. real-estatc tycoon Leon Black. former Mi- crosoft executive Nathan Myhnold, Tom Pritzke48AccIEtkiktbilkag tripigfate CONFIDENTIAL %%ARCH 2003 SDNY_GM_00331 371 10, (0 *0110. EFTA_0O204O97 EFTA02729211 personality Donald Trump—sometimes seem not all that clear as to what he ac- tually does to earn his millions. Cenainly, you won't find Epstein's transactions writ- ten about on Bloomberg or talked about in the trading rooms. "The trading desks daft seem to bow him. It's unusual for animals that big not to leave any footprints in the snow." says a high-level inurement manager. Unlike such fund managers as George Soros and Stanley Drucicenmiller, whose client lists and stock maneuverings act as their calling cards, Epstein keeps all his deals and clients secret, bar one client: bil- Bonaire Leslie Viewer, the respected chair- man of Limited BTUs. Epstein insists that ever since he left Boar Steens in 1981 he has managed money only for bfllionaires— who depend on him for discretion. "I was the only person crazy enough, or arrogant enough. or misplaced enough, to make my limit a bit- Soo dollars or more." he tells peo- ple freely. According to him, the flat &es he roaches from his clients. combined with his skill at playing the currency markets "with very large sums of money," hate afforded him 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: -Very few people need any more money when they have a billion dollars. The key is not to have it do harm more than any- thing else.... You don't want to lose your money." e has likened his job to that of an architect—more specifically, one who we- e:allies in remodeling: "f always describe la billion- . anal as someone who started out in a small home and as he became wealthier had add- : ore. He added on another addition, he built - a room over the garage ... until you have a it house that is usually a mess.... !Catskill& house that has been put together over time • when no one could foretell the financial tu- t; cure and their accompanying needs." i He makes it sound as though his job ° combines the roles of real-estate agent, as countant. lawyer, money manager, trustee, and confidant. But, as with Jay Gatsby, myths and rumor swirl around Epstein. Here are some of the hard facts about Epstein—ones that he doesn't mind people knowing:- He middle-class in Brooklyn. His at r 2 worked for the city's -You think you know him and then you es.: -7 peel off anothet ring of the onion.' parks department. His parents viewed educa- tion u "the way out for him and his young- er brother. Mark, now working in real estate. Jeffrey started to play the piano—for which he maintains a passion—at five, and he went to Brooklyn's Lafayette High School. He was good at mathematics, and in his early 20s he got a job teaching physics and math at Dalton. the elite Manhattan pri- vate school. While there he began tutoring the son of Bear Steams chairman Ace Greenberg and was friendly with a daugh- ter of Greenberg's. Soon he went to Bear Stearns. where. under the mentorship of both Greenberg and current Bear Steams C.E.O. James Cayne, he did well enough to become a limited partner—a rung be- neath full partner. He abruptly departed in 1981 because, he has said, he wanted to run his own business. Thereafter the details recede into shad- ow. A few of the handful of current friends who have known him sinraff et 1980s Henry RosovsteheyfilstcivRatt9-411 recall VVIY1 UNREAL ESTATE From mr.. the "leather room" .n Ep,tein't house. "here "tea- is until to guests: Epstein at his Zorro ranch rn 1991 with his -best friend." Ghislaine Mama Epstein in 1979. "bounty hunter:' recov- ering lost or stolen mom ey for the government or for very rich people. He has a license to carry a firearm. For the last 15 years, he's been running his business, J. Epstein & Co. Since Leslie Wexner appeared in his life—Epstein has said this was in 1986: others say it was in 1989, at the earliest— he has gradually, in a way that has not generally mad:. headlines, come to be ac- cepted by the Establishment. He's a mem- ber of various commissions and councils: he is on the Trilateral Commission, the Council on Foreign Relations, the New York Academy of Sciences, and the Insti- tute of International Education. His current fan club extends to Cayne, NTIALw" es I Arts am. Sexnces. and SDNY_GM_00331372 (4 EFTA_00204098 EFTA02729212 SPOILS OF SUCCESS From tux Epstein's 70. acre island. Little St. lames. in the U.S. Virgin Islands—he now calls it Little St. Tell: Epstein Met President Clinton in Brunei. 200:: Leslie Wexner with his future wife. Abigail. at the 1990 C.F.DA. Fashion Awards, in New York. 1991. Larry Summers. Harvard's current presi• dent. Harvard law prokssor Alan Dersho- witz says, "I'm on my 20th book.... The only person outside of my immediate firmly that I send drafts to is Jeffrey." Real-estate developer and philanthropist Marshall Rose, who has worlad with Epstein on projects in New Albany. Ohio, for Wexner. says. "He digests and decodes the information very rapidly, which is to me terrific because we have shorter meetings." Also on the list of admirers are former senator George Mitchell and a gaggle of distinguished scientists, most of whom Epstein has helped fund in recent years. They include Nobel Prize winners Gerald 09/12/2019 ins : F. , t Edebnan and Murray WI- Mann, and mathematical biologist Martin Nowak. When these men describe Epstein. they talk about "energy" and -curiosity," as well as a love for theoreti- cal physics that they don't ordinarily find in laymen. Gell-Mann rather sweetly mentions that "there are al- ways pretty ladies around" when he goes to dinner the Epstein, and he's under the impression that Epstein's clients include the Queen of En- gland. Both Nowak and Dershowitz were thrilled to find themselves shaking the hand of a man named -Andrew' in Epstein's house. "Andrew" turned out to be Prince Andrew, who subsequently arranged to sit in the back of Dershowitis law class. Epstein gets annoyed when anyone sug- gests that Wexner "made him.- "I had real- ly rich clients before," he has said. Yet he does not deny that he and Warier have a special relationship. Epstein sees it as a partnership of equals. "People have said it's like we have one brain between two of us: each has a side Page 2809 CONFIDENTIAL "I think we both possess the skill of seeing patterns," says Wexner. "But Jef- frey sees patterns in politics and finan- cial markets, and 1 see panems in lifestyle and fashion trends. My skills are not in in- vestment strategy, and, as everyone who knows Jeffrey knows, his are riot in fash- ion and design. We frequently discuss world trends as each of us sees them- y the time Epstein met Wenner, the latter was a retail legend who had built a $3 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 gave Jeffrey the ball. and Jeffrey hit it out of the park:' Yibma through a trust. bought the town house in which Epstein now lives for a reported S13.2 million in 1989. In 1993. Wex- ner married Abigail Koppel. a 3l-year-old lawyer, and the neulyweds 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. but Epstein has said that he now owns the house. Wexner trusts Epstein so completely that he has assigned him the paver of fidu- ciary over all of his private trust and ktire dations, says a source close to Uttar. In 1992, Epstein even persuaded Wexner to put him on the board of the Wexner Four)• dation in place of Wanes ailing mother. Bella Wexner recovered and demanded to be reinstated. Epstein has said they settled he by splitting the foundation in tun. ria Epstein does not care that he comes be- a bei tween family members. In fact, he sees it ,g7: a c as his job. He tells people. -I am there to j the represent my client. and if my client needs t' by protecting—sometimes even from his own ' at I family—then it's often better that people hate me, not the client." "You've probably heard I'm vicious in my representation of my clients." he tells : that people proudly: Leah Rieman describes his - fillet haggling over art prices as something like els. ' a scene out of the movie Mad Max Be- the u frond Thundentlome. Even a former mentor "F says he's seen "the dark side" of Epstein. assoc and a Bear Stearns source recalls a meet- ey do ing in which Epstein chewed out a team he ma makinacy a 10 otese AgencyKen ntmionnet: t for w-4 3Yeittiner as do an en a lit rend mARCN 2003 0 .1 2C SDNY_GM_00331373 EFTA _00204099 EFTA02729213 being so brutal as to be "irresponsible." One reports in fact, moved three threats from Epstein while preparing a piece they were delivered in a jocular tone, but the message was dear: There will be trouble for your family if I don't like the article. On the other hand, Epstein is clearly very generous with friends. Joe Pagano, an Aspen-based venture capitalist, who has known Epstein since before his Bear Stearns days. can't say enough nice things: -I have a boy who's dyslexic, and Jeffrey's gotten close to him over the years.... Jeffrey got him into music. He bought him his first piano. And then as he got to school he had difficulty ... in studying ... so Jeffrey got him intereste4 in taking flying lessons." Rosa Monekton recalls Epstein telling her that her daughter. Domenica, who suf. fen from Down syndrome. needed the sun, and that Rosa should kd free to bring her to his house in Palm Beach anytime. Some friends remember that in the late 80s Epstein would offer to upgrade the air- line tickets of good friends by affixing fun- class stickers: the only problem was that the stickers turned out to be unofficial. Some- times the technique swilled. but other times it didn't. and the unwitting recipients found themselves exiled to coach. (Epstein has claimed that he paid for the upgrades, and bad no knowledge of the stickers.) Many of those who benefited from Epstein's largesse claim that his generosity comes with no strings attached. -I never felt he wanted anything from me in return.- says one old friend. who received a first-class upgrade. FI pstetn is known about town as a man who lows wom- en—lots of them. mostly young. Model types have been heard saying they are full of gratitude to Epstein for flying them around. and he is a familiar face to many of the Victo- ria's Secret girls. One young woman recalls being summoned by Ghishaine Maxwell to a concert at Epstein's town house. where the women seemed to outnumber the men by far. -These were not women you'd see at Upper Fast Side dinners." the woman recalls. "Many seemed foreign and dressed a little bizarrely." This same guest also at- tended a cocktail party thrown by Maxwell that Prince Andrew attended, which was filled. she says. with young Russian mod- els. "Some of the guests were horrified." the woman says. "He's reckless." says a former business associate, "and he's gotten more so. Mon- ey does that to you. He's breaking the oath he made to himself—that he would never do anythim rho 19would expose him in the zr20 ARCH 2003 media. Right now, in the wake of the pub- licity following his trip with Clinton, he must be in a very difficult place." :cording to S.E.C. and other legal documents un- earthed by Vanity Thin Epstein may have good reason to keep his past cloaked in secrecy: his real mentor it might seem. was not Leslie Wexner but Steven Jude Hoffen- berg. 57 who, for a few months before the S.E.C. sued to freeze his assets in 1993, was trying to buy the New York Post He is cur- rently incarcerated in the Federal Medical Center in Devens. Massachusetts. serving a 20-year sentence for bilking investors out of more than 5450 million in one of the largest Ponzi schemes in American history. When Epstein met Hoffenberg in Lon- don in the 1980s, the latter was the char- ismatic, audacious head of the Towers Financial Corporation. a collection agency that was supposed to buy debts that peo- ple owed to hospitals. banks. and phone companies. But Hoffenberg began using company funds to pay off earlier investors and service a lavish hfesryle that included a mansion on Long Island. homes on Man- hattan's Sutton Place and in Florida. and a fleet of cars and planes. Reifenberg and Epstein had much in common. Both were sntan and obsessed with making money. Both were front Brook- lyn. According to Hoffer.bent the Two men were introduced by Douglas Leese. a de- &nse contractor. Epstein has said they were introduced by John Mitchell. the late attor- ney general. Epstein had been running International Assets Group Inc. (I.A.G.). a consulting company. out of his apartment in the Solo building on East 66th Street in New York. Though he has claimed that he managed money for billionaires only. in a 1939 dep- osition he testified that he spent SO per- cent of his time helping people recover stolen money from fraudulent brokers and lawyers. He was also not above entering into risky, tax-sheltered oil and gas deals with much smaller investors. A lawsuk that Michael Stroll, the former head of Wil- liams Electronics Inc.. filed against Epstein shows that in 1982 I.A.G. received an in- vestment from Stroll of 5450.000. which Epstein put into oil. In 1984, Stroll asked for his money back: four years later he had received only $10,000. Stroll lost the suit. after Epstein claimed in court, among oth• cr things, that the check for S10,000 was for a horse he'd bought from Stroll, "My net worth never exceeded four and a half mil- lion dollars " Stroll itgbiniew CONFIDENTIAL Hoffenberg, says a close friend, "really bled Jeffrey.... Jeffrey has a way of getting under your skin, and he was under Holt fenberg's." Also appealing to Hoffenberg were Epstein's social connections; they in- cluded oil mogul Cece Wang (father of the designer Vera) and Mohan Mutjani. whose clothing company grew into Gloria Van- derbilt Jeans. Epstein lived large even then. One friend recalls that when he took Cana- dian heiress Wendy Belzberg on a date he hired a Rolls-Royce especially for the • no casion. (Epstein has claimed he owned it.) In 1987 Reifenberg, according to sources, set Epstein up in the offices he still occu- pies in the Villard House. on Madison Av- enue- across a courtyard from the restaurant Le Cirque. HolTenbers hired his new pro- tege as a consultant at 525,000 a month. and the relationship flourished. They tray tied everywhde together—on Hoffenbergs plane. all around the world, they were al- ways together," says a source. Hoffenberg has claimed that Epstein confided in him. saying. for example. that he had left Bear Steams in 1981 after he was discovered ex- ecuting "illegal operations." Several of Epstein's bear Stearns contem- poraries recall that Epstein left the compa- ny tiny suddenly. Within the company there were rumors also that he was involved in a technical infringement. and it was thought that the executive committee asked that he resign after his two supporters. Ace Green- berg and Jimmy Cayne. were outnumbered. Greenberg says he can't recall this: Carne denies it happened. and Epstein has de- nied it as well. "Jeffrey Epstein left Bear Stearns of his own volition." says Cm ne. -It was never suggested that he leave by any member of management. and manage- ment never looked into any improprieties by him. Jeffrey said specifically.. 'I don't want to work for anybody else. I want to work for myself:- Yet. this a not the story that Epstein told to the S.E.C. in 1981 and to lawyers in a 1989 deposition involving a civil business case in Philadelphia. In 1981 the S.E.C.'s Jonathan Harris and Robert Blackburn took Epstein's testimony and that of other Bear Stearns employees in part of what became a protracted case about insider trading around a tender offer placed on March II, 1981. by the Seagram Company Lsil for St. Joe Minerals Corp. Ultimately several Italian and Swiss in. vestors were found guilty. including Italian financier Giuseppe Tome, who had used his relationship with Seagram owner Edgar Bronfman Sr. to obtain information about the tender offer. After the tender offer was announced. the S.E.C. began investigating trades in• volvh18 SkalffityPtrossajcerlenkalqtaateflutle VA...Ur 04 SDNY_GM_00331 374 EF1'A_00204100 EFTA02729214 attains a parody of Afftedc and Matt Da- rn making Good MU Huang JL Alfteck vs to Damon, "What do I keep telling you? but gotta do the safe picture, then you do re art picture. Then sometimes you gotta the payback picture because your friend ars you owe him. Then sometimes you got- bgo back to the well" "Sometimes you do Reindeer Games," lemon says derisively. "That's just mean:' Mika whines. But its a pretty accurate description of career to date. "Ben takes these franchise poperties so he can go and experiment," Rs Harvey Weinstein. "He believes in trying to stretch himself ad notIkeep doing the same thing," °b- uses Bruce Wdlis, who starred with Aftleck inrIrmageddon. "He's an awesome actor, ad I think he's going to do great things." Severe) years ago. in a televised interview oilnside the Actors Studio. Mink said that hirgoal was to make big comment-id movies. He has since revised his ambitions. "That's anadolescent aspiration, in a way. I'd rafter be in movies like Magnolia. which I :hik is a towering achievement. I'll con- fine to act. but I won't act in a way that respires me to hang my name out there am do a lot of publicity. I'll do character (ohs and focus on writing and directing. It doesn't require the same kinds of MM• tint in terms of quality of life and person- 'al Ife, and it's a more holistic approach to theprocess. It's become increasingly trus- ting for me to have my role in the story. tellag process limited to one character. You hag to be respectful and judicious about your input when it's somebody else's project" Meek has always impressed colleagues with his voracious appetite for information and skills. "He has made it a point to learn everything he can about how the business works—not just the craft of acting. but from the producing standpoint, from the studio standpoint," says Jon Gordon. exec- utive vice president of production at Mira- max. "He knows how deals work. It's what sets him apart. If he wanted to run a studio at some point, he could. He's about as sharp as they come?" A Meek is dready juggling his acting with screenwriting and such other commit- ments as Project Greentight. the contest he and Damon started to help launch the ca- reers of young filmmakers. Aftleck's friends are certain he'll be directing soon. "There's no question." Weinstein says. "Both he and Matt. I think they're going to rewrite the rules. These guys can fix anything. There'll be home runs in both instances." But there are other thoughts tickling the back of Alleck's mind as well. A passion- ate liberal he campaigned for Al Gore, cares deeply about political issues, and is extremely well inlbrmed. He entertains him- self by writing imaginary political speeches in his head. He would rather discuss AIDS in Africa than his mak career. When Lopez goes to Affteck's mother's house for dinner. Weinstein reports. "J.Lo told me that the conversation at the table is always about politics--about government initiatins. educational initiatives. what's go- ing on in the day." So is Attica planning to iw.,ome the lib- trals' answer to Ronald Reagan' lie admits that he entertains the thought of someday =rang for Congress, at lag: "I think there's a real nobility to public service. Ii would be fun to run on a platform I really beiy eel in, without any of the kind of compron: people make—without being beholden the win-at-all-eosts mentality." And the invasion of privacy would he nothing new. "What arc you going to say about me that hasn't already been said? I don't chat, I don't drink, I don't do drugs. I live a dean life." Afftedt says, his eyes twinkling. "He's only 30 years old." says Jennifer Todd who co-produced Bode Room. "He still has an enormous amount of time to do things." Time, and drive. "I think hes incredibly hungry." says Sean Bailey. who founded the media and production company Live- Planet with Affleck. Damon. and Chris Moore. "I think the guy has very grand aspirations. I don't think hes going to be content with just being a movie star. He knows he has the potential to do very big things: Such ambitions could be derailed by any number of miscalculations. including a pri- vate life that generates too many sensational headlines, but Aifleck has a clear idea of the ultimate goat. "On my deathbed. I haw to be one who looks back and feels I lived a good and substantial and meaningful lik." he says. In the meantime. hose-en there's a wed- ding to plan. Z Jeffrey Epstein C ONTINUED FROM PACE SOS Bear Stearns ndother firms. Epstein resigned from Bear Seams on March 12. The S.E.C. was tipped off that Epstein had intbrmation on insider tradiig at Bear Stearns. and it was therefore obliged to question him. In his S.E.C. testi- mony, giwn on April L 1981, Epstein claimed that he had found "offensive" the way Bear Steams management had handled a disci• plinary action following its discovery that he had committed a possible "Reg Cff viola- tica—midently he had lent money to his clos- est friend. (In the 1989 deposition he said that he'd lent approxirnatdy 520.000 to War- ren Eisenstein, to buy stock.) Such an anion could have been considered improper, al. though Epstein claimed he had not realized this until afterward. According to Epstein. Bear Stearns man- agement had questioned him about the loan around March 4. The questioners. Epstein Q: Sir, • re you a f rumors may sard9litia20Illkael (Mickey) Tarnopol andr in7S M ar ainAl— Q. Alvin Einbender. In his 1989 deposition Ep- stein recalled that the partner who had made an "issue" of the matter was Marvin David- eon. On March R Epstein said he had met with Tarnopol and Einbender again, and the two partners told him that the matabet corn- miner had weighed the offense. together with previous "carelessness" over expenses, and he would be fined 52.500. "There was discussion whether. in fact, I had ever put in an airline ticket for some- one else and not myself and I said that it was possible, ... since my secretary hen- dies my expenses." Epstein told the S.E.C. In his 1989 testimony he stated that the "Reg D" incident had cost him a shot at partnership that year. What the S.E.C. seemed to be especially interested in was whether there was a con- nection between Epstein's leaving and the alleged insider trading in St. Joe Minerals by other people at Bear Stearns: election with your reasons foe leasing the firm.' Al I'm aware that there were many rumors. Q: What were the rumors war heard" A: Nothing to do with A. Joe. Q: Can you relate what you heard? A: It was having to do with an illicit affair with a secretary. Q: Hue you heard any other rumors suggest- ing that you had made a presentation or com- munication to the Executive Committee con- cerning alleged improprieties by other men ben or employees of Bear Steams? A: 4 in fact. have heard that mmcc but its been from Mr. Harris in our conversation last week. Q: Have you heard Si from anyone else? A-. No. A little later the interview focuses on James _came: Q: Did you ever hear while you were at Bear Steams that Mr. Carne may have trader Or j.!. sitter information in connection with Si Minerals Corporation? A: No. Q: Did Mr. Cayce ever have any conversation with you about St. Joe Minerals? A- cy to Agency Racket: 19-411 u happen to OmMar any Convcrikt• SDNY_GM_00331375 EFTA_00204101 EFTA02729215 , Jeffrey Epstein icons between Mr. Cayne and anyone else re- garding St. Joe Minerals? A: No. And mil/litter in the questioning comes this achange: Q: Have you had any type of business deal- ings with Ms. Cayne? A: There's no relationship with near Steams. Q: Pardon? A: Other than Bear Steams. no. Q: Have you been a partiripam in any type of business venture with Mr. Cayne? A: No. Qt Do you have any exportation a partiripat- tier} , business venture with Mr. Cayne? (t.• Have you bad any business participations with Mr. Theram? A: No; nor do I anticipate any. Q: Mr. Epstein. did anyone at Bear Stearns ell you in words or substance that you should ice divulge anything about Si. foe Minerals to he staff of the Securities and Exchange Con- tenon? A: No. Q: Has anyone indicated to you in any way. ether directly or indirectly. in words or sub- mace. that YOUT compensation for this past :tar or any future monies coming to you from Bear Stearns will be contingent upon your not dvulging information to the Securities and Exchange Commission? A No. Despite the circumstances of Epstein's laving, Bear Stearns agreed to pay him his aunial bonus—which he anticipated as be- im appnrtimately S100.000. The S.E.C. never brought any charges against anyone at Bear Stearns for insider trading in St. foe. but its questioning seems so indicate that it was skeptical of Epstein's answers. Some sources have wondered why. if he was such a big producer at Bear Stearns, he would have given it up over a mere $2.500 fine. Certainly the years after Epstein let the firm were not obviously prosperous ones. His luck didn't seem to change until he met Reifenberg. nne of Epstein's first assignments for Hof- kiknberg was to mastermind doomed bids to take over Pan American %bid Airsays in 1987 and Emery Air Freight Corp. in 1988. HoReobag claimed in a 1993 hearing before a grand jury in Illinois that Epstein came up wilt the idea of financing these bids through Towers's acquisition of two ailing Illinois insurance companies. Associated Lik and United Fire. 'He was hired by us to work on the securities side o(the insurance companies and Towers Financial. supposedly to make a profit fee us and for the companies," Ram- berg reportedly told the grand jury. He also cBstein was the "technician." a- 344 I 'JAN.,' 0.‘i coning the schemes, although, having no broker's license, he had to rely on others to make the trades. Much of Hoffenberts sub- sequent testimony in his criminal case has proven to be false. and Epstein has claimed he was merely asked how the bids could be accomplished and has said he had nothing to do with the financing of them. Yee Rich- ard Allen, the former treasurer of United Fire. recalls seeing Epstein two or three times at the company. He and another ex- ecutive say they had direct dealing with Ep- stein over the finals= And in his deposition of 1988 Epstein stated that he was the one who executed "all" Hoffenbag's instructions to buy and sell the stock. He called it "mak- ing the orders." He could not recall whether he had chosen the brokers used. To win apprise' from the Illinois insur- ance regulators for Towers's acquisition of the companies. HoiTenberg promised to in- ject 53 million of new capital into them. In fact. in his grand jury testimony Hoffenberg claimed that he. his chief operating officer. Mitchell Brame and Epstein came up with a scheme to steal 53 million of the insurance companies' bonds to buy Pan Am and Em- ery stock. "Jeffrey Epstein and Mitch Stater arranged the various brokerage accounts acv the bonds to be placed with in Nen' York. and I think one in Chicago. Rodman & Rev Holfenberg reportedly said. Then. said Hoffenberg, while making it appear as though they were investing the bonds in much safer financial instruments. they used them as collateral to buy the stock. "Ep- stein was the person in charge of the trans- actions. and Mitchell Rimer was assisting him with it in coordination, an behalf of the insurance companies' money." Ho:limbers claimed at the time. At one point. according to Hottinserg. broker forged the documents necessary for a 41.8 million check to be written on insurance- company funds. The check was used to buy- mom stock in the takeover targets. Mean- while. in order to throw the insurance regula- tors off the SI.S million was reported as being safely invested in a money-market account. United Finis eater chief financial officer Daniel Payton confirms pan of Hotrenberg's account. He says he recalls making one or two telephone calls to Epstein (at Moffat- bag's direction) about the missing bonds. "He said, 'Oh. yeah. they still exist.' BUT we found out bier that he had sold those assets ... leveraged them ... (and) used seine mar- gin account to take some positions in ... Emery and Pan Am: says Payton. Epstein's caraordinary creativity was, ac- cording to Hoffenberg, responsible for the purchase by the insurance companies of a 5500.000 bond. with no money down. "Ep- stein created a great scheme to purchase a 5500.000 treasury bond that would not be shown • • • last Ittleygllilltgor collateralized. r psalm was involved with Reifenberg in .11La other questionable transactions. Finan- cial records show that in 1988 Epstein in- vested S1.6 million in Riddell Sports Inc.. a company that manufactures football helmets. Among his co.investors were the theater mogul Robert Nederlander and attorney Leonard Toboroff. A source close to this transaction claims that Epstein told Neder- lander and Toboroff t he his share.? Rik u ranker. CONFIDENTIAL he reportedly told the grand jury. "It looked like it was free and clear but it actually wasn't," he said. Epstein has denied he ever had any deal- ings with anyone from the insurance com- panies. But Richard Allen says he recalls talking to Epstein at Holfenberg's direction and telling him it was urgent they retrieve the missing bonds for a state examination. According to Allen, Epstein said, "NWT get them back." He had 'kind of a flippant atti- tude," says Allen. "They never came back." E pstein. according to Hoffenberg, also tame up with a scheme to manipulate the price of Emery Freight stock in an at- tempt to minimize the losses that occurred when Hoffenberes bid went wrong and the share price began to fall. This was alleged to have imbed multiple clients' accounts con- trolled by Epstein. Eventually, in 1991, insurance regulators in Illinois sued Reifenberg. He settled the case, and Epstein. who was only a paid consul- tant. was never deposed or accused of any wrongdoing. Barry Gross. the attorney who was handhng' the suit for the regulators. says of Epstein. "He was very elusive.... It was hard to really track him down. There were a substantial number of checks for significant dollars that were paid to hint. I remem- ber.... He was this character we never got a handle on. Again we presumed that he was imehed with the Pan Am and Emery run that Hoilenberg made. but we never pat a chance to depose him: -From the government's discovery in the main sentencing against Reifenberg it "cold seem the pavernment was perhaps a bit lazy: says David Lewis. who represented Mitchell Brace. "They went for what they knew they could get ... and that was the fraudulent promissory notes (i.e., the much larger and unrelated part of Hof enberg's fraud, based in New York Statet.... What they couldn't get. they didn't bother with" Another lawyer involved in the criminal prosecution of Reifenberg says. "in a crim- inal investigation like that. when there is a guilty plea. to be quick and dirty about it. discovery is always incomplete... . They don't have to line up witnesses; they don't have to learn every fact that might tome out on cross•examination" IAA* SDNY_GM_00331 376 EFTA_00204102 EFTA02729216 a whose identity they could not be allowed to know. But Hoffenberg has claimed the mon- cy came from him, and Towers's financial statements for that year show a loan to Ep- stein of 5400.000. (Epstein has said he can't remember the details and has dis- puted the accuracy of the Towers financial reports.) Around the same time, Nederlander and Toboroff let Epstein come in with than on a scheme to make money out of Penmvalt, a Pennsylvania chemical company. The plan was to group together with two other parties to take a substantial declared position in the stock. According to a source, Epstein was supposed tp help Naderlender and Toboroff raise 51$ million. He seemed to fail to find other investors, say those familiar with the deal. (Epstein has said he was merely an in- vestor.) He invested SI million, which he told his co-inwston was his own money. But in his 1989 deposi- tion he said that he put in only $300,000 of his own money. Where did the rest come from? Hof- knberg has said it came from him. in a loan that Nederlander and Toboroff didn't know about. Two things happened that alarmed Nederlander and Toboroff. Alter the group signaled a possible takeover. the Pennwalt management threatened to sue the would-be raiders. Epstein was reluctant ini- tially to give a deposition about his share of the money. telling Toboroff there were "reasons" he didn't want to. Then. after the opportunity for new investors was closed. codnvestors recall Epstein announcing that he'd found one at last: Dick Snyder. then C.E.O. of the publisher Simon do Schuster. who want- ed to put up approximately $500.000. (Nei- ther Epstein nor Snyder can now recall the investment. Yet in the 1989 deposition Epstein said that he had recruited Say- der, whom he had met socially, into the deal.) According to a source. Toboroff and Ne- deli:ander told Epstein that Snyder was too lam but. without their realizing it. Hoffen- telg has claimed. Snyder wrote a check to Hoffenberg and bought out some of his in- vestment. But then Snyder wanted out. - Nederiander started to get these irate calls from (Snyder.) who wasn't part of the deal, saying he was owed all this money: says someone dose to the deal. Tobotoff are: tire baffled. "1.,ndetgit l,Osource close to Hoffenberg s ;1}nberg paid Snyder off. J ust as Nederlander and Tobotoff were growing wary of Epstein. he became in- creasingly insolved with Leslie Warm whom he had met through insurance executive Robert Master and his late wife. Epstein has told people that he met Warier in 1986 in Palm Bach, and that he won his confidence by persuading him not to invest in the stock market, just as the 1987 crash was approach- ing. His story has subsequently changed. When asked if Wexner knew about his con- nection to Hoffenberg, Epstein said that he began working for Wexner in 1989, and that "it was certainly not the same time?' Wherever and whenever it was that Ep- stein and Wormy actually met. there was an immediate and strong personal <tern- ary. Wexner says he thinks Epstein is "wry smart with a combination of excellent judg- ment and unusually high standards. Also. he is always a most loyal friend." OFFICE SPACE The "office" in Epstein's house. tt :as no computers. but it does have a desk that Epstein tells people once belonged to banker 1. P. Morgan. and - the largest Perna rug you'll ever see in a mate home." Sources say Epstein Nosed that he could be useful to Wexner as well, with "fresh" ideas about inwstments. "%ants had a cost- pk of bad investments, and Jeffrey cleaned those up right away. says a boner assocs.• owed him for furnishings removed by Glass. ate of Epstein's. In 1998 the US. Attorney's Office sued Before he signed on with Wooer. Epstein Epstein for illegally subletting the forma had sclera' meetings with Harold Levin then home of the deputy consul general of Iran head of Wexner Investments, in which he to attorney' Ivan Fisher and others. Ensci% _ enunciated ideas about currencies :hat Levin paid $15,000 a month in rent to the found incomprehensible. "In fad;' says some- Department, but he charged Fisher in` one who used to waft very closely with Wee his colleagues 570.000. mouth the ner. "almost everyone at the Limited won- terms of the agreement are sealed. dead who Epstein was: he literally came coact ruled against Epstein. out of nowhere." Werner offers some insight user hh '7% 4; "Everyone was MPOOkaan to wh IPs combatiwt9telM94700fflY Pilt)et: • •41:;i, ••, SDNY_GM_00331377 All'arch of Epstein's work is related to clean 11'1 ing up, Mghtening budgets, and efficien- cies. One person who worked kr Wexner and who saw a contract drawn up between the two men says Epstein is involved in "every- thing, not just a little here, a little there. Everything!' In addition, he says, "Werner lilies having a hatchet man.. .. Whenever there is dirty work to be done he'd stick Jef- frey on it.... He has a reputation for being ruthless but he gets the job done." Epstein has evidently been asked to fire personal-staff members when needed. "He was that mysterious person that meryene was scared to death of." says a former employee. Meanwhile, he is also less than popular with some people outside Warmer's company with whom he now deals. "He 'inserted' himself into the construction process of La. lie Wanerk yacht. ... That resulted in liti- gation down the road between Mr. Wexner and the shipyard that eventually built the yes- kl." says Lars Forsberg. a tawver whose firm at the Fint. Dickerson and Rs:.y. was hired to deal with litigation stemming from the construction of Waner's Limidess— at 315 feet. one of the largest private yachts in the "rand. Et idently. Ep- stein stalled on paying Dickerson and Reily for its desk "Ws probably once Jr twice in my le- gal career that Ise had to sue a client for payment of services that he'd re- quested and we'd per- timed ... without issue on the performance: says Forsberg. In the end the matter was settled. but Ep- stein claims he now has no recollection of it. The incident is ore of a number of disputes Epstein has become embroiled in. Some are for anus so tiny as to be baffling: for instance. Epstein sued investment adviser Herbert Clam, who sold hin the Palm Beach house in 1990. for 513,444—Epstein claimed this was EFTA_00204 103 EFTA02729217 Jeffrey Epstein he is winning. tabether in conversations or negotie/kek he akeys stands baar and Iets the orher person determine the styk and manna of die eonvasaam or negotiation. And thea he responds in their sak. Jeffrey sea it in chivabeus tamis. He does not piek a fight, but if diere isa flik, he twill Iet you choose your soapos:' One case is redier more serious. Currendy, Citibank is sving Epstein for defaulting on loens from ise pfivete-banking arm for 520 million: Epstein claims that Ciáhank &ent induced" him into borrowing the money kr investments. Citibank disputes this charge. Tbc legal papers fa eraan case offer a are window into Epstein's finanes. In 1995, Epstein stopped pains rent to his landlord, ts nonprofit Munisipal Arts Society, for his dB* in the Yillard House. He daimed that ney west braking the terms of the lease by ot lening his staff in at night. The case was centually saded Howeven one of the papers (led in this dispute is Epsteint firarsval state- aent for 1988. in which he claimed to be sones 520 million. He listed that he mened 57 million in securities. SI million in cash. kro in residential property (although he Wd zouten that he had already bougie the lome in Palm Beach), and 511 million in aber assets. ineluding his investment in Rddell. A co-investor in Riddell sas: "The company had been bought with a huge anount of dek. and ir want public. to it Yes meaninglas Eo :mach a fleurt like that to the priee it tost was about 51.2 mil- Iiin" The co-investors bought out Epstein's share in Riddefi in 1995 for appnatimately 53 million. Ar kat time, when Epstein was asked. as a routine matten to sige a paper garanteeing be had acces: to a kw million dollars in case of am' subsequent disputes mes the sale prise. Wener signed for him. Epstein has etplained that tau was because the co-irwestors innted an inde-insla against being sued by Wenkt One of the intresten verb this "bullshit." E ilsteins appointment to the baard of New York's Rockefeller University in 2000 brought him into &stater sosial promi- nente. Boasting such social names as Nancy Kissinger. Snak Astor, and Robert Bass. the board 3150 includes such pre-eminent scientists as Nobel laureete Joseph Gold- stein. "Epstein was thtilled to be elected," sa» someone who knot» him. After one term Epstein resigned. Accord- ing to New York magazine, dik was because he didn't like to waar a snit to meetings. A ..nkespetton to- the Rock/StIler board says was "arrogant" and "not a good fit:' The spokesperson adrnits that it is "infrequent" for board members not to be renominated after neb one term. Stilt, the recent spare of publicity Ep- stein hes inspired does not stem to have rand him. In November he was sponed in the front row of the Vietabis Secret fashion show at New York's Laingron Avenue Ar- mory; around the same time the usual co- terie of friends and beatnik' women ware whisked off to Link St. James (which he tell: papte has been reneed Link Stiel!) for a long weekend. !banks to Epstein's introductions, sa» Martin Nowalk the biolottist finds himself staving trom Princeton to Hanard, where he is astiming the joint position of profes- sor of mathematics and professor of biolo- gy. Epstein has pedged at kast 525 million to Harvard to ereare the Epstein Program for Mathemattc-al Daim' and Evolutionary Dynamiek and Epstein will have an office at the university. The program will be &dit cated to searching tbr naturis algorithms, a pursuit that is a specials). of Nowak's. For Epstein this must be the stamras of eren- thing he bas eerled toward: he hat been seen prol* displaying Hanard president Larry Sum eerst lener of commitment as if he cad: gun believe ir is reel. He says he was reluctan: to hem his name anached to the program. bul Summen persuaded him. He rang his mentor IYetner about it. and Wang told han ir was all acht. An insetiabk. restless mak ahvays on the move. Epstein builds a tremendous amount of downtime imo his hectic wak schedule. Ter these is something almost programmed about his retention: it's as if even plee- sure has to be measured in terms of self- improvement. Nowak sas Mat. when he goes to stay with Epstein in the Caribbean. they'll set up at siv and. as the sun rises. have thme-hour comersations about thcoret- teat physics. "Thea heil go oir and do ame work. re-appear. and wet talk somt more.- Another person who went to the island wilt Epstein. Maxwell. and snaai beautiful women rememben Chat the women "sas around one night teasing hint about 'he kinds of grasping nomen who might want to date him. He was amused by the idea.... He's like a king in his own world.- Many people commiesu theses somt- tining innocent. almost childlikc about Jef- tra Egacin. They sa this as refinhing given the sophisticarion of his surruundings. Alan Dershowitz says :Lu. as he was setting to know Epstein. his w* asked him if he would stilt be close to him if Epstein suctdenly tiled for bankruptcy. Dershowitz sa» he replied. "Absohnely. I would be as interested in him as a (tiend if we had hamburgers on the :itdd&bilscatie he had insufficient time boardwalk in bag! MS4d and kind about » J-oe/d rnember reeds that IC CYNFI D E NT I AL FASH1ON C.nn Ben Mink's Delte IX Linie hom Dalva gL 1UC ord LA age to wapeiocom lor ten', coll IXO.USALEtl; Deborah wamt Ra. 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