00:00Today on Forbes, How Jeffrey Epstein Got So Rich
00:04At the time of his death in 2019, Jeffrey Epstein was a fabulously wealthy man.
00:11Between his collection of lavish homes, two private Caribbean islands,
00:15and nearly $380 million in cash and investments, he was worth $578 million, according to his estate.
00:24Exactly how he accrued those riches is at the heart of the ongoing scandal.
00:28The less interesting possibility is that Epstein's sex crimes were separate from his day job as a
00:34financial advisor to billionaires, to whom he offered investment, estate, and tax planning services.
00:39In a 2013 corporate filing, Epstein described himself as, quote,
00:44an experienced and successful financier and businessman, a, quote,
00:48entrepreneur who has built several highly profitable companies, and, quote,
00:53one of the pioneers of derivative and option-based investing.
00:56The more scandalous scenario, as alleged by many of President Trump's supporters and conspiracy
01:02theorists, is that Epstein secretly taped his wealthy friends engaging in sex crimes with
01:07trafficked minors in his homes and on his islands and then blackmailed them, with his financial
01:13business serving as cover.
01:15The full origins of Epstein's wealth remain shrouded in mystery, but what is clear, according
01:20to Forbes' review of court filings, an investigative memo, and financial records, is that Epstein
01:26relied above all on two billionaire clients and a tax gimmick to build his fortune.
01:32Victoria's Secret's longtime chief Les Wexner and private equity honcho Leon Black were Epstein's
01:39two largest financial clients.
01:41Of the more than $800 million in revenue Epstein's two key businesses brought in from 1999 to
01:472018, Epstein collected at least $490 million in fees, with the rest coming from gains on
01:54investments.
01:56Wexner and Black supplied upwards of 75% of Epstein's fee income throughout that period,
02:01according to Forbes' estimates.
02:03Those entities, both based in the U.S. Virgin Islands, were Epstein's only, quote,
02:08revenue-generating companies from 1999 until his death.
02:12This, according to an expert report provided by an accountant in a 2022 case filed by the
02:18U.S. Virgin Islands government against J.P. Morgan Chase.
02:21While President Trump and Epstein were friends for many years, there is no evidence that they
02:26ever did any business together.
02:27They reportedly fell out after competing to buy the same Palm Beach estate in 2004.
02:33In that competition, Trump won.
02:37Wexner, who is 87 years old and the founder of apparel giant Limited, was Epstein's primary
02:42client from 1991 until 2007 before the two men fell out.
02:48Wexner paid Epstein an estimated $200 million over the years.
02:52Black, who is 73 years old and the founder of private equity firm Apollo Global Management,
02:57paid Epstein $170 million between 2012 and 2017.
03:03This, according to an independent investigation from law firm Deckert LLP into Black's relationship
03:09with Epstein and further research from the Senate Finance Committee.
03:14Epstein was able to accumulate his wealth nearly tax-free thanks to generous tax breaks
03:18in the U.S. Virgin Islands, where he became a resident in 1996 and set up a financial consulting
03:24firm named Financial Trust Company two years later.
03:27He spent nearly $8 million to buy Little St. James Island, which has since become known
03:32as Pedophile Island, for its role in his sex trafficking ring.
03:37Court filings show that between that firm and Southern Trust Company, which he set up in
03:412011 and which took over as his main business the following year, Epstein obtained benefits
03:46under the territory's economic development program that saved him $300 million in taxes
03:51between 1999 and 2018.
03:54Throughout that time, Epstein earned at least $360 million in dividends from his companies.
04:01Wexner and Black have both apologized for their associations with Epstein and said they were
04:06not aware of his sex crimes.
04:08Wexner stepped down as CEO of Elle Brands in 2020 and said in a letter published that year
04:13that he, quote, would not have continued to work with any individual capable of such egregious,
04:18sickening behavior, had he known.
04:22Black said in an earnings call in 2020 that he, quote, deeply regretted his association with Epstein.
04:28The Deckert report found, quote, no evidence that Black was involved in any way with Epstein's
04:33criminal activities.
04:35In 2021, Black stepped down as Apollo CEO and from his position as chairman of the Museum of Modern Art.
04:41The two men were not Epstein's only clients.
04:46The full extent of Epstein's wealth and client list is still unknown, though further details
04:51may be public soon enough.
04:53On July 17th, Senator Ron Wyden revealed that investigators from the Senate Finance Committee
04:59had reviewed some of the Treasury Department's files on Epstein last year.
05:03They found that there were more than 4,700 transactions with Epstein's accounts at four banks,
05:08JPMorgan Chase, Deutsche Bank, Bank of New York Mellon, and Bank of America, totaling more than
05:16$1.9 billion.
05:19For full coverage, check out Giacomo Tagnini and John Hyatt's piece on Forbes.com.
05:26This is Kieran Meadows from Forbes.
05:28Thanks for tuning in.
05:38.
05:39All right.
05:40You
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