How Jeffrey Epstein turned so wealthy | EUROtoday

How did Jeffrey Epstein, a school dropout who began off instructing math and physics, make an enormous fortune?

At least originally, the person from a working-class household in Coney Island, New York, had luck on his aspect.

Through connections, Epstein received a job at funding financial institution Bear Stearns, which gave him perception into excessive finance. In 1980, he was made a restricted companion.

After 5 years, he left the financial institution however used his contacts and time there as an indication of credibility.

Jeffrey Epstein was a man of thriller and finance

After he left Bear Stearns, Epstein’s identify popped up in monetary circles, nevertheless it was exhausting to say what he actually did.

“He was a cypher,” mentioned Charles Gasparino, a senior correspondent at Fox Business Network in Netflix’s 2020 documentary “Jeffrey Epstein: Filthy Rich.” Normally, individuals on Wall Street go away trails, however Epstein was elusive.

“Here was this guy that people talked about a lot, that didn’t have much of a footprint in the investment world,” mentioned Gasparino.

Epstein’s alleged hyperlinks to a Ponzi scheme

Steven Hoffenberg, the previous CEO of Towers Financial Corporation, claimed to know a part of the story.

In the late Eighties, he employed Epstein, who turned his “partner in crime,” in accordance with an interview within the Netflix documentary. Hoffenberg was working what turned out to be a $460-million (€387-million) Ponzi scheme.

Epstein “took over the securities side, the fake assets side, he was manipulating stock price and trading stock illegally,” mentioned Hoffenberg.

In 1993, all of it got here crashing down. Hoffenberg pleaded responsible and was sentenced to twenty years in jail. Epstein was by no means charged with any crime, so it’s exhausting to know what, if any, half he performed and what he gained financially.

The Les Wexner connection

In the mid-Eighties, Epstein met Les Wexner, the Columbus, Ohio-based retail mogul behind Victoria’s Secret and The Limited. Epstein promoted himself as a monetary advisor and received the keys to the billionaire’s funds in 1991.

Epstein took over Wexner’s private monetary affairs, paid himself handsomely, and purchased a property portfolio and a non-public jet.

He and Wexner parted methods in 2007 as a scandal enveloped the financier. Only then did Wexner uncover that Epstein had “misappropriated vast sums of money from me and my family,” as he later wrote.

Where did Jeffrey Epstein’s preliminary wealth come from?

Epstein had stolen or misappropriated a number of hundred million {dollars} belonging to Wexner, in accordance with a report by US prosecutors lately made public.

“That misconduct, together with fees that Epstein paid himself for his services to Wexner, appears to account for virtually all of Epstein’s wealth,” in accordance with attorneys within the report.

Epstein bought himself a non-public jet that belonged to Wexner for a fraction of the price. He did the identical with a townhouse in New York City. Epstein additionally purchased property on behalf of Wexner after which resold it to himself at discounted costs, the report provides.

In 2008, Epstein returned $100 million to Wexner in a non-public settlement as an alternative of going through a public court docket case. Wexner lower all ties with Epstein however by no means filed an official grievance.

Still, Epstein walked away with belongings and an enormous pile of money. Since Wexner didn’t go public for over a decade, nobody knew what occurred.

How Epstein exploited Wexner’s hyperlinks

But Wexner gave Epstein one thing else, too. If Wexner was seen to belief Epstein, then others may absolutely belief him and his monetary recommendation. Epstein used this credibility to entry a rising record of who’s who.

He was not afraid to throw round names like Clinton and Rockefeller. It appeared to work, and distinguished individuals have been pulled into his private community like personal fairness billionaire Leon Black.

Over the years, there have been quiet allegations of extreme charges or exploitation, nevertheless it appears Wexner is the one one to publicly declare outright theft.

The function of JP Morgan and Deutsche Bank

Even after Epstein turned a registered intercourse offender in 2008 and hung out in jail, many nonetheless got here to him for recommendation, a reality underscored by the newest Department of Justice doc launch.

Many firms have been additionally pleased to get his enterprise. His banks have come below particular scrutiny.

Epstein used JPMorgan from 1998 till 2013, when it closed his accounts. A decade later, with out admitting any wrongdoing, the financial institution paid $75 million to settle claims by the US Virgin Islands and $290 million to settle a lawsuit by a gaggle of Epstein’s victims.

After he was pressured out of JPMorgan, Deutsche Bank let Epstein open an account in 2013. Later, he had round 40 accounts earlier than the financial institution ended their relationship shortly earlier than he died.

The financial institution has mentioned it regrets its reference to Epstein and agreed to pay a $75-million settlement to a gaggle of his victims with out admitting wrongdoing.

What occurred to Jeffrey Epstein’s fortune?

Epstein was arrested on July 6, 2019, and charged with intercourse trafficking of minors. He was discovered useless in his jail cell on August 10 the identical yr.

When his will went to probate court docket within the US Virgin Islands — the place he was a resident — it had a record of belongings totaling $577 million, together with $56.5 million in money and practically $194 million in hedge funds and personal fairness investments plus $112 million in equities. It additionally listed the businesses that owned his properties within the Virgin Islands, New Mexico, New York City, Palm Beach and Paris.

But taxes, repairs, authorized charges and massive settlements have eaten away on the property. This has not stopped individuals from making an attempt to clarify the place all of it got here from within the first place.

The New York Times concluded a monthslong investigation in December 2025. After digging by 1000’s of pages of data, the paper concluded that Epstein constructed his fortune by “scams, theft and lies.”

“Epstein was less a financial genius than a prodigious manipulator and liar,” in accordance with the paper. “Again and again, he proved willing to operate on the edge of criminality and burn bridges in his pursuit of wealth and power.”

Edited by: Ashutosh Pandey