← The Epstein Chronicles
The Epstein Chronicles
Jeffrey Epstein, The King Of Ponzi Schemes
00:17:26
Jeffrey Epstein was more than just the wealthy financier with a knack for elite connections—his ascent was shadowed by serious financial fraud. In the late 1980s, he was hired as a consultant at Towers Financial Corporation, a company run by his...
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to the Epstein Chronicles in this episode, we're going to hop back to August 1st of 2021 and an article from Radar on Online. In this episode, we're going to talk about the Ponzi scheme that Jeffrey Epstein was involved in that somehow he avoided all responsibility for. So let's dive into this article that was authored by Dominic Utten. Headline How Jeffrey Epstein Made a Fortune from an Illegal Ponzi Scheme then Skipped Away With Millions of Other People's Money. Sounds about right. Par for the course for Mr. Scumbag himself. And there was never any restitution for these people. They stole millions of dollars. Him and Steve Hoffenberg, they stole a grip of money from these people. And while Hoffenberg paid his debt to society doing 18 years in prison, Jeffrey Epstein, of course, was able to go on and continue his streak of rape and abuse and money laundering and God knows what else. When the full horror of billionaire pedophile Jeffrey Epstein's crimes were laid bare in 2019, the world wondered how he managed to get away with his abuse for so long. But as authors Dylan Howard, Melissa Cronin and James Robertson reveal in their book Epstein, dead men Tell no Tales. The man would, who would be unmasked as the worst pedophile in American history, was guilty of other criminal acts too, and should have been should have been jailed in the early 1990s. All of that is correct. Dude should have been in prison a long time ago. If it was you or I who got involved in one of these Ponzi schemes, or, you know, redirecting money from someone's pension, you better believe we'd be doing prison time. And we should be, right? You know, I'm all for prison rehabilitation, like I always say, and for people being able to, you know, not get felonies or not be put into jail for minor drug possession. But if you're stealing money like this from people's pensions and you're involved in financial dickheadery, well, my friend, there is a nice place for you in jail. As the authors explain, Epstein's rise through Wall street was unusual and unusually fast. Born in New York and raised in the quiet Brooklyn community of Seagate, his early life seemed unremarkable. And after leaving university without graduating, he initially worked as a math teacher in Manhattan before being dismissed from from the prestigious Dalton School for his lackadaisical teaching style. Oh, I'm sure that's all it was. I'm sure that he never made any passes at any girls while he was at Dalton. Nah, that never happened. He was a master manipulator, they write. But Epstein's manipulations weren't always done through legal means. By the early 90s, the authorities had set their sights on Epstein for operating a multi million dollar Ponzi scheme. Now think about that for a minute. When the authorities zero in on you for a Ponzi scheme and they're building a case, you know, money laundering, wire fraud, all of their favorite charges, well, you know that you're in big trouble and it is exceedingly rare for people to end up walking when they're caught up in something like this. And usually when you do walk, that's because you turn snitch, you're ratting out all of your co conspirators, you're ratting out anyone who was involved in the scheme and you're looking to not end up doing 20 years via RICO charges. So that's obviously what Epstein did. He obviously turned rat, told the authorities what was going on and started his working relationship with whichever scumbag in the government you want to add. But the fact is you don't just walk on stuff like this if you're not being protected. Howard, Cronin and Robertson also note that the master manipulator was to use his dismissal to his advantage. True to form, Epstein somehow managed to turn that failure into a stepping stone to even greater success. A job on Wall street, they write. During a parent teacher conference. The 23 year old had managed to dazzle one student's financier father. So when Epstein was fired from Dalton, the broker connected Epstein with Alan Greenberg, a Wall street bigwig who was poised to become chief executive officer of multi billion dollar global investment bank and brokerage firm Bear Stearns. How many times are you going to fall face first and land clean? It was a common procedure for Epstein. How many people leave their little shitty ass teaching job and go get a job with Bear Stearns? How many people happen to just meet someone's dad during a parent teacher conference and go on to have this whole Wall street career? See that whole entire thing, this whole Genesis story here really doesn't add up to me honestly. Later that year, Epstein landed a job at Bear Stearns as a Low level junior assistant to a floor trader, he swiftly rose through the ranks, and within four years, he had become a limited partner, taking on mega millionaire clients like Seagram president Edgar Bromfin. Brad Bronfman. H. Where. Where we heard that name before? Oh, that's right, in the Nexium trial, huh? Claire Bronfman, her sister. They were right at the top with Keith Rainiery. You see how all of this is circular? You see how all of these people at some point were rubbing elbows and breaking bread and hanging out with each other. Getting in on Wall street before the 1980s banking boom allowed Epstein to build a spectacular network of connections that made him the toast of Manhattan during one of the most prosperous decades it had ever seen. Well, there's no doubt about that. This point in time, Wall street was quite possibly the greediest it has ever been. Remember the movie Wall street with Charlie Sheen and Michael Douglas? That was a good characterization of stockbrokers and Wall street in general. Greed is good. Remember that tagline? You ask me how I know? Well, I might have a stockbroker or two floating around in my family. Look, the, the, the moral of the story is the financial sector is broken. And all of these people that are, you know, running around in the financial sector, I don't even know what to say, honestly, at this point. It is an absolute shit show the way they conduct business. In just a few short years with Bear Stearns, Epstein had made millions of dollars, was traveling full time by chauffeured limo, had billionaires relying on his financial advice, and was carousing around town with stunning women on both arms. Still, it was not enough. Epstein's greed and ambition were to push him to grow even more desperate and reckless in his pursuit of money and influence. And that's how it always is with these guys, right? Greed, greed, greed and more greed. And thankfully, a lot of times, that's also what ends up getting them captured. Their greed and their hubris. In early 1981, one of Epstein's colleagues at Bear Stearns tipped off management that Epstein was testing the boundaries of the law. Wright, Howard, Cronin, and Robertson. After an investigation, Epstein admitted he had loaned $20,000 to a friend, Warren Eisenstein, who then used the money to invest in stocks. With Epstein's insider knowledge guiding him, it was unethical and potentially illegal. Not for Epstein. Always finds a way to wiggle off, doesn't he? Epstein somehow managed to escape with a 2500 fine. But a few days later, he was under the spotlight again. When the U. S. Securities and Exchange commission opened an investigation into Epstein's client, Edgar Bronfman, and Epstein was accused of illegal securities violations. That should have been the end of it right there. He should have been busted and absolutely disgraced. But that's not the case, is it? We all know that Epstein somehow, some way, parlayed this into what we see occur later on, depending on who you ask. And Epstein was either unceremoniously fired at that point or quitting a blaze of glory, the authors continue. Either way, it left the unabashed social climber in a very undesirable position. No longer a Wall street wunderkind, Epstein was jobless, homeless, and running out of funds. He had to get creative. Yeah, well, we all know how he got creative, don't we? That creativity was to lead Epstein to take on controversial black market clients like Saudi Arabian businessman Adnan Khashoggi, for whom he helped broker global armament deals, including the sale of major weaponry like the AWACS airborne warning and control system aircraft. So here are your ties with Jeffrey Epstein and Saudi Arabia. Remember we were talking about the Saudi Arabian passport? Well, when you're helping guys like Khashoggi out. Adnan Khashoggi, not Jamal Khashoggi, the one who was killed by the Saudis in the Turkish embassy, but Adnan Khashoggi, the famed arms dealer, well, you know that you're gonna have some ties to the Saudi royal family. And Epstein obviously parlayed those ties into getting himself that fake passport and lord knows what else. In 1987, Epstein's business affairs had become increasingly shady. And it all came to a head when he met Steve Hoffenberg of Tower Financial Corporation, a leading debt collection and corporate rating agency at the time. So right off the bat, the second you tell me you're a debt collector, I gotta roll my eyes. Debt collector? The hell does that even mean? In an exclusive interview, Hoffenberg tells the authors of Epstein, dead men tell no tales. What attracted him to the financier, pedophile. I was very impressed with the unbelievable personality and. And unbelievable ability of Jeffrey Epstein to become a friend and the uncanny ability that he had as a mastermind criminal on Wall Street. He says Jeffrey Epstein was brilliant. Was a brilliant, brilliant Wall street mastermind in criminality for securities fraud. I was greatly impressed with his demeanor, his ability to understand complex securities underwritings and sales to investors. So that's shorthand for Hoffenberg saying he recognized someone who would be a important cog in his upcoming schemes because of Epstein's Scumbaggery.
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He was so unusual as an executive and had so much ability, it was just very surprising how gifted he was. His ability to sell you securities when you weren't looking to acquire securities was remarkable. He would end up convincing you to buy securities in Towers Financial. You weren't even considering that he had that gift and that ability. So basically, he's a bullshit artist, snake oil salesman, carnival barker, kind of like a lot of these people out here putting out these stupid articles we see all the time. But once again, Epstein could not resist the shortcut, even if it was illegal. Quickly they set the setup at Towers Financial evolved into a huge Ponzi scheme. As explained by Hoffenberg, you raise money from one investor to pay another investor. That's the simple definition of Ponzi. Jeffrey Epstein participated full time and was a mastermind in that part of the Tower Financial crimes. Towers Financial got into an awful lot of legal problems and litigations and ended up going into bankruptcy. Now, normal people who get caught up in this, they go to jail, man. They go to prison. After the authorities were alerted to the illegal scheme, trustees were appointed to operate the company. And once again, Epstein showed his talent for manipulation. Jeffrey Epstein had a very strong relationship with the lawyers that the trustees hired. Hoffenberg tells the authors, actually, the trustee in bankruptcy at Towers Financial, a man named Alan Cohen, hired one of Jeffrey Epstein's best friends and lawyers, Indike and Khan, to investigate Jeffrey Epstein at Towers Financial, which is remarkable. Jeffrey Epstein manipulated that occurrence without question. So there's another little golden nugget for you. When I talk about Indyke and Khan and how crucial they were. You see it here on the ground level. Jeffrey Epstein manipulated the situation so that these guys, Indyke and Khan were the ones performing the investigation on Epstein, his best friends, basically. Nah, no nepotism out over here. There's no, you know, two level the playing field, no two tiered justice system. Give me a break. The outcome was even more jaw dropping. In 1995, Hoffenberg was sentenced to 20 years in prison, a $1 million fine and $463 million in restitution. While Epstein, well, he dodged all charges. I Wonder why. So this is the, the, in my, in my mind anyway, this is where Epstein was really locked in as an informant. The way we talked about Whitey Bulger, how he was working with the, the government and they were willing to look the other way. Same thing with Epstein. Epstein was not punished in the crimes at Towers Financial. Hoffenberg continues. Jeffrey Epstein's ability as a master criminal got him out of the penalty box for all of that. That's what happened continuously in his other criminal charges as well. And we have seen a pattern of that. Right? Normal people don't get off on things like this. Hell, normal people don't get off on anything. But somehow Epstein somehow found a way what could and almost certainly should have been a lengthy, a lengthy prison stretch and, and financial ruin was instead a mere footnote in Epstein's life story. As and as Howard Cronin and Robertson reveal, Hoffenberg believes the pedophile may even have used the scheme to fund his future crimes. Oh, I don't doubt that. I guarantee that Epstein was not only stealing from the clients, but stealing from Hoffenberg. This dude was using that money, setting up offshore accounts, the whole thing, man. Have no doubt about that. Epstein didn't just escape justice, they write Hoffenberg claimed he moved on to new adventures. With millions in his pocket, Epstein was able to fund his criminal enterprise, Financial Trust Company. And Jeffrey Epstein and company. Hoffenberg alleged there was another. I believe it was international asset collections. He was able to fund it with the assets and money from, from the Tower's financial crimes. And we all know that should never happen. If you get caught up in something like this, you should do time. You should be indicted, you should have your, your assets seized. But none of that ever happened for Epstein. None of it. And when we go back and we look at stories like this, it just shows you, it shines a spotlight on how egregious it all was, how the government failed at every level to, to stop this man. How many chances did they have and how many times did they fail to stop him? If you'd like to contact me, you can do that@bobby capuchirotonmail.com that's B O B B Y C A P U c c I@protonmail.com you can also find me on Twitter at B O B B Y Underscore C A P U C C I. The link that we discussed can be found in the description box.
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