Two executors of Jeffrey Epstein’s estate have been accused of moving some of the late billionaire pedophile’s wealth into a trust that could benefit them to the tune of at least $13 million.
Darren Indyke, Epstein’s personal attorney, and Richard Kahn, the estate’s in-house accountant have long been accused of mismanaging his wealth to avoid paying out his victims.
The two have been accused of transferring millions to the Butterfly Trust, which Epstein started in 2013, authorities in the US Virgin Islands said in a legal filing Friday, the New York Times reported. Epstein’s notorious Little Saint James Island – which he owned from 1998 until his 2019 death – is under the Virgin Islands’ jurisdiction.
The money transfer took place nearly a year after Epstein committed suicide in his Manhattan prison cell.
‘The government discovered that substantial funds kept secret from the government were transferred for the benefit of the coexecutors in an apparent effort to enrich themselves and shelter these assets from recovery,’ the filing read.
Two executors of Jeffrey Epstein’s estate have been accused of moving some of the late billionaire pedophile’s wealth into a trust that could benefit them to the tune of at least $13 million
Darren Indyke (pictured right), Epstein’s personal attorney, and Richard Kahn (pictured left), the estate’s in-house accountant have long been accused of mismanaging his wealth to avoid paying out his victims
Epstein’s estate is worth around $185 million, not even a third of the $600 million it was worth when Epstein died, thanks to over $120 million in settlement payments to victims, as well as federal taxes.
Indyke and Kahn have also been accused of not disclosing loans worth several million dollars provided to them by Epstein.
In April 2020, the Butterfly Trust received a $13 million wire transfer, 10 months after Epstein’s death.
A chunk of that money was transferred again later that year to three different entities, two of which stood to benefit Indyke, Kahn and their spouses.
Denise George, the Virgin Islands Attorney General, is asking a judge to force Epstein’s estate to allow them to investigate where the money is going.
Denise George, the Virgin Islands Attorney General, is asking a judge to force Epstein’s estate to allow them to investigate where the money is going
Epstein’s notorious Little Saint James Island – which he owned from 1998 until his 2019 death – is under the Virgin Islands’ jurisdiction
Daniel Weiner, an attorney for the Epstein estate, denied the charges on Indyke and Kahn’s behalf, saying they ‘categorically reject the baseless assertions of wrongdoing made against them’.
Weiner claims neither Indyke nor Kahn ever saw that $13 million.
He added: ‘The 2013 Butterfly Trust mentioned in today’s filing by Ms. George has nothing whatsoever to do with Mr. Epstein’s estate or any funds available to it.’
These latest accusations continue a long-running legal battle between Epstein’s estate and the organized territory.
In an amended complaint filed in February 2021, George accused Indyke and Kahn of acting like ‘captains’ in his pedophile operation, forcing some foreign victims into arranged marriages with his American victims so they could enter the United States.
She says Epstein threatened bodily harm against three of his American victims to get them to marry three foreign victims and that ‘in each instance, Indyke and Kahn knowingly facilitated the fraudulent and coerced marriages, performing and securing the legal and accounting work involved and enabling a fraud that would further bind Epstein’s victims to him and enable Epstein to continue to control and abuse these victims sexually.’
One unnamed victim quoted in the lawsuit said many girls she saw at Epstein’s island didn’t speak English, which was ‘Epstein’s preference since they spoke less.’
The two executors deny any involvement in the sex trafficking operation.
‘Neither Mr. Indyke nor Mr. Kahn had any involvement in any misconduct by Mr. Epstein of any kind, at any time,’ they said in a statement.
George sought to freeze the estate’s funds after a February 2021 announcement that the administrator of the Epstein Victims’ Compensation Program would temporarily halt payouts because most of the estate’s estimated $240.8 million of assets, down from a peak of around $634 million, were illiquid.
She said her ‘worst fear’ was realized when the payments stopped and that the estate is being mismanaged.
General Views of Jeffrey Epstein’s private island in US Virgin Islands
‘The Estate has found its way to pay for lawyers, landscaping, and helicopter fees, but not the brave women who have stepped forward to participate in the compensation fund.
‘It is, unconscionably, another promise made and broken by Epstein and now, his Estate,’ she said.
Epstein was discovered to have put his affairs in order just two days before his suicide.
He named Kahn and Indyke as co-executors and his brother, Mark Epstein, 65, a multimillionaire property developer, as sole heir to his estimated $577million fortune.
But it is from that fortune which victims, who have lost the opportunity to have their day in court against Epstein since prosecutors dropped the case, are now seeking compensation.
Federal prosecutors for the Southern District of New York, who led the case against Epstein, vowed at the time of the suicide that the investigation would not end with his death and would now focus on the financier’s network of associates.
Epstein – who once boasted an array of high-profile friends including Prince Andrew and President Bill Clinton – was arrested in July 2019, accused of arranging to have sex with dozens of underage girls at his residences in New York City and Florida between 2002 and 2005. He had pleaded not guilty to the charges.
He hanged himself inside his New York City jail cell a month later.
JEFFREY EPSTEIN’S UNDOING: A TIMELINE OF THE MILLIONAIRE PEDOPHILE’S DOWNFALL
1999 – Virginia Roberts Giuffre is allegedly recruited by Ghislaine Maxwell to became Epstein’s ‘sex slave,’ at 17. She also claimed that he forced her to have sex with his friend Prince Andrew, the second son of Queen Elizabeth.
2002 – Trump tells New York Magazine that his friend Epstein ‘likes beautiful women as much as I do, and many of them are on the younger side.’
2005 – A 14-year-old girl tells police that Epstein molested her at his Palm Beach mansion.
May 2006 – Epstein and two of his associates are charged with multiple counts of unlawful sex acts with a minor. State attorney of the time Barry Krischer, referred the case to a grand jury who heard from just two of the 12 girls law enforcement had gathered as potential witnesses. They returned just one single count of soliciting prostitution.
July 2006 – The case is referred to the FBI by the Florida Palm Beach police who were unhappy with how the case was handled.
2007 – Epstein’s lawyers meet with Miami’s top federal prosecutor Alexander Acosta, who would later become the Secretary of Labor in the Trump administration. They secretly negotiate the ‘deal of a lifetime’.
June 2008 – After pleading guilty to two prostitution charges, the millionaire was sentenced to 18 months in a low-security prison in exchange for prosecutors ending their investigation into his sex acts with minors and give him immunity from future prosecution related to those charges. In reality, Epstein was able to work from his office six days a week while supposedly incarcerated at the jail.
July 2008 – Accusers learned of the deal for the first time.
July 2009 – Epstein is released from jail five months early.
July 2018 – The Miami Herald publishes investigative journalist Julie K. Brown’s exposé on Epstein’s long history of alleged sexual abuse and news of the ‘deal of a lifetime’ after Acosta was made Labor Secretary.
February 2019 – The justice department opens an internal review into Epstein’s plea deal.
July 7, 2019 – Epstein is arrested after his private jet lands at New Jersey’s Teterboro Airport from Paris. At the same time, federal agents break into his Manhattan townhouse where they uncovered hundreds of photographs of naked minors.
July 8, 2019 – Epstein is charged with sex trafficking charges which detail how he created a network of underage girls in Florida and New York, paying girls as young as 14 to provide ‘massages and sex acts.’ The charges carry a sentence of up to 45 years in prison.
July 11, 2019 – More than a dozen women, not previously known to law enforcement, came forward to accuse him of sex abuse.
July 24 – Epstein was found unconscious in his cell after an apparent suicide attempt. He was moved to suicide watch at the Metropolitan Correctional Center.
August 9, 2019 – More than 2,000 documents are unsealed which reveal the lurid allegations against Epstein in detail.
August 10, 2019 – Epstein is found dead in his cell.
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