Epstein's Estate Hid "Substantial Funds," Says Government
Darren Indyke and Richard Kahn transferred estate assets in an attempt to "personally enrich themselves," say lawyers for Denise George, the attorney general for the U.S. Virgin Islands.
The co-executors for the estate of the late billionaire pedophile Jeffrey Epstein transferred $13 million dollars from a liquidated investment fund to a trust set up by Epstein in 2013 called The Butterfly Trust, reported the New York Times last Friday.
The revelation came from a filing in a case against the co-executors of Epstein’s estate, launched by Denise George, the attorney general for the U.S. Virgin islands in January 2020. As well as Epstein’s agents, the case targets the constellation of shell companies set up by Epstein and administered by the same men responsible for overseeing his estate.
According to lawyers for George’s office, the initial transfer of funds took place in April 2020. Several months later, money from The Butterfly Trust was forwarded onward to trusts listing Darren Indyke and Richard Kahn and their spouses as their beneficiaries.
Indyke & Kahn are co-executors of Epstein’s estate, which was valued at $577,672,654 at the the time of his death. Before Epstein died, Indyke was Epstein’s longtime lawyer, and Kahn Epstein’s accountant.
In an emergency motion filed July 22nd, lawyers for the government claimed that the transfers were part of an attempt by Indyke & Kahn to shield the estate from claims, as well as to “personally enrich themselves.”
The “Defendants have refused to provide discovery throughout these proceedings,” says the motion; according to the government Indyke & Kahn have conflicting interests as co-executors of the estate given that they’re simultaneously being investigated for their criminal involvement in what authorities have dubbed the “Epstein Enterprise.”
The men’s “dual roles as both Co-Executors of the Epstein Estate and central players in the Epstein Enterprise’s criminal activity…brings into question their ability to lawfully, fairly and objectively execute the Estate and trust assets and accounts that are outside of the Estate,” charges the motion.
The government alleges that Indyke & Kahn “directed, approved, enabled, and justified millions of dollars in payments that fueled the Epstein Enterprise’s sex trafficking,” and that they were directly involved in paying women who were forced to have sex with Epstein and others, as well as “facilitating and maintaining forced marriages between sex trafficking victims to obtain immigration status for foreign victims so Epstein could continue to abuse them.”
The government also claims the two men defrauded the government of $80.5 million in unpaid taxes through an Epstein shell company called Southern Trust Company.
In the past two years, the government says, the value of Epstein’s estate has fallen over 75%. Additionally, “Indyke & Kahn refused to disclose the documents or principals in trusts related to Jeffrey Epstein despite repeated requests in discovery and in correspondence.”
The government also cites a “surprisingly abrupt end” to court ordered mediation between Indyke & Kahn as evidence of their “proclivity to protect their personal interests at all costs.”
A mediation conference was held on the 15th and 20th of July. Kahn & Indyke were present along with their lawyers, as well as lawyers for the government and a St. Thomas, Virgin Islands mediator called David E. Nichols.
In a handwritten note on the mediation form filed July 21st, Nichols reports that “one of the parties desires a recess and the other party considers the parties at an impasse. The issue precluding resolution of this matter is FINALITY. The parties may discuss this issue within permissible parameters at the next status conference.”
The next status conference is scheduled for October 4th, 2022 at 9 AM via Zoom.
Over the next couple of weeks, I will be exploring the U.S. Virgin Islands litigation in depth for a subscriber’s only series. It’s some of the most potentially consequential litigation involving the Epstein Enterprise, and based on the extensive subpoena services issued so far, has undoubtedly dug up a wealth of information in the course of its investigation. Thanks to Matthew Goldstein at the New York Times for pointing me to the online portal where the case docket is hosted.
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