The payments made by Leon Black to Jeffrey Epstein between 2012 and 2017 are the subject of ongoing scrutiny by authorities, notably the U.S. Senate Finance Committee.
Total Amount and Purpose
Revised Total: While an internal review for Apollo found Black paid $158 million, the Senate Finance Committee investigation later discovered that the true amount totaled more than $170 million.
Black's Stated Purpose: Black has maintained that the payments were for legitimate tax, estate planning, and philanthropic advice for his family office.
The Fees: The payments, which amounted to an annualized rate of around $34 million per year, far exceeded what Black paid other professional advisors for similar work, and were often made on an ad-hoc basis without a formal contract. Epstein was neither a licensed tax attorney nor a certified public accountant.
Use of Funds and Allegations of Wrongdoing
Funding Epstein's Operations: As part of a settlement with the Attorney General of the U.S. Virgin Islands (USVI), Black was required to pay $62.5 million to obtain criminal immunity from Epstein-related matters in the territory. Disturbingly, the settlement agreement included an acknowledgment that “Jeffrey Epstein used the money Black paid him to partially fund his operations in the Virgin Islands.”
Tax Avoidance: The payments were allegedly related to complex financial structures and trusts Epstein helped Black arrange, with a goal of avoiding billions of dollars in future gift and estate taxes. One reported transaction involved Epstein's assistance with a tax-deferred sale (1031 exchange) of a $25 million Alberto Giacometti sculpture.
Banking Red Flags: The Senate investigation found that a major U.S. financial institution waited nearly seven years to report the large payments from Black to Epstein to the Treasury Department as potentially suspicious activity, possibly violating federal money laundering laws.
The Senate investigation has questioned whether Black's payments to Epstein should be classified as gifts for tax purposes and whether billions of dollars in Black's assets are being improperly shielded from his taxable estate.
You can learn more about the initial investigation's findings in this video: Apollo's Leon Black Paid Jeffrey Epstein $158 Million. This video discusses the initial finding that Leon Black paid Jeffrey Epstein $158 million, which was the central point that led to Black's departure from Apollo and the subsequent, more detailed government investigations
Investigative Journalist
Harp on the Truth
Tres Rivers