VI Attorney General Alleges Epstein Executors Moved $13 Million

Little Saint-Jacques Island off Saint-Thomas, primary residence of the late disgraced financier Jeffrey Epstein. (Picture from Google Maps)

Attorney General Denise George has filed an emergency motion in the government’s civil case against the estate of Jeffrey Epstein, alleging his co-executors transferred $13 million through a trust Epstein created in 2013, to three trusts newly created from which they could benefit.

Jeffrey Epstein (file photo)
Jeffrey Epstein (file photo)

The petition also alleges that Darren K. Indyke and Richard D. Kahn were involved in defrauding Government VI of $80.5 million in unearned tax benefits through Epstein’s Southern Trust Company, and that they “approved, activated and justified millions of dollars in payments that fueled Epstein Enterprise’s sex trafficking.

Indyke was the personal attorney and Kahn the in-house accountant for Epstein, the disgraced financier who was found dead by apparent suicide on August 10, 2019, in a New York jail cell while awaiting trial on trafficking charges. child sex. His primary residence at the time of his death was his property on Little St. James Island off St. Thomas.

The US Virgin Islands sued Epstein’s estate in January 2020, alleging he engaged in a civil conspiracy involving human trafficking, forced labor and sexual servitude in the USVI. At the time the lawsuit was announced, George said the government would seek punitive damages worth $577 million.

The emergency motion, filed in the Sixth Superior Court on Friday, asks the judge to lift the stay of proceedings in the case and order Indyke and Kahn to submit to demands for evidence “regarding their transfer of assets from the estate for the purpose of protecting the assets of the estate from claims”. and enrich themselves personally.

The stay was ordered to allow for mediation, but according to the motion it came to “a surprisingly abrupt end”, with mediator David Nichols acknowledging on Thursday that efforts to reach a resolution are stalling.

Indyke and Kahn have filed a petition to overturn the criminal activity liens the government has placed on Epstein’s estate, arguing they need access to funds to administer the estate. George argues in Friday’s motion that “their depositions and other discovery documents and information are necessary for the government to have a fair opportunity to make a full case on the defendants’ pending motion.”

Discovery will expand on the government’s case “that liens are not only permitted but necessary – unlike assertion of succession – and that the release of liens would harm the government by releasing co-executors to further dissipate assets,” according to the motion.

George says concerns over asset preservation ‘are anything but abstract’, saying the value of the estate – believed to be around $600million at the time of Epstein’s death – has fallen by more than 75% in two years after compensation for victims and federal taxes, among others. other expenses. Additionally, Kahn and Indyke have refused to release the documents or directors of Epstein-related trusts, despite repeated requests, the motion says.

“The dual roles of defendants Indyke and Kahn as co-executors of Epstein’s estate and central actors in the criminal activity of the Epstein enterprise only underscores the government’s concerns and calls into question their ability to execute lawfully, fairly and objectively the assets and accounts of the estate and trust. that are outside the estate,” according to the motion.

“The government alleges, based on substantial evidence, that both Indyke and Kahn were deeply involved in the financial activities of Epstein-owned entities, including defrauding the government of $80.5 million in unearned tax benefits. through the defendant Southern Trust Company,” the motion reads. . The company was a beneficiary of the tax benefits program of the Territorial Economic Development Commission.

“The government also alleges, based on substantial evidence from the investigation, that Indyke and Kahn directed, approved, enabled and justified millions of dollars in payments that fueled Epstein Enterprise’s sex trafficking, including their direct involvement in payments to women who were coerced into having sex with Epstein and/or recruiting others to victimize him, and facilitating and maintaining forced marriages between victims of sex trafficking for obtain the immigration status of foreign victims so that Epstein can continue to abuse them,” the motion reads.

George says in the motion that the government’s review of financial records reveals the two men have not clearly disclosed nearly $37 million in Epstein payments over nine years, “apparently far more than could reasonably be expected.” be attributed to the rates for their professional services”.

Additionally, “the government has discovered that substantial undisclosed government funds were transferred for the benefit of the co-executors in an apparent effort to enrich themselves and protect these assets from collection,” the motion reads.

According to the petition, records obtained from third parties reveal that in September 2020, several months after the government filed its civil suit, the 2013 Butterfly Trust set up by Epstein – which received a wire transfer of more than $13 million in April 2020 – transferred money to three newly created trusts.

“Indyke, Kahn and their spouses were the ultimate beneficiaries of two of the three trusts. The 2013 Butterfly Trust’s investment adviser, in written statements to financial institutions, explained that the decision “to remove the assets from the 2013 Trust was largely based on the fact that the assets…would be protected from claims and demands.” beneficiaries of, and third-party plaintiffs against, other new trusts, “which would include government claims,” ​​according to the motion.

The information provides good cause to lift the stay of proceedings and to uncover Indyke and Kahn and the handling of the lien assets, prior to the hearing on their petition to have the criminal activity liens removed, George claims.

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