Financier Jeffrey Epstein, accused of sex trafficking, found dead in Manhattan jail

By William K. Rashbaum,

Benjamin Weiser and

Michael Gold

The New York Times
August 10, 2019 at 6:20PM

Jeffrey Epstein, the financier who was long dogged by accusations of sexual abuse of girls and who was able to cultivate a stream of high-profile friends despite his lurid lifestyle, killed himself in his Manhattan jail cell, officials said on Saturday.

Epstein hanged himself, the officials said. He was found at roughly 6:30 a.m. Saturday at the Metropolitan Correctional Center in Manhattan and was taken to a hospital, where he was pronounced dead, the federal Bureau of Prisons said in a statement.

Last month, a week after being denied bail on federal sex trafficking charges, Epstein was found unconscious in his cell at the jail with marks on his neck. Prison officials had been investigating that incident as a possible suicide attempt.

Epstein was housed in a special unit with extra security, but he was not under suicide watch, according to a prison official.

Authorities did not immediately explain why he was not under additional safeguards, given the earlier incident. The F.B.I. said it was investigating, and Attorney General William P. Barr said in a statement that a special inquiry would be opened into what happened.

"I was appalled to learn that Jeffrey Epstein was found dead early this morning from an apparent suicide while in federal custody," Barr said. "Mr. Epstein's death raises serious questions that must be answered. In addition to the FBI's investigation, I have consulted with the Inspector General who is opening an investigation into the circumstances of Mr. Epstein's death."

Manhattan federal prosecutors last month charged Epstein, 66, with sex trafficking of girls as young as 14. The indictment renewed attention toward how Epstein — who had opulent homes, a private jet and access to elite circles — had escaped severe punishment in an earlier investigation into his abuse of girls more than a decade ago in Florida.

He had avoided federal criminal charges in 2008 after prosecutors brokered a widely criticized deal that allowed him to plead guilty to state charges of solicitation of prostitution from a minor and serve 13 months in jail. Even while in custody, Epstein was allowed to leave the jail for 12 hours a day, six days a week, to work at his office in Florida.

The new federal indictment also focused scrutiny on an array of luminaries in government, politics, business, academia, science and fashion with whom Epstein had associated over the years, including Donald J. Trump, Bill Clinton, Prince Andrew of Britain and the retail billionaire Leslie Wexner.

Epstein's death brought an abrupt end to a prosecution that his accusers had hoped would finally shed light on how he had been allowed to commit what they said was a string of depraved crimes for so many years — and what role his wealth, privilege and connections played.

Jennifer Araoz, who said she had been raped by Epstein after being recruited into his circle outside her Manhattan high school in 2001, said she was angry that he would not have to face his accusers in court.

A cache of previously sealed legal documents, released on Friday by a federal appeals court, had provided new, disturbing details about what was going on inside Epstein's homes and how his associates recruited young women and girls, including from a Florida high school.

The documents — among the most expansive sets of materials publicly disclosed in the 13 years since Epstein was first charged with sex crimes — include depositions, police incident reports, photographs, receipts, flight logs and even a memoir written by Virginia Giuffre, who said she was a sex trafficking victim of Epstein and his acquaintances.

Epstein was arrested on July 6 at Teterboro Airport in New Jersey after his private plane landed on a flight from Paris. Federal prosecutors charged him with sex trafficking and sex trafficking conspiracy.

Prosecutors said in their indictment that he and his employees engaged in a scheme to bring girls as young as 14 to both his Upper East Side mansion and his palatial waterfront home in Palm Beach, Fla., between 2002 and 2005.

He pleaded not guilty to the charges. If convicted, he would have faced up to 45 years in prison.

Epstein had initially sought home detention at his Upper East Side mansion while he awaited trial. His lawyers had proposed allowing Epstein to post a substantial bond and stay in his luxurious seven-story townhouse, watched by 24-hour security guards, at his expense.

But a federal judge denied the request, concluding that Epstein was a flight risk, citing his "vast wealth," which prosecutors have placed at more than $500 million.

Epstein, a former money manager with Wall Street experience, depicted himself as a wealthy financier with stellar investment savvy.

In addition to his homes in Florida and New York, he also owned a private island in the United States Virgin Islands, a massive ranch in New Mexico and a residence in Paris. He had numerous high-end vehicles and access to private planes and helicopters.

Epstein's younger brother, Mark, was his "only living immediate family member," according to a memo filed in federal court last month by Epstein's lawyers. The memo described the pair as close.

Even after he served time in a Florida jail a decade ago and became a registered sex offender, Epstein successfully maintained a reputation as a billionaire investor, philanthropist and sophist.

Still, in the time since Epstein's arrest last month, evidence has suggested that the former money manager's business acumen was more myth than fact. His client list was not as extensive as believed, and the services he offered were less remarkable than once portrayed.

Earlier this week, perhaps Epstein's most notable client, Wexner, the executive behind Victoria's Secret and Bath & Body Works, accused Epstein of misappropriating "vast sums of money" from him and his family.

Epstein's recent arrest prompted renewed scrutiny of his longstanding connections to prominent executives on Wall Street, in the corporate world and even the scientific community.

Some Wall Street titans found themselves forced to answer questions as to why they either continued to socialize or do business with Epstein after his 2008 conviction. They included the private equity billionaire Leon Black, the longtime banking executive Jes Staley and the hedge fund manager Glenn Dubin.

The executives all said they had no idea he had engaged in sex trafficking and had sought to minimize their contacts with Epstein in recent years.

Also drawing attention were a number of big universities — Harvard University and the Massachusetts Institute of Technology — that had accepted large contributions from foundations established by Epstein, even after his 2008 conviction, which required him to register as a sex offender.

The contributions to the universities and scientists at those schools were part of a campaign by Epstein to polish his image and get himself back into the good graces of the academic and corporate elite, the Times has found.

But even as Epstein was going about trying to rebrand himself, he continued to peddle in ideas that should have given some reason to pause.

A number of scientists said he showed an interest in biogenetic engineering and discussed a plan to seed the human race with his DNA by having young women impregnated at his Zorro Ranch in New Mexico.

There is no indication that Epstein ever took any steps toward carrying out those plans, but some in the scientific world continued to meet with him and take his money.

Much of the wealth Epstein did amass can be attributed to his work for one man: Wexner, the billionaire real estate magnate, whose L Brands company developed iconic brands like Victoria's Secret and the Limited.

Wexner, 81 was Epstein's biggest client. And in 1991, Wexner gave Epstein vast and unfettered authority to manage his personal fortune for roughly 16 years.

Managing Wexner's fortune enabled Epstein to become hugely wealthy himself and gave him the Wall Street bona fides he needed to seek business from other corporate executives.

Along the way, Epstein would acquire a mansion on Manhattan's Upper East Side that had once belonged to Wexner. He would also obtain a Boeing 727 jet from Wexner's company.

The money he made working for Wexner enabled Epstein to buy his own island in the United States Virgin Islands — where he relocated much of his financial advisory business in 1999.

Wexner has said he severed all ties to Epstein in late 2007. Just this week, he said in a letter to his charitable foundation that he learned in 2007 that Epstein had misappropriated vast sums from him.

But Wexner apparently never notified authorities of the suspected misappropriation — even though Epstein was at the time being investigated in Florida for engaging in sex with underage girls.

Wexner has said he was horrified to learn of the new charges against his longtime financial adviser. But the real estate magnate has not fully explained why he gave Epstein such wide ranging discretion to manage his financial affairs.

Emily Steel and Matthew Goldstein contributed reporting.

New York City medical examiner personnel leave their vehicle and walk to the Manhattan Correctional Center where financier Jeffrey Epstein died by suicide while awaiting trial on sex-trafficking charges, Saturday Aug. 10, 2019, in New York. He was found in his cell at the Manhattan Correctional Center Saturday morning, according to the officials, who was briefed on the matter but spoke on condition of anonymity because he wasn't authorized to discuss it publicly. The medical examiner's office in
New York City medical examiner personnel leave their vehicle and walk to the Manhattan Correctional Center where financier Jeffrey Epstein died by suicide while awaiting trial on sex-trafficking charges, Saturday Aug. 10, 2019, in New York. He was found in his cell at the Manhattan Correctional Center Saturday morning, according to the officials, who was briefed on the matter but spoke on condition of anonymity because he wasn't authorized to discuss it publicly. The medical examiner's office in Manhattan confirmed Epstein's death. (Associated Press/The Minnesota Star Tribune)
Jeffrey Epstein
Jeffrey Epstein (via AP/The Minnesota Star Tribune)
FILE - In this July 30, 2008, file photo, Jeffrey Epstein, center, appears in court in West Palm Beach, Fla. At the center of Epstein's secluded New Mexico ranch sits a sprawling residence the financier built decades ago, complete with plans for a 4,000-square-foot (372-square-meter) courtyard, a living room roughly the size of the average American home and a nearby private airplane runway. Known as the Zorro Ranch, the high-desert property is now tied to an investigation that the state attorney
FILE - In this July 30, 2008, file photo, Jeffrey Epstein, center, appears in court in West Palm Beach, Fla. At the center of Epstein's secluded New Mexico ranch sits a sprawling residence the financier built decades ago, complete with plans for a 4,000-square-foot (372-square-meter) courtyard, a living room roughly the size of the average American home and a nearby private airplane runway. Known as the Zorro Ranch, the high-desert property is now tied to an investigation that the state attorney general's office says it has opened into Epstein with plans to forward findings to federal authorities in New York. (Uma Sanghvi/Palm Beach Post via AP, File) (The Minnesota Star Tribune)

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William K. Rashbaum

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Michael Gold

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