What is it that convicted sex-criminal Jeffrey Epstein does? We mean apart from pay very young women for sexually charged massages? What is it he does for his clients? The New York Times sent business reporter Landon Thomas all the way to Epstein's estate in St. Thomas to find out. (Tough assignment, that.) But Thomas came up with only vague hints.
His business is something of a mystery. He says he manages money for billionaires, but the only client he is willing to disclose is Leslie H. Wexner, the founder of Limited Brands.As Mr. Epstein explains it, he provides a specialized form of superelite financial advice. He counsels people on everything from taxes and trusts to prenuptial agreements and paternity suits, and even provides interior decorating tips for private jets. Industry sources say he charges flat annual fees ranging from $25 million to more than $100 million.
As Portfolio's Felix Salmon points out, that a lot of money in fees. A decade of $100 million fees and you've paid a billion for money management. "Boiled down to its essentials, it seems that Epstein is a super-high-end private banker," Salmon writes. "No wonder there's so much competition in the financial-services industry to get the accounts of high net worth individuals: if Epstein's any indication, there's billions of dollars just sitting there for the charging. Nice work if you can get it."
Financier Starts Sentence in Prostitution Case [New York Times]
Jeffrey Epstein and the Private Banking Industry [Portfolio]
Posted by byrneseyeview , Jul 02, 2008 10:31AM
WSJ:
"BREAKING NEWS:
Fugitive financier Samuel Israel has been arrested, CNBC reports. "
How are you not covering this?
Posted by guest , Jul 02, 2008 10:39AM
well, apparently CNBC and WSJ are.
Posted by John Carney , Jul 02, 2008 10:40AM
See post directly above. We're on it. Gathering facts.
Posted by guest , Jul 02, 2008 10:40AM
israel is yesterday's news, and apprently not sordid enough.
Posted by guest , Jul 02, 2008 11:00AM
I don't believe a word of it. It's well known that John Fitzgerald Page manages all money associated with Limited Brands.
http://www.dealbreaker.com/2007/10/i_went_to_wharton_it_goes_with.php
Posted by guest , Jul 02, 2008 11:32AM
IB/Hedge is good for $, not pussy.
If this doesnt prove it, i dont know what....
Posted by guest , Jul 02, 2008 12:03PM
Was he shipping the girls to St Thomas or did he do it in Continental U.S.?
Posted by guest , Jul 02, 2008 12:07PM
Also, can somebody confirm the rates? Seemed pretty decent...
Posted by guest , Jul 02, 2008 2:09PM
"In July 2005, a Florida grand jury charged Mr. Epstein with a lesser offense, soliciting prostitution. Mr. Epstein’s legal team...was elated: Mr. Epstein would avoid prison.
But then the United States attorney’s office in Miami became involved. Last summer, Mr. Epstein got an ultimatum: plead guilty to a charge that would require him to register as a sex offender, or the government would charge him with sexual tourism..."
Carney, where is your outrage at this prosecutorial misconduct after spending last week going on about the prosecution/indictment of the Bear Stearns hedge fund duo?
Posted by miami , Jul 02, 2008 2:14PM
$100m on $8bn for Les Wexner is 1.25% fee, not unreasonable for active mgmt.
Posted by guest , Jul 02, 2008 3:42PM
The man is almost a saint (paid for college for some of its staff). Give him a break.
Posted by Anal_yst , Jul 02, 2008 4:01PM
@ 3:42
He woulda paid for alota those lil girls college (effectively)if they didn't see $$ signs (i.e. shooting themselves in the foot) and run crying to the po-po
Posted by guest , Jul 06, 2008 4:46PM
I used to see him around in St. Thomas when I was working on a deal down there in late '06. The middle-American fanny-pack Carnival cruise line set that overruns that place was completely oblivious to his presence. I recognized him instantly and he noticed my having noticed him, and he got a little fidgety.