On July 2, 2008 — just one day after convicted sex offender Jeffery Epstein started to serve an 18-month jail term in Florida as Inmate No. W35755 — his New Mexico “financial planning company,” called Zorro Trust, won the Oklahoma Power Lottery payout of $41.3 million and ultimately collected nearly $30 million in after tax winnings.
Jeffrey Epstein’s, “New Mexico” spread in his black book identifies a column as Epstein, Jeffrey, Zorro Ranch, with a phone listing for Brice & Karen. The very same Brice M. Gordon, who is a manager of Zorro Trust.
Only in cartoon world would it be believable that a so-called “sophisticated investor” who typically is looking to scalp every arbitrage and every basis point instead tosses money at awful-odds lotteries. This stinks to high heaven.
This heist was facilitated by “computer glitch”” the day of the public drawing on July 2, 2008.
For what purpose did the mysterious Epstein “win” the lottery. Inquiring minds would like to know. Does lottery fraud go a long way toward explaining the question of just how Jeffrey Epstein became a billionaire? Fixed Lotteries, fixed gambling stakes, fixed game show winnings, fixed horse race and sporting event payoffs and fixed large raffles are some of the most effective ways for the Crime Syndicate to scam and raise money. Certainly the rigged stock market is as well. Fraudulent victim-hood charities are right up there.
There’s scant proof as to Epstein’s financial bona fides.
The Intelligencer wrote that executive-suite financiers discussed how absent Epstein was from the field.
“He’s supposed to run an enormous FX [foreign-exchange] trading firm,” said Enrique Diaz-Alvarez, chief risk officer at Ebury. “But I never once heard of him or his firm or anyone who worked or traded with him.”
And as Forbes wrote in a 2010 blog post with the very direct title “Sex Offender Jeffrey Epstein Is Not a Billionaire.” It stated that his money-management firm based in the U.S. Virgin Islands “generates no public records, nor has his client list ever been released.”
Spencer Kuvin, an attorney representing three of Epstein’s alleged victims, told the Palm Beach Post in 2008 that “in the litigation itself, we were never able to get him to produce verified financial information. The ‘nine figures’ came by negotiation. It kept going up and up and up.”
So, besides lottery fraud, could another source of Epstein’s wealth be Bernie Madoff-like Ponzi schemes? In as early as 2009, Business Insider noted that multiple red flags pointed to a possible Madoff-like fraud. One of his early partners, another Jewish criminal named Steve Hoffenberg, was convicted of running one of the largest pre-Madoff Ponzi schemes in U.S. history.
According to journalist Vicky Ward, Hoffenberg brought on Epstein in 1981 after he left Bear Stearns. Hoffenberg paid Epstein $25,000 per month for his work as a consultant for Towers Financial.
Hoffenberg pleaded guilty in 1994 to defrauding investors to the tune of $450 million.
For years, it appeared Epstein had no exposure in the Towers Financial case, until 2018, when shareholders filed a putative class action suit against him for his alleged role in the Ponzi scheme.
In a separate New York state case in 2018, Hoffenberg reportedly detailed Epstein’s alleged involvement in the scam. At this point, it is unknown if or how much Epstein pocketed from the Ponzi scheme.
Because Epstein’s wealth is held offshore and is shrouded in mystery, some speculate that he may have made his money in tax schemes or money laundering.
Investigator George Webb developed a theory that Epstein was a courier of drugs weapons and human trafficking (young girls) using aircraft and wink-wink diplomatic passports obtained from other Crime Syndicate partners.
One of Epstein’s clients was the Saudi Arabian businessman Adnan Khashoggi, who was the middleman in transferring American weapons from Israel to Iran, as part of the Iran-Contra Affair in the 1980s. Khashoggi was one of several defense contractors that he knew. And in the mid-1980s, Epstein traveled multiple times between the United States, Europe and the Middle East. (At the time of his most recent arrest, authorities discovered Epstein had a foreign passport that listed his residence as Saudi Arabia.)
While in London, Epstein met the aforementioned Steven Hoffenberg. They had been introduced through the weapons network: namely Douglas Leese, a defense contractor; and John Mitchell, the former Nixon U.S. Attorney General.
Winter Watch Takeaway
While the focus is on underage girls, there is a sleazy layer of insider-based high-level looting and fixed collusion across multiple financial schemes.
Update Breaking News: Jeffrey Epstein pronounced dead of apparent hanging in jail cell. He was supposed to be on 24/7 suicide watch.
He went out the backdoor weeks ago, as we reported in Is ‘Jeffrey Epstein’ Being Subjected to Star Chamber Sleight of Hand? – no photos or film of him since arrested, only court renderings. Is this Epstein?