Epstein may have gamed the system from beyond the grave

The will that Jeffrey Epstein signed just two days before his jailhouse suicide puts more than $577 million in assets into a trust fund that could make it more difficult for his dozens of accusers to collect damages.

News 12 Staff

Aug 22, 2019, 12:59 AM

Updated 1,716 days ago

Share:

By CURT ANDERSON
AP Legal Affairs Writer
FORT LAUDERDALE, Fla. (AP) - The will that Jeffrey Epstein signed just two days before his jailhouse suicide puts more than $577 million in assets into a trust fund that could make it more difficult for his dozens of accusers to collect damages.
Estate lawyers and other experts say prying open the trust and dividing up the financier's riches is not going to be easy and could take years.
"This is the last act of Epstein's manipulation of the system, even in death," said attorney Jennifer Freeman, who represents child sex abuse victims.
Epstein, 66, killed himself Aug. 10 in New York while awaiting trial on federal sex trafficking charges. The discovery of the will with its newly created 1953 Trust, named after the year of his birth, instantly raised suspicions he did it to hide money from the many women who say he sexually abused them when they were teenagers.
By putting his fortune in a trust, he shrouded from public view the identities of the beneficiaries, whether they be individuals, organizations or other entities. For the women trying to collect from his estate, the first order of business will be persuading a judge to pierce that veil and release the details.
From there, the women will have to follow the course they would have had to pursue even if Epstein had not created a trust: convince the judge that they are entitled to compensation as victims of sex crimes. The judge would have to decide how much they should get and whether to reduce the amounts given to Epstein's named beneficiaries, who would also be given their say in court.
"Wealthy people typically attempt to hide assets in trusts or other legal schemes. I believe the court and his administrators will want to do right by Epstein's victims, and if not, we will fight for the justice that is long overdue to them," attorney Lisa Bloom, who represents several Epstein accusers, said in an email.
She said attorneys for the women will go after Epstein's estate in the U.S. Virgin Islands, where the will was filed and where he owned two islands.
Bloom said it was "gross negligence" on the part of Epstein's lawyers and jail personnel to allow him to sign a new will, given that he had apparently attempted suicide a short time before. Bloom called a will "a classic sign of impending suicide for a prisoner."
The lawyers who handled the will have not returned calls for comment.
The assets listed in the 20-page document include more than $56 million in cash; properties in New York, Florida, Paris, New Mexico and the Virgin Islands; $18.5 million in vehicles, aircraft and boats; and art and collectibles that will have to be appraised.
Typically in any case, trust or not, there is a pecking order of entities that line up to get a share of an estate, said Stephen K. Urice, a law professor at the University of Miami. First in line would be the government - in Epstein's case, several governments - which will collect any taxes owed on his properties and on his estate itself.
Next would be any other creditor to whom Epstein owed money, such as a bank or mortgage company.
Lawsuits against the estate by victims would come into play somewhere after that.
Epstein's only known relative is a brother, Mark Epstein, who has not responded to requests for comment. It is unclear whether he was named a beneficiary.
One other possibility is that the U.S. government will seek civil forfeiture of Epstein's properties or other assets on the grounds that they were used for criminal purposes. Government lawyers would have to produce strong evidence of that at a trial-like proceeding.
If they prevailed, they would be able to seize the properties, sell them and distribute the proceeds to victims.
"The fact that there is a will should not stop them," said Cheryl Bader, a professor at the Fordham University School of Law.
Federal prosecutors declined to comment on the possibility of a forfeiture action.
____
Associated Press writer Jim Mustian in New York contributed to this story.
Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


More from News 12
Officials: 1 person killed, 1 injured in house explosion in South River

Officials: 1 person killed, 1 injured in house explosion in South River

1:20
Pro-Palestinian protest that postponed final exams at Rutgers ends peacefully

Pro-Palestinian protest that postponed final exams at Rutgers ends peacefully

2:19
Mostly sunny Friday ahead with cooler temperatures; tracking weekend rain

Mostly sunny Friday ahead with cooler temperatures; tracking weekend rain

2:17
Bound Brook starts Lithium Ion Identification Program to help firefighters identify risks

Bound Brook starts Lithium Ion Identification Program to help firefighters identify risks

0:57
Funeral services held in Newark for Rep. Donald Payne, Jr.

Funeral services held in Newark for Rep. Donald Payne, Jr.

0:22
Prosecutor: 61-year-old man dies in Jersey City high-rise fire

Prosecutor: 61-year-old man dies in Jersey City high-rise fire

0:36
Jersey Proud: Police officers gather for town cleanup in memory of fallen officer

Jersey Proud: Police officers gather for town cleanup in memory of fallen officer

1:26
Look up! Annual Eta Aquarid meteor shower peaks early Sunday morning

Look up! Annual Eta Aquarid meteor shower peaks early Sunday morning

NJ Transit teams with BetMGM to provide rail serves to MetLife Stadium concerns

NJ Transit teams with BetMGM to provide rail serves to MetLife Stadium concerns

0:46
Car crashes into Hasbrouck Heights apartment building; residents evacuate

Car crashes into Hasbrouck Heights apartment building; residents evacuate

Biden says 'order must prevail' during campus protests over Gaza

Biden says 'order must prevail' during campus protests over Gaza

2:13
Police: Explosion, fire at Old Bridge business kills 73-year-old woman, severely injures 4 others

Police: Explosion, fire at Old Bridge business kills 73-year-old woman, severely injures 4 others

0:47
Learn to make candles at Urban Glo in Union

Learn to make candles at Urban Glo in Union

3:52
I-95 in Norwalk closed until at least Monday following tractor-trailer fire

I-95 in Norwalk closed until at least Monday following tractor-trailer fire

0:35
Prosecutors: NJ couple pleads guilty to starting illegal marijuana service and employing their son

Prosecutors: NJ couple pleads guilty to starting illegal marijuana service and employing their son

0:24
Should former inmates be allowed to serve on juries in New Jersey? Gov. Murphy says yes

Should former inmates be allowed to serve on juries in New Jersey? Gov. Murphy says yes

0:29
Unruly passenger ordered to pay over $20,000 for interfering with flight from London to Newark

Unruly passenger ordered to pay over $20,000 for interfering with flight from London to Newark

0:20
Authorities: 2 women, 1 man stabbed in altercation at Newark McDonald's

Authorities: 2 women, 1 man stabbed in altercation at Newark McDonald's

0:19
FBI offering $5,000 reward for info on Paterson bank robbery suspect

FBI offering $5,000 reward for info on Paterson bank robbery suspect

0:24
Cape May County lifeguards file lawsuit against Avalon to get pension

Cape May County lifeguards file lawsuit against Avalon to get pension