Wednesday, February 5, 2020

Epstein's Bank

I'm tired of Epstein--unless someone can tell me how he died and what intel agencies he worked for.

Nevertheless, this seems remarkable, via Zerohedge--Mysterious Money Transfers Uncovered Between Jeffrey Epstein's Estate And Secretive Bank:

Estate records reveal that millions of dollars were transferred from the estate of the late pedophile Jeffrey Epstein and a secretive bank he established in the Virgin Islands six years ago, according to the New York Times.

The bank, Southern Country International, was one of the territory's first international banking entities, and was only authorized to conduct business with offshore clients. The Times notes that its 2014 approval was unusual, given that Epstein was a convicted sex offender by that time.
After Epstein's death last August in a Manhattan jail cell, $15.5 million was transferred to the bank from his estate in December. $2.6 million was then transferred back to the estate, leaving $12.9 million in the mysterious bank.
Two weeks later, all but $499,759 had vanished.
According to Virgin Islands magistrate judge, Carolyn Hernon-Purcell, "There's no explanation" for why Southern Country would be receiving checks from the estate.
     A lawyer for the estate responded that some of the payment had been made in error, but the judge was not satisfied with his response and asked him to follow up with a fuller accounting.
     The checks — listed in the estate’s transactions for routine payments such as cable-TV bills and phone service for Mr. Epstein’s many properties — stand out. The list of payments were filed with Judge Hermon-Purcell, who is overseeing his $635 million estate, including the possible establishment of a compensation fund for his victims. -New York Times

There are lots more details if you follow the link to the NYT, including this blinding revelation:

The bank was created under a territorial law that lacked many of the oversight requirements banks are usually subject to, and its regulatory file is largely empty.

No shit?


  1. Yeah, I can see that. I told Jeff he should cut the cable and "stream", but would he listen? No way. ESPN was the only way he could get HS girls soccer DVR'd.
    A $12 million cable bill is probably the reason he suicided (not). Didn't do him any good though. Otto pay is relentless.
    Tom S.

  2. The article is hyperventilating under the speculation that something must be amiss. Silly article devoid of details.

    Money didn't go from Epstein's estate to a bank, it went from an estate account at one bank to an estate account at another bank.

    The phrasing "was transferred to the bank from his estate" is imprecise. For estate monies to move, probate would have to be settled, i.e. naming a trustee (or similar), and/or a Surrogates Court (or similar) to authorize or oversee the transactions.

    Banks have one simple duty when an account holder is deceased--to freeze the accounts until duly authorized persons are named/approved by a court. Needless to say, the bank will have documentation of the transactions.

    It hardly matters how secretive or how lightly regulated the bank is, it still has liability for its role as a fiduciary handling account holder funds. Much ado about nothing.

    1. "Money didn't go from Epstein's estate to a bank, it went from an estate account at one bank to an estate account at another bank."

      1. What would be the point of that?

      2. The magistrate judge is quoted directly as having a problem with the transactions.

      3. A large portion of the money involved in the transfers is stated to have left the account--presumably not to a third estate account.

      4. Do we know that the money was transferred to an estate account at the VI bank?

    2. The bank is described as:

      "a specialized bank that can do business only with offshore clients." ...

      The bank, Southern Country International, renewed its license for each of the next five years, but it’s unclear whether it conducted any business or had any customers. ..."

      "... A lawyer for Mr. Epstein told officials in the Virgin Islands in 2018 that Southern Country had not commenced operations. And regulators in the territory said they did not exercise oversight of the bank because it did not appear to be doing any business."

      "And yet, after Mr. Epstein’s death, his estate transferred more than $12 million to Southern Country, according to court documents."

    3. My point is simple--the articles contain imprecise and incomplete information/facts. The estate has a trustee or an executor named/approved by the Surrogate court (or similar) where Epstein was a resident (was that NYS or USVI?).

      I notice the article doesn't describe any such named person as the executor or trustee of the estate. Seems a critical omission--at least if you wanted to discover the facts.

      That a magistrate judge is "not happy" is an emotion, not a fact-related statement regarding the underlying question.

      IMO, the premise (a speculation) of the article is the estate has been looted of some funds. The facts are incomplete. More outrage and sensation sold as "news" by media.

    4. I note that you haven't responded to any of my points but have instead made assertions that are misleading.

      The magistrate judge is quoted directly as saying that there is "no explanation" for the transactions--that's a "fact-related statement."

      You directly stated that there was an estate account at Southern Country International. Yet SCI is a bank only for very limited purposes: doing business only with offshore clients. How, then, would it have an account for an estate?

      Further, a small portion of the transferred funds were returned to "the estate account" from SCI, but the bulk moved on to points unknown.

  3. Not to be contrary but:

    "Banks have one simple duty when an account holder is deceased....'

    Prisons have one simple duty when a defendant is awaiting trial.

    "Needless to say, the bank will have documentation of the transactions."

    Needless to say, the prison will have documentation of all interactions.

    Not saying the system doesn't work; but, do we really understand how the System defines the word 'works'?
    Trust is the first casualty of civil war.
    Tom S.

    1. All very true, Tom S.

      The bank has a government regulator, compliance obligations, and the liability of fiduciary responsibility.

      A prison? None of the above.

      Whether it "works" or not, there's no way of knowing as the article is devoid of facts. A few details (numbers) thrown in make it seem so--just like Steele's dossier.


  4. speaking of deceased guys and their money, who ever got control of Gaddafi's money? Google says he had a net worth of $200B.

    1. If you search "Gaddafi's money" you'll come up with lots of theories. For example--but there are many more:

    2. good article. thanks. A little reassuring that there is some hope the money goes back to Libya some day (honestly). I know there is no interest in nation building. But getting Libya stabilized would be a big positive for Trump.

    3. Maybe I should reply to some of those spam emails claiming that I have money waiting for me in some account?

      Libya is a good example of the mess that is the Middle East, and why the Clinton/Obama "Arab Spring" was a terrible idea. Like Saddam, Gaddafi at least gave his country stability. Currently, Libya is a flashpoint that pits two NATO nations against each other (Italy/Turkey), Russia against NATO (Russia/Turkey), NATON + allied states against NATO (Greece/Israel/Cyprus/Turkey), Arabs against Turks (Egypt and others/Turkey). And yet Clinton/Obma get a free ride.