Latest / The Vault: The Epstein Files / Jeffrey Epstein and His Mystery Bank In The USVI
Transcript
- 0:00Speaker 1: What's up everyone, and welcome back to the Epstein Chronicles.
- 0:05Speaker 1: As we continue to watch the lawsuit down in the
- 0:08Speaker 1: US Virgin Islands make its way through the court, I
- 0:12Speaker 1: think it's important to remember that the US Virgin Islands
- 0:15Speaker 1: itself played a part in helping Jeffrey Epstein maintain his
- 0:19Speaker 1: criminal enterprise. And not only that, but he was given
- 0:23Speaker 1: all kinds of advantages down in the US Virgin Islands
- 0:27Speaker 1: as far as taxes and other business type of arrangements go. Meanwhile,
- 0:34Speaker 1: the US Virgin Islands is over here yelling and screaming
- 0:37Speaker 1: that everybody else is complicit, while they are the arbiters
- 0:42Speaker 1: of justice and the only ones who really care about
- 0:45Speaker 1: making sure people are held responsible. But is that really
- 0:49Speaker 1: the case? Is the US Virgin Islands really in this
- 0:52Speaker 1: for justice or are they just in it to make
- 0:56Speaker 1: some more money. Today's episode, we're going to go back
- 1:00Speaker 1: to a New York Times article that was originally posted
- 1:04Speaker 1: in February of twenty twenty, headlined Jeffrey Epstein's mystery bank
- 1:09Speaker 1: came alive after his death, receiving millions of dollars from
- 1:13Speaker 1: his estate. This article was authored by Matthew Goldstein and
- 1:18Speaker 1: Steve eeder. In the years after Jeffrey Epstein registered as
- 1:23Speaker 1: a sex offender, he closed his money management firm and
- 1:26Speaker 1: started a business to develop algorithms and mind DNA and
- 1:30Speaker 1: financial databases. Then he set up a bank. In a
- 1:35Speaker 1: banking license application reviewed by The New York Times, Epstein
- 1:39Speaker 1: described himself as one of the investing world's pioneers and
- 1:44Speaker 1: said he wanted to pursue the dynamic discipline of international banking.
- 1:48Speaker 1: One of the pioneers. Huh, the pioneers of degeneracy, the
- 1:52Speaker 1: pioneers of diddling children. Is that what you mean? Egg dick?
- 1:57Speaker 1: Officials in the Virgin Islands, the US terror where Epstein
- 2:01Speaker 1: set up most of his businesses, approved a license for
- 2:04Speaker 1: him in twenty fourteen to run one of the territories
- 2:07Speaker 1: first international banking entities, a specialized bank that can do
- 2:12Speaker 1: business only with offshore clients. The approval was unusual given
- 2:17Speaker 1: Epstein's status as a convicted sex offender. Well not really.
- 2:21Speaker 1: When you pull the layers back and you start looking
- 2:24Speaker 1: at the people who were involved, you add all of
- 2:27Speaker 1: the powerful people that were working with Epstein, the Bryants,
- 2:31Speaker 1: the de jongs, and they were all benefiting from his patronage,
- 2:35Speaker 1: and then all of a sudden, he's able to set
- 2:37Speaker 1: up the first bank of its kind within the territory
- 2:41Speaker 1: of the US Virgin Island and nobody has any other
- 2:44Speaker 1: questions for the territory year. Nobody's going to ask them
- 2:48Speaker 1: what their role was. It was up to JP Morgan
- 2:50Speaker 1: to do that. Where's the legacy media? The bank, called
- 2:54Speaker 1: Southern Country International, renewed its license for each of the
- 2:58Speaker 1: next five years, but it's on clear whether it conducted
- 3:01Speaker 1: any business or had any customers. Epstein, who died while
- 3:06Speaker 1: in federal custody last summer following his arrest on sex
- 3:09Speaker 1: trafficking charges, does not appear to have done any marketing
- 3:13Speaker 1: for the bank or hired much staff. You want to
- 3:16Speaker 1: talk about a wash shop, a place to go and
- 3:19Speaker 1: wash money, you're looking at it. And when you look
- 3:22Speaker 1: at Epstein for what he really is, besides a diddler,
- 3:25Speaker 1: besides a molester, he's a money mover. He's a man
- 3:29Speaker 1: who knows how to hide money. He's a man who
- 3:31Speaker 1: knows how to wash money. And he's a man who
- 3:33Speaker 1: knows how to make sure that the government has no
- 3:36Speaker 1: idea where you're parking it, so you don't have to
- 3:39Speaker 1: be a brainiact to figure out what he needed his
- 3:41Speaker 1: own bank for. The bank was created under a territorial
- 3:46Speaker 1: law that lacked many of the oversight requirements banks are
- 3:50Speaker 1: usually subject to, and its regulatory file is largely empty.
- 3:55Speaker 1: A lawyer for Epstein told officials in the US Virgin
- 3:58Speaker 1: Islands in two thousand and eight that the southern country
- 4:02Speaker 1: had not commenced operations, and regulators in the territory said
- 4:06Speaker 1: they did not exercise oversight of the bank because it
- 4:09Speaker 1: did not appear to be doing any business. Why did
- 4:12Speaker 1: you guys set it up in the first place. The
- 4:15Speaker 1: US Virgin Islands still has not answered that question. But
- 4:18Speaker 1: yet they get one hundred and five million dollars. And
- 4:21Speaker 1: I hate to keep beating on that dead horse, but
- 4:24Speaker 1: I think it's very important that we all understand just
- 4:27Speaker 1: how ridiculous that move is. They're legit taking food off
- 4:31Speaker 1: the table of girls who were actually abused by Jeffrey Epstein,
- 4:35Speaker 1: and for what purpose? What are they going to do
- 4:38Speaker 1: help out the next scumbag that comes to the island
- 4:40Speaker 1: and starts throwing money around. And yet, after Epstein's death,
- 4:45Speaker 1: his estate transferred more than twelve million dollars to Southern Country,
- 4:49Speaker 1: according to court documents. On Tuesday, out of court hearing
- 4:53Speaker 1: in the Virgin Islands on motions involving Epstein's estate, a
- 4:57Speaker 1: magistrate Judge Carolyn Hermann Purcell question the estate's lawyers about
- 5:02Speaker 1: the transfers to Southern Country, saying the disclosure was not satisfactory.
- 5:08Speaker 1: The judge said she did not know why Southern Country
- 5:11Speaker 1: would be receiving checks from the estate. There's no explanation
- 5:14Speaker 1: for that, she said, of course there is. You know
- 5:17Speaker 1: what it was, money washing. Will send it here, then
- 5:21Speaker 1: we'll bounce it there, then it'll go everywhere. And even
- 5:25Speaker 1: though the government might know what happened, they're not going
- 5:28Speaker 1: to be able to prove it. And this is the
- 5:30Speaker 1: cycle that Epstein was caught in for how long the
- 5:34Speaker 1: way he moved money should have raised so many red
- 5:36Speaker 1: flags to so many people who should have been watching that.
- 5:40Speaker 1: All of those people, in my opinion, are culpable. The
- 5:44Speaker 1: sad part is most of them who were at the
- 5:46Speaker 1: levers of power have moved on to other institutions, other entities,
- 5:50Speaker 1: and they've never had to answer for the bullshit they
- 5:53Speaker 1: were involved in. When it comes to Jeffrey Epstein. Now
- 5:56Speaker 1: we're starting to see a little bit of that change
- 5:58Speaker 1: with the JP Morgan law law suit. But really, I've
- 6:01Speaker 1: had my fill of financial settlements. I think it's time
- 6:05Speaker 1: for some real justice, and I think it's time that
- 6:07Speaker 1: some of these scumbags ended up in bracelets. A lawyer
- 6:11Speaker 1: for the estate responded that some of the payment was
- 6:14Speaker 1: made in error, but the judge was not satisfied with
- 6:17Speaker 1: the response and asked them to follow up with a
- 6:19Speaker 1: fuller accounting. Now the real question should be from the judge,
- 6:23Speaker 1: why the hell did my colleagues even let this bank
- 6:26Speaker 1: get set up in the first place. Who benefited? Follow
- 6:29Speaker 1: the money? How many payments were made out when this
- 6:32Speaker 1: bank popped up? How many people cashed big checks from Epstein? Well,
- 6:37Speaker 1: we know a lot of people down in the Virgin
- 6:39Speaker 1: Islands were eating from Epstein's pomp that were taking things
- 6:43Speaker 1: from them, gifts and all sorts of other stuff. So
- 6:46Speaker 1: how many of them had money sent to their accounts
- 6:50Speaker 1: in the wake of this bank opening. Because we all
- 6:53Speaker 1: know if you follow the money, eventually you're gonna end
- 6:56Speaker 1: up in some dirty ass politicians office. The checks listed
- 7:01Speaker 1: in the estate's transactions for routine payments such as cable
- 7:04Speaker 1: TV bills and phone service for Epstein's many properties stand out.
- 7:09Speaker 1: The list of payments was filed with Herman Purcell, who
- 7:12Speaker 1: was overseeing the six hundred and thirty five million dollar estate,
- 7:16Speaker 1: including the possible establishment of a compensation fund for his victims.
- 7:21Speaker 1: Now we know that that happens, and we know that
- 7:23Speaker 1: the compensation fund paid out roughly one hundred and twenty
- 7:26Speaker 1: five million dollars to the survivor's and one hundred and
- 7:30Speaker 1: five million dollars to the US Virgin Islands. And you
- 7:33Speaker 1: would think that would be enough and their greed would
- 7:36Speaker 1: stop there, but it's not. They have to have their
- 7:38Speaker 1: hand in the cookie jar a little longer and they
- 7:41Speaker 1: have to try and get some more money. Here. Well,
- 7:43Speaker 1: they're running into a buzzsaw, and that buz saw is
- 7:46Speaker 1: JP Morgan, because JP Morgan is not going to just
- 7:49Speaker 1: write a check to the US Virgin Islands when they
- 7:52Speaker 1: know that the US Virgin Islands was complicit and duplicitous
- 7:57Speaker 1: when it comes to their relationship with Epstein. That Epstein
- 8:01Speaker 1: was able to get a banking license in the first
- 8:03Speaker 1: place is unusual. His two thousand and eight conviction in
- 8:07Speaker 1: Florida on a charge of soliciting prostitution from an underage
- 8:11Speaker 1: girl required him to register as a sex offender. Most
- 8:14Speaker 1: bank operators doing business in the United States are required
- 8:18Speaker 1: to undergo rigorous background checks, and most banking institutions are
- 8:23Speaker 1: subject to oversight by the Arm of the Treasury that
- 8:26Speaker 1: investigates suspicious financial transactions. It's called the Finsen Division. Neither
- 8:32Speaker 1: was required by the Virgin Islands when Epstein submitted the
- 8:35Speaker 1: application in twenty thirteen. So who makes the rules down
- 8:39Speaker 1: there in the US Virgin Islands. Oh, that's right, the
- 8:41Speaker 1: government of the US Virgin Islands. And they were the
- 8:44Speaker 1: ones who put these laws on the books to make
- 8:47Speaker 1: it so that Epstein could set up this bank so
- 8:49Speaker 1: that they could profit. And that's what the evidence shows us.
- 8:53Speaker 1: The territory had passed its international Banking Entity law a
- 8:57Speaker 1: year earlier in hopes of enticing investment from overseas. It
- 9:01Speaker 1: models its law on that of Puerto Rico, where international
- 9:05Speaker 1: banking entities have existed for three decades. Such organizations are
- 9:10Speaker 1: attractive to offshore investors because the banks are able to
- 9:13Speaker 1: offer more favorable tax treatment than the investors own countries can.
- 9:18Speaker 1: In return, the territories expect local residents to manage the
- 9:22Speaker 1: banks even though they cannot use its services, and under
- 9:26Speaker 1: normal circumstances, if you're using these banks for the right purposes,
- 9:30Speaker 1: there's no issue here. But we know Epstein wasn't everything
- 9:33Speaker 1: this man touched he corrupted. These specialized banks have drawn
- 9:38Speaker 1: scrutiny because of their potential for abuse, including money laundering.
- 9:42Speaker 1: The Federal Reserve Bank of New York describes international bank
- 9:46Speaker 1: entities in the Virgin Islands and Puerto Rico as high
- 9:50Speaker 1: risk institutions. Last year, it temporarily suspended applications for them
- 9:55Speaker 1: to obtain financial services from the FED until it can
- 9:58Speaker 1: issue stricter rules for them. And keep in mind, Epstein
- 10:02Speaker 1: could have chosen to go anywhere in the world. He
- 10:04Speaker 1: chose to go to the US Virgin Islands and set
- 10:07Speaker 1: up shop because the rules were favorable to him, and
- 10:10Speaker 1: the rules that weren't favorable to him, well, he had
- 10:13Speaker 1: enough money to pay people off to get those rules changed.
- 10:17Speaker 1: Epstein was carefully evasive in answering a question on the
- 10:20Speaker 1: application that was meant to reveal information about an applicant's
- 10:24Speaker 1: criminal record. His response mentioned as guilty plead to state
- 10:28Speaker 1: charges in Florida, but played down other elements of the case.
- 10:32Speaker 1: Why was he allowed to play it down. Let's not
- 10:35Speaker 1: let the Virgin Islands off here. Sure he's gonna try
- 10:38Speaker 1: and play it down, but it's up to the regulators
- 10:40Speaker 1: and the people in the Virgin Islands who were in
- 10:42Speaker 1: these positions of power to stop this man from doing
- 10:45Speaker 1: his bullshit. And they did not. They failed. There's no
- 10:49Speaker 1: other explanation for it. They failed, and in doing so,
- 10:53Speaker 1: they helped Ebstein continue his criminal enterprise for decades, for
- 10:58Speaker 1: a relatively brief period in what has otherwise been a
- 11:01Speaker 1: productive and accomplished life. The application said Epstein did face
- 11:05Speaker 1: some legal difficulties relating to matters alleged to have taken
- 11:09Speaker 1: place seven years ago. The application noted that a federal
- 11:13Speaker 1: investigation had been discontinued, and that's why it was so
- 11:17Speaker 1: important for him to get rid of those federal charges.
- 11:20Speaker 1: Back in the day. He had to be able to
- 11:22Speaker 1: continue to operate on this level, and he could smooth
- 11:26Speaker 1: over the state charges. But if it was federal, and
- 11:29Speaker 1: we're talking about the Man Act, or we're talking about
- 11:32Speaker 1: human trafficking at the federal level, he would have been
- 11:35Speaker 1: toast and there's no way that he could have operated
- 11:38Speaker 1: the way he did. So once again he was being enabled,
- 11:42Speaker 1: and this time by the broken ass legal system here
- 11:45Speaker 1: in the United States that people like Epstein continuously manipulate.
- 11:50Speaker 1: But the answer was misleading, said Richard Scott Carnal, a
- 11:54Speaker 1: former Assistant Secretary for Financial Institutions at the Treasury Department.
- 12:00Speaker 1: The application did not reflect that Epstein's plea deal included
- 12:03Speaker 1: an agreement with federal prosecutors who promised not to bring
- 12:07Speaker 1: their own charges. The agreement acknowledged that federal authorities had
- 12:11Speaker 1: compiled a long list of other possible underage victims. Think
- 12:16Speaker 1: about that, they had all of these victims, a whole
- 12:20Speaker 1: list of them, amount of evidence, and there were all children,
- 12:23Speaker 1: and they decided not to prosecute them for anything but
- 12:25Speaker 1: solicitation of a minor bank. Regulators expect applicants to be candid,
- 12:32Speaker 1: said Carnal, now an associate professor at Fordham Law School.
- 12:37Speaker 1: You'd never suspect there was a non prosecution agreement. As
- 12:40Speaker 1: a bank regulator, I'd be outraged to learn that an
- 12:44Speaker 1: applicant has misled me in that way. But they didn't care.
- 12:47Speaker 1: They all knew what you thought. That the regulators down
- 12:50Speaker 1: in the US Virgin Islands weren't hip to what was
- 12:52Speaker 1: going on. They were, they knew exactly what was up.
- 12:55Speaker 1: They chose to do the Helen Keller and not see
- 12:58Speaker 1: what was going on. In his application, Epstein listed as
- 13:03Speaker 1: references James Staley, the chief executive of Barclays, who had
- 13:07Speaker 1: cultivated a relationship with Epstein while at JP Morgan Chase.
- 13:11Speaker 1: Another reference was Andrew Farkas, a New York real estate
- 13:15Speaker 1: tycoon and co owner of a marina and office complex
- 13:19Speaker 1: on Saint Thomas with Epstein. Spokesmen for both men said
- 13:23Speaker 1: they had been unaware they were listed as references, along
- 13:27Speaker 1: with JP Morgan and First Bank, a Puerto Rico based
- 13:30Speaker 1: lender with branches in the Virgin Islands that long held
- 13:34Speaker 1: some of Epstein's accounts. Now, going back and looking at
- 13:37Speaker 1: this with hindsight, we all know that Jess Staley is
- 13:41Speaker 1: obviously lying here. He knew what was up, and he
- 13:44Speaker 1: was helping Epstein every step of the way as far
- 13:47Speaker 1: as the financials go. And I called Jeess Staley a
- 13:49Speaker 1: liar back then, and I'll continue to call him one now.
- 13:53Speaker 1: Dude bullshitted everybody about his relationship with Epstein, and now
- 13:57Speaker 1: that shit's boomeranging back around to hit him directly in
- 14:00Speaker 1: his head. The application was submitted by Erica Keller Hall's,
- 14:05Speaker 1: a long time tax lawyer for Epstein in the Virgin Islands.
- 14:09Speaker 1: She did not return requests for comment. Southern Country had
- 14:13Speaker 1: not commenced doing business as of April twenty eighteen, according
- 14:17Speaker 1: to correspondence between Keller Halls and the territory's banking department.
- 14:22Speaker 1: Regulators said the bank was a self reporting company and
- 14:25Speaker 1: did not require additional regulatory oversight if it was not operational,
- 14:30Speaker 1: but court documents show Southern Country was active for some
- 14:34Speaker 1: of last year. If I was JP Morgan, I'd be
- 14:37Speaker 1: focusing on this right now. And also if I was
- 14:40Speaker 1: the survivors, I'd be zeroing in on the US Virgin Islands.
- 14:44Speaker 1: How dare they take money out of my pocket? Take
- 14:47Speaker 1: food off my table? That's the way I look at it.
- 14:51Speaker 1: Records filed by the estate on Friday indicate the Southern
- 14:54Speaker 1: Country had six hundred ninety three thousand, one hundred and
- 14:57Speaker 1: fifty seven dollars in assets when Epstein died August tenth.
- 15:02Speaker 1: Then in mid December, the estate transferred fifteen and a
- 15:05Speaker 1: half million to Southern Country in two zechs Southern Country
- 15:09Speaker 1: sent back two point six million, leaving the total it
- 15:11Speaker 1: received at twelve point nine million. The documents filed by
- 15:15Speaker 1: the estate do not give a reason for the transfers.
- 15:18Speaker 1: It is also not clear what Southern Country did with
- 15:21Speaker 1: that money. Two weeks later, the year end value of
- 15:24Speaker 1: Southern Country's assets was four hundred and ninety nine thousand,
- 15:28Speaker 1: seven hundred and fifty nine dollars, according to the estate's filings.
- 15:32Speaker 1: So where'd that money go? I guess it just disappeared, right,
- 15:36Speaker 1: I guess it's just unaccounted for and fell into a
- 15:38Speaker 1: black hole. What really happened is it's in somebody's offshore
- 15:42Speaker 1: account and nobody's the wiser for it. The estate has
- 15:46Speaker 1: told officials in the Virgin Islands that it does not
- 15:49Speaker 1: intend to renew the bank's license again. Around the time
- 15:53Speaker 1: the territory granted Epstein as banking license, it also gave
- 15:56Speaker 1: a lucrative tax break to Southern Trust, a company Epstein
- 16:00Speaker 1: said was developing sophisticated algorithms to mind DNA and financial databases. Boy,
- 16:07Speaker 1: that's reassuring. Huh, this idiot wants to mind DNA databases
- 16:11Speaker 1: and compile records of people's DNA sounds like a fantastic plan.
- 16:16Speaker 1: The tax break came from the territory's Economic Development Authority,
- 16:19Speaker 1: which was approved by the territories former governor John DeJong Junior,
- 16:24Speaker 1: while his wife, Cecil worked for Epstein. Neither Cecil DeJong
- 16:28Speaker 1: nor her husband returned messages seeking comment. Well, of course
- 16:32Speaker 1: they won't. They have nothing to say about this. They
- 16:34Speaker 1: want to stay under the radar. But I think a
- 16:36Speaker 1: big problem here is the fact that the USVII is greedy.
- 16:41Speaker 1: That's just what it comes down to. And I think
- 16:43Speaker 1: their greed is going to undo them when all is
- 16:46Speaker 1: said and done. Because if you think JP Morgan is
- 16:49Speaker 1: writing a check to the US Virgin Islands, I have
- 16:52Speaker 1: some beachfront property to sell you in the middle of
- 16:54Speaker 1: the Nevada Desert. The tax break granted in twenty thirteen
- 16:59Speaker 1: was a boon for eepas Southern Trust generated about three
- 17:02Speaker 1: hundred million in profit in six years, and he paid
- 17:05Speaker 1: an effective tax rate of about three point nine percent.
- 17:09Speaker 1: The source of Southern Trust revenue is not clear. The
- 17:12Speaker 1: bare bones corporate filings made by the company in the
- 17:15Speaker 1: Virgin Islands do not list any clients. That's because it
- 17:19Speaker 1: was a money washing stop. That's exactly what It was
- 17:22Speaker 1: a place for them to wash up their money and
- 17:25Speaker 1: get it sent back out into the financial system, colored
- 17:28Speaker 1: up and ready to go. Although the Virgin Islands was
- 17:32Speaker 1: long a place where Epstein got his way, it is
- 17:34Speaker 1: lately cast itself as one of his victims. In a
- 17:37Speaker 1: lawsuit last month, the Attorney General of the Virgin Islands,
- 17:41Speaker 1: Denise George, said Epstein had sullied the territory's reputation with
- 17:45Speaker 1: his conduct. What about your conduct, Denise George, What about
- 17:48Speaker 1: your colleague's conduct? What about Stacey Plaskett? She sued Epstein's estate,
- 17:54Speaker 1: seeking to seize as private islands and dissolve what she
- 17:57Speaker 1: said were shell companies acting as front for his sex
- 18:00Speaker 1: trafficking enterprise. There's a lot of that that's true. But
- 18:04Speaker 1: also let's not forget the money laundering aspect of this.
- 18:08Speaker 1: A lot of people leave that out because it's not
- 18:10Speaker 1: as salacious, but remember that's how you get most of
- 18:13Speaker 1: these criminals financial crimes. The suit seeks to intervene in
- 18:17Speaker 1: the administration of Epstein's will to safeguard assets for dozens
- 18:21Speaker 1: of his victims, claiming the co executors may have a
- 18:25Speaker 1: conflict of interest because they were officers in many of
- 18:29Speaker 1: Epstein's companies, including Southern Country and Southern Trust. The co executors,
- 18:35Speaker 1: Darren Endyke and Richard Kahn, did not return requests for comment. Well,
- 18:39Speaker 1: they were part of the whole entire criminal conspiracy and
- 18:43Speaker 1: the fact that their skating free and dry here is
- 18:45Speaker 1: just unbelievable to me. Herman Purcell, the magistrate judge overseeing
- 18:51Speaker 1: the administration of Epstein's will in the US Virgin Islands,
- 18:55Speaker 1: heard arguments on the Attorney General's requests at the hearing
- 18:58Speaker 1: on Tuesday. The judge said she would issue a ruling
- 19:02Speaker 1: at a later date, so we all know that it
- 19:05Speaker 1: has progressed from here. But I wanted to go back
- 19:08Speaker 1: and talk about this one more time because it's just
- 19:10Speaker 1: another receipt to show you what I'm talking about when
- 19:13Speaker 1: it comes to the US Virgin Islands and their negligence
- 19:17Speaker 1: with Epstein and Jeffrey Epstein's disgusting crimes and the fact
- 19:21Speaker 1: that they think they're going to get more money here
- 19:23Speaker 1: is absurd to me, and I think it needs to
- 19:26Speaker 1: be pointed out that they are not a victim, and
- 19:28Speaker 1: in fact, they're an enabler themselves. All right, folks, that's
- 19:33Speaker 1: going to do it for this one. All of the
- 19:35Speaker 1: information that goes with the episode can be found in
- 19:38Speaker 1: the description box.