Latest / The Epstein Chronicles / Jeffrey Epstein And The Transcript From His 1981 SEC Deposition (Part 2) (7/26/26)

Transcript

Jeffrey Epstein And The Transcript From His 1981 SEC Deposition (Part 2) (7/26/26) · The Epstein Chronicles

• 0:00
  Speaker 1: What's up, everyone, and welcome to another episode of the
• 0:03
  Speaker 1: Epstein Chronicles. In this episode, we're going to pick up
• 0:06
  Speaker 1: where we left off with the Jeffrey Epstein deposition with
• 0:09
  Speaker 1: the SEC during the bear Stearns investigation back in nineteen
• 0:14
  Speaker 1: eighty one. Question when did you resign from bear Stearns?
• 0:19
  Speaker 1: Answer in March twelfth? Question and what was the reason
• 0:22
  Speaker 1: for your resignation? Answer? Totally unrelated to Saint Joe. Question,
• 0:27
  Speaker 1: May I have an answer to my question? What was
• 0:29
  Speaker 1: the basis for your resignation? Answer? It was a disagreement
• 0:33
  Speaker 1: with the way a situation was handled regarding potential violations
• 0:37
  Speaker 1: of a red D Question, Well, could you elaborate upon
• 0:40
  Speaker 1: the situation you just spoke of? Mister Layman jumps in.
• 0:43
  Speaker 1: I believe I will allow the witness to go a
• 0:45
  Speaker 1: little bit into the area. However, it apparently has nothing
• 0:49
  Speaker 1: to do with whatever the subject of the formal order
• 0:52
  Speaker 1: of investigation, and I really hope that we don't dwell
• 0:55
  Speaker 1: on this matter to the extent that he can briefly
• 0:58
  Speaker 1: touch upon it. To go ahead. Question okay. Epstein answers,
• 1:04
  Speaker 1: there's a conflict that arose that I made people aware
• 1:07
  Speaker 1: of personally when I found out a situation in discussions
• 1:10
  Speaker 1: unrelated to one topic. It was brought to my attention
• 1:13
  Speaker 1: to anyone to buy stock. It was my understanding that
• 1:16
  Speaker 1: as a broker, I could not participate in any profits
• 1:19
  Speaker 1: or losses, but I was not aware of the fact
• 1:22
  Speaker 1: that you could not just strictly lend money to a friend.
• 1:25
  Speaker 1: I in fact made two members of the Executive Committee
• 1:28
  Speaker 1: aware of the fact that the full details involved in it.
• 1:31
  Speaker 1: The way it was handled subsequently was offensive to me,
• 1:34
  Speaker 1: and I decided to resign. Question when did you have
• 1:37
  Speaker 1: your first conversation with the Executive Committee? Answer approximately March third.
• 1:44
  Speaker 1: Question do you know if the Executive Committee was aware
• 1:47
  Speaker 1: of this incident prior to March third? Epstein absolutely not redacted.
• 1:52
  Speaker 1: Do you know if any member of the Executive Committee
• 1:54
  Speaker 1: were aware of the incident? Epstein, no question. Do you
• 1:58
  Speaker 1: know how it first came to the attention of the
• 2:00
  Speaker 1: Executive Committee? Answer when it was in a discussion regarding
• 2:05
  Speaker 1: the distribution of new issues. They'd asked me a question,
• 2:09
  Speaker 1: have I lent money to someone to buy stocks? And
• 2:11
  Speaker 1: I said absolutely not? But in fact was that a question?
• 2:15
  Speaker 1: Then I learned that a broker could not in fact
• 2:17
  Speaker 1: lend money and die in one instance, did lend money
• 2:20
  Speaker 1: to a friend? Question? And you say it was in
• 2:23
  Speaker 1: connection with what this came up in connection with an offering? Answer? No, No,
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  Speaker 1: it was in connection with a discussion regarding someone a
• 2:30
  Speaker 1: client of Mind's account, and the way they had received
• 2:33
  Speaker 1: new issue distributions. Question and do you remember what the
• 2:37
  Speaker 1: new issue distribution was? Answer? It was a series of
• 2:41
  Speaker 1: new issue distribution. It wasn't a new issue distribution. Mister Layman.
• 2:46
  Speaker 1: Are you asking for the name of the security question? Yes,
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  Speaker 1: the transaction that prompted mister Layman, why don't you just
• 2:52
  Speaker 1: tell them the securities? Epstein? It was a series of
• 2:56
  Speaker 1: new issue distributions. It wasn't one transaction they wanted to know.
• 3:00
  Speaker 1: In fact, they were asking questions about why I had
• 3:03
  Speaker 1: a client who had received a series of new issues,
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  Speaker 1: not one particular one question And in that connection that
• 3:10
  Speaker 1: they ask you if you had any loan money to
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  Speaker 1: any customers? Answer, that's correct. Question. Now who was it
• 3:17
  Speaker 1: that asked you this? Epstein? It was redacted as in
• 3:20
  Speaker 1: my letter of resignation, redacted and redacted to members of
• 3:24
  Speaker 1: the executive committee. Question and did anyone else participate in
• 3:28
  Speaker 1: the conversation. Answer, no question, And what happened did they?
• 3:33
  Speaker 1: Maybe you can just give me a little bit more
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  Speaker 1: of a narrative on this. They ask you, in connection
• 3:37
  Speaker 1: with this one particular matter, if you had loaned any
• 3:40
  Speaker 1: money to customers and you said no answer. They were
• 3:43
  Speaker 1: talking about, that's right, if I had lent money to
• 3:45
  Speaker 1: the particular customer. Question and you ask them, why is
• 3:49
  Speaker 1: that a problem in words or substance? Is that correct answer?
• 3:52
  Speaker 1: That is correct question? And then they explained that if
• 3:56
  Speaker 1: it was a problem to you, is that correct answer?
• 3:59
  Speaker 1: Correct question? And then when did you tell them? Gets
• 4:03
  Speaker 1: cut off by Epstein Immediately, I said, well, approximately six
• 4:06
  Speaker 1: or seven months ago, I did lend money in one
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  Speaker 1: instance to my closest friend, and the record would show that,
• 4:12
  Speaker 1: in fact, that was the case. Question, the record would
• 4:16
  Speaker 1: show that you had loaned the money. Answer, that's right. Question.
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  Speaker 1: How would that show? Answer? Because it was right on
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  Speaker 1: his account statement that my check was deposited in his account.
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  Speaker 1: There was no attempt to conceal anything. Question, I understand that.
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  Speaker 1: But did it say on the statement that the check
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  Speaker 1: was deposited as a loan? Answer, no question. What did
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  Speaker 1: these two individuals say that is redacted and redacted? Answer
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  Speaker 1: just redacted, mister Layman, redacted. Question it ends with an
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  Speaker 1: s though, doesn't it, mister Layman, no, redacted, It does not,
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  Speaker 1: mister Layman, no Epstein. They said that it was a
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  Speaker 1: possible violation of red D and they'd look into it.
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  Speaker 1: Question did they at any point suggest that there would
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  Speaker 1: be any action taken? Answer? They said that the issue
• 4:59
  Speaker 1: could be serious or serious and they would look into
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  Speaker 1: it and see what should be done. Question did they
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  Speaker 1: ask you how much money you had loaned to your customer?
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  Speaker 1: Answer yes, sir, question and what was your answer? Answer?
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  Speaker 1: It was fifteen thousand. Question And did they ask you
• 5:14
  Speaker 1: if the loan had been paid off? Answer? Yes, it
• 5:17
  Speaker 1: was yes. Question and was in fact the loan paid off?
• 5:21
  Speaker 1: Answer yes, mister Layman. I think we're beyond the scope
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  Speaker 1: of the formal order at this point. Can I ask
• 5:27
  Speaker 1: that the question to be directed to the questions concerning
• 5:29
  Speaker 1: Joe's minerals redacted? We will reserve our right to come
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  Speaker 1: back to this area if it's appropriate. Mister Layman, okay, redacted.
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  Speaker 1: What was your next meeting, if any meeting after the
• 5:40
  Speaker 1: first one? Answer it was the subsequent two days. Question
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  Speaker 1: you're talking about March fifth now? Answer March fourth. I
• 5:47
  Speaker 1: believe March third was the first meeting and the fourth
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  Speaker 1: and the fifth question. Did anyone additional to redacted and
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  Speaker 1: redacted participate in the subsequent meetings? Answer no question. Was
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  Speaker 1: anyone else present other than those two individuals in yourself?
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  Speaker 1: Answer no question. Were any matters other than the matters
• 6:06
  Speaker 1: discussed at the first meeting discussed at these later meetings?
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  Speaker 1: Answer no question. Did you have any meetings with these
• 6:13
  Speaker 1: gentlemen subsequent to those two meetings? Answer not regarding anything
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  Speaker 1: to do with this redacted, this being Epstein, this being
• 6:21
  Speaker 1: the issue of the loan to the customer that's described
• 6:23
  Speaker 1: in my resignation. Question Did you have any occasion to
• 6:26
  Speaker 1: meet with any members of the Executive Committee the week
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  Speaker 1: of March ninth? Answer? Which is the following week? Yes?
• 6:35
  Speaker 1: Question one was the first meeting? Answer? I believe it
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  Speaker 1: was Tuesday. Again, I'm not sure of my dates. It
• 6:41
  Speaker 1: was a Tuesday that I met with redacted and redacted? Again.
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  Speaker 1: Question anyone else present? Answer no question. What was the
• 6:48
  Speaker 1: nature of the discussion at that time? Answer the fact
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  Speaker 1: that they thought a twenty five hundred dollars fine was
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  Speaker 1: in order for the violation. But since I had made
• 6:57
  Speaker 1: a voluntary disclosure and it was a single instant. Question,
• 7:01
  Speaker 1: did they indicate to you whether this matter had been
• 7:04
  Speaker 1: discussed with anyone else on the Executive Committee? Answer no,
• 7:08
  Speaker 1: but in fact they had indicated that there was Executive
• 7:10
  Speaker 1: Committee meetings going on regarding the subject. Question when did
• 7:14
  Speaker 1: that come to your attention? Answer probably on the first day?
• 7:18
  Speaker 1: Was it the third that this is an area that
• 7:21
  Speaker 1: these two people had been assigned to question by the
• 7:24
  Speaker 1: Executive Committee to explore? Answer right. Question Did they indicate
• 7:28
  Speaker 1: to you who on the Executive Committee had asked them
• 7:31
  Speaker 1: to look into this matter? Answer no. Question did you
• 7:35
  Speaker 1: ever come to learn who asked them to look into
• 7:37
  Speaker 1: the matter? Answer the Executive Committee? I don't know. Question
• 7:41
  Speaker 1: both of these individuals or members of the committee. Answer
• 7:44
  Speaker 1: that's correct, mister Layman. Just to clarify, I'm not sure
• 7:47
  Speaker 1: that either redacted or redacted are in fact members of
• 7:51
  Speaker 1: the Executive Committee. Redacted and redacted, but what whether the
• 7:54
  Speaker 1: Executive Committee has seven members? Redacted may in fact be
• 7:58
  Speaker 1: a member epstein JA and maybe redacted as of May first.
• 8:02
  Speaker 1: But he's there's a question in my mind as to
• 8:05
  Speaker 1: whether or not they're actually members. Question during the course
• 8:10
  Speaker 1: of any of your meetings with redacted? Was Saint Joe
• 8:14
  Speaker 1: Mineral Corporation discussed at any of these meetings? Answer no. Question.
• 8:18
  Speaker 1: Did you have occasion to speak with anyone else on
• 8:21
  Speaker 1: the executive committee or any members of the Executive Committee
• 8:24
  Speaker 1: regarding Saint Joe Minerals? Answer no. Question. Did it ever
• 8:28
  Speaker 1: come to your attention that certain individuals at the firm
• 8:31
  Speaker 1: were trading in Saint Joe Minerals during the week of
• 8:34
  Speaker 1: March ninth? Answer after our discussions on an informal basis. Yes.
• 8:40
  Speaker 1: Question are you referring to the discussion that you and
• 8:43
  Speaker 1: Council and I had last week? I believe it was.
• 8:46
  Speaker 1: Answer that is correct. Question. I think it was on
• 8:49
  Speaker 1: Friday or Thursday, and that was the first that you
• 8:51
  Speaker 1: were aware of it. Answer. I was aware that there
• 8:54
  Speaker 1: was an investigation into members of the firm. As far
• 8:57
  Speaker 1: as I knew who had participated in Saint Joe That's
• 9:00
  Speaker 1: all I knew. Question How did that come to your attention? Answer?
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  Speaker 1: It was hearsay around the firm. It was no specific
• 9:06
  Speaker 1: individual redacted. When did you become aware of that? Epstein,
• 9:12
  Speaker 1: It's hard to say I'm not really sure. Question was
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  Speaker 1: it before or after you resigned? Answer? Oh? After question
• 9:18
  Speaker 1: and after you resigned, did you continue to come into
• 9:20
  Speaker 1: the office? Answer yes? Question for how long? Answer off
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  Speaker 1: and on continuously, I'm cleaning out my office. Question do
• 9:28
  Speaker 1: you still have access to that office now? Answer that's correct.
• 9:32
  Speaker 1: Question When were you there most recently? Answer Friday, mister Layman,
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  Speaker 1: he was there today the witness. Oh yeah, today, Sorry,
• 9:40
  Speaker 1: question prior to today? When was the last time you
• 9:43
  Speaker 1: were there? Answer Friday? Question of last week Epstein, Yes, sir.
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  Speaker 1: Question did you have any occasion to meet with anyone
• 9:51
  Speaker 1: while you were in the office there on Friday? Answer
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  Speaker 1: many different brokers who came in to talk to me.
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  Speaker 1: Question did you have occasion to speak with any members
• 10:00
  Speaker 1: the Executive Committee while you were there on Friday? Answer no. Question.
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  Speaker 1: Have you had any discussions with any of the Executive
• 10:07
  Speaker 1: Committee since the date of your letter of resignation, which
• 10:10
  Speaker 1: I believe is March twelfth, nineteen eighty one? Answer yes,
• 10:14
  Speaker 1: I have question you've had conversations with them? Answer yes.
• 10:18
  Speaker 1: Question and with whom have you spoken? Answer redacted? Redacted?
• 10:22
  Speaker 1: And a brief discussion right after the resignation with redacted.
• 10:26
  Speaker 1: Question what was your conversation with redacted or conversations? Answer continuously,
• 10:31
  Speaker 1: I'd say not Friday, but the twenty fifth, when I
• 10:34
  Speaker 1: handed in my thing, I handed it to redacted. Question
• 10:37
  Speaker 1: did you discuss this matter with redacted at the time? Answer?
• 10:40
  Speaker 1: Which matter? Question the matter you said you had handed
• 10:43
  Speaker 1: in a certain document. Are you referring to this document
• 10:46
  Speaker 1: division exhibit two? Answer yes. Question And what was the
• 10:50
  Speaker 1: nature of the conversation you had when division Exhibit two
• 10:53
  Speaker 1: was tendered to redacted? Answer just that here's my resignation,
• 10:58
  Speaker 1: the full letter that accompanied my resignation. Question what prompted
• 11:01
  Speaker 1: this letter? Answer by Epstein my wanting to make the
• 11:05
  Speaker 1: facts known because I wanted it clear to people why
• 11:08
  Speaker 1: I had left the firm. Question take a look when
• 11:11
  Speaker 1: you had just answered you were referring to a letter
• 11:13
  Speaker 1: that's prepared by you. Is that correct? Answer? That is correct?
• 11:16
  Speaker 1: Question and it was sent to the executive committee. Answer
• 11:20
  Speaker 1: was delivered to redact it by myself on March twenty fifth.
• 11:23
  Speaker 1: Question and would you take a look at what's been
• 11:26
  Speaker 1: marked as exhibit too? Answer? Yeah, that's it. Question prior
• 11:30
  Speaker 1: to your submission of this letter division exhibit two, had
• 11:33
  Speaker 1: you submitted anything else to bear Stearns indicating that you
• 11:36
  Speaker 1: were resigning or were about to resign. Answer yeah, I
• 11:39
  Speaker 1: handed in a letter on March twelfth. It was a
• 11:42
  Speaker 1: simple statement that I would like to resign from the
• 11:44
  Speaker 1: firm as a limited partner. Question I show you what's
• 11:48
  Speaker 1: been marked, what we've marked into evidence as division Exhibit three.
• 11:53
  Speaker 1: Answer it's the first page of Exhibit three. Question would
• 11:56
  Speaker 1: you read that into the record? Please answer with this
• 11:59
  Speaker 1: letter and a companying statement, I hereby resign as a
• 12:02
  Speaker 1: limited partner at bear Stearns, effective immediately. Question Now, sir,
• 12:08
  Speaker 1: the letter that's been tender to us, dated March twelfth,
• 12:11
  Speaker 1: and as you just read back for the record, speaks
• 12:14
  Speaker 1: of an accompanying statement. Answer right. I didn't make that
• 12:17
  Speaker 1: accompanying statement available to the Executive Committee until I was
• 12:21
  Speaker 1: sure that I was comfortable with what I had written
• 12:23
  Speaker 1: and handed it to them. On the twenty fifth question,
• 12:26
  Speaker 1: you provided no other written documents to the Executive Committee
• 12:29
  Speaker 1: besides the one page document that's dated March twelfth. Answer
• 12:33
  Speaker 1: on March twelfth. Question, which is the first page a
• 12:37
  Speaker 1: division exhibit three? Is that correct? Answer? That's correct? On
• 12:40
  Speaker 1: March twelfth. That's the only thing that I handed them,
• 12:44
  Speaker 1: all right, folks, that's going to do it for this one,
• 12:46
  Speaker 1: and in the next episode dealing with the topic, we're
• 12:48
  Speaker 1: going to pick up where we left off. All the
• 12:51
  Speaker 1: information that goes with this episode can be found in
• 12:54
  Speaker 1: the description box.