Leon Black’s nine-figure payout to convicted pedophile-suspected sex trader Jeffrey Epstein leaves the legal world puzzled.
Black’s Apollo Global Management revealed on Monday that its billionaire CEO and co-founder Epstein, who was jailed in August 2019, committed suicide – between 2013 and 2017 $ 158 million for professional advice on tax audits, wealth management and estate planning.
That’s more than Black paid advisers including Paul Weiss, the leading estate and tax planners who hired Black to carry out Epstein’s ideas, according to a report by the law firm Dechert, hired by Apollo to tie Black’s ties to Epstein to investigate.
“It is clear that the compensation Black paid to Epstein far exceeds the amount Black paid to his other professional advisers,” Dechert reported.
Black justified this by explaining that he paid Epstein “in amounts intended to be commensurate with the value provided,” Dechert said. And Black, says Dechert, believed that Epstein “provided advice that provided more than $ 1 billion and up to as much as $ 2 billion or more in value.”
But the report, released on Monday, also raises questions about how much Epstein was really worth by sketching a photo of an adviser who sometimes causes more headaches than he provided solutions.
At the time of Epstein’s appointment, Black, 69, had ignored his conviction in 2008 over a 17-year-old’s request for sex because he ‘believed Epstein had misunderstood it’s older, “he said. the report.
“Swart regards Epstein as a confirmed bachelor with eclectic taste, who often employs attractive women. However, Black did not believe that one of the women employed by Epstein was a minor. ”
The report praises some of Epstein’s work, including his plans to test a fire drill on how Black’s estate could be treated. “Despite Epstein’s lack of formal training in law or accounting, his plans for the firefight were .. detailed and comprehensive,” witnesses said.
But people also complained that Epstein put forward ideas that sounded brilliant to fall apart quickly.
“Epstein put forward a variety of ideas on many different tasks by disseminating long lists of ideas that he thought he would pursue,” the report reads. “Many of these ideas seem plausible on their own, but do not hold up under investigation.”
“There was general consensus that some of Epstein’s ideas were uniquely creative and useful, while others were inconspicuous or unworkable,” the report said.
Some witnesses also described Epstein as creating a toxic and destructive work environment for Black’s family office, saying it would take credit for good ideas, regardless of his involvement, the report said.
The report also said the criminal tried to use personal information he obtained during his time at Black to extract more money from the billionaire amid a fee dispute that led to the men’s paths divorced.
“Epstein … would appeal his friendship with Black in the emails,” the report reads. “Among other things, by referring to personal matters that Black shared confidentially with Epstein.”
And while Epstein allegedly told Black that his fees, which total about $ 31.6 million a year for four years, would be tax deductible, they were not, the report said.
Tax and estate experts say they are confused. “Paying tens of millions to a beginner is strange,” said a lawyer at a law firm.
A tax lawyer added: ‘Maybe there is any justification, but I would like to see what it is. ‘
“Honestly, I’m offended on behalf of Paul Weiss,” said Joe Patrice, editor of the legal news website Above the Law, and a former litigator at Cleary Gottlieb. “Imagine giving considered advice as a world leader and finding out that he is giving this man millions.”
Neither Black nor Paul Weiss responded to a request for comment.