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JAMES PATTERSON
* * *
Whatever the reasons for his resignation, Epstein still gets his
annual bonus of around $100,000 (roughly $275,000 in today's
dollars). The SEC never brings charges against him or any other
Bear Stearns employee. And so the particulars of Epstein's depar-
ture get folded up into the greater mystery surrounding the man.
Did Epstein crash the rocket ship that Ace Greenberg had given
him to pilot? Or did he take it and fly it out, over the horizon?
Either way, Epstein was out on his own.
For him, the future would only get brighter.
Ana ObregO
Ana Obr
c
and we.
ishe firsi
roles—in the
the star a run
Spanish Playbc
As for forti
Ana's fathe
had serious pr
bond-trading fi
that it was goir
off a subsidiar3
And in May, Di
ed on Treast
ad dragged do
100
'TERSON
signation, Epstein still gets his
)0 (roughly $275,000 in today's
harges against him or any other
ae particulars of Epstein's depar-
:r mystery surrounding the man.
ip that Ace Greenberg had given
Lid fly it out, over the horizon?
on his own.
nly get brighter.
Ana ObregOn: 1982
CHAPTER 24
na ObregOn was one of the world's most beautiful women
and well on her way to becoming famous as such when
she first met Jeffrey Epstein. For her, there would be film
roles—in the 1984 Bo Derek vehicle Bolero, Ana ObregOn gives
the star a run for her money—and appearances on the covers of
Spanish Playboy and Spanish Vanity Fair.
As for fortune, ObregOn had that already.
Ana's father was a very wealthy investor in Spain. But he also
had serious problems. On June 15, 1982, a venerable stock- and
bond-trading firm, the Drysdale Securities Corporation, announced
that it was going out of business. Just that year, Drysdale had spun
off a subsidiary operation called Drysdale Government Securities.
And in May, DGS defaulted on $160 million in interest payments it
owed on Treasury securities that it had borrowed. In doing so, DGS
had dragged down its parent company.
101
100
JAMES PATTERSON
A very well-connected group of Spanish families—including
members of Spain's royal family—had invested with Drysdale.
Those investors stood to lose hundreds of millions of dollars.
And Ana's father was one of those investors.
What Ana wanted from Jeffrey Epstein was help in recover-
ing her father's money.
"My father, he's done something stupid," she told him.
A Spanish accent. A Brooklyn accent. They blended well
together, and Ana was so very lovely.
It turned out that Epstein was willing to help.
"Something stupid, you see, with the money. The family
money. Some—what do you call it? A scheme. He knew some of
the people, but they lied to him. And now the money is gone."
People who knew Jeffrey Epstein recall that he was bad off after
his exit or ouster —whatever it was—from Bear Stearns. Mov-
ing from couch to couch for a while. Sleeping in his lawyer's
offices before settling down in an apartment in the Solow Tower,
on East 66th Street.
It's a bit hard to believe. After all, Epstein left Bear Stearns
with a good deal of money. But Epstein's lifestyle was expensive.
He was a man on the make then, and Ana was still in her twen-
ties, plying her craft at the Actors Studio — the New York City
theater institution that Marlon Brando, Robert De Niro, Jack
Nicholson, and Jane Fonda had all been members of.
Epstein told Ana that he'd formed a company, International
Assets Group.
To Ana, this sounded very impressive. In fact, JAG was a
small operation that Epstein was running out of his apartment.
102
But if Ana had
already see till
maintain that
who helped SE
women he'd cu
whole other kir
Ones that n
Andrew Levan(
District of Nem.
Force. He was a
he was build in
of Drysdale ex
Epstein bringir
Epstein came tc
The woman
Levander to
lawyer named F
himself, was as:
hunt for the mo
In effect, IN
deadfalls. And
pany were less
to the US atton
had violated a
investments.
This was w
discretion cat
Ana Obregol
TERSON
)f Spanish families—including
—had invested with Drysdale.
andreds of millions of dollars.
investors.
ey Epstein was help in recover-
ing stupid," she told him.
lyn accent. They blended well
.vely.
Ls willing to help.
e, with the money. The family
Li it? A scheme. He knew some of
. And now the money is gone."
in recall that he was bad off after
it was—from Bear Stearns. Mov-
a while. Sleeping in his lawyer's
an apartment in the Solow Tower,
ifter all, Epstein left Bear Stearns
.t Epstein's lifestyle was expensive.
Len, and Ana was still in her twen-
.ctors Studio — the New York City
on Brando, Robert De Niro, Jack
id all been members of.
3. formed a company, International
:ry impressive. In fact, IAG was a
was running out of his apartment.
102
FILTHY RICH
But if Ana had known that, would she have cared? She could
already see that Epstein was brilliant. And though she would
maintain that their friendship was strictly platonic, it was Ana
who helped set Epstein on his course. Like other beautiful
women he'd cultivate throughout his life, she opened doors to
whole other kingdoms.
Ones that no boys from Brooklyn had even dreamed of.
Andrew Levander was an assistant US attorney in the Southern
District of New York's Securities and Commodities Fraud Task
Force. He was assigned to look into Drysdale's collapse. The case
he was building would result in fraud convictions for a number
of Drysdale executives, and even today, Levander remembers
Epstein bringing "a very attractive woman" to meet him when
Epstein came to him in the course of the investigation.
The woman was Ana ObregOn.
Levander told Ana that he was already working the case. A
lawyer named Robert Gold, who was a former federal prosecutor
himself, was assisting. And now Epstein would join them in the
hunt for the monies.
In effect, DGS had built a series of labyrinths, rabbit holes,
deadfalls. And even investors who'd lost vast sums to the com-
pany were less than forthcoming when it came to speaking
to the US attorney. Several of the investors were foreign. Some
had violated their own countries' laws pertaining to foreign
investments.
This was where Epstein—with his calm, confident air of
discretion_ came in.
Arta Obregin gave Epstein power of attorney over any monies
103
JAMES PATTERSON
that he recovered. And though it took him three years, working
with Robert Gold and the US attorney's office, Epstein finally did
make his way to the center of DGS's maze and recover ObregOn's
Most of it was being held in a bank in the Cayman Islands.
money.
Epstein's agreement with Ana prevents us from knowing
how much he recovered— and how much he kept. But given the
amounts at stake, Epstein likely earned millions— or more—
and to this day Ana ObregOn has nothing but appreciation for
what Epstein accomplished.
"I know he's had some problems," she says. "I don't want any-
thing to do with that."
As for Epstein, he came out of the deal with a new modus
operandi: from now on, he'd only work with the super rich.
104
Eva Andersson:
iss Swed(
zling whi
the stage
winner of this, the
Seoul, South Korea
"And now that
see which five girls
Barker pauses,
tightens. There are 1
even if they're not (
"On this card
received the highe
interview, the swin
Eva feels the c2
standing in betwee.
TERSON
took him three years, working
.rney's office, Epstein finally did
iS's maze and recover ObregOn's
bank in the Cayman Islands.
na prevents us from knowing
Jow much he kept. But given the
y earned millions—or more—
Las nothing but appreciation for
ems," she says. "I don't want any-
t of the deal with a new modus
ly work with the super rich.
CHAPTER 25
Eva Andersson:July 8, 1980
iss Sweden, Eva Birgitta Andersson, is wearing a daz-
zling white gown and sweating, ever so slightly, under
the stage lights. But Bob Barker's about to announce the
winner of this, the twenty-ninth Miss Universe pageant, held in
Seoul, South Korea, and Eva's smile is as wide as the ocean.
"And now that we know what Miss Universe will win, let's
see which five girls are still in the running!"
Barker pauses, like the expert broadcaster he is. Eva's chest
tightens. There are twelve women on stage, all of them beautiful —
even if they're not quite as beautiful as Miss Sweden.
"On this card are the names of five contestants who have
received the highest total score from our judges in the personal
interview, the swimsuit, and the evening gown competition."
Eva feels the camera pan across the stage—pan across her,
standing in between Miss Scotland and Miss Puerto Rico.
104 . 105
JAMES PATTERSON
"As a result, they will be our five finalists. As I call each name,
you will see a figure on your television screen. That is the total
score received by the contestant since she became a semifinalist.
But one thing I would point out to you: the point total is not
necessarily a sign of who our eventual winner will be. Being first
now is no guarantee of being first at the time of our judges' final
ballot."
Oh, get on with it, Miss Sweden thinks. And, as if by her com-
mand, Bob Barker does.
"Now our five finalists. Good luck, girls! The first finalist is:
Miss Sweden!"
Eva's hands fly up to her face. The time it takes her to walk to
the front of the stage is all the time she needs to stop herself from
crying.
For Eva, it's not meant to be. Miss USA, Shawn Weatherly, wins
that year's competition—she'll go on to become a star on Bay-
watch. But Eva's future is secure nonetheless. After the pageant,
she'll spend three years studying in Stockholm, finish med
school at UCLA, and become a doctor of internal medicine.
Along the way, she'll meet Jeffrey Epstein.
People who knew them when they were a couple say that Eva
wanted to marry Epstein. One friend says he considered it seri-
ously. In the end, Eva ended up with a man named Glenn Dubin,
though she and Epstein remained very close. And if Eva was the
proverbial "one who got away," Epstein ended up dating other
impressive women—world-class beauties—as he made his way
in the world.
106
Why didn't any of
always someone more
corner. Perhaps none c
urges. But he did haves
by his side through ft
with them.
When he was thro
say, they graduated up
status of "lover" to "friE
In his estimation, th
The world was ful
friendship seemed to bi
FILTHY RICH
ER SON
.e finalists. As I call each name,
vision screen. That is the total
ince she became a semifinalist.
to you: the point total is not
itual winner will be. Being first
L at the time of our judges' final
n thinks. And, as if by her corn-
I luck, girls! The first finalist is:
. The time it takes her to walk to
tie she needs to stop herself from
Liss USA, Shawn Weatherly, wins
L go on to become a star on Bay-
:e nonetheless. After the pageant,
Lying in Stockholm, finish med
doctor of internal medicine.
leffrey Epstein.
Len they were a couple say that Eva
e. friend says he considered it seri-
p with a man named Glenn Dubin,
ined very close. And if Eva was the
.y," Epstein ended up dating other
lass beauties— as he made his way
Why didn't any of the romances take? Perhaps there was
always someone more fabulous waiting for Epstein around the
corner. Perhaps none of these women satisfied Epstein's deeper
urges. But he did have a knack for keeping the women he'd dated
by his side through thick and thin, long after he'd broken up
with them.
When he was through with his girlfriends, Epstein would
say, they graduated up, not down, the ladder, moving from the
status of "lover" to "friend."
In his estimation, these shifts always constituted a promotion.
The world was full of beautiful women. But for Epstein,
friendship seemed to be a far more precious commodity.
106 107
Pay me fifty million cl(
amount.
At first Epstein did nc
asked that the payment —
escrow. If his strategy we
bounced back to the diem
In the eighties, when
much, much higher than
50 percent, it was an exti
were other ways to make
In 1982, Epstein sold his
relatives, and others on an
Michael Stroll, had run M
company known for the 13]
Stroll put $450,000 int
But in 1984, Michael
repeated demands and r€
Epstein owed him, he got
ment. Eventually he sued
ing 5440,000—the case m
Epstein told the judge tha
ally the payment for a hor
Like many cases invol
of court, the terms of the f
CHAPTER 26
Jeffrey Epstein: 1984
ow did Jeffrey Epstein make all his money?
Epstein would tell stories over the years about mon-
ies recovered from slippery characters. Sometimes, friends
and former associates would say, he'd suggest he had ties to the
governme-nt, giving listeners the impression that he was doing
dangerous, glamorous work.
Others said that what Epstein really did, at this stage in his
career, was much more banal. According to them, Epstein spent
most of his time coming up with creative new ways for the rich
to avoid paying taxes. The commission for tax-avoidance deals
was enormous, although the number of deals Epstein was involved
with is a matter of conjecture, as is his record of successes and
But Epstein's business model was evolving. He'd charge a flat
failures.
fee. No fancy math. No percentages.
108
FILTHY RICH
CHAPTER 26
lake all his money?
tories over the years about mon-
ffy characters. Sometimes, friends
.y, he'd suggest he had ties to the
le impression that he was doing
em n really did, at this stage in his
According to them, Epstein spent
ith creative new ways for the rich
mmission for tax-avoidance deals
mber of deals Epstein was involved
, as is his record of successes and
iel was evolving. He'd charge a flat
itages.
108
Pay me fifty million dollars. Or pay the IRS seven times that
amount.
At first Epstein did not demand his fee up front. Instead he
asked that the payment—often a substantial one—be put into
escrow. If his strategy worked, he'd get paid. If not, the money
bounced back to the client.
In the eighties, when tax rates on the top 1 percent were
much, much higher than they are today, topping out at close to
50 percent, it was an extremely effective pitch. And then there
were other ways to make money.
In 1982, Epstein sold his wealthy friends, his friends' wealthy
relatives, and others on an oil-drilling deal. One of the investors,
Michael Stroll, had run Williams Electronics, an entertainment
company known for the pinball machines it made.
Stroll put $450,000 into the oil deal.
But in 1984, Michael Stroll wanted his money back. Despite
repeated demands and requests for a full accounting of what
Epstein owed him, he got $10,000 back on his $450,000 invest-
ment. Eventually he sued Epstein in federal court for the remain-
ing $440,000—the case went on for a number of years. In court,
Epstein told the judge that the $10,000 he'd returned was actu-
ally the payment for a horse Stroll had sold him.
Like many cases involving Epstein, this one was settled out
of court, the terms of the final agreement kept secret.
109
CHAPTER 27
Steven Hoffenberg: July 10, 1987
Before there was Bernie Madoff, there was Steven Hoffenberg.
In 1987, Hoffenberg was the head of Towers Financial
Corporation, a company that bought debts, such as unpaid
medical bills, at a very steep discount while pressing the debtors
to repay in full. He'd started the company fifteen years earlier
with two thousand dollars and just a handful of employees.
Thanks, in part, to a grueling work ethic, he'd turned that into a
much bigger concern, with twelve hundred employees and stock
that traded over the counter. But Hoffenberg still spent fifteen
hours each day, six days a week, in his office.
He wanted more. Hoffenberg was a Wall Street outsider. A
Brooklyn boy. A college dropout, like Epstein.
One thing Hoffenberg wanted was respect. The other was
someone who was familiar with Wall Street's inner workings. jef-
frey Epstein, who had traded options for Bear Stearns, fit the bill.
110
Hoffenberg began pa!
month for Epstein's exper
The SEC had already
ding with him out of coy
securities. But Hoffenberg
In the 1980s, several n
the greenmailing of pub
mailing means, in practici
investors will start buyin,
vulnerable to takeover att
utives at those companies
It's risky, but very often ti
profit.
Yet another thing Hoi
American World Airways.
its downward trajectory, t
For Hoffenberg; the
huge.
According to Hoffenberg,
over of Pan Am—a deal ti
Steven Hoffenberg stil
listening to him, one mus
guilty to criminal conspir,
million swindle, a famili
Bernie Madoff case.
Like so many others,
Without the necessary u:
spent at the office, he'd als
CHAPTER 27
1987
loff, there was Steven Hoffenberg.
ras the head of Towers Financial
hat bought debts, such as unpaid
scount while pressing the debtors
the company fifteen years earlier
rid just a handful of employees.
work ethic, he'd turned that into a
elve hundred employees and stock
But Hoffenberg still spent fifteen
:k, in his office.
)erg was a Wall Street outsider. A
mt, like Epstein.
anted was respect. The other was
th Wall Street's inner workings. Jef-
pptions for Bear Stearns, fit the bill.
110
FILTHY RICH
Hoffenberg began paying twenty-five thousand dollars per
month for Epstein's expertise as a consultant.
The SEC had already looked into Hoffenberg's affairs, set-
tling with him out of court in a matter relating to unregistered
securities. But Hoffenberg was dangling a very big prize.
In the 1980s, several major financial players were involved in
the greenmailing of publicly traded companies. What green-
mailing means, in practice, is that a brokerage house or group of
investors will start buying shares in companies that seem to be
vulnerable to takeover attempts. To ward off the attempts, exec-
utives at those companies will buy the shares back at a premium.
It's risky, but very often the investors stand to make a handsome
profit.
Yet another thing Hoffenberg wanted was to take over Pan
American World Airways. The iconic airline had already entered
its downward trajectory, but it was still a giant.
For Hoffenberg, the greenmailing profits could have been
huge.
According to Hoffenberg, Epstein handled the attempted take-
over of Pan Am—a deal that went sideways almost immediately.
Steven Hoffenberg still has a lot to say on the subject. But in
listening to him, one must bear in mind that in 1995, he pleaded
guilty to criminal conspiracy and fraud charges involving a $460
million swindle, a familiar scheme to anyone who followed the
Bernie Madoff case.
Like so many others, Hoffenberg had tried to fly very high
Without the necessary updraft. And despite all the hours he
spent at the office, he'd also developed a taste for the high life. He
111
JAMES PATTERSON
bought his own jet, a luxury yacht, and a Long Island mansion
to go with his expensive Manhattan apartment. He'd also briefly
owned a controlling interest in the New York Post.
To cover his tracks, Hoffenberg had been taking money from
investors and using it to pay previous investors. It was a classic
Ponzi scheme—one of the biggest in history—and Hoffenberg
ended up spending nineteen years in a federal prison.
Why was Epstein not implicated in the case? All that Hoffen-
berg will say when asked is: "Ask Robert Gold."