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CHAPTER 20
Jeffrey Epstein: 1953-1969
Jeffrey Epstein's mother, Paula, was the daughter of Max and
Lena Stolofsky, who arrived in the United States as Lithua-
nian refugees. Relatives on that side of the family who remained
in the old country would all perish in the course of Adolf Hitler's
campaign to exterminate European Jewry.
Epstein's father, Seymour, was a manual laborer, like his
father before him. Seymour's parents, Julius and Bessie Epstein,
had emigrated from Russia and landed in Brooklyn, both of them
with eighth-grade educations. They lived in Crown Heights,
where Julius owned a house-wrecking company.
Before landing a job with the city, Seymour had worked with
his father.
They were kind people, says Epstein's childhood friend Gary
Grossberg. Seymour was there for him at a difficult time, Gross-
berg says. When Grossberg was young, his parents divorced, and
89
JAMES PATTERSON
his father moved out of Brooklyn. Seymour and Paula took Gary
in. Often they referred to him as their third son. "Paula was a
wonderful mother and homemaker," Grossberg remembers,
"despite the fact that she had a full-time job."
Epstein, as a kid, was "chubby, with curly hair and a high,
`hee-hee' kind of laugh," Beverly Donatelli recalls.* Beverly was
two years older than Epstein, but thanks to his precocious tal-
ents, which allowed him to skip two grades, they graduated from
Brooklyn's Lafayette High School together, in 1969.
"He was advanced," Beverly remembers. "He tutored my girl-
friend and myself in the summer. He taught me geometry in just
two months."
When Beverly thinks of Epstein now, she recalls gentler times—
long strolls down the Coney Island boardwalk, roller-coaster rides,
stolen kisses. "That last year in school, I think he kind of loved me,"
she says. "One night on the beach he kissed me. In fact, our history
teacher made up a mock wedding invitation for Jeffrey and myself
to show to the class. That seems pretty inappropriate now. But back
t
then, we all thought it was funny. Jews and the Italians, that was
pretty much who went to Lafayette High School. They didn't social-
ize that much. And though my mother was crazy about him, she
told me Jewish boys don't marry Italians."
Through the haze of several decades, Beverly remembers
Epstein as a kindhearted boy and something of a prodigy—a
gifted young pianist as well as a math whiz.
"I was talking to my girlfriends the other day," she says.
* Beverly Donatelli's name, some identifying details, and dialogue have been
changed.
"There is nothing but r
the reason I went to col
Beverly lost contact
after Epstein's fiftieth bi
"He had a photo o
noticed it at his birth&
bet she has a big ass no.
his home on 71st Stree
the same Jeffrey. A gent
The two never did s
pathizes with her high
"I feel so bad for I-
liked him."
Gary Grossberg was a y(
class as Epstein's kid
remains very friendly, t:
frey in some time. Both
"Jeffrey's a brilliant
generous."
Grossberg says he's
Florida." As he sees it,
was hanging around wit
Grossberg wonders,
cial contributed to his e,
"He was a diamond it
"People recognized Jeffr(
gift for recognizing oppc
FILTHY RICH
ERSON
'Seymour and Paula took Gary
their third son. "Paula was a
iker," Grossberg remembers,
[-time job."
y, with curly hair and a high,
Donate11i recalls.* Beverly was
t thanks to his precocious tal-
vo grades, they graduated from
together, in 1969.
:members. "He tutored my girl-
He taught me geometry in just
a now, she recalls gentler times —
d boardwalk, roller-coaster rides,
iool, I think he kind of loved me,"
. he kissed me. In fact, our history
g invitation for Jeffrey and myself
)retty inappropriate now. But back
Ly. Jews and the Italians, that was
.te High School. They didn't social-
mother was crazy about him, she
Italians."
ral decades, Beverly remembers
and something of a prodigy—a
a math whiz.
friends the other day," she says.
fltifying details, and dialogue have been
90
"There is nothing but nice we can say about him. He is actually
the reason I went to college."
Beverly lost contact with Epstein over the years. But not long
after Epstein's fiftieth birthday, she got a call out of the blue.
"He had a photo of us on the beach," she says. "A friend
noticed it at his birthday party. And Jeffrey said to the friend: 'I
bet she has a big ass now.' So Jeffrey called me and invited me to
his home on 71st Street. We hung out. We reminisced. He was
the same Jeffrey. A gentleman."
The two never did speak again, but to this day Beverly sym-
pathizes with her high school sweetheart.
"I feel so bad for him," Beverly says. "That's how much I
liked him."
Gary Grossberg was a year younger than Epstein and in the same
class as Epstein's kid brother, Mark, with whom Grossberg
remains very friendly, though he hasn't seen or spoken with Jef-
frey in some time. Both brothers are good people, he says.
"Jeffrey's a brilliant and good person. He is also incredibly
generous."
Grossberg says he's talked to Epstein about "the problem in
Florida." As he sees it, Epstein "got carried away ... perhaps he
was hanging around with the wrong people."
Grossberg wonders, too, if the things that made Epstein spe-
cial contributed to his eventual fall from grace.
"He was a diamond in the rough, you see," Grossberg explains.
"People recognized Jeffrey's brilliance very early on. But he had a
gift for recognizing opportunities very quickly. He started buying
91
JAMES PATTERSON
properties in Manhattan, including 301 East 66th Street. He
asked his brother—did Mark want to join him? He did."
Grossberg himself has had his ups and downs. At one point,
he worked in a building owned by the Epstein brothers. There,
he says, a porter told him a story about a little-known side of Jef-
frey Epstein. The porter's wife, who lived in South America, des-
perately needed an organ transplant. Epstein paid for the
operation.
"That's just typical," Grossberg says. "That's who he always
was, long as I knew him."
"Lafayette was a city school," says another old classmate, James
Rosen. "It was functional. There was nothing special about it."
James Rosen is a retired postal worker. He lives in South
Florida now, but, like Jeffrey Epstein, he'd grown up in Sea Gate.
"There was a lot of volatility at Lafayette," Rosen recalls. "It
was a blue-collar area that was, at one time, 90 percent Italian.
Then a small amount of Jews moved in, and there was
anti-Semitism. The Italians didn't want the Jews to be there."
Black families were moving in, too, he remembers, and His-
panic ones. But he says most of the animosity was aimed at Jews.
"There were fights in the schools. They thought we were
going to take over."
But Epstein seems to have made friends easily. Even then, his
buddies—who called him Eppy— could see he was special.
While they hung out on the beach, Epstein played the piano. Did
homework. Worked on his prized stamp collection.
Innocent times.
92
Jeffrey Epstein: 1.0
It's the height of ti
lege administratol
long hair collide I
go in for any of that.
math classes at Coop
Village where Abraha
Thanks to a gene)
though the applicatio
Epstein sails thro.
At Harvard or Yal
tawks like the Brookly
than any Ivy League:
aside from his prodig
starts to make money
he leaves Cooper Un
ERSON
rig 301 East 66th Street. He
to join him? He did."
ups and downs. At one point,
y the Epstein brothers. There,
bout a little-known side of Jef-
.o lived in South America, des-
splant. Epstein paid for the
:g says. "That's who he always
rs another old classmate, James
was nothing special about it."
,stal worker. He lives in South
tein, he'd grown up in Sea Gate.
at Lafayette," Rosen recalls. "It
at one time, 90 percent Italian.
vs moved in, and there was
et want the Jews to be there."
in, too, he remembers, and His-
the animosity was aimed at Jews.
schools. They thought we were
lade friends easily. Even then, his
Ty— could see he was special.
ich, Epstein played the piano. Did
:ed stamp collection.
92
CHAPTER 21
Jeffrey Epstein: 1969-1976
It's the height of the Vietnam War. Students collide with col-
lege administrators. Hippies collide with hard hats. Kids with
long hair collide with their parents. Jeffrey Epstein does not
go in for any of that. At the age of sixteen, he's taking advanced
math classes at Cooper Union, an august institution in the East
Village where Abraham Lincoln once spoke.
Thanks to a generous endowment, the school is tuition-free,
though the application process is famously rigorous.
Epstein sails through it.
At Harvard or Yale, his accent would give him away. Epstein
tawks like the Brooklyn boy he is. But Cooper Union is more open
than any Ivy League school. It's full of boys from Brooklyn, and,
aside from his prodigious intellect, Epstein doesn't stand out. He
starts to make money by tutoring his fellow students. And in 1971,
he leaves Cooper Union for the greener pastures of New York
93
JAMES PATTERSON
University of Missot;
1949. That same yea
of rejections at whiti
a Jew—landed a job
clerk.
By 1958, he'd be,
Greenberg smoked c
and always dressed :
gruff, cheap, and, at
bridge player, a hun
loyal leader of the tf
team made up most
outer boroughs.
Greenberg didn't
What he cared abou.
vated risk takers, ur
(and especially low)
were poor, smart, an
Jeffrey Epstein, ti
perfectly.
University, located a few blocks away. There, at the Courant Institute
of Mathematical Sciences, he studies the mathematical physiology of
the heart. But he never graduates from any college or university.
By 1973, Epstein is teaching at the Dalton School, a prestigious
private school on the Upper East Side. Like Tavern on the Green,
Grand Central Terminal, and the Century Association, Dalton is
a New York institution—an elite K-12 rocket ship built for the
children of New York's ruling classes.
It's not at all clear how Epstein, who has no college degree,
ends up there.
And yet here he is, barely out of his teens and already a teacher of
math and physics. "Go forth unafraid" is the Dalton School's credo.
It's a philosophy Epstein has adopted. For him, Dalton's an
excellent launching pad.
It's nothing like Lafayette High School. The kids he's teach-
ing are rich—very rich. Their parents are extremely well con-
nected. And despite Epstein's outer-borough accent, he's careful
in his presentation. At any given moment, he's one parent-teacher
conference away from a whole new world of possibilities.
Because Dalton has an excellent student-to-teacher ratio, the
parents get to know Epstein quite well. Before long, a Wall Street
macher named Alan "Ace" Greenberg has taken a special shine to
the young man who's been tutoring his son Ted.
Like Epstein, Ace Greenberg came from a humble background.
The son of an Oklahoma City shopkeeper, he won a football
scholarship to the University of Oklahoma, transferred to the
94 •
ERSON
FILTHY RICH
r. There, at the Courant Institute
the mathematical physiology of
m any college or university.
Le Dalton School, a prestigious
Ade. Like Tavern on the Green,
Century Association, Dalton is
K-12 rocket ship built for the
3ses.
In, who has no college degree,
his teens and already a teacher of
aid" is the Dalton School's credo.
; adopted. For him, Dalton's an
Lgh School. The kids he's teach-
?arents are extremely well con-
'ter-borough accent, he's careful
moment, he's one parent-teacher
ew world of possibilities.
lent student-to-teacher ratio, the
te well. Before long, a Wall Street
iberg has taken a special shine to
ring his son Ted.
.me from a humble background.
ity shopkeeper, he won a football
of Oklahoma, transferred to the
94
University of Missouri following a back injury, and graduated in
1949. That same year, he moved to New York and, after a series
of rejections at white-shoe firms—places that never would hire
a Jew—landed a job at Bear Stearns, earning $32.50 a week as a
clerk.
By 1958, he'd been made a full partner. Built like a pit bull,
Greenberg smoked cigars, performed coin tricks for his friends,
and always dressed in a bow tie. He was an all-elbows trader —
gruff, cheap, and, above all, impatient. He was also a champion
bridge player, a hunter of big game in Africa, and the firm but
loyal leader of the team he'd built at Bear Stearns—an unusual
team made up mostly of men who'd grown up in New York's
outer boroughs.
Greenberg didn't care about MBAs or Ivy League diplomas.
What he cared about was raw talent and drive. Greenberg culti-
vated risk takers, unconventional thinkers, and he looked high
(and especially low) for his "PSDs": men who, in his estimation,
were poor, smart, and, above all, determined.
Jeffrey Epstein, the Dalton School teacher, fit Greenberg's bill
perfectly.
95
women to go with the
brunettes, who would
day. Now they found E
Greenberg's gorgec
If Greenberg knew
Then again, Greenberl
gan era, when deregu
the horizon. But there
ernment oversight on V
traders had begun to
of the age of corporate
out for him, Epstein
ing his weight arounc
numbers earned him
where he worked on e)
a select group of Be
within the elite—inch
In the spring of 19
St. Joe Minerals Cori
share, or close to thr(
whole offer amounted
But St. Joe's execut
company. In a press n
ited and dismissed it a:
SEC decided to invesq
There were allegatic
Bear Stearns's employe
Epstein got called
wrongdoing.
But, as it turned ou
CHAPTER 22
Jeffrey Epstein: 1976-1981
According to several published reports, it was Ace Green-
berg's son, Ted, who introduced Epstein to Greenberg.
But other sources say Greenberg's daughter, Lynne, was
dating Epstein at the time. According to them, that was how
Epstein got into Bear Stearns—by charming a young and beau-
tiful woman and using her to advance his career.
At Bear Stearns, Epstein started as an assistant to a trader on
the American Stock Exchange and quickly worked up to junior
partner, which meant that he was entitled to a share of the prof-
its. Still in his twenties, he was running with the bulls, kicking
down any doors that stood in his way.
The view from Ace Greenberg's office, high above Madison
Avenue in midtown, was striking. At night, the whole city was lit
up like a stage set.
It was Epstein's city now, to win or to lose. And there were
96
FILTHY RICH
CHAPTER 22
Lshed reports, it was Ace Green-
troduced Epstein to Greenberg.
reenberg's daughter, Lynne, was
:cording to them, that was how
-by charming a young and beau-
ivance his career.
rted as an assistant to a trader on
and quickly worked up to junior
vas entitled to a share of the prof-
running with the bulls, kicking
Us way.
perg's office, high above Madison
ng. At night, the whole city was lit
to win or to lose. And there were
96
women to go with the prize. Tall, beautiful women, blondes and
brunettes, who wouldn't have given a math teacher the time of
day. Now they found Epstein exciting and handsome.
Greenberg's gorgeous assistant was one of these women.
If Greenberg knew about their affair, he did not seem to care.
Then again, Greenberg had other things on his mind. The Rea-
gan era, when deregulation kicked into high gear, was still on
the horizon. But there was already a decreasing amount of gov-
ernment oversight on Wall Street, and a new breed of bare-knuckle
traders had begun to push every available limit. It was the start
of the age of corporate raiders, and with Ace Greenberg looking
out for him, Epstein had no reservations when it came to throw-
ing his weight around. The golden boy's gift for working the
numbers earned him a place in the special-products division,
where he worked on extremely complex tax-related problems for
a select group of Bear Stearns's wealthiest clients—an elite
within the elite—including Seagram CEO Edgar Bronfman.
In the spring of 1981 Bronfman made a bid to take over the
St. Joe Minerals Corporation. He offered forty-five dollars a
share, or close to three times the value of St. Joe's stock. The
whole offer amounted to $2.1 billion in cash.
But St. Joe's executives didn't want to sell their 118-year-old
company. In a press release, they called Seagram's bid unsolic-
ited and dismissed it as "grossly inadequate." At which point the
SEC decided to investigate.
There were allegations of insider trading. Within a few weeks,
Bear Stearns's employees were called in to testify.
Epstein got called in as well and categorically denied any
wrongdoing.
But, as it turned out, he'd just resigned from Bear Stearns.
97
Another one of Epst
say, "Jeffrey Epstein left
to strike out on his owi
some questions remain
given on April 1, 1981, 1
and Robert Blackburn:
Q: Sir, are you aware ti
lating around your f
leaving the firm?
A: I'm aware that there
Q: What rumors have y
A: Nothing to do with !
Q: Can you relate what
A: It was having to do
As far as the investigat.
don; the first time a seci
no interest in Epstein's
Q:
CHAPTER 23
Jeffrey Epstein: 1981'
Epstein will always maintain that his resignation had noth-
ing to do with the SEC's investigation into Bear Stearns and
Edgar Bronfman's ill-fated attempt to take over St. Joe's.
But of course this raises the question: Why did Epstein resign
from Bear Stearns?
In his testimony before the SEC, Epstein says he was offended
by the company's investigation of a twenty-thousand-dollar loan
he'd made to his friend Warren Eisenstein. Epstein didn't know
it at the time, he maintains, but if used to buy stock, such a loan
might have been unethical, if not illegal.
On top of that, questions about Epstein's expenses had come up.
In the end, Bear Stearns fined him $2,500 —an embarrassing
thing, to be sure. So much for making full partner anytime soon.
But $2,500 is not $250,000 or even $25,000. Who'd give up a
job as junior partner over that?
98
Mr. Epstein, did an
substance that you s
Minerals to the stal
mission? Has anyoi
directly or indireca
pensation for this p;
you from Bear Stee
divulging informat
Commission?
FILTHY RICH
Another one of Epstein's bosses, James "Jimmy" Cayne, will
say, "Jeffrey Epstein left Bear of his own volition." Epstein wanted
to strike out on his own, Cayne explains. But given the timing,
some questions remain. Then there's Epstein's own testimony,
given on April 1, 1981, before SEC investigators Jonathan Harris
and Robert Blackburn:
CHAPTER 23
.n that his resignation had noth-
ivestigation into Bear Stearns and
attempt to take over St. Joe's.
question: Why did Epstein resign
;EC, Epstein says he was offended
of a twenty-thousand-dollar loan
Eisenstein. Epstein didn't know
t if used to buy stock, such a loan
.ot illegal.
out Epstein's expenses had come up. .
ed him $2,500—an embarrassing
laking full partner anytime soon.
or even $25,000. Who'd give up a
98
Q: Sir, are you aware that certain rumors may have been circu-
lating around your firm in connection with your reasons for
leaving the firm?
A: I'm aware that there were many rumors.
Q: What rumors have you heard?
A: Nothing to do with St. Joe.
Q: Can you relate what you heard?
A: It was having to do with an illicit affair with a secretary.
As far as the investigators are concerned, this is new informa-
tion; the first time a secretary's name has come up. But they have
no interest in Epstein's office romance and press on:
Q: Mr. Epstein, did anyone at Bear Stearns tell you in words or
substance that you should not divulge anything about St. Joe
Minerals to the staff of the Securities and Exchange Com-
mission? Has anyone indicated to you in any way, either
directly or indirectly, in words or substance, that your com-
pensation for this past year or any future monies coming to
you from Bear Stearns will be contingent upon your not
divulging information to the Securities and Exchange
Commission?
A: No.