Document Text Content
Date: Mon, Oct 26, 2015 at 8:37 PM
Subject:
To: Brad Wechsler < >, Melanie Spinella < x
— x .
gain at 20 % not 28. . so total , 35.8%. tax rate. same for boat. and plane each around 10 m so total 7
m savings if both sold
Date: Tue, Oct 27, 2015 at 11:35 AM
Subject: Detailed constructive list.
To: Melanie Spinella < ________
Cc: Brad Wechsler <I In>
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films. etc.
Date: Wed, Oct 28, 2015 at 5:56 AM
Subject: Fwd: Detailed constructive list.
To: Lesley Groff <=111.01
please print two copes . re formattted so leon can go line by line ie .
answer. blank who responsible. time frame. fee paid when?
heading s question, gift
Date: Tue, Oct 27, 2015 at 6:35 AM
Subject: Detailed constructive list.
To: Melanie Spinella <!__________________________>
Cc: Brad Wechsler <__________________________I>
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance. re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films . etc.
From: jeffrey E. leevacation@gmail.com>
Date: Tue, Feb 24, 2015 at 2:20 PM
HOUSE OVERSIGHT 023208
Subject:
To: Melanie Spinella <________________________>
Leon,
Yesterday , I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude of llc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do , - my responsibilities. etc and those things that are not, below you will find details of things that I
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively . My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
HOUSE OVERSIGHT 023209
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or" its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized atty in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
however - that is all in the past.
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )
I heard you when you said you believed i had already been paid for the work that is now required. The
art partnership has fully answered all your concerns and discharged all my obligations and more so.
. ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall
that you required that my payments be at the end of my work not at the beginning as everyone else's.(
my work was never to include hours upon hours of training your staff). I eventually agreed, this of
course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
HOUSE OVERSIGHT 023210
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route . always. It will take a
great deal of your time , but you will not have to spend any more money on mine.
We are scheduled to meet fri at 430 , I leave at 5 am sat morning.
Date: Wed, Nov 4, 2015 at 4:45 AM
Subject:
To: Melanie Spinella
okay, its time for you to decide how you would like to move forward. ( fyi get your money from the
1031 . the screw up is only one of many,) If you decide to move foward on decanting. phaidon, note
basis estate update, each requires many carefully orchestrated detailed steps. and precision . there are
hundreds of millions in saving if done correctly and a huge mess if not. If you want me and my
colleagues to do it, oversee it paper it and guide it, you should tell me. It is a big undertaking . If not,
ok.. Brad and your crew can do it. I will have no real further involvement apart from confirming the
outcome of my proposed structure, I will not risk the admonition of- they thought you said, they thought
you meant, they understood it to be. but they said you said, ( i e ,I asked at our meeting that accounting
be done properly for bens house , what came back was ada thought that I meant that we needed to go
back to the 97 trust and give him a full third party accounting of where his money had gone??!! I kid you
not). I dont think brad should talk to jane heller without a fully fleshed out plan in place and even then it
should be you.
Date: Wed, Nov 11, 2015 at 10:59 AM
Subject:
To: Richard Joslin < >, Joe Avantario < >, Brad Wechsler
lets calculate the exact payoff amount for the leon note as of nov 30 ,DEC1 , dec 31. 1) does art
space get folded in to phaidon. . middle cos disolved.? 2 collapse topco etc
open bank accounts for apoo
interest will be approx 50k per day . look at deduction.
note payoff docs- notaries . new docs. releases ? , accountings? disclosures? ( gaming ? ) art
partnership . renew. will? repaper lease guarantees? macfarlanes. ? do we pay down 10m. of plane. ?
proposal for airplane, 91 , 135. exec , jet. .? remove debra. from plane?
Date: Wed, Nov 11, 2015 at 11:00 AM
Subject:
To: Melanie Spinella <
we should discuss e trust and j black trust. , brad buying phaidon. artspace folding ? plane/ boat.
foundation.
Date: Wed, Nov 11, 2015 at 9:09 PM
Subject:
To: Melanie Spinella <›
HOUSE OVERSIGHT 023211
we need to coordinate, brad bank, cannot be clumsy
Date: Fri, Nov 20, 2015 at 10:50 AM
Subject: agenda
To: Melanie Spinella <!
1. brad or richard. makes litte difference. 2. gagosian . no written contract??!! fishy to me - who
transfers 100 million dollars overseas without a contract ,- dont want you pulled into a scandal. careful
especially as he is on the tax dept radar, . 3. I would like you to delineate what you would like me to
do - the more specificity the better.- I think it important to avoid any misunderstandings as to each of
our obligations and responsbilities. I will always give you my best advice. I have made my views re ada
and the office clear . no hedging. . THEY should go. no hesitation . no zeus, your choice obviously.
good news - I will not bring it up again, moving forward- These transactions will require a great deal of
manpower over the next holiday month, every document needs minute review. . I would like to fix our
fee agreement, in detail no later than this weekend . ie amounts, dates paid . entities paid. any concept
you may have of' after care"? all on the table. .other questions such as how much to leave your
children ,in what form, has no right answer. but you and I can dialougue as long as you like about issues of
judgement. it is out of o friendship, not biz. ( bill hellman as a trustee? ) . we can talk about that during
walks etc. I would like for you and Ito go back to having fun.
Date: Mon, Nov 23, 2015 at 11:53 AM
Subject:
To: Melanie Spinella <11.11.11..1.11
25 minutes needed. 1 new and vastly improved plan, needs your thoughtful input, decisions on
legacy paintings bronzes. books etc. 2. we need to reach fee agreement. and authorities.( alan and I
spent time over the weekend, ) , hundred documents to be drafted. 3. gagosiaon 4 revolver . 5 inspire -
FBI. 6. Phaidon, solution. 7 plane. no need to reinvent the wheel. . ( rowen ).
Date: Tue, Nov 24, 2015 at 2:41 PM
Subject: Fwd: Loan
To: Melanie Spinella <
Please talk to him
Date: Tuesday, 24 November 2015
Subject: Loan
To: Jeffrey Epstein <jeevacation@gmail.com>
Cc: Melanie Spinella < _ I> "Alan S Halperin" <
Clapp Joe Avantario <111.1>
Jeffrey-given the high daily interest cost (50k+/-) on $$ borrowed which you pointed out yesterday, here's
what I'm thinking, but I want to be 100% on the same page as you:
1. Close next monday on the credit line, but don't borrow any $$. (We can, of course push closing back but
my preference wld be to close.)
2. Right now, at barry's request, Irene Steiner, on behalf of the trustees is reviewing apo1 and apo-o1.
While probably not impt on a "substantive" basis it was (a) impt to barry and (b) is likely good for leon.
3. We are hoping to have signature pages to the trustees (and returned to us) by early to mid next week.
(Ada will oversee.)
4. We will then get the new trust to bofa who, moving quickly (according to them), will have an acct open
the following week, 12/7-9.
5. We need to manage execution of paperwork associated with decanting which I assume occurs once apo-
ol and bank acct are operative. (Ada I'm sure you'll be on top of this).
>, Ada
HOUSE OVERSIGHT 023212
6. I assume we will move $$ to pay down loan the day or day after (?) apo-01 bank acct open. As you
know we cld do this as early as next monday/tuesday but then cash will be sitting in apo-1 while we're
waiting for apo-01 bank acct.
7. If there are sales of assets (or llc's) from leon to apol or apo-01 that needs to be buttoned down and
organized asap.
8. Same if you want another NEW trust in the mix as that will involve paperwork and opening an acct with
bank.
Let's discuss to make sure we're on the same page on process. B
Sent from my Verizon Wireless BlackBerry
Date: Mon, Nov 30, 2015 at 5:21 PM
Subject: agenda
To: Melanie Spinella <____________________________
1 fees, amount and to what entities when and responsiblitis. 2. gagosian idea to save a minimum of 10
mill and maybe more. 3. i can walk you through carlyns screw up, 50 % would have made little
difference and maybe made it worse. 4. we should have an all hands meeting with your family to talk
about art distribution on death. . 5. phaidon, decantings ( already firmly in progress ) loans. ( alan )
pent. ( with follow up ) all part of same elegant transaction, 6 asymetric risk worth at least 50- 60 no
matter how you calculate. I can explain. 7 lets get the money issue out of the way once and for all. I
have my team set to start.
Date: Tue, Dec 1, 2015 at 12:26 PM
Subject:
To: Brad Wechsler <
>
I would like to consider the gaming commmison disclosure dates. . 2 we should put to bed once and for
all adas concerns re the bronzes. . alan should opine on valuation ranges? rather than estimates. . 3.
Leons input re gagosian purchase. ( trade in, 1031 if 17 likely transfer- . scream, phaidon. plane and
boat. 4. I would like to review all assignment docs. decanting schedules. ( exhibits ). balance sheets for
apol-2. . loan does re transfer of narrows inside. 5. Leon should be clear regard future steps. pent etc.
swaps , paydowns 6 mock-ups of all before trigger pull.
Date: Wed, Oct 28, 2015 at 12:56 AM
Subject: Fwd: Detailed constructive list.
To: Lesley Groff <_______________________
please print two copes . re formattted so leon can go line by line ie heading s question, gift
answer. blank who responsible. time frame. fee paid when?
Date: Tue, Oct 27, 2015 at 6:35 AM
Subject: Detailed constructive list
To: Melanie Spinella <_______________________________
Cc: Brad Wechsler <
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale., 11 brh, doe review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
HOUSE OVERSIGHT 023213
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films. etc.
ate: Fri, Dec 4, 2015 at 2:07 PM
Subject: Fwd: moving forward
To: Melanie Spinella <__________________________>
I had forgotten that Alan was actually at the table when i explained my note deal to you. it was at the
end of the meeting described below. . as you will recall, not once , not even a peep did alan suggest
contemporaneously his hand in the crafting, in fact brad said it was an idea. that HE brad, HAD HAD,
from the begiining . my emails between alan and I that you can read, further confirm authorship. Im sure
you recall the obnoxious tooting when alan said he agreed with my plan. .
Date: Mon, Nov 2, 2015 at 10:03 PM
Subject: moving forward
To: Melanie Spinella <__________________
I have mixed emotions about what transpired today. really, You saw first hand in nauseating detail
what i have been saying to you for quite a while now. Joslins answers were totally incomprehensible.
the charts he prepared unreadable. Brads defensive posture was at a minum very surprising . He and I
have recently gotten along quite well , I thought. Neither Joslin or Brad understood a 180 million dollar
number. no cash flow after weeks of requesting? odd. when you suggested that heathers behavior was
emblematic of a sloppy office , brad said lets not talk about emblems??! bill pay, admittedly no change
for the year. . plane not done. though it was the only thing i suggested doing first in july . . I sent you a
list of 10 consultantts. brad said three, . i didnt want to push it. I was shocked that brad was opining on
things he knows little or nothing about. tax issues. 1031. neg basis , note payoffs ( the same idea he
said he had had from the beggining??!!) . answers re LBF holdings that can be corrected ( they cant) .
valuations that have never been read. . When we met in your lobby he seems surprised that i was there. I
dont know if he felt somewhat sandbagged. . .
the savings on the note payoff is aprrox 33 % of 1.8 billion, real money if you do phaidon which i see no
reason not to. if later josh and ben want to buy it back with you or without you they can. i will walk you
through the structure one on one. . the losses will offeset the calder gain as well as apollo gain.
Im aware that seeing what you saw frustrated you. I felt badly for you.
I>
You wanted a contingent deal. real value. etc. I will not of course hold you to your deal. . its silly. its
not how i work or a reflection of our friendship, my proposal is as follows. I want away from your
buisiness , but at the same time leaving you in good shape. I think you should pay the 25m that you did
not for this year. for next year its the same 40 m as always, paid 20 in jan and 20 in july, and then we are
done. I will give you advice and counsel but new people will be running your operating machine. I will
oversee all the work that needs to be done you and I will hire new people, and it will be self running ( it
was may in my house when you told brad it had been 5 months and you were getting fed up ) I will set up
a parallel. office, somenoe like wendy dolman or her quality is paramount. two accountants two
bookeepers and two office admins. . alan and zoe will handle trusts and grats. heatehr diana george will
be incolved in art partnership. if you want brad, analysts etc. and kids to do investments I have little to
add in that regard ,except to be able to account for things properly. I suggest that the kids must have skin
in any deal.
Alternatively , we can continue to focus on fun and let someone else do the things that you want done.
HOUSE OVERSIGHT 023214
<EIN=M>
and you and I can kibbitz about it all, structures outcomes risk, museums. charity, ( joslins answer by
the way was I had asked how much charity was leon planining to give this year , ( the 2 m ) he didnt
include your foundation or the payment to me, or from debra and you??!!
Date: Mon, Dec 7, 2015 at 5:39 PM
Subject: Fee
To: Melanie Spinella <!______________________
Amount ? Paid in kind ? Financed ? Plane ?Paid to ? Non charity, charity . Fixed dates
Date: Mon, Dec 7, 2015 at 8:05 PM
Subject:
To: Melanie Spinella <________________
please re iterate that no further actions taken without careful document review. please
Subject:
To: Melanie Spinella
Leon,
As you are well aware, There is little I won't do for you, or at least try to do as a friend, and a great
deal that I have already done ( both known and some things that willneed to remain unknown.) Our
arrangement was for me to architect sophisticated structures that would be beneficial to you. that is what
I have done and will continue do in order to fulfill my obligations under our agreement. The
discovered fact that you in reality need an entire family office built from scratch has been trying I have
aleady agreed de- facto to try to help. I would suggest that Phaidons payroll and attention pales in
importance to your personal structure,which has taken a back seat, Some of my suggestions regarding
the Eysium office are as follows you will need a budget of 3- 5 million per year. CEO 1 million, new
tax person to work with rich, 250. new bookkeeper ,200 new paralegal to work with ADA ALan etc,
coordinating with Apollo, Akin, paul weiss , new acct openings, sec filings, sales tax review, etc.
$150 . art point person. loan, inventory, purchasing support, $?? software servers, video conferencing,
tax oversight.
I believe You should rapidly address trustees , gift trust, succesion, wills of debra and children„
monetization events, cash flow. etc I can of course share my experiences with you on each issue.
WIth regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with many
pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago that the
quality of the people involved need to be upgraded. ( lucky for me these last issues arose way before the
begining of my involvement ) I am also aware however of my overarching friendship obligations of ok, -
given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping, nitpicking
with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take charge
Everyone would report to him. eileen included. He would however work for me. this is not, by a long
shot my first choice as I prefer only being responsible and standing behind my own personal work ( ie
the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in trying to
think through the problem creatively . My organizations handling of the more complex isssues I believe
you might find very costly, very! ( however many structures available some risk sharing, maybe risk caps
,etc ) but would require my teams doing the work , not yours. Ada should be only a trust, grat
administrator, not sure what role you prefer for Eileen as you hired her initially to oversee investments.
whether Rich your controller stays or not, is not urgent. having Tom report to a new person,- is.
HOUSE OVERSIGHT 023215
coordination with Suydam Kathy gregory, I would suggest limiting to one person. The increasing public
profile needs to be taken into consideration.
talk later..
Date: Sun, Dec 28, 2014 at 5:18 AM
Subject: jobs ahead
To: Brad Wechsler
, Melanie Spinella < _
>, Ada Clapp
1. review accounting system. Book keeping softaware. staff, ( senior accountant ) methods on line
banking, brokerage. cash mgmt. airplane reimbursement. boat sale. art purchases sales use and sales tax.
tax filings FBAR FATCA, gaming commsion, pfics, insurance . uk co law.
2. review does for TRA BRH grats, trusts, heritage will, insurance, art lending. medical, springing
powers. two fire drill books. one needed for injury, other for death
3 review bills. boats , planes, legal, ( PW, McFarlands all outside. legal and accounting. Toms bills
over 400k. house projects. south ny ben
4 cashflow projections tax projections , interaction with Apollo accounting tax, Phaidon ,art space ,and
Regan. legal accounting. audit
5. children meetings, review to date and allocations
6 review all role in payables. files scanned, no paper
7 review invesmtents for tax basis and unrecognized gain
8 schedule of all hedge funds . redeemables commitments etc.
9 charities pledges strucutre, staff,
Date: Fri, Feb 20, 2015 at 5:52 AM
Subject:
To: Melanie Spinella <____________________________
1) pg 1 A" unequal shares" . pg 23 "removal of trustees " absolute. dont be confused with abiltiy to set
up seperate trusts„ 2) I am reachable this afternoon in europe. on cell. 3. on another note . -our
financial agreement ended months ago . seperate from the art partnership (which i was told yesterday to
my amazement is still not funded) . i am obligated to complete ? the time i have dedicated since oct/
dec has been spent mainly as your friend. tom, brad though i am fully cognizant of my responsiblities. I
will try to help find people. I am not good at human resources. howevr If I don;t think they are good
enough for you. I will continue to say so , and you obviously decide. but I will reiterrate even in the face
of your "nobody is good enough argument." keeping foremost in my mind that you and I have only beeen
shown a very tiny handful of people. 4. I find the friction over fees , counterproductive, in an attempt to
avoid it I had suggested a multi year deal early on. you rejected it. I then suggested, and urged you to
have an option at a fixed fee , you also rejected that .you wanted the fee payment only at the end I argued
but ,conceded. I suggested a structure that tom didn't like, you rejected it . 5 I suggest you make a fair
proposal.- that i can either accept or reject. some payment up front this time is a requirement. I am willing
to modify any outstanding obligations. - there are creative ways to assure you of your desired
characterization of those payments. 6 you should open accts at Deutsh. and goldman. I am told that
eilleen has set up over one hundred bank acccts for you???!!. few relevant 7 you should immediatly
demand a list of all her acct authorites, exec poistions . director etc. bank authorizsations. etc. talk
later or over the weekend if you like
Date: Wed, Dec 9, 2015 at 10:16 AM
Subject: Fwd:
To: Jeffrey Epstein leevacation@gmail.com>
kkkjkjjjkjj you said
HOUSE OVERSIGHT 023216
Date: Tue, Feb 24, 2015 at 8:20 AM
Subject:
To: Melanie Spinella
Leon,
Yesterday , I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude of llc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do , - my responsibilities. etc and those things that are not. below you will find details of things that I
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all . It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively . My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
HOUSE OVERSIGHT 023217
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or" its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized atty in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
however - that is all in the past.
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )