Document Text Content
From: jeffrey E. [jeeyacation@gmail.com]
Sent: 4/8/2018 4:20:18 PM
To: jeffrey epstein [jeeyacation@gmail.com]
Importance: High
Date: Mon, Oct 26, 2015 at 8:37 PM
Subject:
To: Brad Wechsler_____________________________Melanie SpineIla_______________________________
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 Spinel
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, 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______
please print two copes
gift answer. blank
re formattted so leon can go line by line ie . heading s question,
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, 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
HOUSE OVERSIGHT 023291
films . etc.
From: jeffrey E. <jeevacation@gmail.com>
Date: Tue, Feb 24, 2015 at 2:20 PM
Subject:
To: Melanie SpineIla______________________________
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 ofllc'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.
TODAY
HOUSE OVERSIGHT 023292
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 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.
HOUSE OVERSIGHT 023293
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
we need to coordinate, brad bank, cannot be clumsy
Date: Fri, Nov 20, 2015 at 10:50 AM
Subject: agenda
To: Melanie Spinella .1__________________________________________________
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
HOUSE OVERSIGHT 023294
having fun.
Date: Mon, Nov 23, 2015 at 11:53 AM
Subject:
To: Melanie Spinella
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 S inella "Alan S. Hal erin' Ada Clapp
Joe Avantario
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 apol and apo-ol. 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).
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 'lc'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.
HOUSE OVERSIGHT 023295
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 docs 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 <=111.1111>
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 Spinelh
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, 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.
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
HOUSE OVERSIGHT 023296
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.
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. 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 .1_____________________________
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,
HOUSE OVERSIGHT 023297
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. 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 docs 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
HOUSE OVERSIGHT 023298
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 <jeevacation@gmail.com>
kkkjkjjjkjjyou said
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 ofllc'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
HOUSE OVERSIGHT 023299
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.
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
HOUSE OVERSIGHT 023300
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 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 .