Leon Black, CEO of Apollo International, paid Jeffrey Epstein $ 158 million and is about to retire
Leon Black, Chairman, CEO and Director of Apollo Global Management, LLC, speaks at the Milken Institute’s 21st Global Conference on May 1, 2018 in Beverly Hills, California.
Lucy Nicholson | Reuters
Leon Black, CEO of Apollo Global Management, paid Jeffrey Epstein $ 158 million for financial advice from 2012 to 2017 despite knowing Epstein pleaded guilty to paying an underage girl for sexual services in 2008. This is the result of an investigation by a law firm commissioned by Apollo.
These newly announced payments are a whopping three times the $ 50 million minimum Black reportedly made to controversial money manager Epstein in October during that period.
Apollo also said the Dechert law firm investigation found no wrongdoing by Black or the investment company.
However, Black said he would retire as CEO by the end of July.
Black said he will remain chairman of the company he co-founded with Marc Rowan who will become CEO.
Black said he decided that “one way to address the grave flaw in a professional relationship with Epstein” is to allocate $ 200 million to gender equality initiatives and support survivors of domestic violence, sexual assault and human trafficking.
That large amount of money is only a small fraction of the value of Epstein’s advice in Black’s head.
“As a result of Epstein’s work, Black believed, and witnesses generally agreed, that Epstein provided advice that gave Black a value of more than $ 1 billion and a value of up to $ 2 billion or more,” says Dechert’s report.
Epstein committed suicide in federal prison in August 2019 after being arrested for child trafficking the previous month.
Prosecutors said he sexually abused dozens of underage girls at his luxury residences in New York City and Palm Beach, Florida from 2002 to 2005.
Apollo previously said that Black had severed ties with Epstein, a former friend of Presidents Donald Trump and Bill Clinton, through 2018 over a “fee dispute”.
Dechert’s report states that Black made two loans to Epstein totaling $ 30.5 million between 2013 and 2017 in connection with an art transaction from Epstein.
When Schwarz called for the loan to be repaid in early 2018, Epstein only repaid $ 10 million but stopped paying before his death, “despite Schwarz’s repeated requests for full repayment,” the report said.
Apollo said in a press release Monday that Dechert’s investigation found that Apollo had never kept Epstein on services and that Epstein had never invested funds managed by the company.
The company said that Dechert also confirmed that while Epstein advised Black “regularly” on trust and estate planning, taxation, and other operations of his family office, any fees paid by Black or his family office to Epstein were for “good faith” Services are intended.
And “the quantities should be proportional to the value” of Epstein’s work, according to the probe, according to Apollo.
“Epstein’s advice has been vetted by respected professional advisors. Dechert never found evidence that Mr. Black was in any way involved in Mr. Epstein’s criminal activities,” Apollo said in a press release.
Dechert said in his report that many of the witnesses the company interviewed “believed Epstein added significant value to Black and the family office in estate and tax planning.”
The report reads: “It has been widely agreed that Epstein will be an active participant providing unique solutions to various problems raised in the family office.”
“The results of the report are consistent with what Mr. Black and Apollo have said regarding the previous relationship,” the company added.
The report itself states: “Black and other Apollo and Family Office employees were aware that Epstein was convicted of prostitution in 2008 on charges of prostitution and the procurement of someone under the age of 18.”
“There is no evidence that, at any time prior to the publication of such activity, Epstein became aware of any other criminal activity on the part of Epstein or the scope and details of such activity,” the report said.
“When Black first retained Epstein, he believed that Epstein had served his time on the originally indicted crimes and that it was not inappropriate to give Epstein a second chance, as have many other prominent figures in business, science, politics and the world Science had done. “Said the report.
“Black viewed Epstein as a confirmed bachelor with versatile tastes who often employed attractive women,” the report said. “However, Black did not believe that any of the women in Epstein’s employment were a minor. Black cannot remember ever seeing Epstein with an underage woman.”
“Schwarz compensated Epstein for his work in amounts that should be proportional to the value provided by Epstein,” said Dechert in his report.
“These payments totaled US $ 158 million for work performed between 2012 and 2017. In 2013, payments were recorded in signed and unsigned agreements. After that, payments were made on an ad hoc basis on the Based on Black’s perceived value of Epstein’s work. ” the report said.
“Dechert has seen no evidence that Black Epstein has ever used Epstein’s legitimate advice on trust and estate planning, taxation, works of art, Black’s plane, Black’s yacht and other similar matters, philanthropic and compensation matters, other than Epstein’s legitimate advice In addition, this advice has been rigorously reviewed by Black’s other advisors, including Family Office staff, Paul Weiss and other outside legal, accounting and tax professionals. “
Dechert also noted, “As of 2016, Black and Epstein’s professional and personal relationship deteriorated due to a long-standing payment dispute. Black refused to pay Epstein the tens of millions of dollars that Epstein believed he made.”
“Black’s last payment to Epstein was in April 2017; in 2018, Epstein repaid part of two loans outstanding to Black but never paid the balance,” the report said.
“Black and Epstein ceased communications in or around the fall of 2018 before the public revelations about Epstein’s behavior and Epstein’s arrest and suicide became known again.”
Jeffrey Epstein attends the launch of RADAR MAGAZINE on May 18, 2005 at Hotel QT.
Patrick McMullan | Getty Images
In a statement, Black said: “After a three-month investigation into more than 60,000 documents and questioning more than 20 people, the Dechert report on behalf of the Apollo Board Conflicts Committee confirms the key facts I previously mentioned about it Relationship disclosed with Jeffrey Epstein. “
Among those facts, Black said, “I was completely unaware of the heinous misconduct by Mr. Epstein that came to light in late 2018, that I had not committed any wrongdoing or improper conduct, and that all of the fees paid to Mr. Epstein were legitimate were.” professional advice. “
Black also said: “It is important that I reiterate my regret that I have dealt with Mr Epstein and I thank the committee and its lawyer for their tireless work over the past few months.”
In a separate statement announcing his planned resignation as CEO by the summer, Black said: “I am extremely proud of the company I have helped build over the past 30 years and the value we hold Bringing customers, investors and communities. “
“Since our initial public offering in early 2011, we’ve focused on transforming Apollo and developing the next generation of leaders to position the company for continued growth over the decades to come. Given the extraordinary strength and depth of the Apollo management team and the In line with best-in I notified the Apollo Board that on or before my 70th birthday in July I will retire as CEO and remain as Chairman, “said Black.
In his role as Chairman, he also said, “I look forward to focusing in every possible way on strategic planning, growth initiatives, investment opportunities and supporting the Apollo that has been my life’s work.”