Epstein Secrets

ments. "%ants had a cost- pk of bad investments, and Jeffrey cleaned those up right away. says a boner assocs.• owed him for furnishings removed by Glass. ate of Epstein's. In 1998 the US. Attorney's Office sued Before he signed on with Wooer. Epstein Epstein for illegally subletting the forma had

the world, they were al- ways together," says a source. Hoffenberg has claimed that Epstein confided in him. saying. for example. that he had left Bear Steams in 1981 after he was discovered ex- ecuting "illegal operations." Several of Epstein's bear Stearns contem- poraries recall that Epstein left the co

ool. While there he began tutoring the son of Bear Steams chairman Ace Greenberg and was friendly with a daugh- ter of Greenberg's. Soon he went to Bear Stearns. where. under the mentorship of both Greenberg and current Bear Steams C.E.O. James Cayne, he did well enough to become a limited partner—a rung b

a good and substantial and meaningful lik." he says. In the meantime. hose-en there's a wed- ding to plan. Z Jeffrey Epstein C ONTINUED FROM PACE SOS Bear Stearns ndother firms. Epstein resigned from Bear Seams on March 12. The S.E.C. was tipped off that Epstein had intbrmation on insider tradiig at Bear St

ture with Mr. Cayne? (t.• Have you bad any business participations with Mr. Theram? A: No; nor do I anticipate any. Q: Mr. Epstein. did anyone at Bear Stearns ell you in words or substance that you should ice divulge anything about Si. foe Minerals to he staff of the Securities and Exchange Con- tenon? A: No

estment adviser Herbert Glass, who sold him the Palm Beach house in 1990, for SB,444- Epstein claimed this was owed him for furnishings removed by Glass. In 1998 the U.S. Attorneys Office sued Epstein for illegally subletting the (triter home of the deputy consul general ol Ir.un to attorney Ivan

ol. While there he began tutoring the son of Bear Stearns chairman Ace Greenberg and was friendly with a daugh- ter of Greenberg's. Soon he went to Bear Stearns. where. under the mentorship of both Greenberg and current Bear Stearns C.E.O. James Cayne. he did well enough to become a limited partner—a rung

lving a civil business case in Philadelphia. In 1981 the S.E.C.'s Jonathan Harris and Robert Blackburn took Epstein's testimony and that of other Bear Steams employees in part of what became a protracted case about insider trading around a tender of placed on March II. 1981. by the Seagram Company Ltd.

d a good and substantial and meaningful lik:' he says. In the meantime. howe.a. there's a wed- ding to plan. Jeffrey Epstein co‘rtst to room nor los Bear Stearns and other firms. Epstein resigned from Bear Steams on March 12. The S.E.C. was tipped otT that Epstein had information on insider trading at Bear

estment adviser Herbert Glass. who sold him the Palm Beach house in 1990. for S13:444—Epstein claimed this was owed him for furnishings removed by Glass. In 1998 the U.S. Attorney's Office sued Epstein for illegally subletting :he former home of the deputy consul general of Iran to attorney Ivan F

meantime, hove. er. there's a wed- ding to plan. r. Jet le\ Epstein :0•11 ,4 ED FRO" %GE 'of Bear Stearns and other firms. Epstein resigned from Bear Steams on March l_. The S.E.C. was tipped oil' that Epstein had information on insider trading at Bcar Stearns. and it was therefore obliged to question

arles Schumer. Powerful friends and enemies A Vanity Fair profile found cracks in the veneer of Epstein's life story. The 2003 article said he left Bear Stearns in the wake of a federal probe and a possible Securities and Exchange Commission violation. It also pointed out that Citibank once sued him for defa

ntact me at Number of pages including this page 4 Date-07-11-2007 72•15 South Comity Hoao. Pan Beach. Flora& 33480 EFTA01661675 UO7-07-11 09:9 Beår Stearns' Collateral Damage FAX 5616559653 » P 2/4 Page I of 3 h^get.:.en IOR NEWS :AU Bear Stearns' Collateral Damage Money manager Jeffrey Epstein B

est- ment adviser Herbert Glass, who sold him the Palm Beach house in 1990, for $13,444-Epstein claimed this was owed him for furnishings removed by Glass. In 1998 the U.S. Attorney's Office sued Epstein for illegally subletting the. former home of the deputy consul general of Iran to attorney Ivan Fi

chool. While there he began tutoring the son of Bear Stearns chairman Ace Greenberg and was friendly with aJAlightsr of Greenberg's. Soon he went to Bear Stearns, where, under the mentorship of both Greenberg Ind current Bear Stearns C.E.O. James Cayne, he did well enough to become a limited partner-a rung be

d in him. saying. for example, that he had left Bear Stearns in 1981 after he was discovered ex- ecuting "illegal operations.- Several of Epstein's Eizar Stearns contem- poraries recall that Epstein left the compa- ny very suddenly: Within the company there were rumors also that he was involved in a technica

nvolving a civil business ease in Philadelphia. In 1981 the SEC's Jonathan Harris and Robert Blackburn took Epstein's testimony and that of other Bear Steams employees in part of what became a protracted case about insider trading around a tender offer placed on March IL 1981. by the Seagram Company Li

stment adviser Herbert Glass, who sold him the Palm Beach house in 1990. for S 13,444—Epstein claimed this was owed him for furnishings removed by Glass. In 1998 the U.S. Attorney's Office sued Epstein for illegally subletting the former home of the deputy consul general of Iran to attorney Ivan F

ol. While there he began tutoring the son of Bear Stearns chairman Ace Greenberg and was friendly with a daugh- ter of Greenberg's. Soon he went to Bear Stearns, where, under the mentorship of both Greenberg and current Bear Stearns C.E.O. James Cayne, he did well enough to become a limited partner—a rung

lving a civil business case in Philadelphia. In 1981 the S.E.C.'s Jonathan Harris and Robert Blackburn took Epstein's testimony and that of other Bear Steams employees in part of what became a protracted case about insider trading around a tender offer placed on March II. 1981. by the Seagram Company L

th Mr. Cayne? A: Nd. Q: Have you had any business participations with- Mr. Theram? A: No; nor do I anticipate any. Q: Mr. Epstein, did anyone at Bear Stearns ell you in words or substance that you should lot divulge anything about St. Joe Minerals to he staff of the Securities and Exchange Corn- nission? A:

estment adviser Herbert Glass. who sold him the Palm Beach house in 1990. for 513444—Epstein claimed this was owed him lire furnishings removed by Glass. In 1998 the L.S. Attorney's Office sued Epstein thr illegally subletting the former home of the deputy consul general of Inn to attorney /van Fi

ol. While there he began tutoring the son of Bear Stearns chairman Ace Greenberg and was friendly with a daugh- ter of Greenberg's. Soon he went to Bear Stearns. where. under the mentorship of both Greenberg and current Bear Stearns C.E.O. James Clyne, he did well enough to become a limited partner—a rung

rns and other firms. Epstein resigned from Bear Stearns on March 12. The S.E.C. was tipped off that Epstein had information on insider trading at Bear Steams. and it was therefore obliged to question him. In his S.E.C. testi- mony, given on April I. 1981, Epstein claimed that he had found "offenave" the

- also known as the Gramm-Leach Bliley Act - removed remaining regulatory restraints on Wall Street's powerful banking institutions. Repealing the Glass-Steagall Act of 1933, a New Deal reform put in place in response to corruption that had resulted in more than 5,000 bank failures in the years follo

has been building for a long time. But the alarm bells didn't start ringing until June, 2007, when two hedge funds of the New York investment bank Bear Steams lurched toward collapse because of their extensive investments in mortgage- backed securities. They were forced to dump assets as the trouble spread