Virgin Islands AG wants to freeze Epstein’s “poorly managed” assets
The US Virgin Islands attorney general has asked a court to freeze Jeffrey Epstein’s dwindling and “poorly managed” estate after it became known that cash was running low and that it was unable to replenish victim compensation funds, new court records show.
Victim Compensation Program Administrator Jordana Feldman announced Thursday that she would no longer have to make offers of compensation to victims of sexual assault by dead sex perverts at least until March after the property failed to add an extra to the fund, citing liquidity issues during the pandemic Had made money available.
“The property found its way to pay the attorney, landscaping and helicopter fees, but not the brave women who signed up to join the compensation fund,” AG Denise George said in a statement. “It is undoubtedly another promise that Epstein and now his estate made and broken.”
George’s office filed the urgency motion Thursday, asking a judge to freeze the estate’s assets while the court, their office and victims “establish an appropriate plan for the procedure to protect the estate’s property and secure its obligations “in the Supreme Court of the Virgin Islands.
George’s office claimed the estate administrators “mismanaged” the money, according to court documents.
“In less than 18 months that the property was open, its value has fallen by hundreds of millions of dollars,” the court record said.
Real estate attorney Daniel Weiner said Thursday that Epstein’s assets – once valued at $ 634 million – are now worth $ 240 million after the property paid taxes, financed the Victims Compensation Fund, and defended against multiple lawsuits.
Weiner added that the property was struggling to sell illiquid assets – like Epstein’s real estate, planes and investments – amid the COVID-19 pandemic.
However, the AG’s court documents continue to claim that “the estate violated its obligation to fund the compensation program for Epstein victims.”
Since the program began in June, George’s office has “promptly” released liens on the property as part of his lawsuit so that the victims can be paid.
“If the co-executives had properly managed the estate’s assets and expenses, or even promptly reported liquidity issues, the estate’s assets and liabilities could have been managed in a way that would have avoided that failure at the expense of Epstein’s victims.” the court records indictment.
George’s office also asked that the executors not be allowed to pay any further expenses in the meantime.
“The only expense of the estate that should be allowed is to satisfy the amounts owed to the compensation program of the Epstein victims,” the court records read.
On Friday, Weiner called the AG’s motion “both factually and legally unsustainable,” stating that George’s office allegedly refused to release liens on two islands in St. Thomas so the property could sell them to the program’s coffers to fill up.
And Weiner argued that much of the aircraft and apartment maintenance costs already reviewed by George’s office and the judge are necessary to sell them. For example, “The property would not have been able to successfully sell its G550 aircraft without first performing the necessary maintenance to keep the aircraft airworthy,” Weiner said.
Weiner also noted that the property has already donated $ 87 million to the program, excluding cash to run the fund. He said that just seven months after the program began, $ 55 million had been paid out to victims, demonstrating its “remarkable efficiency.”
Weiner says the property plans to respond to the urgency motion in court.
Epstein committed suicide by hanging in a lower Manhattan prison cell in August 2019 while awaiting trial for sex trafficking.