ALBAWABA - The U.S. Justice Department has just made public records that show how Jeffrey Epstein kept sending tens of millions of dollars, and in some cases hundreds of millions of dollars, into hedge funds years after his 2008 conviction. He did this by using a network of personal connections in the financial world.
Bloomberg says that documents show that an email exchange in 2016 between a hedge fund manager in Palm Beach and Epstein led to a big investment in Honeycomb Asset Management. Eva Andersson-Dubin, a doctor and long-time friend of Epstein's who later married hedge fund executive Glenn Dubin, is said to have made the introduction.
First Person to Support Honeycomb
The records show that Epstein was an early and important investor in Honeycomb, and he is called a "day-one" participant and co-investment partner. He kept putting money into the fund until just before his arrest and death in 2019, even though he was worried about how it would affect his reputation and major banks had cut ties with him.
The documents quote an email from 2017 that called Epstein a "great partner" when the fund was managing hundreds of millions of dollars. Honeycomb's assets rose to about $1.5 billion in 2020, but they fell in the years that followed.
Disputed Numbers in Highbridge Investment
The files also talk about Epstein's connections to Highbridge Capital Management again. Epstein said in a deposition in 2011 that he first put in between $50 million and $100 million, and then he raised his stake to more than $300 million. However, Glenn Dubin's representatives have disagreed with those numbers, saying that the initial investment was much lower and then completely withdrawn.
Epstein also said he made $20 million for helping JPMorgan Chase buy Highbridge in 2004, but Dubin's representatives disagree with this description.
Banking Scrutiny and Financial Disputes
The papers talk about more investments, like in DB Zwirn, where there were problems after accounting mistakes were found. At one point, Epstein wanted to get back more than $140 million, which caused long legal battles.
JPMorgan closed Epstein's accounts in 2013 because of concerns about regulations and his reputation. Still, hedge funds like Boothbay Fund Management, King Street Capital Management, and funds connected to Valar Ventures, which Peter Thiel co-founded, kept managing money that was connected to him.
Network Continued Access to Money
The records show that Epstein's long-term social and professional ties were very important for keeping his access to financial markets. Several fund managers have said that their relationships with him were only business, but the disclosures show that his money stayed in major investment vehicles until 2019.
The new information has brought back questions about how Epstein was able to keep up high-level business relationships even after being convicted of a crime and getting a lot of bad press.
