The executors of Jeffrey Epstein’s property have been accused on Wednesday of being the “indispensable captains” of the financier’s intercourse trafficking scheme, escalating a authorized battle that would delay compensation for Epstein’s victims.
Denise George, the U.S. Virgin Islands lawyer normal, made the accusation in an amended lawsuit naming the executors Darren Indyke and Richard Kahn as defendants, a number of hours after the executors’ legal professionals filed papers opposing her bid to freeze the property’s property.
Each executors “categorically reject the allegations of misconduct,” their legal professionals stated in an emailed assertion.
“Neither Mr. Indyke nor Mr. Kahn had any involvement in any misconduct by Mr. Epstein of any sort, at any time,” the legal professionals stated. “It’s enormously regrettable that the Legal professional Common selected to stage false allegations and to unfairly malign the co-executors’ status with none proof or factual foundation.”
George sought the freeze after the Feb. four announcement that the administrator of the Epstein Victims’ Compensation Program would quickly halt payouts as a result of a lot of the property’s estimated $240.eight million of property, down from a peak of round $634 million, have been illiquid.
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George first sued the property for civil penalties and the forfeiture of property together with two non-public islands within the Virgin Islands in January 2020, 5 months after Epstein killed himself in a Manhattan jail whereas awaiting trial on intercourse trafficking expenses.
She later dropped her opposition to the payout program for Epstein’s accusers, which in accordance with the executors’ legal professionals has paid out $57.eight million of the greater than $87 million it has obtained from the property.
George’s further claims have been detailed in a 76-page criticism she stated she filed with the Virgin Islands Superior Court docket to assist “make sure the victims, our authorities, and our residents get hold of the solutions they deserve.”
They embody accusations that the executors, by way of performing authorized and accounting work for Epstein earlier than his loss of life, “knowingly facilitated” at the very least three “compelled” marriages for victims to safe their immigration standing “in order that they might proceed to be obtainable to Epstein for his abuse.”
In opposing an asset freeze, the executors’ legal professionals stated George had not proven the property had been “mismanaged.”
The legal professionals stated Epstein’s waterfront house in Palm Seaside, Florida has been in contract since October, whereas his townhouse on Manhattan’s Higher East Aspect is “progressing” towards a sale.
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Additionally they stated Epstein’s Virgin Islands properties can’t be bought as a result of George has put liens on them, and the worth of houses and plane within the property might “plummet” if gross sales have been blocked, decreasing potential compensation for victims.
“That helps nobody,” the legal professionals stated.
The administrator of the victims compensation fund was not instantly obtainable for remark outdoors enterprise hours.
(Reporting by Jonathan Stempel in New York; Modifying by Lincoln Feast.)