The U.S. Senate’s Finance Committee has launched an investigation into the financial connections between private equity billionaire Leon Black and the late disgraced financier Jeffrey Epstein. In a statement released on Tuesday, the committee disclosed that the probe has uncovered significant tax issues related to trusts and structures that Black employed, allegedly allowing him to evade over $1 billion in future gift and estate taxes. The investigation was initiated in June 2022.
During the examination, the Senate panel raised concerns about payments totaling $158 million made by Black to Epstein for financial advice between 2012 and 2017. The size of these payments was deemed “inexplicably large,” considering that Epstein was neither a licensed tax attorney nor a certified public accountant.
Furthermore, the panel accused Black of refusing to provide essential information or answer questions regarding how Epstein’s compensation for tax and estate planning services was determined or justified.
A spokesperson for Black responded, asserting that the billionaire had fully cooperated with the investigation, providing comprehensive information. They maintained that the transactions referenced in the committee’s letter were entirely lawful and well-vetted by reputable law firms and tax advisors, with all taxes paid in full to the government.
Previously, Black acknowledged paying Epstein for “legitimate financial advisory services.” Notably, last week, the New York Times reported that Black had paid $62.5 million to the U.S. Virgin Islands to avoid potential legal claims linked to an Epstein sex-trafficking investigation.
According to Forbes magazine, Black’s net worth is valued at $10.1 billion. He parted ways with Apollo Global Management, the private equity firm he co-founded, in 2021.
Epstein, a registered sex offender and former associate of ex-presidents Donald Trump and Bill Clinton, died by suicide in 2019 while awaiting trial on sex-trafficking charges. The ongoing investigation seeks to shed light on the extent of the financial ties between Black and Epstein and address the associated tax concerns.
