Civil Litigation Is Complicated by Jeffrey Epstein's Death, Mysterious Estate
Epstein's death brought a sudden and unexpected close to the criminal case against him, and came as a blow to his accusers, who had hoped to confront their alleged abuser in court.
August 14, 2019 at 01:42 PM
5 minute read
The original version of this story was published on New York Law Journal
Jeffrey Epstein’s death last week in a Manhattan jail cell has complicated the path for victims of the wealthy financier seeking to recover from his estate, unleashing a slew of questions about where his assets are and who stands to inherit his millions.
In addition to criminal charges of sex trafficking and conspiracy, Epstein was also facing the prospect of numerous civil suits from his accusers, when he was found dead early Saturday at the Metropolitan Correctional Center, apparently by suicide.
Epstein’s death brought a sudden and unexpected close to the criminal case against him, and came as a blow to his accusers, who had hoped to confront their alleged abuser in court. Attorneys for the victims, however, have nonetheless vowed to move ahead with civil suits against Epstein’s estate, the exact details of which appear to be shrouded in mystery.
It was not immediately clear if Epstein, who had no spouse or known children, left a will appointing anyone to oversee his estate. What’s also unclear is the total value of his assets and whether they were held in offshore accounts or trusts.
“My guess is he’s not going to have had normal estate-planning devices and has probably been working to hide his assets,” said Steven Mintz, founding partner of Mintz & Gold in New York.
“It strikes me as a bad day for the plaintiffs lawyers and a bad day for plaintiffs,” he said.
Court filings from Epstein’s criminal case show that Epstein claimed $559 million in total assets, including a lavish townhouse on Manhattan’s Upper East Side, homes in Florida and New Mexico, and a private island in the Caribbean. He was also known, according to court documents, to own a private jet, as well as a fleet of automobiles, though those were not listed on Epstein’s financial disclosure.
Prosecutors said Epstein was worth more than $500 million and earned at least $10 million a year. However, it remains largely unknown exactly how he made all of his money and where he kept it. Those questions, attorneys said, would be key to probate proceedings to determine what to do with Epstein’s assets. A likely venue for that litigation would be the U.S. Virgin Islands, which prosecutors identified as Epstein’s primary residence before his arrest in early July.
While the probate proceedings play out, the government is expected to take the lead in marshaling Epstein’s assets, which could later be available to victims with claims against Epstein’s estate.
Had Epstein lived, the federal government could have started a restitution action to seize his assets for victims. Jennifer Freeman of the Marsh Law Firm said now that would have to be done through a civil forfeiture lawsuit, which presented its own complications, given that “things have shifted” since Epstein’s death.
“The question is can you bring an action still in New York state court,” she said. “The question is against whom.”
Prosecutors have said an investigation into Epstein’s associates and potential co-conspirators remains active, leaving open the possibility of further charges in the case. Should new defendants be named, they could be the target of restitution proceedings by the federal government, which could potentially expand the pool of recover for victims of Epstein and the illicit sex ring he was alleged to have run.
However, there still remains the task of ascertaining the scope of what prosecutors had called Epstein’s “vast wealth.”
Jayne Conroy, a named shareholder of Simmons Hanly Conroy, said there was a “whole system” built around Epstein, including employees who were familiar with his business operations and could be deposed.
“We have significant tools on the civil side,” she said. “We don’t have to wait for indictments.”
“Litigation, like no other process, sheds sunlight on ‘mysterious estates’ and gives victims vital necessary access tools. While his death may impact the civil litigation, he had many employees and colleagues and the courts in New York will be a gateway to their testimony and documents,” Conroy said.
Still, the ordeal could be set to play out over the course of years, as prosecutors and civil attorneys work to untangle the knot of Epstein’s finances and bring his co-conspirators to justice. Further complicating matters, a wave of lawsuits are expected to start to hit the dockets in New York state court this week, after the lawmakers opened a one-year revival window for child sex abuse victims to bring civil litigation, regardless of when it happened.
As of Wednesday morning, at least one such case had been against Epstein’s estate, though many more were expected in the coming days and weeks.
“There are a lot of moving parts,” Freeman said.
“This could be a Dickensian novel.”
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