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How did Jeffrey Epstein make his money?

Jeffrey Epstein went from school drop-out to a high-flying financier before facing charges of running a sex trafficking network

Alex Ross
Wednesday 10 January 2024 15:34 GMT
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Which big names are on the Jeffrey Epstein list?

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For many, Jeffrey Epstein’s name is now solely associated with the murky world of sex trafficking, with the well-connected multi-millionaire accused of targeting young women and girls from across the world.

It is a reputation he took to his grave when he killed himself in his prison cell while facing charges of running a “vast network” of underage girls, leaving his associate and ex-partner Ghislaine Maxwell to receive a 20-year prison sentence.

But before the numerous accusations came to light, Epstein was publicly known for his rise in the finance world; rising from a school drop-out to one of the richest men in America, with former US presidents and Hollywood stars among his acquaintances.

Epstein even boasted of having two private islands in the Caribbean - Great St James and Little St James - as well as properties in New York and Palm Beach in Florida.

Little St. James Island, one of two Caribbean islands owned by Jeffrey Epstein
Little St. James Island, one of two Caribbean islands owned by Jeffrey Epstein (REUTERS)

How did Jeffrey Epstein make his money?

Epstein had a modest upbringing, born to a middle-class family in Coney Island, New York City, in 1953. He attended New York University, studying mathematical physiology, but dropped out in 1974.

He went on to become a physics and maths teacher at a school in Manhattan, before being dismissed for “poor performance”. At this point he chose to go into banking, starting his career as a junior assistant to a floor trader.

In 1981, he set up his own company aimed at helping people recover stolen money from fraudulent lawyers and brokers.

Six years later, he was hired by Steven Hoffenberg as a consultant at Towers Financial Corporation, a collection agency that bought debts owed to hospitals, banks and phone companies.

With his wealth, Epstein was able to associate himself with the likes of former US president Bill Clinton
With his wealth, Epstein was able to associate himself with the likes of former US president Bill Clinton (Netflix)

Then, in 1988, he founded his financial management firm J. Epstein & Company, where only clients with at least $1 billion of assets were considered. It’s then that Epstein became involved with money laundering and other criminal activities.

In 1993, it was claimed he became involved in an fraudulent investing scam that brought in investors on false promises of return - but he avoided being charged for his involvement in the scheme.

It remains a mystery as to how he achieved success so quickly at his company, but over the next two decades he struck multi-million-pound deals with some of the world’s wealthiest people and biggest financial institutions.

One of his biggest clients was billionaire businessman Leslie Wexner, who reportedly handed Epstein powers over his finances with the financier acquiring a New York mansion and private plane from him or his companies over the years.

What was Jeffrey Epstein worth and his connections?

It is estimated that Epstein made a $634m (£505m) fortune - and with money, he was able to join social circles which included former US presidents Bill Clinton and Donald Trump as well as celebrities.

In documents released in January, an accuser of Epstein revealed how he casually named-dropped famous people he was allegedly in contact with, including the likes of Leonardo DiCaprio, Cate Blanchet and Michael Jackson.

He also offered to help Stephen Hawking by offering a reward to disprove claims he took part in orgy.

Jeffrey Epstein offered a reward to disprove claims Stephen Hawking took part in orgy
Jeffrey Epstein offered a reward to disprove claims Stephen Hawking took part in orgy (Supplied)

In 2002, he flew Mr Clinton in a customised private jet to Africa. He also dated women like Miss Sweden winner Eva Andersson Dubin and Maxwell, daughter of publisher Robert Maxwell.

But his life started to fall apart when, in 2005, the parents of a 14-year-old girl said Epstein had molested their daughter. Epstein struck a deal with prosecutors in 2008 where he served 13 months in prison.

Then, as the years went by, women went public over his treatment before details of a sex trafficking network began to unravel. In 2019 he was arrested on sex trafficking charges before being found dead in his cell a month later.

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