EFTA02500499.pdf

From: jeffrey E. <jeevacation@gmail.com> Sent: Thursday, May 28, 2015 7:01 PM To: Jeffrey Epstein Subject: Fwd: in the beginning . t=ere was eileen and tom. ( eve and adam,-- however it appears, she declined to eat the apple fr=m the knowledge tree) . that was it. ada =as at the bank but reviewing docs. carlyn was in the kitchen making =ush ( abel and cain) books as they were mystersiously called was being kept soley b= eileen, with little or no input ,correction or advice from torn. herarely if=20 ever asked questions. expenses ie airplane was do=e in house apollo. (1031 exchange blown etc) at this time as I recall you got quite annoyed, and agressive and initiated the" t=lking out of the both sides of your mouth " tiddy, when i suggested th=t the level of their competence left much to be desired. ( ralph lerner'=s came later ) .response - eileen ran the desk, tom is a partner; ralph wrote the book etc re tax there was almost no overs=ght of income, estate, gift ,sales and use, transfer excise etc . 40=A0 IRS SEC GAMING NYS. real estate, valuations ( many )tax filings= disclosures, etc. re grats trusts defect trusts, Ilcs corps ,=20 trustees , partnerships. foreign corps. 100 bank account=. gift taxes, loans, notes. payables. expenses.. , insurance.( life , art= split dollar), cashflows, operating biz, investments, contingent liabilitiites.( funds , miami ), commitments dividends, BRH TRA, shareholder agreements, bank loan agreements. wills, construc=ion, contracts planning permits etc..employ rules. checking a=count reconciliations, crediti cards. jewelry , cost basis ,( a=t stock etc.) foundations regs , brokerage accts, old stock certificate=. stock options,( environmental solutions still not done !). estate tax calcualtion firedrill, ( note ,basis etc ) low basis , step ups , however with no accounting system, no reveiw of boat expenses =lane expenses etc. . many outside counsel with litle or no coordination.q=iv> Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse, Reich, withers bergman, Empire„ akin gump, bbd seidman, Wendy , Apollo in=20 house . lumber, knowledge universe, ennvironmental= solutions 12 mii in stock, . on and on the priority list that you asked me to prepare for brad and you in=dec , unfortunatlleyso far, little change ie no accounting sy=tem that ties, no, brokerage accounts though strongly suggested , =pm db, gs, april of 2014 . IT antiquated dagastino hired = no inut from me, julie, temps, paralegals miriam . etc. still need new accounting system - on line banking . staff hir=s. ( seprate from samantha two years out of school ). audit system, = ?? john murphy? joslin? dag? eva? . i strongly suggest worke=s at the highest level of competence. two senior accountants. not managers workers who will get into the weeds. partn expertise, replac= ava, get heather help. a new person legal , new IT,system and person, .=A0 way way overdue, new receptionist, bill opener, ability to oeversee in house, boat plane review household ( 12million ) review, filings- partnerhip accounting,- familitarity with grats, trusts etc . audit system put in place. that should be the easy part. then strategy to=20 deal with : As new facts on the ground develop , =haidon debra, children meeetings, ? stock sale sale of art„ a=t( large gain ), 1031 trade in , plane depreciation, boat sale. construction , brad will oversee brokerage and investment, ?? pe. real es, .=20 publishing, grats, tra, brh<=span> ( death). foundation , museum, tax proejctions cash flow proje=tions, cooridnation with tax from apollo. etc EFTA_R1_01627482 EFTA02500499 OVER A YEAR AGO Forwarded message - From: jeffrey E. <jee=acation@gmail.com <mailto:jeevacation@gmail.com» Date: Tue, Feb 17, 2015 at 8:14 AM =-13r> Leon<=span>, As you are well aware, There is little I won't do for you, or at least try to do as a fr=end, and a great deal that I have already done ( both known an= some things that will need to remain unknown.) Our arrangement was for me to architect sophisticated structures that would be beneficial to you. that =s what I have done and will continue do in order to fulfill myrobligations under our agreement. The discovered fact tha= you in reality need an entire family office built from scratch has been trying I =ave already agreed de- facto to try to help. I would suggest that Phai=ons payroll and attention pales in importance to your personal structure,=hich has taken a back seat, Some of my suggestions regarding the Eysium office a=e as follows you will need a budget of 3- 5 million per year. CEO 1 million,4>=A0 new tax person to work with rich, 250. new bookkeeper ,200 =ew paralegal to work with ADA Alan etc, coordinating with Apollo, Akin , paul weiss , new acct openings, sec filings , sales tax review, etc. 4>=A0 $150. art point person. loan , inventory, purchasing support, $?? softw=re servers. video conferencing, tax oversight. =C24> I believe You should rapidly address trustees , gift trust, success=on, wills of Debra and children„ monetization events, cash flow.=etc I can of course share my experiences with you on each issue. =C24> With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very strong inclination is not to be=20 involved at all. It is extremely time consuming, delicate, fraught w=th many pitfall many that will make you very upset and a major pain in the ass.Q.A0 I wrote you months ago that the quality of the people involved need to =e upgraded. ( lucky for me these last issues arose way before the begi=ning of my involvement ) I am also aware however of my overar=hing friendship obligations of ok, -given all the complexities =who else can do it? problem. Your family office needs a daddy. child=en with good intentions are running around , sniping , nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take charge Everyone would report to him. eilee= included. He would however work for me. this is not, by a long shot=C2* my first choice as I prefer only being responsible and standing behind =y own personal work ( ie the word DONE will no longer be transmi=ted to reflect status stated by others ) =With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in trying to think through the problem creatively=. My organizations handling of the more complex issues I believe you might find very costly, very ! ( however many structures available some risk sharing,=maybe risk caps ,etc ) but would require my teams doing the work , not your=. Ada should be only a trust, grat administrator. not sure what role you prefer for=Eileen as you hired her initially to oversee investments. whether Ric= your controller stays or not, is not urgent. having Tom report to a =ew person,- is. coordination with Suydam Kathy gregory, I wo=ld suggest limiting to one person. The increasing public profile needs to be tak=n into consideration. 2 EFTA_R1_01627483 EFTA02500500 talk later.. =eb 15 <https://mail.google.com/mail/u/0/images/cl=ardot.gif> Leon, I hate having to write this. however . I wanted you to understand the seriousness caused by the delay in action. of=your dysfunctional family office. and at the same time have a record of my telling you so. t>=A0 I spent the greater part of last week reviewing your office in detail . . The offic= has suffered greatly from lack of control clear direction. and the disastrous delay =n removing Eileen. Eileen has been a nightmare for you . she has cobbled together the office in a childishQ=A0 fashion either trying to hire c quality people, buying cheap equipment, looking to save small dollars, hiding all bad facts. even=20 after hiring people . giving them no clearly defined roles , and or n=nsensical direction.. she and ada each protecting what they see as their turf, errors upon errors upon =rrors. ( iei only last thurs forming a brand new Ilc for alex with no input from=20 finance. ) millions of dollars unaccounted for. 500k again found in a drawer=20 last week In early sept I notified you that I thought that joslin was=20 unable to deal with both ada and eileen . I sent delson in to referee.. at my expens= i again notifed you in early oct that she needed to go asapor as close to...A0 oct 15 as possible . and ada till march. I pointed out the risk of keepin= the dynamic duo was their effect on joslin and future mistakes.. . in nov I sent you a email telling=20 you i thought he could not take more of their interference. obfuscation and scheming. and sugg=sted, again in writing. getting rid of both immediately, this week, in the first face to face I had withloslin since dec he could not respond to simple questions, spoke financial gibberish, had misleading answers. bad answers wild elliptical statements , and=20 non sensical plans for the future. therefore . As you asked i immediately confronted Brad with my discovery , and to my amazement=C24> and frankly dismay Brad said that his take was exactly the same as mine but this is how he had found Joslin in early jan and thought it was just his normal behavior. Since brad has little financial expertise , it seems he assuumed =he gibberish was just his ,brads, lack of understanding , In mid nov you suggested that he was your choice to run the office .and he would replace eileen. from mid dec he audited until early jan, when he assumed the job th=t im told now is only 75% of his time. He might. , might? be c=pable of running your office but i have yet to see any indication that that is true. He is certainly a loyal friend. ON thurs I handed the same spread sheet that I had sent to brad, to fourtA0 financial execs. (only to mine with the actual numbers included ), =C240to a person each within minutes said this makes no sense. no sense whatsoe=er, bad numbers bad categories. bad inputs outputs numbers that dont add. if=20 it was an mri , of joslin i would say serious breakdown. Q.A0I had him over my house in an attempt for him to explain to my team what had ha=pened, and then sent my cfo to speak for hours to him and others at elysium. I pointed out to you that joslin could not make the first pass at hiring a finance person . I was right. HE is a great tax person, period. no social skills reporting skills or mgmt skills. ITS a mess and a larger one than I thought. sorry, I have begun to interview some cfo.s4>=A0 for you and have put out more feelers. if you feel comfortable i think you should ask at apollo for=20 help.. It is now too late to remove Eileen out entirely as i ha= been urgently requesting. I have not spoken to her in months . but during this craz= delay in doing so, she is now significantly more entrenched. the office more intricately entwined and a danger to you. A re-do is necessary . top down. you have repeatedly pointed out and I know you truly believe ,that you have4)=A0 paid me what you consider a great deal of money. You are one of my best friends. in my=20 mind to say you had made a good deal would be an gross understatement. I have sp=nt the majority of the last year restructuring your things. as you are aware I canceled my europe trips for the last six months of last year.my money, friends and clients have suffered as a result of the tim= it took to attempt to clean up 5 years of silliness.. however I t=ke our friendhsip very serioulsy and feel not one iota of regret . I made a bad deal ,lived up to=20 it. and exceeded the predictions made on your behalf. =C240 that being said, you will need to bring in a few people to start from the top down. apollo review, coordination, 40=A0bill pay, book keeping, legal reporting,filings, sec gaming foreign, pfic=20 fbar gift gtax use tax, corporate admin, Ilc etc. investments art. household personal. taxes. gifts, admin for grats trusts children, checks a=d balances. banking 3 EFTA_R1_01627484 EFTA02500501 doc review, tra review, brh review . review of will given=new info.. jpm goldman, db barn, check writing , foundation decision art consultants. boat plane. construction. travel. insurance, IT,. staff mgmt. w= will have to deal with torn ada, eileen, now joslin, . certain protections=20 that you previously vocally declined to consider ( king lear etc) i think s=ould be put in . As the art partnership was the last issu= for my office on the table I consider our past financial agreement at=20 an end. I don;t like money discussions between us. negotiations, lack of clarity ,amounts ,dates, deductible etc. </=iv> please note =he information contained in this communication is confidential, may be =ttorney-client privileged, may constitute inside information, and is in=ended only for the use of the addressee. It is the property of JEEUnauthorized use, disclosure or copying of this communication or any p=rt thereof is strictly prohibited and may be unlawful. If you have rece=ved this communication in error, please notify us immediately by ret=rn e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication an= all copies thereof, including all attachments. copyright -all rights r=served 4 EFTA_R1_01627485 EFTA02500502