A residence belonging to Jeffrey Epstein at East 71st road is seen on the Higher East Aspect of Manhattan on July 8, 2019 in New York
Kevin Hagen | Getty Photos
A reported deal to promote intercourse legal Jeffrey Epstein’s infamous New York Metropolis mansion for about $50 million might unfreeze a compensation fund arrange for the late cash supervisor’s victims. The fund final month suspended making settlement affords to claimants due to liquidity issues together with his property.
The Wall Avenue Journal’s report of the gross sales contract for the 28,000-square-foot Higher East Aspect townhouse to an unidentified purchaser comes three weeks earlier than the deadline for claims to be filed with the Epstein Victims’ Compensation Program.
Brad Edwards, a lawyer who represents a variety of Epstein’s victims, mentioned he had been “unaware of the sale” earlier than being contacted by CNBC.
“However I’m happy to listen to that the liquidity problems with the property will quickly be cleared up in an effort to make correct compensation for his many victims,” Edwards mentioned.
“The sale is monumental because it seemingly marks the tip to the home of horrors that Epstein ran out of that mansion,” Edwards mentioned.
The sale to the unidentified purchaser — who can be paying considerably lower than the unique $88 million asking value — has but to shut.
The seven-floor, 40-room mansion at present is marketed as an lively itemizing on the web site of the Modlin Group. Adam Modlin, who’s the property’s itemizing agent, didn’t reply to requests for remark from CNBC.
Additionally but to shut is the sale of Epstein’s mansion in Palm Seashore, Florida, which the Journal has reported developer Todd Michael Glaser is in contract to purchase. The Palm Seashore mansion initially had an almost $22 million asking value.
Proceeds from each properties might be used for the compensation program if approved by the legal professional basic of the U.S. Virgin Islands, who holds liens on Epstein’s property.
The fund, launched final June, has obtained greater than 150 claims and had paid out greater than $50 million earlier than the settlement affords have been suspended.
Federal prosecutors in July 2019 charged Epstein, who was 66, with baby sex-trafficking crimes associated to dozens of underage women whom he was accused of sexually abusing between 2002 and 2005 at his properties in Manhattan and Palm Seashore.
Epstein, who had pleaded not responsible in that federal case, killed himself whereas in a Manhattan federal jail a month later.
Eleven years earlier than his loss of life, the previous good friend of ex-Presidents Donald Trump and Invoice Clinton had pleaded responsible in Florida to a state cost of felony solicitation of prostitution, a case that concerned an underage lady. Epstein served 13 months in jail for that case.
The British socialite Ghislaine Maxwell, a former girlfriend and property supervisor of Epstein’s, is at present being held with out bail in a Brooklyn federal jail on fees associated to her alleged recruitment and grooming of a number of underage women for sexual abuse by him in New York and Palm Seashore, in addition to at his house in Santa Fe, New Mexico, and her personal residence in London.
Jordana Feldman, the impartial administrator of the Epstein victims’ compensation program, on Feb. 4 introduced that she was briefly suspending compensation affords to victims “as a consequence of uncertainty in regards to the liquidity” of property of Epstein’s property.
Feldman’s transfer got here a day after Epstein’s property knowledgeable her that it didn’t have enough liquidity to fund the newest replenishment request by the fund. The property informed Feldman that it was working to safe extra liquidity.
“Though I sincerely remorse having to take this motion, I’ve concluded that it’s essential to guard the pursuits of eligible claimants who haven’t but resolved their claims via the Program,” Feldman mentioned on the time.
“Issuing a compensation supply that can’t be well timed and absolutely funded and paid, in step with the best way the Program has operated so far, would compromise claimants’ pursuits and the guiding rules of the Program,” she mentioned.
Feldman added that she was dedicated to making sure that each one eligible claimants get the “compensation and validation they deserve.”
The fund stopped accepting registrations from candidates on Feb. 8. The deadline for claims to be filed is March 25.
A spokesman for Feldman had no touch upon the report of the sale of the Manhattan townhouse.
Daniel Weiner, a lawyer for the co-executors of Epstein’s property, didn’t reply to requests for remark.
Weiner informed CNN final month that the co-executors had obtained “expressions of curiosity from quite a few events” relating to probably buying Epstein’s two islands within the Virgin Islands, Little St. James and Nice St. James.