The two executors of Jeffrey Epstein’s estate, both longtime advisers to the late financier, could receive millions of dollars in payments long after his death, authorities in the US Virgin Islands said in a legal filing Friday.
The payments to the executors, Darren Indyke and Richard Kahn, are linked to the Butterfly Trust, an investment vehicle that Epstein had established in 2013, according to the filing by attorneys for Denise George, attorney general of the US Virgin Islands.
The court filing by Virgin Islands authorities raised questions about the transfer of millions of dollars from a trust originally established by Mr. Epstein to various trusts that would benefit the executors.
The money transfer took place nearly a year after Mr. Epstein committed suicide in his Manhattan prison cell and after Mrs. George’s office sued Mr. Epstein’s estate.
The Butterfly Trust initially received a $13 million wire transfer in April 2020 after the liquidation of another mutual fund in which Epstein had a stake, according to the document. Some of that money was transferred again several months later to three newly created entities, two of which listed Indyke, Kahn and their spouses as beneficiaries, according to the document.
Ms. George and her lawyers asked a judge in the Virgin Islands to order the estate to undergo discovery requests to ensure no other estate assets had been transferred to “enrich” the executors.
“The government discovered that substantial funds kept secret from the government were transferred for the benefit of co-executors in an apparent effort to enrich themselves and protect these assets from recovery,” the filing says.
The filing said the executors had also failed to disclose several million dollars in loans they received from Epstein.
Mr. Indyke was Mr. Epstein’s personal attorney and Mr. Kahn was an in-house accountant. Daniel Weiner, an estate attorney, said the executors “categorically reject the unsubstantiated claims of wrongdoing made against them” and said they never received $13 million.
He added: “The 2013 Butterfly Trust mentioned in Ms. George’s presentation today has nothing to do with Mr. Epstein’s estate or available funds.”
The US Virgin Islands sued Mr. Epstein’s estate in January 2020 to recover at least $80 million in tax benefits that local authorities say his company Southern Trust received through deception and fraud. Ms George has argued that the US territory was duped into granting lucrative tax breaks that allowed Mr Epstein to use his private residence on the island as a venue to sexually abuse teenage girls and young women.
The Butterfly Trust had been used by Epstein to make payments to some of the people who helped him recruit and groom teens for abuse, according to New York banking regulators.
Mr. Epstein’s estate, valued at around $600 million at the time of his death, is now worth less than $185 million after paying $121 million in settlements to more than 135 victims and nearly $200 million in federal taxes.