Towers Financial Corporation

So yeah, this is where Jeffrey picked up the trade, right? So this, uh, this, yeah, s- s- saleswoman from, from Bear Stearns, uh, Paula Heil, takes him to England and introduces him to Douglas Lease, who then introduces him to Adnan Khashoggi, and that's where he enters this network, really.

So we come to the 1980s, which I've called Towers Financial, comma, Wexner.

Clearly, he had bigger fish to fry than whatever he was doing at Bear Stearns, and in 1981, he goes out on his own, running a consulting firm called Intercontinental Assets Group Inc. out of his apartment on East 66th Street in New York.

What do you, why do you think he left Bear Stearns? 'Cause there's a few alternate sort of reasons out there.

He's great at selling securities, and he has no moral compass"

[chuckles]

Which was handy because Hoffenberg ran a shady operation called Towers Financial Corporation.

They were ostensibly a debt collection agency, but they would also launch hostile takeover bids by shuffling money around various insurance agencies.

Let's keep going through the timeline.

He would then work for as a consultant for the Tower Financial Corporation.

Moving forward, he would get his Palm Beach mansion.

Epstein gets power of attorney over the Wexner financial standing.

The contradictions between Epstein's public image and the limited evidence of his financial operations only deepen the mystery of the true source of his wealth.

In 1987, Jeffrey Epstein was hired as a high-paid consultant by Stephen Hoffenberg, then CEO of Towers Financial Corporation.

a Manhattan-based debt collection agency that would later be exposed as the operator of one of the largest Ponzi schemes in US history.

Hoffenberg paid Epstein $25,000 a month and set him up with an office, describing him as his wingman and closest friend during that period.

Together, the two men attempted high-profile corporate takeovers, including failed bids for Pan Am and Emery Air Freight.

But behind the scenes, Towers Financial was raising more than $400 million by selling fraudulent bonds and promissory notes to investors.

This money was used not to fund legitimate operations, but to pay off earlier investors, cover operating costs, and finance lavish lifestyles, including private jets, luxury homes, and expensive cars.

Hoffenberg later claimed that Epstein was the mastermind behind the scheme's financial engineering, describing him as the architect of both the insurance bond fraud and a stock manipulation strategy.

You can definitely click there and do that.

According to an affidavit filed in court by Epstein's former business partner, Stephen Hoffenberg of Towers Financial, Epstein's early wealth derives from a Ponzi scheme that put Hoffenberg behind bars

for

20 years.

But I do think he was engaging in this operation to build profiles and build different sorts of information data banks so that he could use those profiles and use that information to further his own position, to build his own stock.

Hoffenberg oversaw Towers Financial but was sentenced to 20 years in jail in 1997 for defrauding clients at $450 million.

Although Epstein was never charged in the case, a lawsuit filed last year by former Towers investors lists the financier, pedophile, as an uncharged co-conspirator and allegedly and alleges he knowingly and intentionally utilized funds from fraudulence, and diverted those funds he obtained from the massive Ponzi scheme for his own personal use to support a lavish lifestyle.

And the reason he got off on all of this is because he worked as an informant for the government.

Maybe we'll have some sort of FBI agent at some point who is like terminally ill or something and decides they have to get this weight off their chest.

But I just have no confidence in ever learning the real story, at least the official version of it, because they've shown no interest in giving it to us all of these years.

Why would that change now? If Jeffrey Epstein was materially involved in the management of Towers Financial, as his former associate Stephen Hoffenberg has alleged, or he substantially assisted and had knowledge of the Ponzi scheme through various corporate transactions with Towers Financial, then he would be subject to liability for that Ponzi and, further, may have committed securities fraud on his future clients by not disclosing his prior involvement.

Jeff Son, a securities attorney and founder of Son Law Group, told Observer, The problem I see is that Hoffenberg waited some 20 years to come forward with these new allegations.

But I do think he was engaging in this operation to build profiles and build different sorts of information data banks so that he could use those profiles and use that information to further his own position, to build his own stock.

Hoffenberg oversaw Towers Financial but was sentenced to 20 years in jail in 1997 for defrauding clients at $450 million.

Although Epstein was never charged in the case, a lawsuit filed last year by former Towers investors lists the financier, pedophile, as an uncharged co-conspirator and allegedly and alleges he knowingly and intentionally utilized funds from fraudulence, and diverted those funds he obtained from the massive Ponzi scheme for his own personal use to support a lavish lifestyle.

And the reason he got off on all of this is because he worked as an informant for the government.

Maybe we'll have some sort of FBI agent at some point who is like terminally ill or something and decides they have to get this weight off their chest.

But I just have no confidence in ever learning the real story, at least the official version of it, because they've shown no interest in giving it to us all of these years.

Why would that change now? If Jeffrey Epstein was materially involved in the management of Towers Financial, as his former associate Stephen Hoffenberg has alleged, or he substantially assisted and had knowledge of the Ponzi scheme through various corporate transactions with Towers Financial, then he would be subject to liability for that Ponzi and, further, may have committed securities fraud on his future clients by not disclosing his prior involvement.

Jeff Son, a securities attorney and founder of Son Law Group, told Observer, The problem I see is that Hoffenberg waited some 20 years to come forward with these new allegations.

The money vanished and Epstein essentially ghosted him, at one point sending Stroll a single quart of oil as a mockery when he demanded proof of the investment.

He then moved on to partner with Stephen Hoffenberg at a firm called Towers Financial, being paid $25,000 a month as a consultant.

Hoffenberg would later claim that Epstein helped orchestrate the massive Ponzi scheme there that defrauded investors of nearly $500 million.

Hoffenberg went to prison and Epstein walked free.

Clinton's historic victory over George H.W. Bush in 1992 election paved the way for him to serve two terms in the White House and become one of the most successful Democrats in U.S. history.

Uh, what? Meanwhile, Epstein was still establishing himself as a financial manager and had recently left Towers Financial...

a debt collection agency, which would collapse in 1993 due to a $450 million Ponzi scheme, the largest in the U.S. at the time.

But somehow Epstein slid right through that, didn't he? Somehow Epstein came out unscathed.