Luxury Gifts to Virgin Islands Deals: How Did Jeffrey Epstein Really Make Money?

Disgraced American financier and child sex offender Jeffrey Epstein died in 2019 with an estimated fortune of nearly $600 million, but exactly how he amassed that huge sum of wealth largely remains a mystery, even to this date. 

If multiple US media reports suggest anything with a great deal of certainty, it’s that Epstein was well‑connected: from wealthy clients and political figures to ties with influential celebrities. According to The Guardian, the late American financier owned lavish properties in New York, Palm Beach, Paris, two private islands, jets, and even helicopters. His estate reportedly held around $380 million in cash and investments by the time of his death. 

Major Clients and Key Sources of Income

Two of Epstein’s biggest patrons, the report said, were Les Wexner (founder of Victoria’s Secret) and Leon Black (co‑founder of Apollo Global Management), as well as heiress Elizabeth ‘Libet’ Johnson who are believed to have together contributed majorly toward Epstein’s fee income. 

Between 1999 and 2018, Wexner and Black collectively generated more than $800 million in revenue for their businesses, The Guardian reported. During that period, Epstein reportedly collected at least $490 million in fees from them. According to financial statements and a Senate finance committee investigation, payments from Black to Epstein for “tax and estate planning advice” reached approximately between $158 and $170 million. 

What the Emails and Documents Reveal

Recently unearthed emails, spreadsheets and expense logs appear to suggest that Epstein may have acted like a conduit: facilitating connections between the ultra-rich and political power. He is believed to have arranged gifts, luxury items as well as political influence for clients. For example, a spreadsheet entry dated 21 December 2005 cited by the publication lists a $35,000 watch for ‘DB’ – the same day Maxwell and Epstein reportedly discussed giving Bill Clinton’s aide Doug Band an Audemars Piguet of the same value. Band has denied receiving any watch.

On the whole, an estimated total of about 1,800 gifts, luxury items, and payments are detailed in those records, which amount to the tune of around $1.8 million, per The Guardian.

Tax Breaks & Islands: Offshore Benefits

A big part of Epstein’s fortune also came from offshore structures, especially in the US Virgin Islands, where strong tax incentives were prevalent at the time. Reports suggest Epstein saved over $300 million in taxes between 1999 and 2018 on account of Virgin Islands’ Economic Development programs.

Much of his revenue is believed to have been generated from companies based in the Virgin Islands, which were described in court records as his main “revenue‑generating” firms.

Outstanding Questions & Investigations

However, many key pieces still remain missing as Congressional investigators, led by Senator Ron Wyden, have raised questions:

• Why were major amounts paid to Epstein without written contracts or fully explained services?
• How much of this income should properly have been treated as gifts (which could be taxed differently) vs services?
• Were financial institutions like Bank of America, which processed some payments, following anti‑money laundering rules?

According to the Senate Committee on Finance, Wyden’s investigation uncovered that a bank waited years to report suspicious payments from Black to Epstein, potentially violating financial law.