HOUSE_OVERSIGHT_021969.jpg
2.08 MB
Extraction Summary
3
People
5
Organizations
1
Locations
3
Events
2
Relationships
3
Quotes
Document Information
Type:
Book excerpt (filthy rich) / house oversight committee evidence
File Size:
2.08 MB
Summary
This document is an excerpt from the book 'Filthy Rich' (Chapter 27, pages 110-111) included in House Oversight records. It details the business relationship established in 1987 between Steven Hoffenberg (Towers Financial) and Jeffrey Epstein, where Hoffenberg paid Epstein $25,000 monthly for consulting. The text describes Epstein's role in a failed attempt to take over Pan Am Airways and notes Hoffenberg's eventual 1995 conviction for a $460 million Ponzi scheme.
People (3)
| Name | Role | Context |
|---|---|---|
| Steven Hoffenberg | Head of Towers Financial |
Wall Street outsider who hired Epstein as a consultant; later pleaded guilty to a $460 million swindle.
|
| Jeffrey Epstein | Consultant |
Hired by Hoffenberg for $25,000/month; handled the attempted takeover of Pan Am; former Bear Stearns options trader.
|
| Bernie Madoff | Financial Fraudster |
Mentioned as a comparison to Hoffenberg's Ponzi scheme type fraud.
|
Organizations (5)
| Name | Type | Context |
|---|---|---|
| Towers Financial |
Company headed by Steven Hoffenberg.
|
|
| Bear Stearns |
Mentioned as the place where Epstein previously worked with options.
|
|
| SEC |
Securities and Exchange Commission; settled out of court with Hoffenberg regarding unregistered securities.
|
|
| Pan American World Airways |
Target of an attempted takeover by Hoffenberg, handled by Epstein.
|
|
| House Oversight Committee |
Source of the document (via Bates stamp).
|
Timeline (3 events)
1987
Hoffenberg begins paying Epstein $25k/month for consulting.
New York
1995
Locations (1)
| Location | Context |
|---|---|
|
Described as the environment where Hoffenberg was an outsider and Epstein had inner working knowledge.
|
Relationships (2)
Hoffenberg paid Epstein $25,000/month as a consultant.
Text refers to Epstein's knowledge of options for Bear Stearns.
Key Quotes (3)
"Hoffenberg began paying twenty-five thousand dollars per month for Epstein's expertise as a consultant."Source
HOUSE_OVERSIGHT_021969.jpg
Quote #1
"According to Hoffenberg, Epstein handled the attempted takeover of Pan Am—a deal that went sideways almost immediately."Source
HOUSE_OVERSIGHT_021969.jpg
Quote #2
"one must bear in mind that in 1995, he pleaded guilty to criminal conspiracy and fraud charges involving a $460 million swindle"Source
HOUSE_OVERSIGHT_021969.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,199 characters)
CHAPTER 27
1987
[Partial text from Page 110]
...loff, there was Steven Hoffenberg.
...as the head of Towers Financial
...hat bought debts, such as unpaid
...scount while pressing the debtors
...the company fifteen years earlier
...nd just a handful of employees.
...work ethic, he'd turned that into a
...elve hundred employees and stock
...But Hoffenberg still spent fifteen
...k, in his office.
...berg was a Wall Street outsider. A
...ut, like Epstein.
...anted was respect. The other was
...th Wall Street's inner workings. Jef-
...options for Bear Stearns, fit the bill.
...loff, there was Steven Hoffenberg.
...as the head of Towers Financial
...hat bought debts, such as unpaid
...scount while pressing the debtors
...the company fifteen years earlier
...nd just a handful of employees.
...work ethic, he'd turned that into a
...elve hundred employees and stock
...But Hoffenberg still spent fifteen
...k, in his office.
...berg was a Wall Street outsider. A
...ut, like Epstein.
...anted was respect. The other was
...th Wall Street's inner workings. Jef-
...options for Bear Stearns, fit the bill.
110
[Page 111]
FILTHY RICH
FILTHY RICH
Hoffenberg began paying twenty-five thousand dollars per month for Epstein's expertise as a consultant.
The SEC had already looked into Hoffenberg's affairs, settling with him out of court in a matter relating to unregistered securities. But Hoffenberg was dangling a very big prize.
In the 1980s, several major financial players were involved in the greenmailing of publicly traded companies. What greenmailing means, in practice, is that a brokerage house or group of investors will start buying shares in companies that seem to be vulnerable to takeover attempts. To ward off the attempts, executives at those companies will buy the shares back at a premium. It's risky, but very often the investors stand to make a handsome profit.
Yet another thing Hoffenberg wanted was to take over Pan American World Airways. The iconic airline had already entered its downward trajectory, but it was still a giant.
For Hoffenberg, the greenmailing profits could have been huge.
According to Hoffenberg, Epstein handled the attempted takeover of Pan Am—a deal that went sideways almost immediately.
Steven Hoffenberg still has a lot to say on the subject. But in listening to him, one must bear in mind that in 1995, he pleaded guilty to criminal conspiracy and fraud charges involving a $460 million swindle, a familiar scheme to anyone who followed the Bernie Madoff case.
Like so many others, Hoffenberg had tried to fly very high without the necessary updraft. And despite all the hours he spent at the office, he'd also developed a taste for the high life. He
111
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