Leon Black, chairman and CEO of Apollo Global Management LLC, at the annual Milken Institute Global Conference in Beverly Hills, California, US, on Monday, April 27, 2015.

Patrick T. Fallon | Bloomberg | Getty Images

A Senate panel on Tuesday unveiled a year-long investigation into the co-founder of Apollo Global Management Leon CernyTies to the late disgraced financier Jeffrey Epstein, focusing on the $158 million Black allegedly paid Epstein for tax and real estate services.

Black has so far provided “inadequate answers” to the committee and refused to detail his payments to Epstein, raising concerns about whether the payments “were properly characterized as income or gifts for tax purposes,” Senate Finance Committee Chairman Ron Wyden, D-Ore., said. he wrote in a letter dated Monday.

The investigation into Black’s tax schemes is one in a series of committee investigations into how the ultra-wealthy are skirting their tax bills, Wyden’s letter said.

black, billionairerefuses to provide any other personal information to the committee.

A spokesman for Black said in a statement that the private equity investor “cooperated extensively with the committee and provided detailed information on the matters under review.”

“The transactions set out in the committee’s letter were lawful in all respects, were devised, vetted and executed by reputable law firms and tax and other advisers, and Mr Black has fully paid all taxes owed to the government,” the spokeswoman said.

A separate report responding to Wyden said Black had already answered more than a dozen previous committee questions and produced more than 150 pages of his personal tax and estate documents. The committee’s latest round of questions are “inappropriately invasive” and potentially overstep the panel’s oversight role, Black argued.

The newly revealed congressional probe into Black’s relationship with Epstein is just the latest example of the ongoing backlash faced by high-profile contacts of the financial executive who he hanged himself in prison in 2019 while facing child trafficking charges.

Overnight, the US Virgin Islands made new allegations against JPMorgan Chase in a lawsuit accusing the bank of enabling Epstein’s criminal activity.

The territory alleged in new court filings that JPMorgan opened accounts and credit cards in 2004 for two teenagers described as models and friends of Epstein.

A bank statement for one of the girls, whose name is redacted, says she is a Slovak citizen and that “Epstein has asked us as a favor to open a checking account for her and he will guarantee her credit card application,” according to the court filing.

The Virgin Islands filing also revealed that JPMorgan Asset and Wealth Management CFO David Brigstocke compared the client’s home to Epstein’s, calling it “more tasteful and less nymphet.”

Both the Virgin Islands and JPMorgan filed overnight motions for partial summary judgment in the suit.

The territory accused the bank of aiding and abetting Epstein’s human trafficking operation for more than a decade by ignoring ample evidence of his criminal activity. Top JPMorgan executives “turned a blind eye” to Epstein’s wrongdoing, the Virgin Islands allege, because of the money and high-profile clients the well-connected financier brought to the bank.

American financier Jeffrey Epstein (C) appears in court to plead guilty to two prostitution charges in West Palm Beach, Florida on July 30, 2008.

Uma Sanghvi | Palm Beach Post | Reuters

JPMorgan denied wrongdoing and accused the USVI of aiding Epstein, who owned a private island in the territory, in his crimes. In May, the bank alleged in a court filing that the former first lady of the Virgin Islands helped secure it student visa for some of Epstein’s victims.

The USVI’s motion for summary judgment came less than two weeks after the government revealed it was at least trying 190 million dollars from JPMorgan, in addition to an injunction that would protect potential future victims of human trafficking.

USVI’s case against the bank is currently scheduled for trial on October 23.

Epstein killed himself at the age of 66 in a federal prison in Manhattan in August 2019, weeks after he was arrested on federal child trafficking charges.

He previously pleaded guilty in 2008 to a Florida state charge of procuring sex to an underage girl. He registered as a sex offender and served about 13 months in prison, although he was allowed to leave work for much of that sentence.

JPMorgan ended its banking relationship with Epstein in 2013.

Last month, JPMorgan agreed to pay approx 290 million dollars settle a lawsuit brought by Epstein’s victims.

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