Value of billionaire financier Leon Black's hedge fund plunges by $500 million as he admits to transferring millions of dollars to Jeffrey Epstein - thought to be as much as $75m - and having a picnic on his 'pedophile island'

Billionaire financier Leon Black reportedly transferred at least $50 million to Jeffrey Epstein in the years after the financier had been convicted of child sex offences.

Financial documents show Wall Street executive Black, who is a lead partner of Apollo Global Management, gave $10 million to one of Epstein's foundations alone, The New York Times reports. 

On Monday, following news of the payments, the value of Black’s hedge fund plunged by $500 million, with its stock down nearly 5 per cent. 

Black is also understood to have sent a letter to Apollo investors on Monday where he confirmed paying Epstein 'millions of dollars annually for his work'. He also confirmed a family picnic with the disgraced financier on his private island residence, dubbed Pedophile Island.

Sources told the paper Black could have wired up to $75 million to the convicted sex offender after he was first jailed in 2008. He is said to have received several million dollars in fees from Black in 2014. 

The figures help shed some light on how Epstein died with a net worth estimated at $634 million. There is still some mystery as to how he managed to acquire such astronomical sums of money before his death while awaiting trial over sex trafficking claims in August last year. 

A spokesman for Black said he 'received personal trusts and estates planning advice as well as family office philanthropy and investment services from several financial and legal advisers, including Mr. Epstein' between 2012 and 2017. 

But it is not clear exactly what role Epstein played to receive such large sums of money; he had no formal legal or tax training.  

Billionaire financier Leon Black, left, reportedly transferred at least $50 million to Jeffrey Epstein, right, in the years after the financier had been convicted of child sex offences

On Monday, following news of the payments, the value of Black’s hedge fund plunged by $500 million, with its stock down nearly 5 per cent

The two men are said to have known each other since at least 1997 and they are reported to have regularly met up for lunches and dinners.

Under a 2008 non-prosecution agreement, Epstein pleaded guilty to state charges in Florida of solicitation of prostitution involving a minor and another similar prostitution charge. 

That allowed him to avoid federal prosecution and a possible life sentence, instead serving 13 months in a work-release program. He was required to make payments to victims and register as a sex offender. 

In 2012, four years after Epstein's conviction, Black is even said to have gone for dinner at Epstein’s private island residence, dubbed Pedophile Island, in the U.S. Virgin Islands. 

In 2018 they are said to have cut ties over 'a fee dispute'.  

In 2019, following Epstein's arrest for sex trafficking, Black, who is the chairman of the Museum of Modern Art , said he had a 'limited relationship' with the disgraced financier.     

He wrote to staff at Apollo to say: 'I want to emphasize that Apollo has never done any business with Mr. Epstein at any point in time.

'I was completely unaware of, and am deeply troubled by, the conduct that is now the subject of the federal criminal charges brought against Mr. Epstein.' 

Jeffrey Epstein, Pepe Fanjul and Leon Black pictured in 2005 in New York City. Epstein and Black are said to have known each other since at least 1997 and they are reported to have regularly met up for lunches and dinners

Black is also understood to have sent a letter to Apollo investors on Monday where he confirmed paying Epstein 'millions of dollars annually for his work'. He also confirmed a family picnic with the disgraced financier on his private island residence, dubbed Pedophile Island

Stephanie Pillersdorf, a spokeswoman for Black, told The New York Times: 'The trusts and estate planning advice was vetted by leading auditors and law firms.' 

She added that Black 'continues to be appalled by the conduct that led to the criminal charges against Mr. Epstein, and he deeply regrets having any involvement with him'. 

Epstein did not carry out work for Apollo, Pillersdorf said. 

Epstein was known for hobnobbing with the rich, famous and influential, including presidents and a prince.

He owned a private island in the Caribbean, homes in Paris and New York City, a New Mexico ranch, and a fleet of high-price cars. His friends had once included Britain’s Prince Andrew, former President Bill Clinton and President Donald Trump. 

Leon Black and Debra Black pictured in November 2017 in New York City. In 2012, four years after Epstein's conviction, Black is even said to have gone for dinner at Epstein’s private island residence, dubbed Pedophile Island, in the U.S. Virgin Islands

Victoria Secret's mogul Leslie H. Wexner hired Epstein as his personal money manager in the 1990s and claims that more than $46 million was 'misappropriated' from his personal fortune during that time.

'Being taken advantage of by someone who was so sick, so cunning, so depraved, is something that I'm embarrassed I was even close to. But that is in the past,' Wexner told investors one month after Epstein hanged himself     

Epstein was found unresponsive in his cell in the Metropolitan Correctional Center in August last year. His death was ruled a suicide. 

Leon Black's Monday letter to Apollo investors in full 

Dear Limited Partner:

In July 2019, I wrote to you to address my relationship with Jeffrey Epstein, given the intense media coverage at the time. 

As I stated then, there is nothing more important to Apollo—and to me personally—than our relationships with our investors and limited partners in the funds we manage. Earlier today, the New York Times published a story describing my relationship with Mr. Epstein. 

I am writing again to make sure that you have all the relevant information.

First, I want to reemphasize certain important facts from my prior letter. Apollo never did any business with Mr. Epstein, at any point in time. Neither Mr. Epstein nor any company controlled by him ever invested in any funds managed by Apollo. 

For a period of six years, Mr. Epstein provided professional services to my family partnership and related family entities, involving estate planning, tax and philanthropic advice. 

No other Apollo employee ever engaged Mr. Epstein or used his professional services. On a few occasions, I donated money to certain charitable organizations with which Mr. Epstein was affiliated, and he made contributions to certain charitable organizations that are meaningful to me. 

Lastly, and most importantly, I was completely unaware of, and continue to be appalled by, the reprehensible conduct that surfaced at the end of 2018 and led to the federal criminal charges brought against Mr. Epstein.

None of the reporting in the recent New York Times article is inconsistent in any way with the information I shared with you over a year ago. As I previously stated, Mr. Epstein provided professional services to entities affiliated with my family regarding estate planning, tax and philanthropic endeavors.

I have never tried to conceal these facts. 

It is true that I paid Mr. Epstein millions of dollars annually for his work, which he provided from 2012 to 2017. It also is worth noting that all of Mr. Epstein’s advice was vetted by leading auditors, law firms and other professional advisors. 

Importantly, there has never been an allegation by anyone, including the New York Times, that I engaged in any wrongdoing or inappropriate conduct.

The New York Times story reports certain instances in which I spent time with Mr. Epstein. For example, I traveled with Mr. Epstein to Boston to meet with several prominent Harvard professors, as part of my family’s philanthropic efforts. Two of my children traveled with me and joined the meetings. 

On a separate occasion, my family and I made a short visit to Mr. Epstein’s private island and had a picnic lunch with him while on a family holiday nearby. As the story notes, both instances were isolated and brief and, in each case, I was accompanied by members of my immediate family. 

From time to time, I also met with Mr. Epstein at his townhouse in New York City, because that is where he conducted business. Mr. Epstein did not have a separate professional office.

Finally, the story reports that the U.S. Virgin Islands Attorney General is seeking information from me and many others—including numerous large financial institutions such as JP Morgan, Citi, Wells Fargo and BNP Paribas—all as third-party witnesses in a civil investigation of Mr. Epstein’s businesses. 

I, of course, intend to cooperate fully with this and any other inquiry.

Over the past three decades, everyone at Apollo has worked tirelessly not only to achieve the best possible returns on behalf of our valued investors, but also to do so in a manner governed by certain core values—integrity, decency and adherence to the highest moral and ethical principles. I am extremely proud of everything we have accomplished over this time working closely with you. 

With the benefit of hindsight—and knowing everything that has come to light about Mr. Epstein’s despicable conduct more than fifteen years ago—I deeply regret having had any involvement with him. These reports, however, will not distract from the extraordinary work of our exceptional people at

Apollo, who wake up every morning singularly focused on helping you accomplish your important missions. 

Sincerely,Leon D. Black

Chairman and Chief Executive Officer