Who Is Influential Wall Street Billionaire Leon Black? Senator Wyden Demands Records from IRS on $158M Payment to Jeffrey Epstein

Private equity titan paid Jeffrey Epstein $158 million for tax advice despite convicted sex trafficker lacking professional qualifications

Senate Finance Committee Ranking Member Ron Wyden is demanding the IRS explain why it never audited the financial relationship between Wall Street billionaire Leon Black and convicted sex trafficker Jeffrey Epstein, despite Black paying hundreds of millions for tax planning services from someone who lacked basic professional qualifications.

The Oregon Democrat’s investigation centers on approximately $158 million that Black, co-founder of private equity giant Apollo Global Management, paid to Epstein for tax and estate planning advice between 2012 and 2017 – despite Epstein having no formal training as an accountant or tax attorney.

Black’s Wall Street Empire

Leon Black, 71, built his fortune as co-founder and former CEO of Apollo Global Management, one of the world’s largest private equity firms managing over $500 billion in assets. The billionaire art collector made headlines in 2012 when he purchased Edvard Munch’s “The Scream” for $120 million, then a record price for artwork sold at auction.

Black stepped down from Apollo in 2021 and resigned as chairman of New York’s Museum of Modern Art following revelations about his extensive ties to Epstein. Despite an internal Apollo investigation clearing him of wrongdoing, the scandal tarnished his reputation as one of Wall Street’s most influential figures.

The private equity mogul’s wealth stems from Apollo’s aggressive investment strategy, which has generated massive returns by acquiring distressed companies and implementing cost-cutting measures. His personal net worth is estimated at over $9 billion.

Questionable Financial Arrangements

Senator Wyden’s letter to IRS Commissioner Billy Long reveals troubling details about Black’s payments to Epstein. The majority of the $158 million was paid on an “ad hoc” basis without written contracts or formal business agreements, raising questions about the legitimacy of the transactions.

“Epstein lacked any professional training or certifications in accounting or tax law, yet was chosen by very wealthy people to execute very complex tax-related financial transactions,” Wyden wrote. “It is unthinkable that transactions amounting to tens of millions of dollars paid to a known criminal for the purpose of helping a mega-wealthy individual dodge billions in taxes were never audited or investigated.”

Black’s own attorneys minimized Epstein’s contributions, telling Wyden’s investigators that Epstein’s ideas were often “in the public domain” and that “not all of Epstein’s advice was useful.” In one instance, Black paid Epstein $20 million for a tax strategy that his lawyers said originated with other advisors, though “Epstein tried to take credit for the idea and secure compensation.”

Legal Troubles Mount

Black faces multiple sexual assault lawsuits connected to Epstein’s trafficking network. Three women have accused him of rape, including one who claims he assaulted her when she was 16 years old at Epstein’s Manhattan townhouse. Black has denied all allegations, calling them “vicious and defamatory lies.”

In January 2023, Black paid $62.5 million to settle potential claims from the U.S. Virgin Islands arising from their investigation into Epstein’s sex trafficking operation. The settlement allowed Black to avoid a lawsuit that would have accused him of facilitating Epstein’s activities through his substantial payments.

IRS Investigation Demands

Wyden is seeking comprehensive records from the IRS regarding any audits or investigations of Epstein-related transactions. His investigation questions whether Black’s payments constituted legitimate tax planning or if the billionaire “felt obligated to make these payments to Epstein for unstated reasons.”

The senator specifically requested:

• All IRS audits or investigations involving Jeffrey Epstein transactions
• Analysis of whether Epstein’s tax planning services matched his reported compensation
• Evaluation of the full scope of tax strategies Epstein provided to wealthy clients

Pattern of Excessive Payments

Black’s relationship with Epstein extended beyond professional services. The Apollo investigation found that Black also provided Epstein with a $30 million loan and made payments to Southern Trust, one of Epstein’s main companies in the Virgin Islands.

The compensation far exceeded payments to Black’s other professional advisors, according to the Dechert law firm investigation. This disparity raises questions about whether the payments served purposes beyond legitimate financial advice.

Congressional Oversight

Wyden’s investigation represents the latest congressional scrutiny of wealthy individuals who maintained relationships with Epstein after his 2008 conviction for soliciting prostitution from a minor. The probe follows previous inquiries into JPMorgan Chase’s 15-year banking relationship with Epstein, which resulted in a $290 million settlement with victims.

The senator’s focus on potential tax avoidance schemes highlights how Epstein’s network may have extended beyond sex trafficking to include sophisticated financial crimes targeting the federal tax system.

Black’s legal team has declined to provide additional information to Wyden’s committee, stating that all transactions were lawful and that Black has paid all required taxes. However, the lack of IRS oversight during the years of payments suggests potential failures in federal tax enforcement involving ultra-wealthy individuals.