Leon Black’s Apollo Global Management is losing a number of important accounts over the Jeffrey Epstein scandal. Black had paid more than $50 million in various fees to Jeffrey Epstein between the infamous rapist’s first arrest and 2017.
According to Bloomberg, the State of Connecticut halted new investments to the firm from its pension fund as did a Pennsylvania pension. And major consultants are advising their clients to stay away from Apollo.
While many investors may only care about the bottom line and how much money a firm will make them, enough people are also concerned with the appearance of impropriety and do not wish to be associated in any way with such a public scandal as the whole Jeffrey Epstein affair.
So what exactly did Leon Black do? While he continues to profess that he had no knowledge about Epstein’s activities with underage girls, Black suspiciously paid the man a fortune over the years.
According to reports, after Jeffrey Epstein’s first arrest back in 2008 Leon Black sent Epstein a number of wire transfers, each in the millions of dollars, over a number of years. $10 million went to a foundation started by Epstein> He was also paid so called consulting fees which brought about suspicion from Deutsche Bank, where Mr. Epstein kept his accounts.
To the man on the street out there this all stinks of hush money. What, if anything, did Black get in return for his money?
Leon Black has formally denied any involvement With Epstein’s crimes in formal letters to Apollo Global Management.
He once wrote, “I want to emphasize that Apollo has never done any business with Mr. Epstein at any point in time. Neither Mr. Epstein nor any company controlled by him has ever invested in any funds managed by Apollo.”
And he also added a denial of any knowledge about Jeffrey Epstein’s molestation of young girls writing, “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.”
As for Apollo’s current review of Leon Black, Mr. Black stated to investors, “In light of continued attention, it is in the best interests of Apollo, our employees, our shareholders and our LPs for there to be an independent review. I look forward to co-operating fully.”
A spokesperson for Apollo Global Management said, “Mr. Black has previously detailed the nature of that relationship in prior communications and confirmed that Mr. Epstein never did any business with Apollo.”