Epstein's 1980s oil‑drilling investment scheme involving Michael Stroll and alleged escrow payments

Fitryy Ricw Pay me fifty million dollars. Or pay the IRS seven times that amount. At first Epstein did not demand his fee up front. Instead he asked that the payment— often a substantial one—be put into escrow. If his strategy worked, he'd get paid. If not, the money bounced back to the client. CHAP TER 26 In the eighties, when tax rates on the top 1 percent were s much, much higher than they are today, topping out at close to 50 percent, it was an extremely effective pitch. And then there oe were other ways to make money. In 1982, Epstein sold his wealthy friends, his friends’ wealthy relatives, and others on an oil-drilling deal. One of the investors, Michael Stroll, had run Williams Electronics, an entertainment company known for the pinball machines it made. Stroll put $450,000 into the oil deal. But in 1984, Michael Stroll wanted his money back. Despite rake all his money? tories over the years about mon- sry characters. Sometimes, friends iy, he’d suggest he had ties to i q he impression that he was doing © | repeated demands and requests for a full accounting of what Epstein owed him, he got $10,000 back on his $450,000 invest- ment. Eventually he sued Epstein in federal court for the remain- __ ing $440,000— the case went on for a number of years. In court, Epstein told the judge that the $10,000 he'd returned was actu- ally the payment for a horse Stroll had sold him. ein really did, at this stage in his ~ According to them, Epstein spent = ith creative new ways for the rich © idance deals © Like many cases involving Epstein, this one was settled out mmission for tax-avo 4 amber of deals Epstein was involved © as is his record of successes and : , z ‘J of court, the terms of the final agreement kept secret. del was evolving. He’d charge 4 flat” itages. 108 HOUSE_OVERSIGHT_022078