Alleged Trump‑Epstein Palm Beach house deal involving Deutsche Bank financing and Russian oligarch buyer

14 MICHAEL WOLFF In November 2004, for instance, Jeffrey Epstein, the financier later caught in a scandal involving underage prostitutes, agreed to purchase from bankruptcy a house in Palm Beach, Florida, for $36 million, a prop- erty that had been on the market for two years. Epstein and Trump had been close friends—playboys in arms, as it were—for more than a decade, with Trump often seeking Epstein’s help with his chaotic financial affairs. Soon after negotiating the deal for the house in Palm Beach, Epstein took Trump to see it, looking for advice on construction issues involved with moving the swimming pool. But as he prepared to finalize his purchase for the house, Epstein discovered that Trump, who was severely cash- constrained at the time, had bid $41 million for the property and bought it out from under Epstein through an entity called Trump Properties LLC, entirely financed by Deutsche Bank, which was already carrying a substantial number of troubled loans to the Trump Organization and to Trump personally. Trump, Epstein knew, had been loaning out his name in real estate deals—that is, for an ample fee, Trump would serve as a front man to disguise the actual ownership in a real estate transaction. (This was, in a sense, another variation of Trump’s basic business model of licensing his name for commercial properties owned by someone else.) A furi- ous Epstein, certain that Trump was merely fronting for the real owners, threatened to expose the deal, which was getting extensive coverage in Florida papers. The fight became all the more bitter when, not long after the purchase, Trump put the house on the market for $125 million. But if Epstein knew some of Trump’s secrets, Trump knew some of Epstein’s. Trump often saw the financier at Epstein’s current Palm Beach house, and Trump knew that Epstein was visited almost every day, and had been for many years, by girls hed hired to give him massages that often had happy endings—girls recruited from local restaurants, strip clubs, and, also, Trump’s own Mar-a-Lago. Just as the enmity between the two friends increased over the house purchase, Epstein found himself under investigation by the Palm Beach police. And as Epstein’s legal prob- lems escalated, the house, with only minor improvements, was acquired for $96 million by Dmitry Rybolovlev, an oligarch who was part of the close Putin circle of government-aligned industrialists in Russia, and who, SIEGE 15 in fact, never moved into the house. Trump had, miraculously, earned $55 million without putting up a dime. Or, more likely, Trump merely earned a fee for hiding the real owner—a shadow owner quite possibly being funneled cash by Rybolovlev for other reasons beyond the value of the house. Or, possibly, the real owner and real buyer were one and the same. Rybolovlev might have, in effect, paid himself for the house, thereby cleansing the additional $55 million for the second purchase of the house. This was Donald Trump's world of real estate. % FF As though using mind-control tricks, Jared Kushner had become highly skilled at containing his deep frustration with his father-in-law. He stayed expressionless—sometimes he seemed almost immobile—when Trump went off the rails, unleashing tantrums or proposing dopey political or policy moves. Kushner, a courtier in a crazy court, was possessed of an eerie calmness and composure. He was also very worried. It seemed astounding and ludicrous that this fig-leaf technicality—“You're not a target, Mr. President”—could offer his father-in-law such comfort. Kushner understood that Trump was surrounded by a set of mortal arrows, any of which might kill him: the case for obstruction; the case for collusion; any close look at his long, dubious financial history; the always-lurking issues with women; the prospects of a midterm rout and the impeachment threat if the midterm elections went against them; the fickleness of the Republicans, who might at any time turn on him; and the senior staffers who had been pushed out of the administration (Kushner had urged the ouster of many of them), any of whom might testify against him. In March alone, Gary Cohn, the president's chief economic adviser, Rex Tillerson, the secretary of state, and Andrew McCabe, the deputy director of the FBI—each man bearing the president deep contempt— were pushed from the administration. But the president was in no mood to hear Kushner’s counsel. Never entirely trusted by his father-in-law—in truth, Trump trusted no one except, arguably, his daughter Ivanka, Kushner’s wife—Kushner now found himself decidedly on the wrong side of Trump’ red line of loyalty. HOUSE_OVERSIGHT_021131