Epstein's 1980s oil‑drilling scheme and alleged $440,000 fraud lawsuit by Michael Stroll

Firtuy Ricu 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. TER 26 In the eighties, when tax rates on the top 1 percent were CHAP much, much higher than they are today, topping out at close to i 50 percent, it was an extremely effective pitch. And then there 4 4 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 vake all his money? tories over the years about mon- sry characters. Sometimes, friends y, he'd suggest he had ties to the as doing repeated demands and requests for a full accounting of what x¢ impression that he w: Epstein owed him, he got $10,000 back on his $450,000 invest- | ment. Eventually he sued Epstein in federal court for the remain- 7 ing $440,000— the case went on for a number of years. In court, 7 Epstein told the judge that the $10,000 he'd returned was actu- 4 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 ~ ssion for tax-avoidance deals 7 olved — - Like many cases involving Epstein, this one was settled out m mber of deals Epstein was inv of court, the terms of the final agreement kept secret. successes and © ‘ _ as is his record of jel was evolving, He'd charge 4 i itages. 108 HOUSE_OVERSIGHT_021967