Jeffrey Epstein’s once vast estate, which was meant to be drained by settlements to his many sexual abuse victims and payments to resolve other legal claims, now appears to be benefiting his loyal business associates and other beneficiaries instead.
According to a recent probate court filing in the U.S. Virgin Islands, the estate’s assets have swelled to $145 million after a $111.6 million tax refund from the Internal Revenue Service last fall. This is a significant increase from the $40 million that one of the estate’s coexecutors, Richard Kahn, had predicted it would shrink to once all payments were made.
Most large claims against the estate have been settled, and it is unlikely that the newfound cash will make its way to the victims of the disgraced financier. Instead, some of his assets could be distributed to the coexecutors, including Kahn and Darren Indyke, as well as other beneficiaries chosen by Epstein before his death.
The identities of many of these beneficiaries remain largely shrouded in secrecy, including a woman who was Epstein’s girlfriend at the time of his 2019 arrest on federal sex-trafficking charges. The only other known beneficiary is Karyna Shuliak, who is set to receive $4.65 million of the estate’s personal property in Manhattan.
The situation is frustrating to the women and their advocates, who feel that it is morally objectionable for anyone other than a victim to benefit from acts of injustice or wrongdoing. “Victims continue to suffer,” said Marijke Chartouni, who was sexually abused by Epstein when she was 20 and has already received a payment from the estate.
The estate’s coexecutors, Kahn and Indyke, are also facing a potential class action lawsuit filed on behalf of victims who never received a settlement, accusing them of “aiding, abetting and facilitating” Epstein’s sex trafficking. The lawsuit is still pending.
The situation highlights the secrecy and lack of transparency surrounding trusts, which can be used to abuse the system and deprive victims of justice. “People and entities accused of fraud and other crimes can use trust secrecy laws to their advantage,” said Victoria Haneman, a professor at Creighton University School of Law who specializes in tax and estate law.