Leon Black, the billionaire co-founder and former chief executive of Apollo Global Management, has asserted in prepared congressional testimony that deceased sex offender Jeffrey Epstein defrauded him of more than $60 million. Speaking ahead of an interview with the House Oversight and Government Reform Committee, Black detailed how Epstein misled him regarding the tax status of massive financial advisory fees paid over several years.

According to Black’s statement, Epstein falsely claimed that the $158 million in fees paid for his tax and estate planning services were tax-deductible. Black believed he was paying a net amount of $95 million, operating under the assumption of “60-cent dollars.” It was only years later that Black discovered the tax deductions were invalid, resulting in an unexpected net loss of over $60 million. Black emphasized that while Epstein’s financial advice was legitimate and saved his family office billions—as validated by an independent 2021 investigation by the law firm Dechert—the tax-deductibility assurances were entirely fabricated.

The congressional inquiry, led by Committee Chair James Comer, aims to uncover the depth of Epstein’s connections with wealthy and influential figures. In his testimony, Black vehemently denied any involvement in or knowledge of Epstein’s sex-trafficking ring, stating he never paid Epstein for access to women and was never blackmailed. Describing Epstein as possessing a “Jekyll-and-Hyde” persona, Black noted he met Epstein in the mid-1990s through a network of highly respected public figures and academics, and did not begin financial dealings with him until 2013. Black concluded by expressing deep regret for the victims of Epstein’s crimes.

Key Takeaways

• Leon Black testified that Jeffrey Epstein defrauded him of over $60 million by falsely claiming $158 million in advisory fees were tax-deductible.
• Black strongly denied any knowledge of or participation in Epstein's sex-trafficking operations, asserting he was misled by Epstein's dual personality.
• The House Oversight Committee is investigating the financial and social ties between Epstein and prominent global figures, with Black's testimony marked as highly significant.

Editor’s Analysis & Impact

The revelation of Leon Black’s financial dealings with Jeffrey Epstein highlights the persistent reputational risks facing high-profile financial executives. While an independent investigation previously cleared Black of operational involvement in Epstein’s criminal enterprise, the sheer scale of the financial transactions—totaling $158 million—continues to cast a shadow over his legacy and Apollo Global Management. This congressional scrutiny underscores a broader push for transparency regarding how ultra-high-net-worth individuals manage family offices and vet external advisors. For the wider financial sector, this case serves as a cautionary tale about the critical importance of rigorous, independent auditing of tax strategies, even when recommended by seemingly well-connected advisors. The ongoing fallout is likely to prompt stricter compliance and background checks within elite wealth management circles.

Frequently Asked Questions

Q: Why did Leon Black pay Jeffrey Epstein $158 million?
A: Black paid Epstein for specialized tax, insurance, and estate planning services. An independent report confirmed these services saved Black's family office billions of dollars, though the tax-deductibility of the fees was misrepresented.

Q: What is the 'Jekyll-and-Hyde' reference in Black's testimony?
A: Black used the term to describe Epstein's dual persona, explaining that he only knew the professional, well-connected financial advisor ('Jekyll') and was entirely unaware of Epstein's horrific criminal activities ('Hyde').

Q: What is the purpose of the House Oversight Committee's interview with Black?
A: The committee is investigating Epstein's extensive network of wealthy and influential associates to understand how he operated and whether any financial or political leverage was exerted.