'Jeffrey Epstein & Prince Andrew: The True Story': Ponzi scheme made Epstein billionaire and jailed associate

Steven Jude Hoffenberg, one of the very first business associates of Epstein claims that he not only got away with his 2006 Florida arrest thanks to the infamous sweetheart deal but also walked away unscathed from financial crimes. Hoffenberg spent 18 years in federal prison after being found guilty
Steven Jude Hoffenberg, Jeffrey Epstein (Getty Images)
Steven Jude Hoffenberg, Jeffrey Epstein (Getty Images)

Jeffrey Epstein made his billions through an illegal Ponzi scheme, an ex-associate of his has revealed in a new documentary. Steven Jude Hoffenberg, one of the very first business associates of Epstein, claims that he not only got away with his 2006 Florida arrest — thanks to the infamous sweetheart deal — but also walked away unscathed from financial crimes.

"There is no excuse I can render today but be repentant and to tell the truth so the truth can set me free," Hoffenberg said on Reelz's 'Jeffrey Epstein & Prince Andrew: The True Story'.

He claimed that the two had been involved in a Ponzi scheme that they ran out of offices on Fifth Avenue in the 1980s through a company named Financial Trust Co. It was co-founded by Epstein and him and they were partners. 

"Epstein had a very strong dream and Epstein increased that Ponzi scheme to about a billion dollars," said Hoffenberg. "In 1994, I was charged and arrested and he walked away without a scratch," he added. By 1996, Epstein had already moved on. He was living in one of the largest homes in Manhattan, climbing up the ladder of luxury. Hoffenberg spent 18 years in federal prison after being found guilty of the scheme. 

Businessman Steven Hoffenberg attends the Screening of the HBO Original Movie "Barbarians at the Gate" on March 15, 1993 at the Museum of Modern Art in New York City. (Getty Images)

Epstein acquired a lot of wealth during his lifetime and lived a life of opulence - he was known to throw lavish parties for his rich and powerful friends, scientists and businessmen alike. Apart from his Manhattan home, Zorro Ranch in New Mexico, a Palm Beach mansion and an apartment in Avenue Foch, Paris, he also owned a private island in the Virgin Islands and had a private jet to take his guests back and forth. He also received a Beaux-Arts mansion in New York from his longtime client and Victoria's Secret founder, Les Wexner. 

Although Epstein was widely called a billionaire, he has never appeared on the Forbes list as he had no proof of his wealth. He has also never been included on The Forbes 400 list of the richest Americans. 

'Jeffrey Epstein & Prince Andrew: The True Story' gets its U.S. Premiere on Saturday, January 25, at 9 p.m. ET/ 6 p.m. PT.

GET THE BIGGEST ENTERTAINMENT STORIES
STRAIGHT TO YOUR INBOX.

MORE STORIES

The Apple TV series will premiere this weekend and continue the story of Jason Dessen and his family
36 minutes ago
Tyler Perry’s hit crime drama follows two women pulled into a cosmetics dynasty’s darkest secrets
1 hour ago
A longtime producer of 'The Wendy Williams Show' will executive produce the upcoming project
2 hours ago
Ben McKenzie is set to guest star as Sheriff Wade in the Season 2 premiere of ‘Sheriff Country’
2 hours ago
Nearly 30 years after the real-life trial captured the world's attention, HBO is bringing the Louise Woodward story to the screen
3 hours ago
Fan-favorite shows ‘FBI’ and ‘CIA’ will team up for a major crossover when they return for their next seasons in the fall.
4 hours ago
In recent news, comedy series ‘Not Suitable for Work’ received an unexpected update amid multiple cancelations.
5 hours ago
The original film starred Matthew McConaughey and Kate Hudson as Ben and Andie, respectively
6 hours ago
The Season 1 finale ended with the sound of a gunshot, leaving viewers wondering where the bullet landed
6 hours ago
Kit Harington is making his way to Hogwarts, taking on a major role in HBO’s upcoming Harry Potter series after an unexpected casting change.
15 hours ago