Jeffrey Epstein’s name has long been linked to the Towers Financial Ponzi scheme, one of the largest securities frauds of the late 20th century. The company, founded by Steven Hoffenberg, claimed to manage debt collection services but instead operated as a massive Ponzi operation between 1988 and 1993—defrauding investors of more than $450 million. Hoffenberg hired Epstein in the late 1980s as a consultant, paying him a substantial monthly salary and reportedly giving him a $2 million loan that was never repaid. Hoffenberg later said Epstein was deeply involved in crafting investment strategies and managing money flows that kept the fraud going. When Towers collapsed, Hoffenberg went to prison, while Epstein—though named by Hoffenberg as a central figure—was never charged.
Hoffenberg maintained for decades that Epstein had been the scheme’s intellectual architect, claiming he orchestrated the movement of investor funds and helped design misleading financial reports. Former Towers employees and SEC investigators have confirmed Epstein’s presence at the company and his access to internal accounts, but prosecutors never brought formal charges. Epstein denied involvement, and without a paper trail directly implicating him, he escaped legal accountability for the scheme. Hoffenberg, who served 18 years in prison, spent his later years insisting that Epstein “taught [him] the Ponzi game” and owed victims restitution from his later fortune—claims that remain unresolved.
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