File 023208

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Date: Mon, Oct 26, 2015 at 8:37 PM
Subject:
To: Brad Wechsler < >, Melanie Spinella <  x
— x .
gain at 20 % not 28. . so total , 35.8%. tax rate. same for boat. and plane each around 10 m so total 7
m savings if both sold
Date: Tue, Oct 27, 2015 at 11:35 AM
Subject: Detailed constructive list.
To: Melanie Spinella < ________
Cc: Brad Wechsler <I In>
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films. etc.
Date: Wed, Oct 28, 2015 at 5:56 AM
Subject: Fwd: Detailed constructive list.
To: Lesley Groff <=111.01
please print two copes . re formattted so leon can go line by line ie .
answer. blank who responsible. time frame. fee paid when?
heading s question, gift
Date: Tue, Oct 27, 2015 at 6:35 AM
Subject: Detailed constructive list.
To: Melanie Spinella <!__________________________>
Cc: Brad Wechsler <__________________________I>
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance. re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films . etc.
From: jeffrey E. leevacation@gmail.com>
Date: Tue, Feb 24, 2015 at 2:20 PM
HOUSE OVERSIGHT 023208
Subject:
To: Melanie Spinella <________________________>
Leon,
Yesterday , I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude of llc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do , - my responsibilities. etc and those things that are not, below you will find details of things that I
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively . My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
HOUSE OVERSIGHT 023209
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or" its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized atty in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
however - that is all in the past.
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )
I heard you when you said you believed i had already been paid for the work that is now required. The
art partnership has fully answered all your concerns and discharged all my obligations and more so.
. ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall
that you required that my payments be at the end of my work not at the beginning as everyone else's.(
my work was never to include hours upon hours of training your staff). I eventually agreed, this of
course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
HOUSE OVERSIGHT 023210
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route . always. It will take a
great deal of your time , but you will not have to spend any more money on mine.
We are scheduled to meet fri at 430 , I leave at 5 am sat morning.
Date: Wed, Nov 4, 2015 at 4:45 AM
Subject:
To: Melanie Spinella
okay, its time for you to decide how you would like to move forward. ( fyi get your money from the
1031 . the screw up is only one of many,) If you decide to move foward on decanting. phaidon, note
basis estate update, each requires many carefully orchestrated detailed steps. and precision . there are
hundreds of millions in saving if done correctly and a huge mess if not. If you want me and my
colleagues to do it, oversee it paper it and guide it, you should tell me. It is a big undertaking . If not,
ok.. Brad and your crew can do it. I will have no real further involvement apart from confirming the
outcome of my proposed structure, I will not risk the admonition of- they thought you said, they thought
you meant, they understood it to be. but they said you said, ( i e ,I asked at our meeting that accounting
be done properly for bens house , what came back was ada thought that I meant that we needed to go
back to the 97 trust and give him a full third party accounting of where his money had gone??!! I kid you
not). I dont think brad should talk to jane heller without a fully fleshed out plan in place and even then it
should be you.
Date: Wed, Nov 11, 2015 at 10:59 AM
Subject:
To: Richard Joslin < >, Joe Avantario < >, Brad Wechsler
lets calculate the exact payoff amount for the leon note as of nov 30 ,DEC1 , dec 31. 1) does art
space get folded in to phaidon. . middle cos disolved.? 2 collapse topco etc
open bank accounts for apoo
interest will be approx 50k per day . look at deduction.
note payoff docs- notaries . new docs. releases ? , accountings? disclosures? ( gaming ? ) art
partnership . renew. will? repaper lease guarantees? macfarlanes. ? do we pay down 10m. of plane. ?
proposal for airplane, 91 , 135. exec , jet. .? remove debra. from plane?
Date: Wed, Nov 11, 2015 at 11:00 AM
Subject:
To: Melanie Spinella <
we should discuss e trust and j black trust. , brad buying phaidon. artspace folding ? plane/ boat.
foundation.
Date: Wed, Nov 11, 2015 at 9:09 PM
Subject:
To: Melanie Spinella <›
HOUSE OVERSIGHT 023211
we need to coordinate, brad bank, cannot be clumsy
Date: Fri, Nov 20, 2015 at 10:50 AM
Subject: agenda
To: Melanie Spinella <!
1. brad or richard. makes litte difference. 2. gagosian . no written contract??!! fishy to me - who
transfers 100 million dollars overseas without a contract ,- dont want you pulled into a scandal. careful
especially as he is on the tax dept radar, . 3. I would like you to delineate what you would like me to
do - the more specificity the better.- I think it important to avoid any misunderstandings as to each of
our obligations and responsbilities. I will always give you my best advice. I have made my views re ada
and the office clear . no hedging. . THEY should go. no hesitation . no zeus, your choice obviously.
good news - I will not bring it up again, moving forward- These transactions will require a great deal of
manpower over the next holiday month, every document needs minute review. . I would like to fix our
fee agreement, in detail no later than this weekend . ie amounts, dates paid . entities paid. any concept
you may have of' after care"? all on the table. .other questions such as how much to leave your
children ,in what form, has no right answer. but you and I can dialougue as long as you like about issues of
judgement. it is out of o friendship, not biz. ( bill hellman as a trustee? ) . we can talk about that during
walks etc. I would like for you and Ito go back to having fun.
Date: Mon, Nov 23, 2015 at 11:53 AM
Subject:
To: Melanie Spinella <11.11.11..1.11
25 minutes needed. 1 new and vastly improved plan, needs your thoughtful input, decisions on
legacy paintings bronzes. books etc. 2. we need to reach fee agreement. and authorities.( alan and I
spent time over the weekend, ) , hundred documents to be drafted. 3. gagosiaon 4 revolver . 5 inspire -
FBI. 6. Phaidon, solution. 7 plane. no need to reinvent the wheel. . ( rowen ).
Date: Tue, Nov 24, 2015 at 2:41 PM
Subject: Fwd: Loan
To: Melanie Spinella <
Please talk to him
Date: Tuesday, 24 November 2015
Subject: Loan
To: Jeffrey Epstein <jeevacation@gmail.com>
Cc: Melanie Spinella <  _ I> "Alan S Halperin" <
Clapp Joe Avantario <111.1>
Jeffrey-given the high daily interest cost (50k+/-) on $$ borrowed which you pointed out yesterday, here's
what I'm thinking, but I want to be 100% on the same page as you:
1. Close next monday on the credit line, but don't borrow any $$. (We can, of course push closing back but
my preference wld be to close.)
2. Right now, at barry's request, Irene Steiner, on behalf of the trustees is reviewing apo1 and apo-o1.
While probably not impt on a "substantive" basis it was (a) impt to barry and (b) is likely good for leon.
3. We are hoping to have signature pages to the trustees (and returned to us) by early to mid next week.
(Ada will oversee.)
4. We will then get the new trust to bofa who, moving quickly (according to them), will have an acct open
the following week, 12/7-9.
5. We need to manage execution of paperwork associated with decanting which I assume occurs once apo-
ol and bank acct are operative. (Ada I'm sure you'll be on top of this).
>, Ada
HOUSE OVERSIGHT 023212
6. I assume we will move $$ to pay down loan the day or day after (?) apo-01 bank acct open. As you
know we cld do this as early as next monday/tuesday but then cash will be sitting in apo-1 while we're
waiting for apo-01 bank acct.
7. If there are sales of assets (or llc's) from leon to apol or apo-01 that needs to be buttoned down and
organized asap.
8. Same if you want another NEW trust in the mix as that will involve paperwork and opening an acct with
bank.
Let's discuss to make sure we're on the same page on process. B
Sent from my Verizon Wireless BlackBerry
Date: Mon, Nov 30, 2015 at 5:21 PM
Subject: agenda
To: Melanie Spinella <____________________________
1 fees, amount and to what entities when and responsiblitis. 2. gagosian idea to save a minimum of 10
mill and maybe more. 3. i can walk you through carlyns screw up, 50 % would have made little
difference and maybe made it worse. 4. we should have an all hands meeting with your family to talk
about art distribution on death. . 5. phaidon, decantings ( already firmly in progress ) loans. ( alan )
pent. ( with follow up ) all part of same elegant transaction, 6 asymetric risk worth at least 50- 60 no
matter how you calculate. I can explain. 7 lets get the money issue out of the way once and for all. I
have my team set to start.
Date: Tue, Dec 1, 2015 at 12:26 PM
Subject:
To: Brad Wechsler <
>
I would like to consider the gaming commmison disclosure dates. . 2 we should put to bed once and for
all adas concerns re the bronzes. . alan should opine on valuation ranges? rather than estimates. . 3.
Leons input re gagosian purchase. ( trade in, 1031 if 17 likely transfer- . scream, phaidon. plane and
boat. 4. I would like to review all assignment docs. decanting schedules. ( exhibits ). balance sheets for
apol-2. . loan does re transfer of narrows inside. 5. Leon should be clear regard future steps. pent etc.
swaps , paydowns 6 mock-ups of all before trigger pull.
Date: Wed, Oct 28, 2015 at 12:56 AM
Subject: Fwd: Detailed constructive list.
To: Lesley Groff <_______________________
please print two copes . re formattted so leon can go line by line ie heading s question, gift
answer. blank who responsible. time frame. fee paid when?
Date: Tue, Oct 27, 2015 at 6:35 AM
Subject: Detailed constructive list
To: Melanie Spinella <_______________________________
Cc: Brad Wechsler <
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale., 11 brh, doe review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
HOUSE OVERSIGHT 023213
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films. etc.
ate: Fri, Dec 4, 2015 at 2:07 PM
Subject: Fwd: moving forward
To: Melanie Spinella <__________________________>
I had forgotten that Alan was actually at the table when i explained my note deal to you. it was at the
end of the meeting described below. . as you will recall, not once , not even a peep did alan suggest
contemporaneously his hand in the crafting, in fact brad said it was an idea. that HE brad, HAD HAD,
from the begiining . my emails between alan and I that you can read, further confirm authorship. Im sure
you recall the obnoxious tooting when alan said he agreed with my plan. .
Date: Mon, Nov 2, 2015 at 10:03 PM
Subject: moving forward
To: Melanie Spinella <__________________
I have mixed emotions about what transpired today. really, You saw first hand in nauseating detail
what i have been saying to you for quite a while now. Joslins answers were totally incomprehensible.
the charts he prepared unreadable. Brads defensive posture was at a minum very surprising . He and I
have recently gotten along quite well , I thought. Neither Joslin or Brad understood a 180 million dollar
number. no cash flow after weeks of requesting? odd. when you suggested that heathers behavior was
emblematic of a sloppy office , brad said lets not talk about emblems??! bill pay, admittedly no change
for the year. . plane not done. though it was the only thing i suggested doing first in july . . I sent you a
list of 10 consultantts. brad said three, . i didnt want to push it. I was shocked that brad was opining on
things he knows little or nothing about. tax issues. 1031. neg basis , note payoffs ( the same idea he
said he had had from the beggining??!!) . answers re LBF holdings that can be corrected ( they cant) .
valuations that have never been read. . When we met in your lobby he seems surprised that i was there. I
dont know if he felt somewhat sandbagged. . .
the savings on the note payoff is aprrox 33 % of 1.8 billion, real money if you do phaidon which i see no
reason not to. if later josh and ben want to buy it back with you or without you they can. i will walk you
through the structure one on one. . the losses will offeset the calder gain as well as apollo gain.
Im aware that seeing what you saw frustrated you. I felt badly for you.
I>
You wanted a contingent deal. real value. etc. I will not of course hold you to your deal. . its silly. its
not how i work or a reflection of our friendship, my proposal is as follows. I want away from your
buisiness , but at the same time leaving you in good shape. I think you should pay the 25m that you did
not for this year. for next year its the same 40 m as always, paid 20 in jan and 20 in july, and then we are
done. I will give you advice and counsel but new people will be running your operating machine. I will
oversee all the work that needs to be done you and I will hire new people, and it will be self running ( it
was may in my house when you told brad it had been 5 months and you were getting fed up ) I will set up
a parallel. office, somenoe like wendy dolman or her quality is paramount. two accountants two
bookeepers and two office admins. . alan and zoe will handle trusts and grats. heatehr diana george will
be incolved in art partnership. if you want brad, analysts etc. and kids to do investments I have little to
add in that regard ,except to be able to account for things properly. I suggest that the kids must have skin
in any deal.
Alternatively , we can continue to focus on fun and let someone else do the things that you want done.
HOUSE OVERSIGHT 023214
<EIN=M>
and you and I can kibbitz about it all, structures outcomes risk, museums. charity, ( joslins answer by
the way was I had asked how much charity was leon planining to give this year , ( the 2 m ) he didnt
include your foundation or the payment to me, or from debra and you??!!
Date: Mon, Dec 7, 2015 at 5:39 PM
Subject: Fee
To: Melanie Spinella <!______________________
Amount ? Paid in kind ? Financed ? Plane ?Paid to ? Non charity, charity . Fixed dates
Date: Mon, Dec 7, 2015 at 8:05 PM
Subject:
To: Melanie Spinella <________________
please re iterate that no further actions taken without careful document review. please
Subject:
To: Melanie Spinella
Leon,
As you are well aware, There is little I won't do for you, or at least try to do as a friend, and a great
deal that I have already done ( both known and some things that willneed to remain unknown.) Our
arrangement was for me to architect sophisticated structures that would be beneficial to you. that is what
I have done and will continue do in order to fulfill my obligations under our agreement. The
discovered fact that you in reality need an entire family office built from scratch has been trying I have
aleady agreed de- facto to try to help. I would suggest that Phaidons payroll and attention pales in
importance to your personal structure,which has taken a back seat, Some of my suggestions regarding
the Eysium office are as follows you will need a budget of 3- 5 million per year. CEO 1 million, new
tax person to work with rich, 250. new bookkeeper ,200 new paralegal to work with ADA ALan etc,
coordinating with Apollo, Akin, paul weiss , new acct openings, sec filings, sales tax review, etc.
$150 . art point person. loan, inventory, purchasing support, $?? software servers, video conferencing,
tax oversight.
I believe You should rapidly address trustees , gift trust, succesion, wills of debra and children„
monetization events, cash flow. etc I can of course share my experiences with you on each issue.
WIth regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with many
pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago that the
quality of the people involved need to be upgraded. ( lucky for me these last issues arose way before the
begining of my involvement ) I am also aware however of my overarching friendship obligations of ok, -
given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping, nitpicking
with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take charge
Everyone would report to him. eileen included. He would however work for me. this is not, by a long
shot my first choice as I prefer only being responsible and standing behind my own personal work ( ie
the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in trying to
think through the problem creatively . My organizations handling of the more complex isssues I believe
you might find very costly, very! ( however many structures available some risk sharing, maybe risk caps
,etc ) but would require my teams doing the work , not yours. Ada should be only a trust, grat
administrator, not sure what role you prefer for Eileen as you hired her initially to oversee investments.
whether Rich your controller stays or not, is not urgent. having Tom report to a new person,- is.
HOUSE OVERSIGHT 023215
coordination with Suydam Kathy gregory, I would suggest limiting to one person. The increasing public
profile needs to be taken into consideration.
talk later..
Date: Sun, Dec 28, 2014 at 5:18 AM
Subject: jobs ahead
To: Brad Wechsler
, Melanie Spinella <  _
>, Ada Clapp
1. review accounting system. Book keeping softaware. staff, ( senior accountant ) methods on line
banking, brokerage. cash mgmt. airplane reimbursement. boat sale. art purchases sales use and sales tax.
tax filings FBAR FATCA, gaming commsion, pfics, insurance . uk co law.
2. review does for TRA BRH grats, trusts, heritage will, insurance, art lending. medical, springing
powers. two fire drill books. one needed for injury, other for death
3 review bills. boats , planes, legal, ( PW, McFarlands all outside. legal and accounting. Toms bills
over 400k. house projects. south ny ben
4 cashflow projections tax projections , interaction with Apollo accounting tax, Phaidon ,art space ,and
Regan. legal accounting. audit
5. children meetings, review to date and allocations
6 review all role in payables. files scanned, no paper
7 review invesmtents for tax basis and unrecognized gain
8 schedule of all hedge funds . redeemables commitments etc.
9 charities pledges strucutre, staff,
Date: Fri, Feb 20, 2015 at 5:52 AM
Subject:
To: Melanie Spinella <____________________________
1) pg 1 A" unequal shares" . pg 23 "removal of trustees " absolute. dont be confused with abiltiy to set
up seperate trusts„ 2) I am reachable this afternoon in europe. on cell. 3. on another note . -our
financial agreement ended months ago . seperate from the art partnership (which i was told yesterday to
my amazement is still not funded) . i am obligated to complete ? the time i have dedicated since oct/
dec has been spent mainly as your friend. tom, brad though i am fully cognizant of my responsiblities. I
will try to help find people. I am not good at human resources. howevr If I don;t think they are good
enough for you. I will continue to say so , and you obviously decide. but I will reiterrate even in the face
of your "nobody is good enough argument." keeping foremost in my mind that you and I have only beeen
shown a very tiny handful of people. 4. I find the friction over fees , counterproductive, in an attempt to
avoid it I had suggested a multi year deal early on. you rejected it. I then suggested, and urged you to
have an option at a fixed fee , you also rejected that .you wanted the fee payment only at the end I argued
but ,conceded. I suggested a structure that tom didn't like, you rejected it . 5 I suggest you make a fair
proposal.- that i can either accept or reject. some payment up front this time is a requirement. I am willing
to modify any outstanding obligations. - there are creative ways to assure you of your desired
characterization of those payments. 6 you should open accts at Deutsh. and goldman. I am told that
eilleen has set up over one hundred bank acccts for you???!!. few relevant 7 you should immediatly
demand a list of all her acct authorites, exec poistions . director etc. bank authorizsations. etc. talk
later or over the weekend if you like
Date: Wed, Dec 9, 2015 at 10:16 AM
Subject: Fwd:
To: Jeffrey Epstein leevacation@gmail.com>
kkkjkjjjkjj you said
HOUSE OVERSIGHT 023216
Date: Tue, Feb 24, 2015 at 8:20 AM
Subject:
To: Melanie Spinella
Leon,
Yesterday , I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude of llc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do , - my responsibilities. etc and those things that are not. below you will find details of things that I
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all . It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively . My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
HOUSE OVERSIGHT 023217
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or" its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized atty in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
however - that is all in the past.
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )
I heard you when you said you believed i had already been paid for the work that is now required. The
art partnership has fully answered all your concerns and discharged all my obligations and more so.
. ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall
that you required that my payments be at the end of my work not at the beginning as everyone else's.(
my work was never to include hours upon hours of training your staff). I eventually agreed, this of
HOUSE OVERSIGHT 023218
course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route. always. It will take a
great deal of your time , but you will not have to spend any more money on mine .
We are scheduled to meet fri at 430 , I leave at 5 am sat morning.
Date: Fri, Dec 11, 2015 at 12:19 AM
Subject: Re: Fw: sched
To: "jeevacationAgmail.com" <jeevacationAgmail.com>
Cc: '
1______________________________________________________
Jeffrey-joe tells me yau want this to go live on 12/21. Possible, but an awful lot has to
go right next week logistically for everything to fall into place. We'll try....
From: Brad Wechsler
Sent: Thursday, December 10, 2015 05:36 PM
To: leevacation@gmail.corni <jeevacation©gmail.com>
Cc:
Subject: Fw: Fw: sched
On different subject: general time frame is: docs (notes and purchase and sale
agreement to you tomorrow end of biz); incorporate your comments monday and get
docs to trust attorney tuesday; contemporaneously meet in person with you tuesday or
wednesday and do a dry run. On these days ada will also take the trustees through
outline of docs they will receive thursday. Docs to trustees, leon et al on thursday and
signatures gathered by friday for first close 12/22. Tight but doable. Ada, alan agree?
PS: ada, you shld begin to think abt where people are (jh, rr, bc, ldb) next week.
From: Heather Gray [mailto________________________
Sent: Thursday, December 10, 2015 05:24 PM
To: Brad Wechsler
Cc: Jeffrey Epstein (jeevacationOgmail.com) <jeevacation@gmail.com>
Subject: RE: Fw:
Subject: Re: Fw: sched
Barry-what we're going to do with jeffrey will be "small picture" and detailed. It might be better for you
HOUSE OVERSIGHT 023219
and jeffrey to have a higher level conversation some time next week; either way you'll have access to
everything, obviously.
From: Barry J. Cohen [mailtc______________________________
Sent: Thursday, December 10, 2015 05:55 PM
To: Brad Wechsler
Subject: RE: Fw: sched
I wouldn't mind attending a meeting or portion of a meeting with JE. If he is the mastermind, and you
want to move quickly, it might get a lot of questions resolved quickly.
From: Brad Wechsler [mailto:
Sent: Thursday, December 10, 2015 5:37 PM
To: leevacationAgmail.com'
Cc: 1___________________________________________________________________INIelanie Spinella; Barry J. Cohen
Subject: Fw: Fw: sched
On different subject: general time frame is: docs (notes and purchase and sale agreement to you tomorrow
end of biz); incorporate your comments monday and get docs to trust attorney tuesday;
contemporaneously meet in person with you tuesday or wednesday and do a dry run. On these days ada
will also take the trustees through outline of docs they will receive thursday. Docs to trustees, leon et al on
thursday and signatures gathered by friday for first close 12/22. Tight but doable. Ada, alan agree?
PS: ada, you shld begin to think abt where people are (jh, rr, bc, ldb) next week.
From: Heather Gray [mailto______________________
Sent: Thursday, December 10, 2015 05:24 PM
To: Brad Wechsler
Cc: Jeffrey Epstein (jeevacation@gmail.com<mailto:jeevacation@gmail.com
leevacation@gmail.com<mailto:jeevacation@gmail.com>>
Subject: RE: Fw:
No, I'm meeting with him at 9:30 am tomorrow.
Date: Fri, Dec 11, 2015 at 9:49 AM
Subject: fee
To: Melanie Spinella <____________________________
elegant solution ;re fee., 30 million paid now. with purchase of noel kalb, paid with funds from the
drawdown. you should use and keep open the line for the full 30m and leave it outstanding until its
expiration. in four months. legit biz reason, very nice, - the balance of the fee - paid in kind either low
basis art . or interest in either milenium ,lone cascade ,or king street.
Date: Tue, Apr 14, 2015 at 5:53 PM
Subject:
To: Melanie Spinella
saved you 500k at the last minute, . brad has had the same chart since march 16th, its his job to review
NOT MINE .appears he is one of those living in the dark leiwe. I found 8 million dollars today, missed
deductions. . not yet in the numbers,.?
Date: Wed, Apr 15, 2015 at 8:59 AM
Subject:
To: Melanie Spinella <
>
HOUSE OVERSIGHT 023220
1 did the paul weiss bill get paid ??? 2. Talk to me before signing anything today important
10m paid today to gratitude america, a 501 c 3, willl make last year complete. 20 million paid today
ftc. 10 million july 15 5 million sept 30. , 5 million jan 1 for all of 16. tax savings paid at 37 percent.
of net. savings. 50 million credit. net. so 150 million free. 600 savings 225 million owed. - 50 credit,
175 owed.
Date: Mon, May 18, 2015 at 8:17 AM
Subject: agenda for tomorrrow
To: Jeffrey Epstein leevacation@gmail.com>, Melanie Spinella <_>
as a reflection on your voiced spirited concerns in the what have you done for me lately category ? ))::
in the beginning . there was eileen and tom. ( eve and adam,-- however it appears, she declined to eat
the apple from the knowledge tree)
. that was it. ada was at the bank but reviewing does. carlyn was in the kitchen making mush ( abel and
cain)
books as they were mystersiously called was being kept soley by eileen, with little or no input ,correction
or advice from tom. herarely if ever asked questions. expenses ie airplane was done in house apollo.
(1031 exchange blown etc) at this time
as I recall you got quite annoyed, and agressive and initiated the" talking out of the both sides of your
mouth " tiddy, when i suggested that the level of their competence left much to be desired. ( ralph lerner's
came later ) .response - eileen ran the desk, tom is a partner, ralph wrote the book etc
re tax there was almost no oversight of income, estate, gift ,sales and use, transfer excise etc . IRS
SEC GAMING NYS. real estate, valuations ( many )tax filings- disclosures, etc. re grats trusts defect
trusts, llcs corps , trustees , partnerships. foreign corps. 100 bank accounts. gift taxes„ loans, notes.
payables. expenses. . , insurance.( life, art, split dollar), cashflows, operating biz„ investments,
contingent liabilitiites.( funds , miami ) , commitments dividends, BRH TRA, shareholder agreements,
bank loan agreements. wills, construction„ contracts planning permits etc.. employ rules. checking
account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs , brokerage
accts, old stock certificates. stock options,( environmental solutions still not done D. estate tax
calcualtion firedrill, ( note ,basis etc ) low basis, step ups , however with no accounting system, no
reveiw of boat expenses plane expenses etc. . many outside counsel with litle or no coordination.
Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse , Reich, withers bergman, Empire„ akin
gump, bbd seidman, Wendy, Apollo in house.
lumber, knowledge universe, ennvironmental, solutions 12 mu i in stock, . on and on
the priority list that you asked me to prepare for brad and you in dec , unfortunatlleyso far, little change
ie no accounting system that ties, no, brokerage accounts though strongly suggested, jpm db, gs, april
of 2014 . IT antiquated
dagastino hired , no inut from me, julie, temps, paralegals miriam. etc.
still need new accounting system - on line banking staff hires. ( seprate from samantha two years out of
school ). audit system, . ?? john murphy? joslin? dag? eva?. i strongly suggest workers at the highest
level of competence. two senior accountants. not managers workers who will get into the weeds. partn
expertise„ replace ava, get heather help. a new person legal , new IT,system and person, way way
overdue, new receptionist, bill opener, ability to oeversee
in house, boat plane review household ( 12million ) review, filings- partnerhip accounting,- familitarity
with grats, trusts etc . audit system put in place. that should be the easy part. then strategy to deal with :
As new facts on the ground develop, phaidon debra, children meeetings, ? stock sale sale of art„ apt(
large gain ), 1031 trade in , plane depreciation, boat sale. construction, brad will oversee brokerage and
HOUSE OVERSIGHT 023221
investment, ?? pe. real es, . publishing, grats, tra, brh ( death). foundation , museum, tax proejctions cash
flow projections, cooridnation with tax from apollo. etc
Date: Thu, May 28, 2015 at 8:53 PM
Subject: ulysses 2.0 ____________________________
To: Melanie Spinella <
I realize it is only due to a lack of understanind of the job ahead. and not out of any sense of
unwillingess to pay
- as opposed to merely hiring people to set up a family office, someone will have to do the following-
separate from the art partnership which is my responsiblity. there still needs to be a huge amount of
work done for 2015,16. not to mention that brad at the moment is going to have train the incoming
team?? your call
strategic decisions re estate and other planning , sale of phaidon etc. . in addition setting up for the
accounting for each strategy ie.:
income, estate, gift ,sales and use, transfer excise picasso, 1031 calder. . review and detailed oversite
of IRS SEC GAMING NYS. real estate, entity valuations ( many ) tax filings- disclosures, follow
up of grats, trusts ,defective trusts, llcs corps , trustees , partnerships. foreign corps. 100 bank
account need to be rationalized, not only having brad step in to children investments. gift taxes, trust
, loans, notes. payables. expenses allocations. . , insurance.( life, art, split dollar), cashflows,
operating biz„ investments, contingent liabilitiites.( funds , miami ) , commitments funds and charities
, dividend treatment -important review of transcations relating to BRH ( amendments) TRA sale (
nuanced ) , shareholder agreements, bank loan agreements new bank relationships.. wills,
construction accounting and oversite , contracts planning permits etc.. employee rules, regs,.
checking account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs
, brokerage accts,. stock options,( ie environmental solutions still not done !). estate tax calcualtion
firedrill, ( note ,basis etc ) review of boat expenses plane expenses, depreciation issues refunds etc. .
rationalize all outside counsels and accounting firms
Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse , Reich, withers bergman, Empire„
akin gump, bbd seidman„ Apollo in house counsel.
set up and oversee brokerage accounts at JPM DB GS and thoughfullly trade
. new IT system from top to bottom full time IT person
new accounting system - on- line banking cooridnated with reports . fire drills as per caruci ( he
sounds good ) and. audit system,s . review of john murphy? joslin? dag? eva?.
in house, review household ( 12million ) review, filings- partnerhip accounting,- familitarity with
grats, trusts etc . audit system put in place. that should be the easy part. then strategy re:
As new facts on the ground develop, phaidon debra, children meeetings, involvment , trustees
adjusted, stock sale sale of art„ apt( large gain ), 1031 trade in , plane depreciation, boat sale.
construction, brad will oversee brokerage and investment, ?? pe?. real estate?, . publishing,
grats, tra, brh ( death). foundation, museum, tax proejctions cash flow projections, cooridnation with
tax from apollo. etc
you are sitting on over 100 m of cash???!!
Date: Fri, Jan 2, 2015 at 2:55 PM
Subject:
To: Melanie Spinella <___________________________
Leon, I decided last week that there was little or no upside in disturbing your well earned holiday
HOUSE OVERSIGHT 023222
especiaily as you seemed so peaceful happy and smiley ,getting yourself in shape and truly enjoying your
family time. etc. however the situation in your family office is unresolved. I am aware that brad starts
monday howver, two last days of the year madness. timber.deal not complete no jpm,acct activity no
partnership docs, old stock sales not complete , no bank doc redo. no phaidon note restructure, ., no
boat expense review, airplane same ,topco midco.etc still not finished ( trustee ) , projections mixed
with fiction. , legal exp out of control. no care for admin, silly ( audit). tom conversation with joslin.
notes. debra, trustee notes. trustees hiring. bens audit. interest payable made hoopjumping last day of
year. after weeks and months. of lectures , gifts to discuss- staff. -houseproject mgmt. . I will continue
to try, I had offered ajoint call with eileen before you left. as i said before , joslin takes instructions from
eileen. he said it was made clear to him that he doesn't work for me but works for you. . I tried.
Date: Tue, Dec 29, 2015 at 7:26 AM
Subject: Fwd: leon DO NOT SEND, hand deliver.
To: Jeffrey Epstein <jeevacation@gmail.com>
Transaction complete !
. this - in spite of your collection of Elysium misfits. !!!
With Brad out of the office and unable to run his usual interference , the level of his utter incompetence
was brought front and center, he may be a step up from Eileen, but if he is, then it is not certainly not by
much, . Though you and I have spent many many hours discussing the importance of details and
mechanics I was not shown one document re phaidon,- not one.. Brad wanted to keep it private between
he and his so called" advisors" however as he was out of the office during the most important
transaction of the year, I did get to spend time with joslin Joe and john, - the situation in your office is
wholly ludicrous - to summarize - the list I provided to Brad last December - things I thought were a
priority to get done after consulting with your office still remains virtually undone.
IT, still desperately needed- reporting flawed cumbersome and inaccurate . all done by hand as one -off
exercises, - airplane: re structure, (my only suggested priority in june ) is really ,no further ahead,
,consultants up the kazoo but nothing at all done.( the office was told that i cannot even see the proposals
received without brads specific authorization ) - brad has no idea even as to what questions to ask. he
knows little of finance, is run roughshod over by almost everyone in the office. he is a little man, using
your power, to appear larger . Eileen was self aware enough to know she was over her head , that is a huge
difference. bad info is rampant ie 3 million in deductions Im told are taken for art space but on closer
examination it turns out they cannot be used at all. ( ZERO benefit ) though you will be told yes they
were deducted on the return they said that is the question they get asked ! " were they deducted " not 2
is there a benefit" !! I asked for the balance sheet and P and L for Regan arts , a basic first step in
order to check your financials. "sorry we never got one?" though 9.8 million invested, no p&l, nothing,
a construction project run amok , no budget, the coo fired after only 3 months., no clue. I can add that
artspace financials are also a total mess.
As your friend and in order toturn the page. I will try to be constructive
The following is a list of things I think would be in your interest to get done asap .but definitely not by
me.
i suggest you form new grats. , hire a high level tax partner. use your trading accounts as they remain
the paramount requirement 16 months after i emailed to you their importance. , I suggest you consider
having the 49percent of phaidon merged into artspance and have Richard buy artspace. re-do bank
loans, no need to pay interest at higher rates on boat or plane. . as Richard is now no longer trustee. re-
do will, make suydam executor, with Barry, and john as back up. pay 1 million a year for executor role.
get rid of Judy Black trust, deal with gifts and their tax returns, . review amounts to kids at fixed ages. put
more protections in for Alex and Victoria. , distribute some money to kids let them make decisions. ,
HOUSE OVERSIGHT 023223
decide art division with children in attendance . have fire drill done on estate. fill out estate returns as if
you and Debra died today, choose advisers - rick bronstein said the only 1040 he ever filled out was his
own. ( this is brads chosen advisor??!) Halperin has a conflict that should be addressed., Debra should
enter a tenants in common agreement with kids. you have airplane consultants tax consultants it
consultants. plane operation consultant. . boat consultants. architects, lighting , art, legal, . foundation,
deal with TRA , BRH , rationalize investments, cash flow, reporting, gaming disclosures, foreign, gift. .
prepare tax projections for 15 and 16, . deal with neg basis ( tufts gain, debt financed, art partnership,
pledges. sell stock, art, deal with phaidon debt. athene,? income, capital, foreign, exit, corporate,
insurance regs, out and inbound issues, basis, appropriate discount rates. ? terminations. control. ,
qualified dividends, corporate tolls, inversion rules. , grat issues, short swing and other sec disclosures,
Rothshcild bank, 150 b they have a distribution network with no products , private bank Rockefeller
Rothschild financial service, deal with UK visa issue sooner rather than later. we can talk about Rowen
request re Athene , 2 billion in taxes on transaction. ?!
the facts as i see them
in June and then again Sept, we both agreed to a 50% of phaidon payout., then after weeks of thinking
about the issue ( which I fully understand ) . the payout was unilaterally changed. 5m woudl be reserved
for the future ? . and out of the remaining 15m,? i would receive only 5. ( note : I'm confident that both
the debt, and the artspace investment will also lead to a write off of another 30 m. plus ) In my dining
room ,you were surprised when I said that i require most people to pay their advisory fee up front so that
I am assured that I will be properly compensated for my work when strategies that I devise are
implemented. you may recall that you appeared offended and said " are you suggesting that i would go
back on my word" I said no, of course not ! you are my closest of friends ,but my experience is that
when amounts get large, people tend to get unhappy when it actually comes time for them to pay,.
From day zero a 50 - 60 million price was attached as the fair price of the transaction just completed .
though this amount was already substantially less thanour agreed and negotiated formula. - I was
never told that this was out of range. in fact, alternative methods of payment . plane -in-kind etc, were
discussed ( ie keeping the 30m portion of fee outstanding till March ) ,I provided as requested a
detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon
was not forthcoming ) in order to make my many corrections. I was then told that Alms involvement
warranted a discount. Even in the best of light , though it is beyond question that not one-,not -one
time in three years has he ever proposed a unique idea. (including the new tenant in common idea,) and
lets say he made a contribution to the plan andeven that it was 50 %. though no one could posit such a
large amount unless they were wearing a brightly colored clown suit., the price of doing the deal was
known . It had both sent in writing and spoken about on the phone numerous times, a detailed
execution plan was provided. then and only then after all was laid out for the group I was told that after a
number of conversations with brad karp that only 20m would be paid, (and even that was more than
originally contemplated ) for both transactions . I feel It was remarkably unfair. Did brad even know of
our prior agreement.? I called him and he said he was never told.?, I would ask that you I and Brad karp
sit together if you think it would be helpful. . I would like to send him this email, with your consent of
course. If the transactions were never consummated, i would not be owed a dime, however , the price
was known up front. , the detailed step by step plan was followed and overseen by me, the price that had
been requested before the transaction was begun, and had lready heavily discounted, out of friendship,
from our agreement . I believe the decision re paying only 20 m has franldy left me felling quite uneasy.
since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in
eileens drawer.. went through cash flows for phaidon shwoing that john murphy is not an accountant.
HOUSE OVERSIGHT 023224
redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from
including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created
8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems,. . reorg bad art
purchases, funds taken„ charibale decustions , helped with fincnacil sttment gamoing commions fling..
boat deductions, rescued stock from grats. . may 1 after months of brad not finding anyone i sent an
email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could
figure out the basis issue, please see attached, .
questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts.
doesnt exist
ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you
why the proposed phaidon transaction DOES not work. . as them to give you a plan for the plane. ? ask
them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system
progress after one year. . the approval process for payables. . the cash flow projections? assumptions? ask
for a comparative review of investments, ask haperin to describle to you in any detail BRH, the major
asset of his two biggest clients, tax basis, disposiotion in the estate. . etc. ask brad to show you the
liquidation of the inteveing art space cos? .
Last year you asked, for my help I told you I preferred not as we would be better off having no financial
intereactions. the risk was not worth it. You told me that as my friend i had to do it I agreed., here
we are in what I find to be an awkward situation. the transactions that i decvised were used , our
agreement was ignored. and im not sure how to respond.
since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in
eileens drawer.. went through cash flows for phaidon shwoing that john murphy is not an accountant.
redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from
including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created
8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems,. . reorg bad art
purchases , funds taken„ charibale decustions , helped with fincnacil sttment gamoing commions fling. .
boat deductions, rescued stock from grats. . may 1 after months of brad not finding anyone i sent an
email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could
figure out the basis issue, please see attached, .
questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts.
doesnt exist
ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you
why the proposed phaidon transaction DOES not work. . as them to give you a plan for the plane. ? ask
them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system
progress after one year. . the approval process for payables. . the cash flow projections? assumptions? ask
for a comparative review of investments, ask haperin to describle to you in any detail BRH, the major
asset of his two biggest clients, tax basis, disposiotion in the estate. . etc. ask brad to show you the
liquidation of the inteveing art space cos? .
----------Forwarded message----------
From: jeffrey E. leevacation@gmail.com>
Date: Tue, Apr 14, 2015 at 5:53 PM
Subject:
To: Melanie Spinella ______________________________
saved you 500k at the last minute, . brad has had the same chart since march 16th, its his job to review
HOUSE OVERSIGHT 023225
NOT MINE .appears he is one of those living in the dark leiwe. I found 8 million dollars today, missed
deductions. . not yet in the numbers,.?
----------Forwarded message----------
From: jeffrey E. 1 eevacation@gmail.com>
Date: Wed, Apr 15, 2015 at 8:59 AM
Subject:
To: Melanie Spinella <________________________________
1 did the paul weiss bill get paid ??? 2. Talk to me before signing anything today important
10m paid today to gratitude america, a 501 c 3, wall make last year complete. 20 million paid today
ftc . 10 million july 15 5 million sept 30. , 5 million jan 1 for all of 16 . tax savings paid at 37 percent.
of net. savings. 50 million credit. net. so 150 million free. 600 savings 225 million owed. - 50 credit,
175 owed.  600 savings 225 million owed. - 50 credit, 175 owed.
Date: Tue, Jan 5, 2016 at 6:36 PM
Subject: Fwd: leon DO NOT SEND, hand deliver.
To: Jeffrey Epstein leevacation@gmail.com>
Transaction complete!
When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple
times that i thought it was a very bad idea, in that I preferred to have no financial interactions. I dont
have many friends and didnt want money to interefer with our unique relationship. For five years you had
the kind but goofy Eileen Alexandersson managing your accounting, legal, investments, reporting, trusts
etc. When I told you in no uncertain terms that I firmly believed she was incompetent you admonished
me for" speaking out of both sides of my mouth" . With regard Brad Wechsler, there is no " both sides.
". I have consistantly maintained since day one that he was highly unsuited for the job. When you initially
asked me to help convince him to take the role , promising him a postion to manage mirage investments I
sent you a note saying instead you should pay up and get first class people. I have reiterated the same
message for over a year now. . Brad, not me was tasked with hiring new people and as you wanted him
to take ownership of the staff,he conducted many interviews, you may recall that as late as may, you told
him in my presence that he had had six months and had not hired anyone. since then I have rectified
errors in sales tax, use tax, income tax, fbar reporting, 1031 reporting, 8 million of deductions. ,( last nov
) 11 million found in dormant accounts and 4 million in the drawer. errors in cash flow both personal and
Phaidon. Oversight on new grats first at 22 and then at 19 that were done without my consulatation were
resolved only as aresult of my intervention. . 600 million in after tax savings was just accomplished.
With Brad out of the office and unable to run his usual interference , the level of his total and utter
incompetence was brought clearly, front and center. He may be a step up from Eileen, but, if he is , then
it is certainly not by much, A major difference is that Eileen knew she was over her head. Brad struts his
stupiditly whenever he gets a chance.
A critical example. - Though you and I have spent many many hours discussing the importance of
care and attention to details and mechanics with regard Phaidon I was not shown one single document,
not one.!! Brad wanted to keep it private between he, and his so called" advisors" however as he was
out of the office during the most important transaction of the year, I did get to spend time with joslin Joe
and john, - the situation in your office is totally ludicrous - to summarize - the list I provided to Brad
last December - of things I thought were a priority to get done - still remains in the whole unresolved.
The IT, is virtually untouched and is still in desperate need of a format - reporting flawed cumbersome
and inaccurate . all done by hand as one -off exercises , when either you or brad ask for it - airplane: re
structure, (my only suggested priority in june ) is really ,no further ahead, consultants up the kazoo but
nothing at all done.( the office was told by Brad not to share the outside proposals with me - brad has no
HOUSE OVERSIGHT 023226
idea even as to what questions to ask. he knows little of finance, is bullshitted over by almost everyone in
the office. a little man, using your power, to appear larger . Eileen was self aware enough to know she
was over her head, that is a huge difference. bad info is rampant a simple emblematic example- 3
million in deductions Im told were taken for art space but on closer examination it turns out they cannot
be used at all. ( ZERO benefit ) though you will be told yes they were deducted on the return they said
that is the only real question you were focused on ! " were they deducted " not 2 is there a benefit" !!
I asked for the balance sheet and P and L for Regan arts , a basic first step in order to check your
financials. "sorry we never got one?" though 9.8 million invested, no p&l, nothing!, a construction
project run amok, no budget, the coo fired after only 3 months. , no clue. fyi artspace financials are
also a total mess. ( no receivables ??). when i asked for a list of what got done and did not, i received the
email from Brad basicailly mind you own business, so much was promised. !!!
As in your words probably your closest friend and in order to turn the page. I hope the following to be
constructive
Here is a list of things I think would be in your interest to get done asap .but definitely not by me.
i suggest you form new grats. , hire a high level tax partner. use your trading accounts as they remain
a paramount requirement 16 months after i emailed you re their importance. THe Phaidon transaction
papered and structured as contemplated DOES NOT WORK, its as simple as that. DOES NOT!! I
suggest again that you re-do bank loans, no need to pay interest at higher rates on boat or plane. . as
Richard is now no longer trustee. re- do will, make suydam executor , with Barry, and john as back up.
pay 1 million a year for executor role. get rid of Judy Black trust, deal with gifts and their tax returns, .
review amounts to kids at fixed ages. put more protections in for Alex and Victoria. , distribute some
money to kids let them make decisions. , decide art division with children in attendance . have fire drill
done on estate. fill out estate returns as if you and Debra died today, choose advisers - rick bronstein said
the only 1040 he ever filled out was his own. Halperin has a conflict that should be addressed., A
strategy of the use of art should be implemented. . you have tax consultants it consultants. plane
operation consultant. . boat consultants. architects, lighting , art, legal, . foundation, deal with TRA,
BRH , rationalize investments, cash flow, reporting, gaming disclosures, foreign, gift. . prepare tax
projections for 15 and 16, . deal with neg basis ( tufts gain, debt financed, art partnership, pledges. sell
stock, art, deal with phaidon debt. athene,? income, capital, foreign, exit, corporate, insurance regs, out
and inbound issues, basis, appropriate discount rates. ? terminations. control. , qualified dividends.
corporate tolls, inversion rules. , grat issues, short swing and other sec disclosures, I still think you
might consider a Rothshcild bank transaction they have 150 b and a distribution network with no
products , private bank Rockefeller Rothschild. financial service, deal with UK visa issue sooner rather
than later. we can talk about Rowen request re Athene , complex 2 billion in taxes on transaction. ?!
the facts as i see them
in June and then again Sept, we both agreed to a 50% of phaidon payout., then only after weeks, when
you delayed any detailed discussion of money wanting to give the issue a thoughtful response ( which I
fully understand ) . you unilaterally changed changed our agreement.. 5m would be reserved for the
future ? . and out of the remaining 15m,? i would receive only a third. ( note : I'm confident that both
the debt, and the artspace investment will also lead to a write off of another 30 m. plus ) In my dining
room ,you were surprised when I said that i require most people to pay their advisory fee up front so that
I am assured that I will be properly compensated for my work when strategies are implemented. you may
recall that you appeared offended and said " are you suggesting that i would go back on my word" I
said no , of course not ! you are my closest of friends ,but my experience is that when amounts get large,
people tend to get unhappy when it actually comes time for them to pay
I included in this letter the email i sent to you on April 15, the day i was examining your returns It laid
HOUSE OVERSIGHT 023227
out my understanding of the compensation for a transaction of the magnitude to the penny of the one just
completed. though the number was great it was clear. When it appeared that the details could now be
worked out I was the first to say, it is too much money, however.
From day zero I proposed to discount to 50 - 60 million the fair price of the transaction just completed.
including Phaidon. . though this amount was already substantially less than our agreed and negotiated
formula. - I was never told that this was out of range. in fact, alternative methods of payment.
plane, or an -in-kind payment were discussed ( ie including keeping the 30m portion of fee outstanding
till March ) ,I provided as you specifically requested a detailed step by step execution plan and reviewed
all documents that i was given access to. ( Phaidon was not forthcoming ) in order to make my many
corrections. I was then told that Alans involvement warranted a discount. Even in the best of light ,
though it is beyond question that not one time in the three years of his retainer has he ever proposed a
unique idea. (including any wayt to deal with the use issue on debras death ,or even the most basic review
of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to the plan and
stretch reality beyond the pale and say it was 50 %. though no one could posit such a large amount
unless they were wearing a brightly colored clown suit. , the payment associated with the deal was
known . It had both sent in writing and spoken about on the phone numerous times, a detailed
execution plan was provided. then and only then after all was laid out for the group I was told that after a
number of conversations with brad karp that a total of only 20m would be paid, (and even that was more
than originally contemplated ) for both transactions . Leon I feel It was remarkably unfair. I wondered
whether brad even knew of our prior agreement.? I called him and he said he was never told.?, I would
ask that you I and Brad karp sit together if you think it would be helpful. . I would like to send him this
email, with your consent of course. If the transactions were never consummated, i would not be owed a
dime, however , the expected fee was known up front. , the detailed step by step plan was followed and
overseen by me, the amount that I had requested before the transaction was even begun, and had already
been heavily discounted, out of friendship, from our agreement. I believe the decision re only paying 20
m has frankly, left me felling quite uneasy.
since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in
eileens drawer.. went through cash flows for phaidon showing that john murphy is not an accountant.
redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from
including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created
8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems, . . reorg bad art
purchases , funds taken„ charitable decisions , helped with fincancial statements, gaming commission. .
boat deductions, rescued stock from grats.. may 1 after months of brad not finding anyone i sent an
email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could
figure out the basis issue, please see attached, .
questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts.
doesn't exist
ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you
why the proposed phaidon transaction DOES not work. . ask them to give you a plan for the plane. ?
ask them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system
progress after one year. separate from making it more secure though you are not a trader with inside info
the approval process for payables. . the cash flow projections? assumptions? ask for a comparative review
of investments, ask haperin to describe to you in any detail BRH, the major asset of his two biggest
clients, tax basis, disposition in the estate. . etc. ask brad to show you the liquidation of the intervening art
space cos? that has been on the table for months. .
Date: Wed, Jan 6, 2016 at 3:44 AM
HOUSE OVERSIGHT 023228
Subject: Fwd:
To: Jeffrey Epstein <jeevacation@gmail.com>
PLEASE READ CAREFULLY,
Mark was here this morning , the proposed transactions are extremely complex. and would take a great
deal of detailed time. I do not know how, and if ,to move forward - our last transaction. a transaction
which you saved 600 million in tax. even if as you say it could be 20 years away, ( i hope longer)
discounted to today is a savings of 300 million . for some reason you chose to ignore our agreements,
verbal written and emailed -and decided that it was only worth 8 million dollars to you. . ( assuming
phaidon -richard happens. the calculation that you can see is a 24 m savings not including artspace and
debt benefits- certain to come later .. IMPORTANT NOTE
: the phaidon transaction as currently contemplated will not work. NOT CLOSE
When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple
times that i thought it was a very bad idea, in that I greatly preferred to have no financial interactions. I
don't have many friends and didn't want money in any way to interfere with our unique relationship.
Reminder, For five years you had the kind, but very goofy Eileen Alexandersson as the sole manager of
your massive accounting , legal, investments, reporting, trusts etc. When I first told you in no uncertain
terms that I firmly believed she was incompetent you admonished me for" speaking out of both sides of
my mouth" . With regard Brad Wechsler, there has never been a " both sides. ". I have consistantly
maintained since day one that he was highly unsuited for the job. When you initially asked me to help
convince him to take the role , promising him a position to manage mirage investments I sent you a note
saying that instead of hiring him you should pay up and get first class people. I have reiterated the same
message for over a year now. . Brad , not me ,was tasked with hiring new people, according to his biz
school org chart.(nauseating ) and as you wanted him to take ownership of the staff,he conducted many
interviews alone. . you may recall that as late as may, you told him in my presence that though six months
had passed he had not hired anyone. since then I have rectified errors in sales tax, use tax, income tax,
fbar reporting, 1031 reporting, 8 million of deductions missed errors of millions on the returns. a cashflow
that is misleading helped prepare financial statements ( april ) Oversight on new grats- first at 22 and
then at 19 that were done without my consultation and were "resolved" soley as a result of my last
minute intervention. . 600 million in after tax savings was just accomplished. (BTW- for some reason you
left the 30 million outstanding that I had said should only be done" if' that was my additional fee. and not
used for non biz purposes and not art.
Sorry but.,
in June and then again Sept, we both agreed to a 50% of phaidon payout first projected at 20 . but less
when artspace and debt taken out, - then only after weeks, when you delayed any detailed discussion of
money wanting to give the issue a thoughtful response ( which I fully understand ) . you unilaterally
changed our agreement. . 5m would be reserved for the future ? . and out of the remaining 15m,? i
would receive only a third. ( note : I'm confident that both the debt, and the art space investment will also
lead to a write- off of another 30 m. plus ) In my dining room ,you were surprised when I said that i
require most people to pay their advisory fee up front so that I am assured that I will be properly
compensated for my work when strategies are implemented. you may recall that you appeared offended
and said " are you suggesting that i would go back on my word" I said no, of course not ! you are my
closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it
actually comes time for them to pay.
I include below the email i sent to you on April 15, the day i was examining your returns It laid out
my understanding of the compensation agreed for a transaction of the magnitude to the penny of the one
just completed.ie 600m When it appeared that the transcation would and could go foward I was the
HOUSE OVERSIGHT 023229
first to point out that our agreement would cost you too much money, therefore
From day one I proposed to discount our agreement to a 50 - 60 million range. An extremely fair price
for all the transactions just completed . including Phaidon. - I was never told that this was out of
range. in fact, alternative methods of payment. ie my plane, or an -in-kind payment were discussed ( ie
including keeping the 30m portion of the fee outstanding till March ) ,I provided , only because you
specifically requested a detailed step by step execution plan and reviewed all documents that i was given
access to. ( Phaidon was never forthcoming ) in order to make my many corrections . ( as i said more
needed on phaidon ) . I was then told that Alans involvement warranted a discount. Even in the best
of light , though it is beyond question that not one time in the three years of his retainer has he ever
proposed a unique idea. (including any way to deal with the use issue on debras death ,or even the most
basic review of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to
the plan and stretch reality beyond the pale and say it was 50 %. though no one could posit such a large
amount unless they were wearing a clown suit. , the payment and our formula of 37 percent associated
with the deal was known . It had both sent in writing and spoken about on the phone numerous times,
a detailed execution plan was provided. then and only then, after the entire transaction was laid out for
the group to follow You told me that after a number of conversations with brad karp that a total of only
20m would be paid, (and even that was more than you originally contemplated ) for both transactions .
Leon I feel It was remarkably unfair. Did brad even knew of our prior agreements.? ?, I would ask that
you I and Brad karp sit together if you think it would be helpful. . I would like to send him this email, with
your consent of course. If the transactions were never consummated, i would not be owed a dime,
however , the expected fee was known up front. , the detailed step by step plan was followed and
overseen by me, the amount that I had requested before the transaction had even begun, had already
been heavily discounted, out of friendship, . I believe the decision re only paying 20 m has frankly, left
me felling quite uneasy. and colors the view about the Athene or Rothschild transaction.
Date: Wed, Jan 6, 2016 at 12:44 PM
Subject: Fwd:
To: Jeffrey Epstein <jeevacation@gmail.com>
PLEASE READ CAREFULLY ,
In the spirit in which it is sent. our friendship is intact and solid , though ,it has taken a hit.
Mark was here this morning , the proposed transactions are extremely complex. and would take a
great deal of my detailed time. I do not know how, and even, if ,to move forward - . After months of
hearing that you would have no problem paying a large fee if you could only ascertain value. The last
transaction. a transaction which you saved over 600 million in tax. declared bullet proof by your attnys,
and even if you want to disoccount for its future realization, creating a savings of over 300 million real
dollars. For some reason you chose to ignore our agreements , verbal written and emailed -and at the
very last minute, after the deal was complete decided that it was only worth 8 million dollars to you and
your family. . ( assuming phaidon -richard happens. there is a 24 m savings not including artspace and
debt write down benefits- certain to come later.. IMPORTANT NOTE
: the phaidon transaction as currently contemplated will not work. WILL NOT!!
When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple
times that i thought it was a very bad idea, in that I greatly preferred to have no financial interactions. I
don't have many friends and didn't want money in any way to interfere with our unique relationship.
Reminder, For five years you had the kind, but very goofy Eileen Alexandersson as the sole manager of
your massive accounting , legal, investments, reporting, trusts etc. When I first told you in no uncertain
terms that I firmly believed she was incompetent you admonished me for" speaking out of both sides of
my mouth" . With regard Brad Wechsler, there has never been a " both sides. ". I have consistantly
maintained since day one that he was highly unsuited for the job. When you initially asked me to help
HOUSE OVERSIGHT 023230
convince him to take the role , promising him a position to manage mirage investments I sent you a note
saying that instead of hiring him you should pay up and get first class people. I have reiterated the same
message for over a year now. . Brad, not me ,was tasked with hiring new people, according to his biz
school org chart.(nauseating ) and as you wanted him to take ownership of the staff,he conducted many
interviews alone. . you may recall that as late as may, you told him in my presence that though six months
had passed he had not hired anyone. since then I have rectified errors in sales tax, use tax, income tax,
fbar reporting, 1031 reporting, 8 million of deductions missed errors of millions on the returns. a cashflow
that is misleading helped prepare financial statements ( april ) Oversight on new grats- first at 22 and
then at 19 that were done without my consultation and were "resolved" soley as a result of my last
minute intervention. . 600 million in after tax savings was just accomplished. (BTW- for some reason you
left the 30 million outstanding that I had said should only be done" if' that was my additional fee. and not
used for non biz purposes and not art.
Sorry but.,
in June and then again Sept, we both agreed to a 50% of phaidon payout first projected at 20 . but less
when artspace and debt taken out, - then only after weeks, when you delayed any detailed discussion of
money wanting to give the issue a thoughtful response ( which I fully understand ) . you unilaterally
changed our agreement.. 5m would be reserved for the future ? . and out of the remaining 15m,? i
would receive only a third. ( note : I'm confident that both the debt, and the art space investment will also
lead to a write- off of another 30 m. plus ) In my dining room ,you were surprised when I said that i
require most people to pay their advisory fee up front so that I am assured that I will be properly
compensated for my work when strategies are implemented. you may recall that you appeared offended
and said " are you suggesting that i would go back on my word" I said no, of course not ! you are my
closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it
actually comes time for them to pay.
I include below the email i sent to you on April 15, the day i was examining your returns It laid out
my understanding of the compensation agreed for a transaction of the magnitude to the penny of the one
just completed.ie 600m When it appeared that the transcation would and could go foward I was the
first to point out that our agreement would cost you too much money, therefore
more details
From day one I proposed to discount our agreement to a 50 - 60 million range. An extremely fair price
for all the transactions just completed. including Phaidon. - I was never told that this was out of
range. in fact, alternative methods of payment . ie my plane, or an -in-kind payment were discussed ( ie
including keeping the 30m portion of the fee outstanding till March ) ,I provided , only because you
specifically requested a detailed step by step execution plan and reviewed all documents that i was given
access to. ( Phaidon was never forthcoming ) in order to make my many corrections . ( as i said more
needed on phaidon ) . I was then told that Alms involvement warranted a discount. Even in the best
of light , though it is beyond question that not one time in the three years of his retainer has he ever
proposed a unique idea. (including any way to deal with the use issue on debras death ,or even the most
basic review of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to
the plan and stretch reality beyond the pale and say it was 50 %. though no one could posit such a large
amount unless they were wearing a clown suit. , the payment and our formula of 37 percent associated
with the deal was known . It had both sent in writing and spoken about on the phone numerous times,
a detailed execution plan was provided. then and only then, after the entire transaction was laid out for
the group to follow You told me that after a number of conversations with brad karp that a total of only
20m would be paid, (and even that was more than you originally contemplated ) for both transactions .
Leon I feel It was remarkably unfair. Did brad even knew of our prior agreements.? ?, I would ask that
HOUSE OVERSIGHT 023231
you I and Brad karp sit together if you think it would be helpful. I would like to send him this email, with
your consent of course. If the transactions were never consummated , i would not be owed a dime,
however , the expected fee was known up front. , the detailed step by step plan was followed and
overseen by me, the amount that I had requested before the transaction had even begun, had already
been heavily discounted, out of friendship, . I believe the decision re only paying 20 m has frankly, left
me felling quite uneasy. and colors the view about the Athene or Rothschild transaction.
Date: Fri, Jan 29, 2016 at 2:39 PM
Subject:
To: Melanie Spinella <____________________________
you've agreed that
Your office is a multi billion dollar responsibility, your children will inherit it , in order to oversee their
financial lives- I feel for you, truly ,but the facts are the facts, your ceo ( Brad) has provided one bad
document after another for over a year , no getting away from it,, bad cash flows no new IT, each
time with" its gettting better" no in fact -! its not. - the excuse, that Brad is not the numbers guy, is
ludicrous. of course he didnt actually prepare the statements. - no ceo would ,- but over and over he
presented them to you and me, after , holding them back for his personal review multiple times and after
multiple drafts. weeks of his editing, the consistant but "inexplicable "missing the obvious serious
errors . ( gaming ) inaccuracies, ( cashflow ) and mistakes (tax returns). why, ?! the simple answer is
that at best, he is a c minus, (note. I, like you ,also give points for effort. )- ! an elegant art partnership
gone fallow. ??!!I and its core reason to exist. not used ? no does for plane?, still ! why? no does for
decantings why? the does for deal 1 received last night, " no does at all for deal 2, the biggest " . why
wasn't Tom brought in, after 4 times of my incessant reminders i spoke to him, he knows little of either
transaction except for over view, never saw pahidon anything except projections until yesterday ? ?and
this after your clear admonition etc. re the trading accounts no activity, at all,
Barry Cohen is great. more like him please .
you asked, - I did my best trying to train your brad chosen people in the face of my telling you that they
were never going to be more than c-minuses, thousands of emails thousands ? Brad at its head . you
can't as a ceo, have an accountant give you multiple pages with the most important numbers missing
altogether and not notice, you and I saw the errrors right away ,as did my very junior bookeeper after
only a cursory glance. He told me he didnt know the details of his note?! , my guess is that he wanted to
pay less. no more than that, any other story is blather. its silly. Talk to richard yourself
re your estate. Yes another Brad issue - your will, needs revision, the tenants in common structure I
assume Alan has carefully walked you through. it is way overdue, needed and exciting. I won't list the
more serious issues in an email but we can speak over the weekend.
How can I help? We agreed at the time when you hired Castrucci , that when you fired him, I would
bear no responsibility because it was clear that he shouldnt be hired. brad and you both said ," its on us",
but... the equivalent of your art consultant pointing to a picasso and calling it a renoir. then a brancusi
and calling it a michaelangelo. those were the types of erros that i saw immediatily, you said give them
more time. at least they saw it was a painting and not a photo?
being weaned of our biz /pay realtionship has been our mutual goal. However since novemebr, you
chose to do so by ignoring' our agreement re, phaidon,and your oft stated commitment to me of large
payments for large value, ( 37 percent was our number ). chose to pay me a number picked by what
appears to be only by whim,- have yet to justify it except for telling me that you and Brad Karp talked..
HOUSE OVERSIGHT 023232
What should we do? the next two years in biz world appears to both you and I , very fragile. Im
happy to have brad sit in ?
Date: Thu, Oct 15, 2015 at 10:38 PM
Subject:
To: Melanie Spinella < ___________________
Office, - ada goes. , hire heather a paralegal. Joslin goes or is closely managed by new cfo with tax
experience. castrucii goes asap.as he merely adds to mess.( too many people, ex 7 people or more to
pay a bill ) eva goes. outsource as much as possible. . bookkeeping systems built from scratch,
airplane restructure, boat. same, new grats. phaidon sale, decide on artspace survivability, regan, . do
the kids really want these?, children accounting ie bens house.etc. re do estate for new facts. redo
loans, trading accounts activity, . gaming -foreign- disclosures. . BRH TRA re thinks. household and
construction architects. . redone. art partnership , choice of paintings. . re do structure of consultants.
tax re family office. . decide if investments are a realistic option in the next three years.. insurance.
operations. airplane , etc. . art foundation , private. max charity contributions, financial reports. still
waiting. ? on line banking, . tax planning, family office deductions ( profit center ) . airplane certificate,
redone jet aviation redo. . paper gigi ( E )trust to avoid gift tax. .
today is Oct 15
With your full knowledge I paid out 8 mil to my staff before june, . so i guess I can safely assume that
after consideration of all the things I did for the entire past year separate and apart from your unique free
"after care" concept. , what you thought was ultimately fair was the contribution of 5 million to a
foundation and a total of 2 million dollars to me.
Date: Thu, Feb 4, 2016 at 10:01 PM
Subject:
To: Melanie Spinella <
josh's arrival cut short our___________________needed conversation. I understand we have a difference of opinion, friends
sometimes disagree, I shook on the 20 so you have no further obligation, none, I am willing to have
brad karp hear both sides. as my view , you and i had an agreement. on phaidon /publishing, and then a
long standing what you say is 28, which is correct AFTer TAx. , 37 pre. . that was our numbers. I was
clear what i thought the transactions were worth. far less than full. alan etc. , had you said i will pay
you only 20. i would have said ill pass. you never told me that 50-60 the number that i put on the
table at the very beginning was not right, you asked that i lay out my plan step by step. and what i believe
would have been the fair thing to do is say to me, I will pay you only 20 if you do as i ask, not tell me
for the first time only after i laid it all out. had it not been you, i would have required payment in escrow.
BEFORE fyi the reason I sent you an invoice so that if you decided that you wanted me to continue
this year . it would be applied to last years income. I think today was a beginiing for you. I am glad I
will meet wendy the 23, rd, . separate and aprt from being your sounding board for personal issues, I do
not see my involvment moving forward.
Date: Wed, Feb 10, 2016 at 12:56 AM
Subject: Fwd:
To: Melanie Spinella <
this was sent four months ago, nothing has changed
sent oct 15. before big transaction.
Office, - ada goes. , hire heather a paralegal. Joslin goes or is closely managed by new cfo with tax
experience. castrucii goes asap.as he merely adds to mess.( too many people, ex 7 people or more to
HOUSE OVERSIGHT 023233
pay a bill ) eva goes. outsource as much as possible. . bookkeeping systems built from scratch,
airplane restructure, boat. same, new grats. phaidon sale , decide on artspace survivability, regan, . do
the kids really want these?, children accounting ie bens house.etc. re do estate for new facts. redo
loans, trading accounts activity, . gaming -foreign- disclosures. . BRH TRA re thinks. household and
construction architects. . redone. art partnership , choice of paintings. . re do structure of consultants.
tax re family office. . decide if investments are a realistic option in the next three years.. insurance.
operations. airplane , etc. . art foundation , private. max charity contributions fmancial reports. still
waiting. ? on line banking, . tax planning, family office deductions ( profit center ) . airplane certificate,
redone jet aviation redo. . paper gigi ( E )trust to avoid gift tax. .
Date: Thu, Mar 3, 2016 at 3:31 AM
Subject: ask alan why he hasnt explained this to you since novmebr
To: Melanie Spinella _________________________________
Tenancy in common is a type of shared ownership of property, where each owner owns a share of the
property. Unlike in a joint tenancy, these shares can be of unequal size, and can be freely transfered to
other owners both during life and via a will. Even if owners own unequal shares, however, all owners have
the right to occupy and use all of the property.
Date: Sun, Mar 13, 2016 at 12:55 PM
Subject:
To: Melanie Spinella .
The fire drill documents received should be the final nail in the coffin of Alan and Ada, . It is
inexcusable„ ludricrous and in brads words "insane "or yours, " unexplainable" that the two people that
you refer to as your estate attnys , NEVER EVER took the time to actually read the documents that have
the biggest efffect on your family and estate upon death or disablity, its impossible.!!! IMPOSSIBLE .
after telling me that they were confident that everything had been read, and after years, of you telling me
that Im not an attorney, it is clear that my telling you that you have c quality people was over generous„
I received a first draft of the summary of documents. you should read them for yourself. . executive
committee issues. , unclear tax. contradictory provisions,your reps having to rely possibly on a fall back
to delaware law to protect your interests, even suggesting that even if they would like to fall back, in
some instances - no case law. other crazy- provisions that are personal to you, instead of you and your
successor ? two pages of" open to interpretation" .or aha, maybe something is wrong! as ie, your
rep, after death has no right for information on BRH? ! if you and another founder are dead , the exec
commitee has no decision authority, if josh and mark want to fuck your heirs, its easy, black family
partner docs dont deal with successionl YOU deserve better. fyi, after a month of brad ada and alan
,on the project, still not willing to share with me a final, they are all embarassed. and full of excuses.
It will take wendy and a new team 6 to 9 months to put your house in order. , new cash flows, new
accounting system, airplane rethought„ you new hires can find deals , they can familiarize themselves
with your current investments , but should not be doing the accounting for them, .
your will is still not amended, ?! the tenants in common not even explained to you. if something happens
to you and debra, no real direction for the foundation. . etc
Date: Mon, Mar 21, 2016 at 4:17 AM
Subject:
To: Melanie Spinella .
HOUSE OVERSIGHT 023234
glad to see you are personally on the mend - as well as the fence. -- As you know i dread money
discussions with you-- however -we should address the issue of what you would like to do moving
forward. re- do family office, accounting trusts, estate and apollo agreements . Along with your"
payment" last year we agreed . no further obligations on each side. yes, i continued to moan. I realize
that though I ye done quite a lot this year already , it is not your responsibility. . As you often like to
remind me- you've paid a great deal of money to date. that being said - If you want my involvement
moving foward, I suggest you pay my regular 1 fee of 40 m. 20 now. 20 on completion or as per the
invoice issues at the end of last year pay 30 all at once. -
To help out . im keenly aware of your current cash position. so I will consider an in-kind payment -
real estate ( Miami )„art , financing of my new plane (allows you to spread over years or of course the
preferred cash. Get rid of Castrucci,it is over a year since the same story of findign the right guy at the
top. you entire accounting needs to be re done. , office downsized, reporting re done. meetings to
recitify, categlorize , the various docs re appollo, rowen, suydam, alan etc. Brad can direct investment
guys, ( hopefully) my people will be in your office for a few months . reorganizing IF you decide not to
pay I fully understand, as I m sure you will re my no longer spending any serious time on these things.
Of course re any non financial issues, I am always there for you and will continue to be the best friend I
can be
Steve jobs said that everyday he woke up, and asked himself, if he knew he was going to die tomorow,
would he do the same thing that he had planned for the day- he wanted to check that he was doing things
that he really wanted to. after three days of getting back an answer of no, he would change what he was
going to do. . he also did not believe in LONG term plans. I dont think either one of us will figure out
what we want to do long term so my thinking is that we should try to have fun everyday, and welcome
serendipity.
I think another trust and estate lawyer should be brought in to deal with the issues of how not to allow
your family to get screwed by your partners on death. Alan, for years told me that paul weiss had drawn
the docs so no issue but when recently pushed by my new fire drill he asked akin to draft .?! PLease
ask brad about why he keeps talking about flow. I dont know what he means, its so silly. . this is only
about money control and protection.
I am leaving monday night now. free to speak in the afternoon
Date: Thu, Apr 28, 2016 at 1:55 PM
Subject:
To: Melanie Spinella <__________________________
Lets start. I am aware that you are currently angry at the world. . me, karp wechsler. even yourself,
all willing absorbers of the current high heat. (though you ,calling me ,Debra, did take away some of the
sting ) I am sorry to see you this way.
emblematic; I was asked to opine on whether to hire castrucci. an hour after I gave a preliminary yes.
. I called you then texted you that i had thought more about it and changed my mind. The next day brad
called and asked for my vote. I told him ,in no uncertain terms it is a no , I categorically vote no. I
called you . you came to see me. I said it was a bad idea. you said you were going to do it anyway , I
said and followed up in writing IT IS A MISTAKE. and added Please don't come back to me with
anything suggesting otherwise , you and I should be clear I think it is wrong . A very strong NO. you of
course can hire whomever you like.
HOUSE OVERSIGHT 023235
early on I told you I thought Tom remarkably careless . Eilleen goofy and your art lawyer not well
informed to say the least. you told me Tom was a senior partner. Eileen had headed the trading desk, and
Ralph Lerner had to know what he was doing as he wrote the book. . I said I thought you deserved
better ,should get better people and no , I am not an HR person. yesterday you told me that the reason
you have hired whomver you could find was to avoid being dependent on me. a decision by far, not the
best place to try to save money )
Joslin- who you say I hired. I neither found nor hired. With a two person given choice I approved joslin
over some woman that eileen preferred. against my repeated advice you and eileen decided the pay range
at under 300k. I told you at that time that I would personally pay the difference for a higher quality
person, that was years ago. I have sent over a hundred emails to you clearly saying he needs to be
closely managed by better professionals. initially , that referred to Eillen and Ada.and after, brad. john
etc. THere are many emails each and every month from me, telling you , he is slipping failing cracking
fragile. . crazy, nuts, heading towards incompetence. Unless YOU- TAKE ACTION! when I pressured
him for accurate numbers , you told him, to tell me, that he works for you and NOT for me. . When I
continued to press for accuracy from your office , you told me that they were now all afraid of me and i
should let brad communicate any requests, ( you now tell me " we know what Brad is"?). When I told you
you office needs to be reviewed and changed you told me i was being destructive rather than
constructive, when i ultimately confronted joslin, in an attempt to protect you, told him that his numbers
were wildly inaccurate , you told me that i had caused his ultimate resignation and now have an
affirmative obligation to fill in the resultant gap.
I did give you a bad number, and apologized as soon as i realized it. an error that was an embarrassment
for me, the fact that that the accurate number is still way below what you agreed to pay, has fallen by
the wayside.( the preposterous argument that the end of year transaction was Alans idea , which you now
know was not true and that me not receiving Phaidon documents was unexplainable, was your justification
though, for non - full payment )
Hopefully You will recall that when you initially asked for my help. I declined repeatedly with the
admonition that that having a financial arrangement is fraught with danger and could complitcate our
friendship (as you will be unhappy paying what you will view as a large sum. while choosing to ignore
the financial benefits, ). In Bedford , I repeated my concern. THe current circumstance is distressing to
me, I have done my utmost to keep you safe. and will continue to do so. reckless choices in
accounting or otherwise does not bode well. at each turn I have put your interests first , including in some
instances attempting to fight your choices.
your current circumstance needs nuanced attention. as you know, there are a few areas with very serious
consequences. whether it be , having Ada, form grats without review, brad doing phaidon without
review, payments make without review.merely in order to be weaned, is one more high risk choice.
review of outside accounting firms , CANNOT be done by brad. to have your accounting dept sit in on
Alans trust accounting lecture. in order to learn the filed is reminiscent of elieen reading the tax regs. (
she also was going to take a course)
I am here in New York today. should you like to resume
Date: Mon, May 2, 2016 at 12:51 AM
Subject: Fwd: Valuation Discount
To: Melanie Spinella 1________________________
>
HOUSE OVERSIGHT 023236
Leon please read the attached proposed response to the IRS , see if you can understand it !!!. lye asked
for a re-do. and given prelimiary directions to Alan to have it edited over the weekend
. If you are quarterbacking ,ok with me. just please let everyone know. you must deal with the
outrageous incompetence in your family office.. Alans words " but I was told that.., but I was told by
the office (sic) that ... , BUT i was told by joslin,. , but I was told by. " why is leon blaming me for .." .
I ye have always given you my best advice, If you reflect on your financial life, you have been kept safe,
had remarkable results and no disasters. I have repeatedly urged you to get rid of the people in your
office. , you have repeatedly chosen to ignore my advice , you told me last week that the emotional
reason was in order to be weaned off my group and not have to pay my high fees. ( though ignoring
the benefit of between 1.5 and 2b to the better. ) . and no explosions. You have email after email
,where i remind you that I am not your bookkeeper or accountant ( in brads corporate speak his" finance
dept ??!!) that it should be redone .I have reviewed a multitude of the silly reports given to you and
have pointed out the continued numerous inaccuracies. your question" so what if the numbers are off,
so what if the categories are off. whats the big deal??. I suggest you de risk you fmances and make the
tough decisions necessary - pay the right amounts ( high) to get the work done properly or , you are, Im
afraid, certain to get an unhappy answer.. tom will be back from vacation, this week.
----------Forwarded message----------
From: Halperin, Alan S__________________________
Date: Thu, Apr 28, 2016 at 5:16 PM
Subject: Valuation Discount
To: "jeffrey E." leevacation@gmail.com>
I am attaching a draft response from Empire Valuation as to why it arrived at a valuation discount on the
low end. Let's discuss the response and next steps. Thanks Alan
Date: Tue, May 10, 2016 at 12:38 AM
Subject:
To: Thomas Turrin <
did you get the agent!______________________
Date: Wed, May 11, 2016 at 1:50 PM
Subject:
To: Brad Wechsler Melanie Spinella <____________________________
grats 3,4, 5, 6, also need accounting documents and backup. year 2014. other info request to follow
Date: Wed, May 11, 2016 at 2:19 PM
Subject: Re:
To: "jfacam(&-i,gmail.com" <jeevacation@gmail.com>,
A couple of questions:
1. Jeffrey-you saw the format in which we organized the back-up for year one of grat 1
(quite thick/alot of back-up).
Does that format work (for you and internal use) or do you want it simplified/modified.
Let's discuss.
2. Since this will take the focus and effort of a lot of people (just to pull and organize
the various records...both legal and accting, I'd like to tell the staff that we are
answering an "information request" from the irs on the grats. It will generally be helpful
HOUSE OVERSIGHT 023237
for them to know why the work is impt.
You and leon ok with this?
Will call you to discuss.
Date: Thu, May 12, 2016 at 12:17 PM
Subject: tight schedule lets try a set time to speak
To: Melanie Spinella '___________________________________>
Leon, you hired me to produce a work of art. it was not inexpensive, the value far exceeds any other
piece in your collection.- by FAR. It took me 30 years to be able to craft such a work. I understand
your desire to modifiy my work, in doing so you have brad telling me, just a bit more red., here let me
show you, you yourself pick up a brush a add some strokes. you have joslin spray water on it to
maintain it. I vigorously complain that joslin in ruining my work. . you describe me as zeus, i describe it
as artist and a reaction to his work being ruined. however Im aware that you own the work and you
have the right to paint over it. tear it up , put it in the closet in the basement . its yours.
I was told that Toms office is sending someone in ,or some people in, to review "some things." brad told
me ,the partnership accounting. I know absolutely nothing more than that. though bringing in his team was
my idea . Having them review things without even asking for my input, or let alone my direction ,is
ridiculous. but.. I guess you wanted to save money. ?
The audit has brought to the fore the lack of your office quality that i have been violently squawking
about. ie. children playing with works of art. . It is inconceivable to me that John castrucci is still there
, joslin part time, but relied on. joe error prone and brad a corporate bandleader talking about the
office's finance team, accounting dept, and directing wendy to do things that are clearly not in your
interest. ( saving money again ?) its nuts!! . a still non-existent IT dept. impossible, it was the first
thing on my list of things that were needed to be done. Still no trading accounts to speak of, though its
prophylactic quality has been discussed over and over during the past three years . computers do not read
Page Six. the women at the IRS do. ! you said your motivation in keeping this group of part timers
was a consequence of the high cost of my artwork. . the unfortunate result was easily predictable. -
now
If you want my and my atelier to continue, I will oversee the audits. take charge of the TRA BRH
assignments and review 2012 amendment options!!( note :your redo of the estate fire drill has not
progressed very far ). Lots of paper needs to be collected and reviewed, At MY direction. the outside
team will be brought in at my expense working for me and you. coming in for interviews and reviews, .
sucession, technology, tax and compliance, investment reporting „ computerized timelines for filings etc.
. household classifcations and reporting with a system of best practices.
My goal is clear - to end, not extend, our financial interactions, you will have a machine that works, it
will not be complexto oversee , to create it, is some thing else . Unfortunatley for us both, the price for
my works has not changed since day one. 40m per year, I m willing to discount it to 35 as I did give
you a bad number when asked and should pay an embarassment fine. Im also aware, as you made
perfectly clear. that you have already paid what you consider a great deal of money, for my work, but
again its value exceeds anything else by far in your collection at a cost less than agreed upon. . please
also remember that you and i agreed no more demands on my time after the last payment for the big
transaction.
OR, you can decide that brad , tom, and whomever else you choose can screw with my work and they
can oversee your audits. they are both aware and sensitive to the issue at hand. alan could be brought
in but i would be extra careful having paul weiss given access to entire story.
-On an unrelated note- you recently seemed shy to discuss certain things. , please be assured I make
no judgement on any of your activities , whether or not i agree with them. not my role I am always on
your side on the table. I hope your personal life quiets. you 'ye had a rough 15 months.
HOUSE OVERSIGHT 023238
11:21 PM (13 hours ago)
to me
Jeffrey,
I created applications one week ago at NDCAS ( doctor of naturopathic medicine centralized application
service ) and VMCAS ( veterinary medical college application service ) ,working on my application
material , requesting evaluations letters and etc.
On Tuesday I am going to the job interview, working on my resume today.
P.s.- I hope I will get finally the results from Chinese proficiency exam today /tomorrow.
On Sat, 7 Apr 2018 at 07:54, jeffrey E. leevacation@gmail.com> wrote:
no concrete progress. for a year. sorry, it cannot go on this way
Date: Wed, Jun 1, 2016 at 5:41 PM
Subject:
To: Melanie Spinella <
As i said yesterday, pointing out places where i think my friend might be taking unnecesarry risks has
become tedious and trying. Structures that have been set up 2 years ago. were done so to give you
protection and flexibility, NOT FOR ME< for YOU they required hiring stafff that could manage
these complex entities. you told me over the past two years that as i set them up i should be responsible
for their operation. That was never the deal , never. I have heard after -care etc for quite a while. in
dec when you unilatierally decided to pay me much less than our agreed amount , we agreed NO MORE
money discussions NO MORE after care. The silliness has reached its pinnacle when you suggest i am
responsible for the lack of sophisticaiton and thoughtfulness of the 1031 transactions that NO one even
told me about. asked my advice or gave me any notice at all before the fact. same as the structure for the
CAlif house. I would remind you , though Heather is great, it was not she that modified the gagosian
contract to give you the protection that resulted in your having no liablity, though you tell me she has
done these things many times.
3. Remind me to talk to you about MR
Date: Tue, Nov 15, 2016 at 6:13 AM
Subject: Fwd:
To: Melanie Spinella <
Leon, Congragulations on biting the bullet. at least 18 months late , but I m encouraged and glad for
you. When you interviewed Brad two years ago you asked that i not tell him what a disaster lay before
him. what would you like me to tell Barry?
There is a HUGE amount of work to be done in the next 9 -12 months. mostly the exact same work
that i outlined in my email of 2 years ago. now complicated by years of mess on top. ( you can send it
again if you like ) . Brad wechsler was never up to the task. sorry, I realize I have been saying the very
same thing for a long time. he was a not a step up from Eileen but a step sideways. in the beginning
there was Eileen and Tom and Ralph Lerner. all your hand picks. then brad. john, Joe. . joslin was
chosen from a pool of 2 people. each that would be limited by a salary of 250k. ( yes i personally
augmented his comp in order to get him ) I did say hire both Lisa to do the bookkeeping and joslin tax,
He complained for over a year, re his direction by eileen and ada, and then brad. His breakdown was
not a surprise after months and moths of warnings. Though disabled, he ran your office this year. with
john and joe. He ran amok, and as i told you he rarely failed to remind me in our conversations that you
told him that he works for you and not for me and that brad needs to pays him .
HOUSE OVERSIGHT 023239
. Asking me who to hire , estate attny tax people etc. :
I have taken heat for years over the fact that i gave you no more than carlyns name, . no follow up
questions no interactions , not even one single question asked of me re her work. ( that was Eileen )
but somehow carlyns fuck up was my doing. . when i told you that i thought Eileen wasn't up to the
task, you bellowed that i was talking out of both sides of my mouth. . You told me this year, that by
trying to protect you from crazy joslin, I had in essence fired him and it was my responsibility to do his
work. it then turns out that he didn't consider himself fired at all he just received less money. and
continued to make a really dangerous mess.. Joshn castrucci, in your eyes, was also my doing , though
email after email said, I take no responsibility for him, and iYOU SHOULD NOT HIRE HIM .!!! „ your
response was that was my opinion was only because i didn't trust him. then to add insult to injury last jan
you told me he was gone. however he too is still there, and a waste of money and space.
My time is complicated by Donald's potentially eviscerating any reason for anyone to use the
foreign funds repatriation plan that i had put together. . however as you are aware I have some decisions
to make re my time allocation in the next year or two. so at least for a few weeks I am unable to commit
much time and make any future plans to guide you in the redoing of your procrastination produced
mess.
That being said, the tasks at hand are the following.
You have a bomb of colored string that your retarded children have formed , It has to be very carefully
unwound , even the substitution of Barry for your next trustee, needs a careful focus on procedure.s It
would be much preferable if Wechsler was not his replacement. do you have any person you trust ??! . I
am concerned re brad taking barrys place re XXXX. In the beginning Barry will need to find and learn
ACCURATE . org charts. books , balance sheets. trust valuations, are all a part. Barry will need 2
months to just get his arm around what is there, this is before any needed modifications.,
a way overdue re- fresh of your estate plan. . clats , trust. partnerships. grats. llcs. bank accounts,
filing requirements. etc. the long awaited review of the brh tra and shareholders agreement to see how
they fit into new plan. . "" planning art partnership engagement .. , airplane re-do. , buying
another. . ? boat sale , Miami sale. . TRADING ACCOUNTS. . three years over due. . an
accounting system. fire john .. joslin stays for a year. or so. so does tom and . except for heather
everyone should be replaced with new. . Sell Artspace and shut down regan arts. . rationalize, cash
flow reporting. cash mgmt. stock sales. sec irs. gaming. foreign reporting. the 8865 mess will take
months to review now. . you CANNOT file unreviewed audited documents. . CANNOT!!! this will
be very detailed work. . a self inflicted wound - all avoidable if professionals had been in place to limit.
or contain it. . . you will need 3 new hires .a s there is no one in your office that is truly an A player. I
have great hope in Barry as you know. He will need to be trained. note
; One year is my guesstimate After 4 years of telling you , that you could do better than Halperin,: im
glad that you now are willing to follow barrys advice . I take no offense, in fact I take comfort in the
fact that after only one conversation with Barry you are now convinced to make that change . will take a
year or more.
I expect as a friend you will understand that
I will no longer, not even for one day, work on your affairs . without the compensation that is long
overdue. . your unilateral idea of after care , not imposed on any other professional, except me, not paul
weiss ,( caesars alone, a direct screw up on their part ) tom, akin„ no one. needs to end. . you and I
had previously agreed no more of that, and this after you decided not to pay me per our agreement. to be
fair I can not say im surprised as you have email after email , stating that , if you save a great deal of
money, you wont want to pay, so limit it to 40m per year. - water under the bridge
If I can find the time to work, on your project , which is not by any means certain as I have said, I
HOUSE OVERSIGHT 023240
hope you understand that it now will have to be under my standard terms and conditions. and well
documented so as to avoid any more of the he said she said. I never want to have any more
uncomfortable money moments with you , I find it very distasteful. . so to be clear , my terms are as
follows. I will only work for the usual 40 million per year. It needs to be paid, 25 million upon signing
an agreement. 5 million every 2 months thereafter for 6 months ie march may june . this can begin if i
am able in January. I will immediately stop work, if the payment is not received. If you want me to
work this year until Jan 15 , it will be 10 million, paid upfront. after one year you will be left with a
new estate plan a running office. staffed with professionals overseen by Barry. ( hallelujah ) a tax plan .
and an investment that returns more than any painting you could possible own. . no agreement - no
work. however - I of course will talk to Barry for the hour that i promised , and take your guidance as
to what I should say.
11:45 PM (13 hours ago)
to me
im in paris now
Date: Sun, May 1, 2016 at 6:51 PM
Subject: Fwd: Valuation Discount
To: Melanie Spinella <___________________________
Leon please read the attached proposed response to the IRS , see if you can understand it !!!. Ive asked
for a re-do. and given prelimiary directions to Alan to have it edited over the weekend
. If you are quarterbacking ,ok with me. just please let everyone know. you must deal with the
outrageous incompetence in your family office.. Alans words " but I was told that.., but I was told by
the office (sic) that ... , BUT i was told by joslin,. , but I was told by. " why is leon blaming me for .." .
I ye have always given you my best advice, If you reflect on your financial life, you have been kept safe,
had remarkable results and no disasters. I have repeatedly urged you to get rid of the people in your
office. , you have repeatedly chosen to ignore my advice , you told me last week that the emotional
reason was in order to be weaned off my group and not have to pay my high fees. ( though ignoring
the benefit of between 1.5 and 2b to the better. ) . and no explosions. You have email after email
,where i remind you that I am not your bookkeeper or accountant ( in brads corporate speak his" finance
dept ??!!) that it should be redone .1 have reviewed a multitude of the silly reports given to you and
have pointed out the continued numerous inaccuracies. your question" so what if the numbers are off,
so what if the categories are off. whats the big deal??. I suggest you de risk you finances and make the
tough decisions necessary - pay the right amounts ( high) to get the work done properly or , you are, Im
afraid, certain to get an unhappy answer.. tom will be back from vacation, this week.
Date: Thu, Apr 28, 2016 at 5:16 PM
Subject: Valuation Discount
To: "jeffrey E." leevacation@gmail.corn>
I am attaching a draft response from Empire Valuation as to why it arrived at a valuation discount on the
low end. Let's discuss the response and next steps. Thanks. Alan
Alan S. Halperin 1Partner
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas New York, NY 10019-6064
HOUSE OVERSIGHT 023241
I
1 www.paulweiss.com
(10 hours ago)
to me
Jeffrey
Pete informs the GIV is completed,.
Thx,
Larry
Date: Tue, Nov 15, 2016 at 6:13 AM
Subject: Fwd:
To: Melanie Spine11a1MIRM=1
Leon, Congragulations on biting the bullet. at least 18 months late , but I m encouraged and glad for
you. When you interviewed Brad two years ago you asked that i not tell him what a disaster lay before
him. what would you like me to tell Barry?
There is a HUGE amount of work to be done in the next 9 -12 months. mostly the exact same work
that i outlined in my email of 2 years ago. now complicated by years of mess on top. ( you can send it
again if you like ) . Brad wechsler was never up to the task. sorry, I realize I have been saying the very
same thing for a long time. he was a not a step up from Eileen but a step sideways. in the beginning
there was Eileen and Tom and Ralph Lerner. all your hand picks. then brad. john, Joe. . joslin was
chosen from a pool of 2 people. each that would be limited by a salary of 250k. ( yes i personally
augmented his comp in order to get him ) I did say hire both Lisa to do the bookkeeping and joslin tax,
He complained for over a year , re his direction by eileen and ada, and then brad. His breakdown was
not a surprise after months and moths of warnings. Though disabled, he ran your office this year. with
john and joe. He ran amok, and as i told you he rarely failed to remind me in our conversations that you
told him that he works for you and not for me and that brad needs to pays him .
. Asking me who to hire , estate attny tax people etc.:
I have taken heat for years over the fact that i gave you no more than carlyns name, . no follow up
questions no interactions , not even one single question asked of me re her work. ( that was Eileen )
but somehow carlyns fuck up was my doing. . when i told you that i thought Eileen wasn't up to the
task, you bellowed that i was talking out of both sides of my mouth. . You told me this year, that by
trying to protect you from crazy joslin, I had in essence fired him and it was my responsibility to do his
work. it then turns out that he didn't consider himself fired at all he just received less money. and
continued to make a really dangerous mess.. Joshn castrucci, in your eyes, was also my doing , though
email after email said, I take no responsibility for him, and iYOU SHOULD NOT HIRE HIM .!!! „ your
response was that was my opinion was only because i didn't trust him. then to add insult to injury last jan
you told me he was gone. however he too is still there, and a waste of money and space.
My time is complicated by Donald's potentially eviscerating any reason for anyone to use the
foreign funds repatriation plan that i had put together. . however as you are aware I have some decisions
to make re my time allocation in the next year or two. so at least for a few weeks I am unable to commit
much time and make any future plans to guide you in the redoing of your procrastination produced
HOUSE OVERSIGHT 023242
mess.
That being said, the tasks at hand are the following.
You have a bomb of colored string that your retarded children have formed , It has to be very carefully
unwound , even the substitution of Barry for your next trustee, needs a careful focus on procedure.s It
would be much preferable if Wechsler was not his replacement. do you have any person you trust ??! . I
am concerned re brad taking barrys place re )(XXX. In the beginning Barry will need to find and learn
ACCURATE . org charts. books , balance sheets. trust valuations, are all a part. Barry will need 2
months to just get his arm around what is there , this is before any needed modifications.,
a way overdue re- fresh of your estate plan . . clats , trust. partnerships. grats. llcs. bank accounts,
filing requirements. etc. the long awaited review of the brh tra and shareholders agreement to see how
they fit into new plan. . "" planning. art partnership engagement.. , airplane re-do. , buying
another. . ? boat sale , Miami sale. . TRADING ACCOUNTS. . three years over due. . an
accounting system. fire john joslin stays for a year. or so. so does tom and. except for heather
everyone should be replaced with new. . Sell Artspace and shut down regan arts. . rationalize, cash
flow reporting. cash mgmt. stock sales. sec irs. gaming. foreign reporting. the 8865 mess will take
months to review now. . you CANNOT file unreviewed audited documents. . CANNOT!!! this will
be very detailed work. . a self inflicted wound - all avoidable if professionals had been in place to limit .
or contain it. . . you will need 3 new hires .a s there is no one in your office that is truly an A player. I
have great hope in Barry as you know. He will need to be trained. note
One year is my guesstimate After 4 years of telling you , that you could do better than Halperin, : im
glad that you now are willing to follow barrys advice . I take no offense, in fact I take comfort in the
fact that after only one conversation with Barry you are now convinced to make that change . will take a
year or more.
I expect as a friend you will understand that
I will no longer, not even for one day, work on your affairs . without the compensation that is long
overdue. . your unilateral idea of after care , not imposed on any other professional, except me, not paul
weiss ,( caesars alone, a direct screw up on their part ) tom, akin„ no one. needs to end. . you and I
had previously agreed no more of that, and this after you decided not to pay me per our agreement. to be
fair I can not say im surprised as you have email after email , stating that , if you save a great deal of
money, you wont want to pay, so limit it to 40m per year. - water under the bridge
If I can find the time to work, on your project , which is not by any means certain as I have said, I
hope you understand that it now will have to be under my standard terms and conditions. and well
documented so as to avoid any more of the he said she said. I never want to have any more
uncomfortable money moments with you , I find it very distasteful. . so to be clear , my terms are as
follows. I will only work for the usual 40 million per year. It needs to be paid, 25 million upon signing
an agreement. 5 million every 2 months thereafter for 6 months ie march may june . this can begin if i
am able in January. I will immediately stop work, if the payment is not received. If you want me to
work this year until Jan 15 , it will be 10 million, paid upfront. after one year you will be left with a
new estate plan a running office. staffed with professionals overseen by Barry. ( hallelujah ) a tax plan .
and an investment that returns more than any painting you could possible own. . no agreement - no
work. however - I of course will talk to Barry for the hour that i promised , and take your guidance as
to what I should say.
10n Apr 6, 2018, at 11:15 AM, Jeskewitz, Jeannine > wrote:
Fin in touch with Lesley and we will work together on these reservations.
All my best,
HOUSE OVERSIGHT 023243
Jeannine
On Tue, Apr 3, 2018 at 5:43 PM, Lisa Emelia Svensson <I  > wrote:
Air France has a strejk ... so French
Trying to rebook later in the week Will let you know
3 apr. 2018 kl. 16:29 skrev jeffrey E. <jeevacation@gmail.com>:
im in paris now
Date: Tue, Nov 15, 2016 at 6:13 AM
Subject: Fwd:
To: Melanie Spinella <_________________
Leon, Congragulations on biting the bullet. at least 18 months late , but I m encouraged and glad for
you. When you interviewed Brad two years ago you asked that i not tell him what a disaster lay before
him. what would you like me to tell Barry?
There is a HUGE amount of work to be done in the next 9 -12 months. mostly the exact same work
that i outlined in my email of 2 years ago. now complicated by years of mess on top. ( you can send it
again if you like ) . Brad wechsler was never up to the task . sorry, I realize I have been saying the very
same thing for a long time. he was a not a step up from Eileen but a step sideways. in the beginning
there was Eileen and Tom and Ralph Lerner. all your hand picks. then brad. john, Joe. . joslin was
chosen from a pool of 2 people. each that would be limited by a salary of 250k. ( yes i personally
augmented his comp in order to get him ) I did say hire both Lisa to do the bookkeeping and joslin tax,
He complained for over a year, re his direction by eileen and ada, and then brad. His breakdown was
not a surprise after months and moths of warnings. Though disabled, he ran your office this year. with
john and joe. He ran amok, and as i told you he rarely failed to remind me in our conversations that you
told him that he works for you and not for me and that brad needs to pays him .
. Asking me who to hire , estate attny tax people etc. :
I have taken heat for years over the fact that i gave you no more than carlyns name, . no follow up
questions no interactions , not even one single question asked of me re her work. ( that was Eileen )
but somehow carlyns fuck up was my doing. . when i told you that i thought Eileen wasn't up to the
task, you bellowed that i was talking out of both sides of my mouth. . You told me this year , that by
trying to protect you from crazy joslin, I had in essence fired him and it was my responsibility to do his
work. it then turns out that he didn't consider himself fired at all he just received less money. and
continued to make a really dangerous mess. . Joshn castrucci, in your eyes, was also my doing , though
email after email said , I take no responsibility for him,and iYOU SHOULD NOT HIRE HIM .!!! „ your
response was that was my opinion was only because i didn't trust him. then to add insult to injury last jan
you told me he was gone. however he too is still there, and a waste of money and space.
My time is complicated by Donald's potentially eviscerating any reason for anyone to use the
foreign funds repatriation plan that i had put together. . however as you are aware I have some decisions
to make re my time allocation in the next year or two. so at least for a few weeks I am unable to commit
much time and make any future plans to guide you in the redoing of your procrastination produced
mess.
That being said, the tasks at hand are the following.
You have a bomb of colored string that your retarded children have formed , It has to be very carefully
HOUSE OVERSIGHT 023244
unwound , even the substitution of Barry for your next trustee, needs a careful focus on procedure.s It
would be much preferable if Wechsler was not his replacement. do you have any person you trust ??! . I
am concerned re brad taking barrys place re XXXX. In the beginning Barry will need to fmd and learn
ACCURATE . org charts. books , balance sheets. trust valuations, are all a part. Barry will need 2
months to just get his arm around what is there, this is before any needed modifications.,
a way overdue re- fresh of your estate plan . . clats , trust. partnerships. grats. llcs, bank accounts,
filing requirements. etc. the long awaited review of the brh tra and shareholders agreement to see how
they fit into new plan. . "" planning art partnership engagement .. , airplane re-do. , buying
another. . ? boat sale , Miami sale. . TRADING ACCOUNTS. . three years over due. . an
accounting system. fire john joslin stays for a year. or so. so does tom and. except for heather
everyone should be replaced with new. . Sell Artspace and shut down regan arts. . rationalize, cash
flow reporting. cash mgmt. stock sales. sec irs. gaming. foreign reporting. the 8865 mess will take
months to review now. . you CANNOT file unreviewed audited documents. . CANNOT!!! this will
be very detailed work. . a self inflicted wound - all avoidable if professionals had been in place to limit.
or contain it. . . you will need 3 new hires .a s there is no one in your office that is truly an A player. I
have great hope in Barry as you know. He will need to be trained. note
; One year is my guesstimate After 4 years of telling you, that you could do better than Halperin, : im
glad that you now are willing to follow barrys advice . I take no offense, in fact I take comfort in the
fact that after only one conversation with Barry you are now convinced to make that change . will take a
year or more.
I expect as a friend you will understand that
I will no longer, not even for one day, work on your affairs . without the compensation that is long
overdue.. your unilateral idea of after care , not imposed on any other professional, except me, not paul
weiss ,( caesars alone, a direct screw up on their part ) tom, akin„ no one. needs to end. . you and I
had previously agreed no more of that, and this after you decided not to pay me per our agreement. to be
fair I can not say im surprised as you have email after email , stating that , if you save a great deal of
money, you wont want to pay, so limit it to 40m per year. - water under the bridge
If I can find the time to work, on your project , which is not by any means certain as I have said, I
hope you understand that it now will have to be under my standard terms and conditions. and well
documented so as to avoid any more of the he said she said. I never want to have any more
uncomfortable money moments with you , I find it very distasteful. . so to be clear , my terms are as
follows. I will only work for the usual 40 million per year. It needs to be paid, 25 million upon signing
an agreement. 5 million every 2 months thereafter for 6 months ie march may june . this can begin if i
am able in January. I will immediately stop work, if the payment is not received. If you want me to
work this year until Jan 15 , it will be 10 million, paid upfront. after one year you will be left with a
new estate plan a running office. staffed with professionals overseen by Barry. ( hallelujah ) a tax plan .
and an investment that returns more than any painting you could possible own. . no agreement - no
work. however - I of course will talk to Barry for the hour that i promised , and take your guidance as
to what I should say.
Date: Mon, Aug 29, 2016 at 1:41 PM
Subject: I know you have a lot on your mind.but..
To: Melanie Spinella <_________________________
sent to you JAN 29th 2016
you've agreed that
Your office is a multi billion dollar responsibility, your children will inherit it, in order to oversee their
financial lives- I feel for you, truly ,but the facts are the facts, your ceo ( Brad) has provided one bad
HOUSE OVERSIGHT 023245
document after another for over a year , no getting away from it,, bad cash flows no new IT, each
time with" its gettting better" no in fact -! its not. - the excuse, that Brad is not the numbers guy, is
ludicrous. of course he didnt actually prepare the statements. - no ceo would ,- but over and over he
presented them to you and me, after, holding them back for his personal review multiple times and after
multiple drafts. weeks of his editing, the consistant but "inexplicable "missing the obvious serious
errors . ( gaming ) inaccuracies, ( cashflow ) and mistakes (tax returns). why, ?! the simple answer is
that at best, he is a c minus, (note. I, like you ,also give points for effort. )- ! an elegant art partnership
gone fallow. ??!!I and its core reason to exist. not used ? no docs for plane?, still ! why? no docs for
decantings why? the docs for deal 1 received last night, " no docs at all for deal 2, the biggest " . why
wasn't Tom brought in, after 4 times of my incessant reminders your admonition etc. the trading
accounts ?
Barry Cohen is great. more like him please .
you asked, - I did my best trying to train your brad chosen people in the face of my telling you that they
were never going to be more than c-minuses, thousands of emails thousands ? Brad at its head . you
can't as a ceo, have an accountant give you multiple pages with the most important numbers missing
altogether and not notice, you and I saw the errrors right away ,as did my very junior bookeeper after
only a cursory glance. He told me he didnt know the details of his note?! , my guess is that he wanted to
pay less. no more than that, any other story is blather. its silly. Talk to richard yourself.
re your estate. Yes another Brad issue - your will, needs revision, the tenants in common structure I
assume Alan has carefully walked you through. it is way overdue, needed and exciting. I won't list the
more serious issues in an email but we can speak over the weekend.
How can I help? We agreed at the time when you hired Castrucci , that when you fired him, I would
bear no responsibility
Date: Thu, May 12, 2016 at 6:17 AM
Subject: tight schedule lets try a set time to speak
To: Melanie Spinella <! _
Leon, you hired me to produce a work of art. it was not inexpensive, the value far exceeds any other
piece in your collection.- by FAR. It took me 30 years to be able to craft such a work. I understand
your desire to modifiy my work, in doing so you have brad telling me, just a bit more red., here let me
show you, you yourself pick up a brush a add some strokes. you have joslin spray water on it to
maintain it. I vigorously complain that joslin in ruining my work. . you describe me as zeus, i describe it
as artist and a reaction to his work being ruined. however Im aware that you own the work and you
have the right to paint over it. tear it up , put it in the closet in the basement . its yours.
I was told that Toms office is sending someone in ,or some people in, to review "some things." brad told
me ,the partnership accounting. I know absolutely nothing more than that. though bringing in his team was
my idea . Having them review things without even asking for my input, or let alone my direction ,is
ridiculous. but.. I guess you wanted to save money. ?
The audit has brought to the fore the lack of your office quality that i have been violently squawking
about. ie. children playing with works of art. . It is inconceivable to me that John castrucci is still there
, joslin part time, but relied on. joe error prone and brad a corporate bandleader talking about the
office's finance team, accounting dept, and directing wendy to do things that are clearly not in your
interest. ( saving money again ?) its nuts!! . a still non-existent IT dept. impossible, it was the first
thing on my list of things that were needed to be done. Still no trading accounts to speak of, though its
prophylactic quality has been discussed over and over during the past three years. computers do not read
Page Six. the women at the IRS do. ! you said your motivation in keeping this group of part timers
HOUSE OVERSIGHT 023246
was a consequence of the high cost of my artwork. . the unfortunate result was easily predictable. -
now
If you want my and my atelier to continue, I will oversee the audits. take charge of the TRA BRH
assignments and review 2012 amendment options!!( note :your redo of the estate fire drill has not
progressed very far ). Lots of paper needs to be collected and reviewed, At MY direction. the outside
team will be brought in at my expense working for me and you. coming in for interviews and reviews, .
sucession, technology, tax and compliance, investment reporting „ computerized timelines for filings etc.
. household classifcations and reporting with a system of best practices.
My goal is clear - to end, not extend, our financial interactions, you will have a machine that works, it
will not be complexto oversee , to create it, is some thing else . Unfortunatley for us both, the price for
my works has not changed since day one. 40m per year, I m willing to discount it to 35 as I did give
you a bad number when asked and should pay an embarassment fine. Im also aware, as you made
perfectly clear . that you have already paid what you consider a great deal of money, for my work, but
again its value exceeds anything else by far in your collection at a cost less than agreed upon. . please
also remember that you and i agreed no more demands on my time after the last payment for the big
transaction.
OR, you can decide that brad, tom, and whomever else you choose can screw with my work and they
can oversee your audits. they are both aware and sensitive to the issue at hand. alan could be brought
in but i would be extra careful having paul weiss given access to entire story.
-On an unrelated note- you recently seemed shy to discuss certain things. , please be assured I make
no judgement on any of your activities , whether or not i agree with them. not my role I am always on
your side on the table. I hope your personal life quiets. you 'ye had a rough 15 months.
3. Remind me to talk to you about MR
Date: Mon, Sep 19, 2016 at 8:56 PM
Subject:
To: Melanie Spinella <________________________________
dec 2015
IT, still desperately needed- reporting flawed cumbersome and inaccurate . all done by hand as one -off
exercises, - airplane: re structure, (my only suggested priority in june ) is really ,no further ahead,
,consultants up the kazoo but nothing at all done.( the office was told that i cannot even see the proposals
received without brads specific authorization ) - brad has no idea even as to what questions to ask. he
knows little of finance, is run roughshod over by almost everyone in the office. he is a little man, using
your power, to appear larger . Eileen was self aware enough to know she was over her head , that is a huge
difference. bad info is rampant ie 3 million in deductions Im told are taken for art space but on closer
examination it turns out they cannot be used at all. ( ZERO benefit ) though you will be told yes they
were deducted on the return they said that is the question they get asked ! " were they deducted " not 2
is there a benefit" !! I asked for the balance sheet and P and L for Regan arts , a basic first step in
order to check your financials. "sorry we never got one?" though 9.8 million invested, no p&l, nothing,
a construction project run amok , no budget, the coo fired after only 3 months., no clue. I can add that
artspace financials are also a total mess.
As your friend and in order totum the page. I will try to be constructive
The following is a list of things I think would be in your interest to get done asap .but definitely not by
me.
I suggest you form new grats. , hire a high level tax partner. use your trading accounts as they remain
the paramount requirement 16 months after i emailed to you their importance. , I suggest you consider
having the 49percent of phaidon merged into artspance and have Richard buy artspace. re-do bank
HOUSE OVERSIGHT 023247
loans. no need to pay interest at higher rates on boat or plane. . as Richard is now no longer trustee. re-
do will, make suydam executor , with Barry, and john as back up. pay 1 million a year for executor role.
get rid of Judy Black trust, deal with gifts and their tax returns, . review amounts to kids at fixed ages. put
more protections in for Alex and Victoria. , distribute some money to kids let them make decisions. ,
decide art division with children in attendance . have fire drill done on estate. fill out estate returns as if
you and Debra died today, choose advisers - rick bronstein said the only 1040 he ever filled out was his
own. ( this is brads chosen advisor??!) Halperin has a conflict that should be addressed., Debra should
enter a tenants in common agreement with kids. you have airplane consultants tax consultants it
consultants. plane operation consultant. . boat consultants. architects, lighting , art, legal, . foundation,
deal with TRA, BRH , rationalize investments, cash flow, reporting, gaming disclosures, foreign, gift. .
prepare tax projections for 15 and 16, . deal with neg basis ( tufts gain, debt financed, art partnership,
pledges. sell stock, art, deal with phaidon debt. athene,? income, capital, foreign, exit, corporate,
insurance regs, out and inbound issues, basis, appropriate discount rates. ? terminations. control. ,
qualified dividends, corporate tolls, inversion rules. , grat issues, short swing and other sec disclosures,
Rothshcild bank, 150 b they have a distribution network with no products , private bank Rockefeller
Rothschild financial service, deal with UK visa issue sooner rather than later. we can talk about Rowen
request re Athene , 2 billion in taxes on transaction. ?!
the facts as i see them
in June and then again Sept, we both agreed to a 50% of phaidon payout., then after weeks of thinking
about the issue ( which I fully understand ) . the payout was unilaterally changed. 5m woudl be reserved
for the future ? . and out of the remaining 15m,? i would receive only 5. ( note : I'm confident that both
the debt, and the artspace investment will also lead to a write off of another 30 m. plus ) In my dining
room ,you were surprised when I said that i require most people to pay their advisory fee up front so that
I am assured that I will be properly compensated for my work when strategies that I devise are
implemented. you may recall that you appeared offended and said " are you suggesting that i would go
back on my word" I said no , of course not ! you are my closest of friends ,but my experience is that
when amounts get large, people tend to get unhappy when it actually comes time for them to pay,.
From day zero a 50 - 60 million price was attached as the fair price of the transaction just completed .
though this amount was already substantially less thanour agreed and negotiated formula. - I was
never told that this was out of range. in fact, alternative methods of payment. plane -in-kind etc, were
discussed ( ie keeping the 30m portion of fee outstanding till March ) ,I provided as requested a
detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon
was not forthcoming ) in order to make my many corrections. I was then told that Alms involvement
warranted a discount. Even in the best of light , though it is beyond question that not one-,not -one
time in three years has he ever proposed a unique idea. (including the new tenant in common idea,) and
lets say he made a contribution to the plan andeven that it was 50 %. though no one could posit such a
large amount unless they were wearing a brightly colored clown suit. , the price of doing the deal was
known . It had both sent in writing and spoken about on the phone numerous times, a detailed
execution plan was provided. then and only then after all was laid out for the group I was told that after a
number of conversations with brad karp that only 20m would be paid, (and even that was more than
originally contemplated ) for both transactions . I feel It was remarkably unfair. Did brad even know of
our prior agreement.? I called him and he said he was never told.?, I would ask that you I and Brad karp
sit together if you think it would be helpful. . I would like to send him this email, with your consent of
course. If the transactions were never consummated, i would not be owed a dime, however , the price
was known up front. , the detailed step by step plan was followed and overseen by me, the price that had
been requested before the transaction was begun, and had lready heavily discounted, out of friendship,
from our agreement . I believe the decision re paying only 20 m has franldy left me felling quite uneasy.
HOUSE OVERSIGHT 023248
since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in
eileens drawer.. went through cash flows for phaidon shwoing that john murphy is not an accountant.
redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from
including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created
8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems,. . reorg bad art
purchases, funds taken„ charibale decustions , helped with fincnacil sttment gamoing commions fling..
boat deductions, rescued stock from grats. . may 1 after months of brad not finding anyone i sent an
email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could
figure out the basis issue, please see attached, .
questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts.
doesnt exist
ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you
why the proposed phaidon transaction DOES not work. . as them to give you a plan for the plane. ? ask
them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system
progress after one year. . the approval process for payables. . the cash flow projections? assumptions? ask
for a comparative review of investments, ask haperin to describle to you in any detail BRH, the major
asset of his two biggest clients, tax basis, disposiotion in the estate. . etc. ask brad to show you the
liquidation of the inteveing art space cos? .
Last year you asked, for my help I told you I preferred not as we would be better off having no financial
intereactions. the risk was not worth it. You told me that as my friend i had to do it I agreed., here
we are in what I find to be an awkward situation. the transactions that i decvised were used , our
agreement was ignored. and im not sure how to respond.
Date: Thu, Sep 29, 2016 at 11:47 AM
Subject: new info
To: Brad S Karp_______________________, Melanie Spinella -_________________________________>
brad, leon.
After I spoke to you both, I excused myself from a dinner with some heads of state to walk into the
bathroom to make some calls re 8865. I wondered whether any group that we could assert had control
had filed in the past years. I called Fenn and he told me- yes.???!! he said that on friday, for the first
time he learned that AGM was not delinquent at all. and had filed. !! I asked why no one had ever told
me or given me the purported justification for no filings in the past for the founders. and he said Well,
sorry, it was discussed on fridays call. ? the call i was not on . not invited to ,the call wechsler didnt
listen in and joslin didnt transmit , if it is true. Im also now told there is a note from Deloitte re 13 and
14 that says the founders DO NOT have to file. but fenn could not tell me who wrote it and said
Deloitte says to ignore it., that s why they are pushing now.
steps 1 8865 has many exemptions for filing, let see if we can find one . ( an elegant position might be
josh and agm if he is panicked and leave us out ). The requirments are FACT specific , so without the
facts we still have nothing. fenn said he has now put someone on it
2 leon, I suggest need to focus on 1040 , 2015. , we may even consider filing the minimum
8865 , and wait until we are sure of our specific requirements, and file an amendment for 15 as well as
past. no harm no foul\
Date: Thu, Sep 29, 2016 at 12:34 PM
HOUSE OVERSIGHT 023249
Subject:
To: Melanie Spinella <_______________________
Leon, I am on the verge of giving up. sorry. I cannot deal with the major incompetence of your family
office. I have been vocal about change. you have made none. john castrucci, still involved etc. the
bullshit corporate speak, of -our accounting dept, our bookeeping dept our finance dept, the comptroller
. now gives me responses that --we have heard from Deloitte , I ask, who at Deloite?. -- dont know ,
the new team at Deloite says the old team was wrong! what new team? what old team? -- dont know. .
Pwc agrees who at PWC , ? ? I ask ,- dont know. BDO is almost finished - who, ? dont know; .
akin gump agrees. . Fenn? - not sure.
I have spoken to each of karpl' pezner, fenn, brad. joslin, bodian. multiple times . like your office
no one in charge with knowledge. so rudderless hysteria. silly beyond belief as this issue is a non
event, other issues have been shunted aside that have real consequences. I know you are jet lagged. I
am schedule tightly today , but can free myself for 15 minutes if you want. if so have melanie talk to
lesley
Date: Monday, 3 October 2016
Subject:
To: Jeffrey Epstein leevacation@gmail.com>
alan told me you are going to meet tomorrow morning. He has asked me to review the presentation. I
suggest you see for yourself. since you argued that he was partial architect of the big transaction. you
will see. -- bad numbers. unclear assumptions. opaque presentation. no alternatives, no review of
agreements. standardized schedules without names , handed out to the dentists.. NOT even up to date
inputed numbers , why in the world would they present numbers 4 months old. ??!!/ it is only imputs.
dividend assupmtions. a mix of silliness. ( art given to museums is listed as cash out ). discount rates of
13.05 %. what type of number. . 100k for illness expense and funeral, in a spread sheet of 5 billion
dollars.? insurance numbers left out. says debra owns half the boat? taxes? all a waste of time
A clat probabaly makes sense. however who runs it, if interest rates change. did you give them the
assunptions on growth?
Date: Sun, May 1, 2016 at 6:51 PM
Subject: Fwd: Valuation Discount
To: Melanie Spinella <________________________
Leon please read the attached proposed response to the IRS , see if you can understand it !!!. Ive asked
for a re-do. and given prelimiary directions to Alan to have it edited over the weekend
. If you are quarterbacking ,ok with me. just please let everyone know. you must deal with the
outrageous incompetence in your family office.. Alans words " but I was told that.., but I was told by
the office (sic) that ... , BUT i was told by joslin,. , but I was told by. " why is leon blaming me for .." .
I ye have always given you my best advice, If you reflect on your financial life, you have been kept safe,
had remarkable results and no disasters. I have repeatedly urged you to get rid of the people in your
office. , you have repeatedly chosen to ignore my advice , you told me last week that the emotional
reason was in order to be weaned off my group and not have to pay my high fees. ( though ignoring
the benefit of between 1.5 and 2b to the better. ) . and no explosions. You have email after email
,where i remind you that I am not your bookkeeper or accountant ( in brads corporate speak his" finance
dept ??!!) that it should be redone .I have reviewed a multitude of the silly reports given to you and
have pointed out the continued numerous inaccuracies. your question" so what if the numbers are off,
so what if the categories are off. whats the big deal??. I suggest you de risk you finances and make the
tough decisions necessary - pay the right amounts ( high) to get the work done properly or , you are, Im
afraid, certain to get an unhappy answer.. tom will be back from vacation, this week.
HOUSE OVERSIGHT 023250
Date: Thu, Apr 28, 2016 at 5:16 PM
Subject: Valuation Discount
To: "jeffrey E." leevacation@gmail.com>
I am attaching a draft response from Empire Valuation as to why it arrived at a valuation discount on the
low end. Let's discuss the response and next steps. Thanks Alan
Date: Wed, Nov 9, 2016 at 10:27 PM
Subject:
To: Melanie Spinella______________________________
sorry, I can call on thurs or sit face to face fri afternoon. . I will be in ny until monday morning.
decisions- questions good news . I have a really elegant solution for most of the following, 1 gift tax.
cash or in kind . 2 . 1031. 3 fire drill brh tra etc. 4 . ,000( 5. 8865 s.
tax planing running out of time. . 7 restructure office. barry? brad told me he thought you had
acknowledged high value this year. gift tax audit etc., . April, Oct. . returns. manage joslin , who is
still running your tax dept.
you and I need not rehash old postures, its tedious - I would ask that you tell me if you intend to pay
for the work that was done, and for the work you expect to be done, thanks
Date: Tue, Nov 15, 2016 at 12:13 PM
Subject: Fwd:
To: Melanie Spinella .1__________________________________k>
Leon, Congragulations on biting the bullet. at least 18 months late , but I m encouraged and glad for
you. When you interviewed Brad two years ago you asked that i not tell him what a disaster lay before
him. what would you like me to tell Barry?
There is a HUGE amount of work to be done in the next 9 -12 months. mostly the exact same work
that i outlined in my email of 2 years ago. now complicated by years of mess on top. ( you can send it
again if you like ) . Brad wechsler was never up to the task. sorry, I realize I have been saying the very
same thing for a long time. he was a not a step up from Eileen but a step sideways. in the beginning
there was Eileen and Tom and Ralph Lerner. all your hand picks. then brad. john, Joe. . joslin was
chosen from a pool of 2 people. each that would be limited by a salary of 250k. ( yes i personally
augmented his comp in order to get him ) I did say hire both Lisa to do the bookkeeping and joslin tax,
He complained for over a year , re his direction by eileen and ada, and then brad. His breakdown was
not a surprise after months and moths of warnings. Though disabled, he ran your office this year. with
john and joe. He ran amok, and as i told you he rarely failed to remind me in our conversations that you
told him that he works for you and not for me and that brad needs to pays him .
. Asking me who to hire , estate attny tax people etc. :
I have taken heat for years over the fact that i gave you no more than carlyns name, . no follow up
questions no interactions , not even one single question asked of me re her work. ( that was Eileen )
but somehow carlyns fuck up was my doing. . when i told you that i thought Eileen wasn't up to the
task, you bellowed that i was talking out of both sides of my mouth. . You told me this year, that by
trying to protect you from crazy joslin, I had in essence fired him and it was my responsibility to do his
work. it then turns out that he didn't consider himself fired at all he just received less money. and
continued to make a really dangerous mess. . Joshn castrucci, in your eyes, was also my doing , though
email after email said, I take no responsibility for him,and iYOU SHOULD NOT HIRE HIM .!!! „ your
response was that was my opinion was only because i didn't trust him. then to add insult to injury last jan
you told me he was gone. however he too is still there, and a waste of money and space.
My time is complicated by Donald's potentially eviscerating any reason for anyone to use the
HOUSE OVERSIGHT 023251
foreign funds repatriation plan that i had put together. . however as you are aware I have some decisions
to make re my time allocation in the next year or two. so at least for a few weeks I am unable to commit
much time and make any future plans to guide you in the redoing of your procrastination produced
mess.
That being said, the tasks at hand are the following.
You have a bomb of colored string that your retarded children have formed , It has to be very carefully
unwound , even the substitution of Barry for your next trustee, needs a careful focus on procedure.s It
would be much preferable if Wechsler was not his replacement. do you have any person you trust ??! . I
am concerned re brad taking barrys place re XXXX. In the beginning Barry will need to find and learn
ACCURATE . org charts. books , balance sheets. trust valuations, are all a part. Barry will need 2
months to just get his arm around what is there, this is before any needed modifications.,
a way overdue re- fresh of your estate plan . . clats , trust. partnerships. grats. llcs. bank accounts,
filing requirements. etc. the long awaited review of the brh tra and shareholders agreement to see how
they fit into new plan. . "" planning art partnership engagement.. , airplane re-do. , buying
another. . ? boat sale , Miami sale. . TRADING ACCOUNTS. . three years over due. . an
accounting system. fire john.. joslin stays for a year. or so. so does tom and. except for heather
everyone should be replaced with new. . Sell Artspace and shut down regan arts. . rationalize, cash
flow reporting. cash mgmt. stock sales. sec irs. gaming. foreign reporting. the 8865 mess will take
months to review now. . you CANNOT file unreviewed audited documents. . CANNOT!!! this will
be very detailed work. . a self inflicted wound - all avoidable if professionals had been in place to limit.
or contain it. . . you will need 3 new hires .a s there is no one in your office that is truly an A player. I
have great hope in Barry as you know. He will need to be trained. note
; One year is my guesstimate After 4 years of telling you, that you could do better than Halperin,: im
glad that you now are willing to follow barrys advice . I take no offense, in fact I take comfort in the
fact that after only one conversation with Barry you are now convinced to make that change . will take a
year or more.
I expect as a friend you will understand that
I will no longer, not even for one day, work on your affairs . without the compensation that is long
overdue.. your unilateral idea of after care , not imposed on any other professional, except me, not paul
weiss ,( caesars alone, a direct screw up on their part ) tom, akin„ no one. needs to end. . you and I
had previously agreed no more of that, and this after you decided not to pay me per our agreement. to be
fair I can not say im surprised as you have email after email , stating that , if you save a great deal of
money, you wont want to pay, so limit it to 40m per year. - water under the bridge
If I can find the time to work, on your project , which is not by any means certain as I have said, I
hope you understand that it now will have to be under my standard terms and conditions. and well
documented so as to avoid any more of the he said she said. I never want to have any more
uncomfortable money moments with you , I find it very distasteful. . so to be clear , my terms are as
follows. I will only work for the usual 40 million per year. It needs to be paid, 25 million upon signing
an agreement. 5 million every 2 months thereafter for 6 months ie march may june . this can begin if i
am able in January. I will immediately stop work, if the payment is not received. If you want me to
work this year until Jan 15 , it will be 10 million, paid upfront. after one year you will be left with a
new estate plan a running office. staffed with professionals overseen by Barry. ( hallelujah ) a tax plan .
and an investment that returns more than any painting you could possible own. . no agreement - no
work. however - I of course will talk to Barry for the hour that i promised , and take your guidance as
to what I should say.
Date: Tue, Nov 29, 2016 at 1:27 AM
HOUSE OVERSIGHT 023252
Subject: so there is no  misunderstanding
To: Melanie Spinella < L>
I have told the brads and barry,- I am done. its not a negotiation, out!! - fyi given my carlyn joslin
castrucci, admonishments,- though my involvement in those - in one instance only gave a name - in
another only given an eileen dictated choice btween two 250k preparers. and for castrucci, I actually
sent emails that i take no responsiblity for his being hired. - however you felt strongly that I should be
saddled with their outcomes .even with brad wechsler, i again said two months in, Leon, he doesnt get
it. I tell you this so that you will understand that I will not interview, recommend or vet any new hire.
A story - In 1993 trump and I had a friend that kept telling his pilots how to fly, and when to fly, he
couldnt help himself from hiring morons as co pilots, and maintenance people based on cheapest rates.
Donald and I tried and tried to talk some sense into him, to no avail. Donald and I were in aspen, sitting
at little nells. when the friends plane crashed into the side of aspen mountain , klliing him and all on
board,- Trump looked at me and said without a blink , I guess NOW he wishes he would have listened to
us.- a metaphor for your office. . . had we not waited to the very last hour having had a six month
window and tens of unasnwered text and emails re decisions needed including the 1031. you would have
saved way more than you often feel obliged to argue about. . silly but i reallize you are stressed.
Barry will need to sit with brad for months, to absorb all the co's, structures. cash flow, financial
statments etc. I will present barry my thoughts on the overall redo , it will be the exact same email that i
presented to you and brad two years.ago . accurate numbers first. and foremost. . ( last week gaming
report stil funky). IT etc I pointed out some of the more glaring errors to barry to give him a flavor of
what is to come.
Tuesday if you like we should discuss Giacometti , and pesner . difficult to finesse him if they are
filing documents that you won't. these ridiculous conversations with tons of people on the phone ,
removes any claim you might have to not be considered a WILLFUL NON-FILER. ( after youve been
told by attnys and pwc that you should file in writing , you have NO choice ) .. worst possible result -
including serious penalties up the kazoo.
Date: Tue, Feb 24, 2015 at 8:20 AM
Subject:
To: Melanie Spinella <________________________>
Leon,
Yesterday , I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude of llc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do , - my responsibilities. etc and those things that are not, below you will find details of things that I
HOUSE OVERSIGHT 023253
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively . My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or " its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized ally in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
however - that is all in the past.
HOUSE OVERSIGHT 023254
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )
I heard you when you said you believed i had already been paid for the work that is now required. The
art partnership has fully answered all your concerns and discharged all my obligations and more so.
. ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall
that you required that my payments be at the end of my work not at the beginning as everyone else's.(
my work was never to include hours upon hours of training your staff). I eventually agreed, this of
course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route. always. It will take a
great deal of your time , but you will not have to spend any more money on mine.
We are scheduled to meet fri at 430 , I leave at 5 am sat morning.
Date: Tue, Mar 21, 2017 at 6:58 PM
Subject: Fwd: request for docs - AAP
To: Richard Kahn Darren Indyke <_
not for now. but maybe later ,
----------Forwarded message----------
From: Ada Clapp <WIMPPI>
Date: Fri, Mar 17, 2017 at 10:45 AM
Subject: RE: request for docs - AAP
To: "Barry J. Cohen"________________
Cc: Brad Wechsler <I________________________
Attached are:
1. Executed Version of AAP
"jeffrey E." leevacation@gmail.com>
HOUSE OVERSIGHT 023255
2. Most Current Draft of AAP
3. Redline of 1 against 2
4. Summary of AAP from Vanessa Eng
-----Original Message-----
From: Barry J. Cohen [
Sent: Friday, March 17, 2017 8:07 AM
To: jeffrey E. <jeevacation@gmail.com>
Cc: Brad Wechsler <1111.1.1>; Melanie Spinella
<11111>; Ada Clapp <=111.1>
Subject: request for docs
I will organize. Copying Ada who has a lot of this.
Sent from my iPhone
On Mar 17, 2017, at 7:25 AM, jeffrey E.
<jeevacation@gmail.com<mailto:jeevacation@gmail.com>> wrote:
can you send me latest bank art loan docs. BRH agreement. TRA
agreement amongst shareholders. . , org chart for phaidon, art space
, ownership only,. - list of invetsments , ownership ofl.a. house
art by highest gain. . -
Date: Tue, Dec 29, 2015 at 7:26 AM
Subject: Fwd: leon DO NOT SEND, hand deliver.
To: Jeffrey Epstein <jeevacation@gmail.com>
agreement,
and regan arts. . .
.structure, / list of
Transaction complete !
. this - in spite of your collection of Elysium misfits. !!!
With Brad out of the office and unable to run his usual interference , the level of his utter incompetence
was brought front and center, he may be a step up from Eileen, but if he is, then it is not certainly not by
much, . Though you and I have spent many many hours discussing the importance of details and
mechanics I was not shown one document re phaidon,- not one.. Brad wanted to keep it private between
he and his so called" advisors" however as he was out of the office during the most important
transaction of the year, I did get to spend time with joslin Joe and john, - the situation in your office is
wholly ludicrous - to summarize - the list I provided to Brad last December - things I thought were a
priority to get done after consulting with your office still remains virtually undone.
IT, still desperately needed- reporting flawed cumbersome and inaccurate . all done by hand as one -off
exercises, - airplane: re structure, (my only suggested priority in june ) is really ,no further ahead,
,consultants up the kazoo but nothing at all done.( the office was told that i cannot even see the proposals
received without brads specific authorization ) - brad has no idea even as to what questions to ask. he
knows little of finance, is run roughshod over by almost everyone in the office. he is a little man, using
your power, to appear larger . Eileen was self aware enough to know she was over her head, that is a huge
difference. bad info is rampant ie 3 million in deductions Im told are taken for art space but on closer
examination it turns out they cannot be used at all. ( ZERO benefit ) though you will be told yes they
were deducted on the return they said that is the question they get asked ! " were they deducted " not 2
is there a benefit" !! I asked for the balance sheet and P and L for Regan arts , a basic first step in
HOUSE OVERSIGHT 023256
order to check your financials. "sorry we never got one?" though 9.8 million invested, no p&l, nothing,
a construction project run amok , no budget, the coo fired after only 3 months., no clue. I can add that
artspace financials are also a total mess.
As your friend and in order totum the page. I will try to be constructive
The following is a list of things I think would be in your interest to get done asap .but definitely not by
me.
i suggest you form new grats. , hire a high level tax partner. use your trading accounts as they remain
the paramount requirement 16 months after i emailed to you their importance. , I suggest you consider
having the 49percent of phaidon merged into artspance and have Richard buy artspace. re-do bank
loans, no need to pay interest at higher rates on boat or plane. . as Richard is now no longer trustee. re-
do will, make suydam executor , with Barry, and john as back up. pay 1 million a year for executor role.
get rid of Judy Black trust, deal with gifts and their tax returns, . review amounts to kids at fixed ages. put
more protections in for Alex and Victoria. , distribute some money to kids let them make decisions. ,
decide art division with children in attendance . have fire drill done on estate. fill out estate returns as if
you and Debra died today, choose advisers - rick bronstein said the only 1040 he ever filled out was his
own. ( this is brads chosen advisor??!) Halperin has a conflict that should be addressed., Debra should
enter a tenants in common agreement with kids. you have airplane consultants tax consultants it
consultants. plane operation consultant. . boat consultants. architects, lighting , art, legal, . foundation,
deal with TRA, BRH , rationalize investments, cash flow, reporting, gaming disclosures, foreign, gift. .
prepare tax projections for 15 and 16, . deal with neg basis ( tufts gain, debt financed, art partnership,
pledges. sell stock, art, deal with phaidon debt. athene,? income, capital, foreign, exit, corporate,
insurance regs, out and inbound issues, basis, appropriate discount rates. ? terminations. control. ,
qualified dividends, corporate tolls, inversion rules. , grat issues, short swing and other sec disclosures,
Rothshcild bank, 150 b they have a distribution network with no products , private bank Rockefeller
Rothschild. financial service, deal with UK visa issue sooner rather than later. we can talk about Rowen
request re Athene , 2 billion in taxes on transaction. ?!
the facts as i see them
in June and then again Sept, we both agreed to a 50% of phaidon payout., then after weeks of thinking
about the issue ( which I fully understand ) . the payout was unilaterally changed. 5m woudl be reserved
for the future ? . and out of the remaining 15m,? i would receive only S. ( note : I'm confident that both
the debt, and the artspace investment will also lead to a write off of another 30 m. plus ) In my dining
room ,you were surprised when I said that i require most people to pay their advisory fee up front so that
I am assured that I will be properly compensated for my work when strategies that I devise are
implemented. you may recall that you appeared offended and said " are you suggesting that i would go
back on my word" I said no , of course not ! you are my closest of friends ,but my experience is that
when amounts get large, people tend to get unhappy when it actually comes time for them to pay,.
From day zero a 50 - 60 million price was attached as the fair price of the transaction just completed .
though this amount was already substantially less thanour agreed and negotiated formula. - I was
never told that this was out of range. in fact, alternative methods of payment. plane -in-kind etc, were
discussed ( ie keeping the 30m portion of fee outstanding till March ) ,I provided as requested a
detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon
was not forthcoming ) in order to make my many corrections. I was then told that Alans involvement
warranted a discount. Even in the best of light , though it is beyond question that not one-,not -one
time in three years has he ever proposed a unique idea. (including the new tenant in common idea,) and
lets say he made a contribution to the plan andeven that it was 50 %. though no one could posit such a
large amount unless they were wearing a brightly colored clown suit. , the price of doing the deal was
HOUSE OVERSIGHT 023257
known . It had both sent in writing and spoken about on the phone numerous times, a detailed
execution plan was provided. then and only then after all was laid out for the group I was told that after a
number of conversations with brad karp that only 20m would be paid, (and even that was more than
originally contemplated ) for both transactions . I feel It was remarkably unfair. Did brad even know of
our prior agreement.? I called him and he said he was never told.?, I would ask that you I and Brad karp
sit together if you think it would be helpful. . I would like to send him this email, with your consent of
course. If the transactions were never consummated, i would not be owed a dime, however , the price
was known up front. , the detailed step by step plan was followed and overseen by me, the price that had
been requested before the transaction was begun, and had lready heavily discounted, out of friendship,
from our agreement . I believe the decision re paying only 20 m has frankly left me felling quite uneasy.
since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in
eileens drawer.. went through cash flows for phaidon shwoing that john murphy is not an accountant.
redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from
including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created
8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems,. . reorg bad art
purchases, funds taken„ charibale decustions , helped with fincnacil sttment gamoing commions fling..
boat deductions, rescued stock from grats. . may 1 after months of brad not fmding anyone i sent an
email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could
figure out the basis issue, please see attached, .
questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts.
doesnt exist
ask. either wechsler or haperin to tell you what brh is, or how the tra works. .. ? as bronstein to tell you
why the proposed phaidon transaction DOES not work. . as them to give you a plan for the plane. ? ask
them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system
progress after one year. . the approval process for payables. . the cash flow projections? assumptions? ask
for a comparative review of investments, ask haperin to describle to you in any detail BRH, the major
asset of his two biggest clients, tax basis, disposiotion in the estate. . etc. ask brad to show you the
liquidation of the inteveing art space cos? .
Last year you asked, for my help I told you I preferred not as we would be better off having no financial
intereactions. the risk was not worth it. You told me that as my friend i had to do it I agreed., here
we are in what I find to be an awkward situation. the transactions that i decvised were used , our
agreement was ignored. and im not sure how to respond.
Date: Tue, Oct 27, 2015 at 6:35 AM
Subject: Detailed constructive list.
To: Melanie Spinella
Cc: Brad Wechsler
Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or
not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6
regan arts. .7 plane simplify re strucuture re finance. re purpose . 8 .boat restrucutre, sister, 9 re
fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review,
sale., 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current
and future pledges, gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay
HOUSE OVERSIGHT 023258
etc) . 18 debra and children ? current and future involvement . notifications etc. . new dynasty trust ? 19.
tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl
trading accouints . 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22
. consolidate and review and reduce the number of all bank accounts and legal entities. decanting
liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third
party responsibilty Bens house, alex films. etc.
Date: Tue, Nov 3, 2015 at 10:45 PM
Subject:
To: Melanie Spinella <___________________________
okay, its time for you to decide how you would like to move forward. ( fyi get your money from the
1031 . the screw up is only one of many,) If you decide to move foward on decanting. phaidon, note
basis estate update , each requires many carefully orchestrated detailed steps. and precision . there are
hundreds of millions in saving if done correctly and a huge mess if not. If you want me and my
colleagues to do it, oversee it paper it and guide it, you should tell me. It is a big undertaking . If not,
ok.. Brad and your crew can do it. I will have no real further involvement apart from confirming the
outcome of my proposed structure, I will not risk the admonition of- they thought you said, they thought
you meant, they understood it to be. but they said you said, ( i e ,I asked at our meeting that accounting
be done properly for bens house , what came back was ada thought that I meant that we needed to go
back to the 97 trust and give him a full third party accounting of where his money had gone??!! I kid you
not). I dont think brad should talk to jane heller without a fully fleshed out plan in place and even then it
should be you.
Date: Mon, Nov 30, 2015 at 11:21 AM
Subject: agenda
To: Melanie Spinella < >
1 fees, amount and to what entities when and responsiblitis. 2. gagosian idea to save a minimum of 10
mill and maybe more. 3. i can walk you through carlyns screw up, 50 % would have made little
difference and maybe made it worse. 4. we should have an all hands meeting with your family to talk
about art distribution on death. . 5. phaidon, decantings ( already firmly in progress ) loans. ( alan )
pent. ( with follow up ) all part of same elegant transaction, 6 asymetric risk worth at least 50- 60 no
matter how you calculate. I can explain. 7 lets get the money issue out of the way once and for all. I
have my team set to start.
Date: Fri, Dec 4, 2015 at 8:07 AM
Subject: Fwd: moving forward
To: Melanie Spinella <__________________________>
I had forgotten that Alan was actually at the table when i explained my note deal to you. it was at the
end of the meeting described below. . as you will recall, not once , not even a peep did alan suggest
contemporaneously his hand in the crafting, in fact brad said it was an idea. that HE brad, HAD HAD,
from the begiining . my emails between alan and I that you can read, further confirm authorship. Im sure
you recall the obnoxious tooting when alan said he agreed with my plan. .
Date: Mon, Nov 2, 2015 at 10:03 PM
Subject: moving forward
To: Melanie Spinella <____________________________>
I have mixed emotions about what transpired today. really, You saw first hand in nauseating detail
what i have been saying to you for quite a while now. Joslins answers were totally incomprehensible.
HOUSE OVERSIGHT 023259
the charts he prepared unreadable. Brads defensive posture was at a minum very surprising . He and I
have recently gotten along quite well, I thought. Neither Joslin or Brad understood a 180 million dollar
number. no cash flow after weeks of requesting? odd. when you suggested that heathers behavior was
emblematic of a sloppy office , brad said lets not talk about emblems??! bill pay, admittedly no change
for the year. . plane not done. though it was the only thing i suggested doing first in july . . I sent you a
list of 10 consultantts. brad said three, . i didnt want to push it. I was shocked that brad was opining on
things he knows little or nothing about. tax issues. 1031. neg basis, note payoffs ( the same idea he
said he had had from the beggining??!!) . answers re LBF holdings that can be corrected ( they cant) .
valuations that have never been read. . When we met in your lobby he seems surprised that i was there. I
dont know if he felt somewhat sandbagged. . .
the savings on the note payoff is aprrox 33 % of 1.8 billion, real money if you do phaidon which i see no
reason not to. if later josh and ben want to buy it back with you or without you they can. i will walk you
through the structure one on one. . the losses will offeset the calder gain as well as apollo gain.
Im aware that seeing what you saw frustrated you. I felt badly for you.
You wanted a contingent deal. real value. etc. I will not of course hold you to your deal. . its silly. its
not how i work or a reflection of our friendship, my proposal is as follows. I want away from your
buisiness , but at the same time leaving you in good shape. I think you should pay the 25m that you did
not for this year. for next year its the same 40 m as always, paid 20 in jan and 20 in july, and then we are
done. I will give you advice and counsel but new people will be running your operating machine. I will
oversee all the work that needs to be done you and I will hire new people, and it will be self running. ( it
was may in my house when you told brad it had been 5 months and you were getting fed up ) I will set up
a parallel. office , somenoe like wendy dolman or her quality is paramount. two accountants two
bookeepers and two office admins. . alan and zoe will handle trusts and grats. heatehr diana george will
be incolved in art partnership. if you want brad, analysts etc. and kids to do investments I have little to
add in that regard ,except to be able to account for things properly. I suggest that the kids must have skin
in any deal.
Alternatively , we can continue to focus on fun and let someone else do the things that you want done.
and you and I can kibbitz about it all. structures outcomes risk, museums. charity, ( joslins answer by
the way was I had asked how much charity was leon planining to give this year , ( the 2 m ) he didnt
include your foundation or the payment to me, or from debra and you??!!
Date: Mon, Nov 30, 2015 at 11:21 AM
Subject: agenda
To: Melanie Spinella <____________________________>
1 fees, amount and to what entities when and responsiblitis. 2. gagosian idea to save a minimum of 10
mill and maybe more. 3. i can walk you through carlyns screw up, 50 % would have made little
difference and maybe made it worse. 4. we should have an all hands meeting with your family to talk
about art distribution on death. . 5. phaidon, decantings ( already firmly in progress ) loans. ( alan )
pent. ( with follow up ) all part of same elegant transaction, 6 asymetric risk worth at least 50- 60 no
matter how you calculate. I can explain. 7 lets get the money issue out of the way once and for all. I
have my team set to start.
Date: Fri, Feb 20, 2015 at 5:52 AM
Subject:
To: Melanie Spinella <________________
>
1) pg 1 A" unequal shares" . pg 23 "removal of trustees " absolute. dont be confused with abiltiy to set
HOUSE OVERSIGHT 023260
up seperate trusts„ 2) I am reachable this afternoon in europe. on cell. 3. on another note . -our
financial agreement ended months ago . seperate from the art partnership (which i was told yesterday to
my amazement is still not funded) . i am obligated to complete ? the time i have dedicated since oct/
dec has been spent mainly as your friend. tom, brad though i am fully cognizant of my responsiblities. I
will try to help find people. I am not good at human resources. howevr If I don;t think they are good
enough for you. I will continue to say so , and you obviously decide. but I will reiterrate even in the face
of your "nobody is good enough argument." keeping foremost in my mind that you and I have only beeen
shown a very tiny handful of people. 4. I find the friction over fees , counterproductive, in an attempt to
avoid it I had suggested a multi year deal early on. you rejected it. I then suggested, and urged you to
have an option at a fixed fee , you also rejected that .you wanted the fee payment only at the end I argued
but ,conceded. I suggested a structure that tom didn't like, you rejected it. 5 I suggest you make a fair
proposal.- that i can either accept or reject. some payment up front this time is a requirement. I am willing
to modify any outstanding obligations. - there are creative ways to assure you of your desired
characterization of those payments. 6 you should open accts at Deutsh. and goldman. I am told that
eilleen has set up over one hundred bank acccts for you???!!. few relevant 7 you should immediatly
demand a list of all her acct authorites, exec poistions . director etc. bank authorizsations. etc. talk
later or over the weekend if you like
Date: Tue, Jan 5, 2016 at 9:32 PM
Subject:
To: Jeffrey Epstein <jeevacation@gmail.com>
Mark was here this morning , the proposed transactions are extremely complex. and would take a great
deal of detailed time. I do not know how, and if ,to move forward - our last transaction. a transaction
which you saved 600 million in tax. even if 20 years away, ( i hope longer) even discounted is a 300
million savings . for that you ignored our agreements , verbal written and emailed -and decided that it
was only worth 8 million dollars. ( assuming phaidon srichard happens. 24 m savings not including
artspace and debt benefits certain to come later ) FYI the phaidon transaction cannot happen as
currently comtemplated IT will not work . NOT
When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple
times that i thought it was a very bad idea, in that I preferred to have no financial interactions. I dont
have many friends and didnt want money in any way to interfere with our unique relationship. Reminder,
For five years you had the kind but goofy Eileen Alexandersson as the sole manager of your accounting,
legal, investments, reporting, trusts etc. When I first told you in no uncertain terms that I firmly believed
she was incompetent you admonished me for" speaking out of both sides of my mouth" . With regard
Brad Wechsler, there has never been a " both sides. ". I have consistantly maintained since day one that
he was highly unsuited for the job. When you initially asked me to help convince him to take the role,
promising him a position to manage mirage investments I sent you a note saying that instead of hiring him
you should pay up and get first class people. I have reiterated the same message for over a year now. .
Brad , not me ,was tasked with hiring new people, according to his org chart.(nauseating ) and as you
wanted him to take ownership of the staff,he conducted many interviews alone. . you may recall that as late
as may, you told him in my presence that though six months had passed he had not hired anyone. since
then I have rectified errors in sales tax, use tax, income tax, fbar reporting, 1031 reporting, 8 million of
deductions missed errors of millions on the returns. ,( april ) Oversight on new grats- first at 22 and then
at 19 that were done without my consultation and needed to be resolved soley as a result of my last
minute intervention. . 600 million in after tax savings was just accomplished, though you left the 30
million outstanding that I had said should only be done" if' that was my additional fee. not used for non
biz purposes and not art.
HOUSE OVERSIGHT 023261
in June and then again Sept, we both agreed to a 50% of phaidon payout first projected at 20 . but less
when artspace and debt taken out, - then only after weeks, when you delayed any detailed discussion of
money wanting to give the issue a thoughtful response ( which I fully understand ) . you unilaterally
changed our agreement. . 5m would be reserved for the future ? . and out of the remaining 15m,? i
would receive only a third. ( note : I'm confident that both the debt, and the art space investment will also
lead to a write- off of another 30 m. plus ) In my dining room ,you were surprised when I said that i
require most people to pay their advisory fee up front so that I am assured that I will be properly
compensated for my work when strategies are implemented. you may recall that you appeared offended
and said " are you suggesting that i would go back on my word" I said no, of course not ! you are my
closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it
actually comes time for them to pay.
I include below the email i sent to you on April 15, the day i was examining your returns It laid out
my understanding of the compensation agreed for a transaction of the magnitude to the penny of the one
just completed.ie 600m When it appeared that the transcation would and could go foward I was the
first to point out that our agreement would cost you too much money, therefore
From day one I proposed to discount our agreement to a 50 - 60 million range. An extremely fair price
for all the transactions just completed. including Phaidon. - I was never told that this was out of
range. in fact, alternative methods of payment. ie my plane, or an -in-kind payment were discussed ( ie
including keeping the 30m portion of the fee outstanding till March ) ,I provided, only because you
specifically requested a detailed step by step execution plan and reviewed all documents that i was given
access to. ( Phaidon was never forthcoming ) in order to make my many corrections . ( as i said more
needed on phaidon ) . I was then told that Alans involvement warranted a discount. Even in the best
of light , though it is beyond question that not one time in the three years of his retainer has he ever
proposed a unique idea. (including any way to deal with the use issue on debras death ,or even the most
basic review of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to
the plan and stretch reality beyond the pale and say it was 50 %. though no one could posit such a large
amount unless they were wearing a clown suit. , the payment and our formula of 37 percent associated
with the deal was known . It had both sent in writing and spoken about on the phone numerous times,
a detailed execution plan was provided. then and only then, after the entire transaction was laid out for
the group to follow You told me that after a number of conversations with brad karp that a total of only
20m would be paid, (and even that was more than you originally contemplated ) for both transactions .
Leon I feel It was remarkably unfair. Did brad even knew of our prior agreements.? ?, I would ask that
you I and Brad karp sit together if you think it would be helpful.. I would like to send him this email, with
your consent of course. If the transactions were never consummated , i would not be owed a dime,
however , the expected fee was known up front. , the detailed step by step plan was followed and
overseen by me, the amount that I had requested before the transaction had even begun, had already
been heavily discounted, out of friendship, . I believe the decision re only paying 20 m has frankly, left
me felling quite uneasy. and colors the view about the Athene or Rothschild transaction.
Date: Sun, Mar 20, 2016 at 11:17 PM
Subject:
To: Melanie Spinella <
glad to see you are personally on the mend - as well as the fence. -- As you know i dread money
discussions with you-- however -we should address the issue of what you would like to do moving
forward. re- do family office, accounting trusts, estate and apollo agreements . Along with your"
payment" last year we agreed . no further obligations on each side. yes, i continued to moan. I realize
that though I ye done quite a lot this year already , it is not your responsibility. . As you often like to
HOUSE OVERSIGHT 023262
remind me- you've paid a great deal of money to date. that being said - If you want my involvement
moving foward, I suggest you pay my regular 1 fee of 40 m. 20 now . 20 on completion or as per the
invoice issues at the end of last year pay 30 all at once. -
To help out . im keenly aware of your current cash position. so I will consider an in-kind payment -
real estate ( Miami )„art , financing of my new plane (allows you to spread over years or of course the
preferred cash. Get rid of Castrucci,it is over a year since the same story of findign the right guy at the
top. you entire accounting needs to be re done. , office downsized, reporting re done. meetings to
recitify, categlorize , the various docs re appollo, rowen, suydam, alan etc. Brad can direct investment
guys, ( hopefully) my people will be in your office for a few months . reorganizing IF you decide not to
pay I fully understand, as I m sure you will re my no longer spending any serious time on these things.
Of course re any non financial issues, I am always there for you and will continue to be the best friend I
can be.
Steve jobs said that everyday he woke up, and asked himself, if he knew he was going to die tomorow,
would he do the same thing that he had planned for the day- he wanted to check that he was doing things
that he really wanted to. after three days of getting back an answer of no, he would change what he was
going to do. . he also did not believe in LONG term plans. I dont think either one of us will figure out
what we want to do long term so my thinking is that we should try to have fun everyday, and welcome
serendipity.
I think another trust and estate lawyer should be brought in to deal with the issues of how not to allow
your family to get screwed by your partners on death. Alan, for years told me that paul weiss had drawn
the docs so no issue but when recently pushed by my new fire drill he asked akin to draft .?! PLease
ask brad about why he keeps talking about flow. I dont know what he means, its so silly. . this is only
about money control and protection.
I am leaving monday night now. free to speak in the afternoon
Date: Tue, Apr 12, 2016 at 11:49 AM
Subject:
To: Melanie Spinella <
use tax questions. ? california question state returns? as you know wendy did not play a role here. .
her involvment moving foward would help alot. . sign your gift tax return today if possible . I will
be finished tomorw with this year. crazy on april 13th. !! . last minute to say the least. . brad told
you the tra can be separated with approvals, which should be simple. . alan alwys just says no, . unless
he is asked, well what if we amend what is there. . moving foward , i ask you to decide if you want me
and my team involved or not. . I want to be weaned. I agree the past, apart from phaidon and artspace.
this year of course is done.. for me to allow bad reporting to negaitvely impact you, by keeping joslin,
would be irresponsible on my part. . letting him do harm, or stopping him and having to listen to his
leaving is my fault. is awkward. . I will call at 3
Date: Tue, Feb 9, 2016 at 7:56 PM
Subject: Fwd:
To: Melanie Spinella
this was sent four months ago, nothing has changed
sent oct 15. before big transaction.
Office, - ada goes. , hire heather a paralegal. Joslin goes or is closely managed by new cfo with tax
experience. . castrucii goes asap.as he merely adds to mess.( too many people, ex 7 people or more to
HOUSE OVERSIGHT 023263
pay a bill ) eva goes. outsource as much as possible. . bookkeeping systems built from scratch,
airplane restructure, boat. same, new grats. phaidon sale , decide on artspace survivability, regan, . do
the kids really want these?, children accounting ie bens house.etc. re do estate for new facts. redo
loans, trading accounts activity, . gaming -foreign- disclosures. . BRH TRA re thinks. household and
construction architects. . redone. art partnership , choice of paintings. . re do structure of consultants.
tax re family office. . decide if investments are a realistic option in the next three years.. insurance.
operations. airplane , etc. . art foundation , private. max charity contributions fmancial reports. still
waiting. ? on line banking, . tax planning, family office deductions ( profit center ) . airplane certificate,
redone jet aviation redo. . paper gigi ( E )trust to avoid gift tax. .
Date: Tue, Nov 15, 2016 at 6:13 AM
Subject: Fwd:
To: Melanie Spinella <__________________________
Leon, Congragulations on biting the bullet. at least 18 months late , but I m encouraged and glad for
you. When you interviewed Brad two years ago you asked that i not tell him what a disaster lay before
him. what would you like me to tell Barry? '
There is a HUGE amount of work to be done in the next 9 -12 months. mostly the exact same work
that i outlined in my email of 2 years ago. now complicated by years of mess on top. ( you can send it
again if you like ) . Brad wechsler was never up to the task. sorry, I realize I have been saying the very
same thing for a long time. he was a not a step up from Eileen but a step sideways. in the beginning
there was Eileen and Tom and Ralph Lerner. all your hand picks. then brad. john, Joe. . joslin was
chosen from a pool of 2 people. each that would be limited by a salary of 250k. ( yes i personally
augmented his comp in order to get him ) I did say hire both Lisa to do the bookkeeping and joslin tax,
He complained for over a year, re his direction by eileen and ada, and then brad. His breakdown was
not a surprise after months and moths of warnings. Though disabled, he ran your office this year. with
john and joe. He ran amok, and as i told you he rarely failed to remind me in our conversations that you
told him that he works for you and not for me and that brad needs to pays him .
. Asking me who to hire , estate attny tax people etc.:
I have taken heat for years over the fact that i gave you no more than carlyns name, . no follow up
questions no interactions , not even one single question asked of me re her work. ( that was Eileen )
but somehow carlyns fuck up was my doing. . when i told you that i thought Eileen wasn't up to the
task, you bellowed that i was talking out of both sides of my mouth. . You told me this year, that by
trying to protect you from crazy joslin, I had in essence fired him and it was my responsibility to do his
work. it then turns out that he didn't consider himself fired at all he just received less money. and
continued to make a really dangerous mess.. Joshn castrucci, in your eyes, was also my doing , though
email after email said, I take no responsibility for him, and iYOU SHOULD NOT HIRE HIM .!!! „ your
response was that was my opinion was only because i didn't trust him. then to add insult to injury last jan
you told me he was gone. however he too is still there, and a waste of money and space.
My time is complicated by Donald's potentially eviscerating any reason for anyone to use the
foreign funds repatriation plan that i had put together. . however as you are aware I have some decisions
to make re my time allocation in the next year or two. so at least for a few weeks I am unable to commit
much time and make any future plans to guide you in the redoing of your procrastination produced
mess.
That being said, the tasks at hand are the following.
You have a bomb of colored string that your retarded children have formed , It has to be very carefully
unwound , even the substitution of Barry for your next trustee, needs a careful focus on procedure.s It
would be much preferable if Wechsler was not his replacement. do you have any person you trust ??! . I
HOUSE OVERSIGHT 023264
am concerned re brad taking barrys place re XXXX. In the beginning Barry will need to find and learn
ACCURATE . org charts. books , balance sheets. trust valuations, are all a part. Barry will need 2
months to just get his arm around what is there, this is before any needed modifications.,
a way overdue re- fresh of your estate plan . . clats , trust. partnerships. grats. llcs. bank accounts,
filing requirements. etc. the long awaited review of the brh tra and shareholders agreement to see how
they fit into new plan. . "" planning art partnership engagement.. , airplane re-do. , buying
another. . ? boat sale , Miami sale. . TRADING ACCOUNTS. . three years over due. . an
accounting system. fire john.. joslin stays for a year. or so. so does tom and. except for heather
everyone should be replaced with new. . Sell Artspace and shut down regan arts. . rationalize, cash
flow reporting. cash mgmt. stock sales. sec irs. gaming. foreign reporting. the 8865 mess will take
months to review now. . you CANNOT file unreviewed audited documents. . CANNOT!!! this will
be very detailed work. . a self inflicted wound - all avoidable if professionals had been in place to limit.
or contain it. . . you will need 3 new hires .a s there is no one in your office that is truly an A player. I
have great hope in Barry as you know. He will need to be trained. note
; One year is my guesstimate After 4 years of telling you , that you could do better than Halperin,: im
glad that you now are willing to follow barrys advice . I take no offense, in fact I take comfort in the
fact that after only one conversation with Barry you are now convinced to make that change . will take a
year or more.
I expect as a friend you will understand that
I will no longer, not even for one day, work on your affairs . without the compensation that is long
overdue. . your unilateral idea of after care , not imposed on any other professional, except me, not paul
weiss ,( caesars alone, a direct screw up on their part ) tom, akin„ no one. needs to end. . you and I
had previously agreed no more of that, and this after you decided not to pay me per our agreement. to be
fair I can not say im surprised as you have email after email , stating that , if you save a great deal of
money, you wont want to pay, so limit it to 40m per year. - water under the bridge
If I can find the time to work, on your project , which is not by any means certain as I have said, I
hope you understand that it now will have to be under my standard terms and conditions. and well
documented so as to avoid any more of the he said she said. I never want to have any more
uncomfortable money moments with you , I find it very distasteful. . so to be clear , my terms are as
follows. I will only work for the usual 40 million per year. It needs to be paid, 25 million upon signing
an agreement. 5 million every 2 months thereafter for 6 months ie march may june . this can begin if i
am able in January. I will immediately stop work, if the payment is not received. If you want me to
work this year until Jan 15 , it will be 10 million, paid upfront. after one year you will be left with a
new estate plan a running office. staffed with professionals overseen by Barry. ( hallelujah ) a tax plan .
and an investment that returns more than any painting you could possible own. . no agreement - no
work. however - I of course will talk to Barry for the hour that i promised , and take your guidance as
to what I should say.
her the last two places. ?
To: Melanie Spinella -
Leon please read the attached proposed response to the IRS , see if you can understand it !!!. lye asked
for a re-do. and given prelimiary directions to Alan to have it edited over the weekend
. If you are quarterbacking ,ok with me. just please let everyone know. you must deal with the
outrageous incompetence in your family office.. Alans words " but I was told that.., but I was told by
the office (sic) that ... , BUT i was told by joslin,. , but I was told by. " why is leon blaming me for .." .
HOUSE OVERSIGHT 023265
I ye have always given you my best advice, If you reflect on your financial life, you have been kept safe,
had remarkable results and no disasters. I have repeatedly urged you to get rid of the people in your
office. , you have repeatedly chosen to ignore my advice , you told me last week that the emotional
reason was in order to be weaned off my group and not have to pay my high fees. ( though ignoring
the benefit of between 1.5 and 2b to the better. ) . and no explosions. You have email after email
,where i remind you that I am not your bookkeeper or accountant ( in brads corporate speak his" finance
dept ??!!) that it should be redone .I have reviewed a multitude of the silly reports given to you and
have pointed out the continued numerous inaccuracies. your question" so what if the numbers are off,
so what if the categories are off. whats the big deal??. I suggest you de risk you finances and make the
tough decisions necessary - pay the right amounts ( high) to get the work done properly or , you are, Im
afraid, certain to get an unhappy answer.. tom will be back from vacation, this week.
----------Forwarded mess7,-
From: Halperin, Alan S 1_________________________>
Date: Thu, Apr 28, 2016 at 5:16 PM
Subject: Valuation Discount
To: "jeffrey E." leevacation@gmail.com>
I am attaching a draft response from Empire Valuation as to why it arrived at a valuation discount on the
low end. Let's discuss the response and next steps. Thanks Alan
Date: Tue, Feb 24, 2015 at 8:20 AM
Subject:
To: Melanie Spinella < >
Leon,
Yesterday , I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude of llc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights. I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do, - my responsibilities. etc and those things that are not, below you will find details of things that I
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
HOUSE OVERSIGHT 023266
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am tom, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively . My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or" its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized atty in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
HOUSE OVERSIGHT 023267
however - that is all in the past.
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )
I heard you when you said you believed i had already been paid for the work that is now required. The
art partnership has fully answered all your concerns and discharged all my obligations and more so.
. ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall
that you required that my payments be at the end of my work not at the beginning as everyone else's.(
my work was never to include hours upon hours of training your staff). I eventually agreed, this of
course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route. always. It will take a
great deal of your time , but you will not have to spend any more money on mine.
We are scheduled to meet fri at 430 , I leave at 5 am sat morning.
Date: Tue, Feb 24, 2015 at 8:20 AM
Subject:
To: Melanie Spinella <__________________________1>
Leon,
Yesterday, I again spent hours upon hours of my time with your office. ,( speak to brad to get
flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other
weeks spent doing the things that I don;t have the time to do.
In order to keep things in perspective, maybe reviewing an analogy I have used before with you,
might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500
million dollars per year. It contains a few operating biz's , a large wide array of existing investments,
HOUSE OVERSIGHT 023268
in various categories , a desire to enter into others. A panoply of loans, notes. purchases, wide range
of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no
oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants.
construction consultants bill payers, home mgmt.,vast multitude ofllc's , including foreign, and with
all that you only have a combined overhead of less that 3 million dollars.
I have previously sent you the very same note that i have enclosed again below ,this time with
highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to
have been raised as one of your concerns , as a rule I try to memorialize things in writing in an
attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't
do , - my responsibilities. etc and those things that are not. below you will find details of things that I
thought needed to be done, so that you wouldn't find yourself in the very place where you currently
find yourself. however ,you chose to defer many of my suggestions- see below -,until only weeks ago.
! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50
40 timber emails all carried with it a clear warning that you needed to do something re personnel if it
were to stabilize,- you chose to wait.
ONE YEAR AGO
Feb 17 2014 i wrote:
With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very
strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with
many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago
that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way
before the beginning of my involvement ) I am also aware however of my overarching friendship
obligations of ok, -given all the complexities who else can do it? problem.
Your family office needs a daddy. children with good intentions are running around, sniping,
nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take
charge Everyone would report to him. Eileen included. He would however work for me. this is not,
by a long shot my first choice as I prefer only being responsible and standing behind my own
personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others )
With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in
trying to think through the problem creatively. My organizations handling of the more complex
issues I believe you might find very costly, very! ( however many structures available some risk
sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should
be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to
oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a
new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person.
The increasing public profile needs to be taken into consideration.
TODAY
With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she
continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me.
and each time with my many annoying calls to you made immediately afterwards that she was g.....y!!
No one was hired to run YOUR office until two months ago , no one was even interviewed and even
now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent
training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to
ignore mine saying " but Leon said " or" its on Leon's desk etc " , You would become frustrated
when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but
to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own
HOUSE OVERSIGHT 023269
team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in
the instances where I inserted myself and personally had to do the weeks of grunt work
),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from
where you were, to where you are currently . you have made a hell of a deal. -- negotiating down
my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was
partially my fault. ( though in that specific example , I had never been asked to do more than merely
provide you the name of the most highly recognized ally in the field, not consulted,nor even asked
again for my guidance along the way. ). I accepted the discount as your friend. ( by the way
„suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-).
however - that is all in the past.
In order to move forward
I would ask that you realize that very unlike yours, My business is only comprised of my personal
attention and my personal time . Time that I was forced to grossly overspend on your various issues
last year. . As you are my very close friend I will not have you participate in a bidding process that I
have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also
ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your
understanding of the final payment terms neither reflected the emails or my memory, we finished it up
your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and
over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made
serious dollar and time concessions last year.very serious I am wiling to continue to accommodate
some of your concerns , but I am, under no circumstances , none, willing to spend my time for free.
its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We
were both highly aware of the dire circumstances in which you found yourself last year, and in fact due
predominately to its seriousness, and those very circumstances I took extra care in our negotiations .
(you had claimed I had you over a barrel , ( a horrible position to be in with my very close friend.),
unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your
own design )
I heard you when you said you believed i had already been paid for the work that is now required. The
art partnership has fully answered all your concerns and discharged all my obligations and more so.
. ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall
that you required that my payments be at the end of my work not at the beginning as everyone else's.(
my work was never to include hours upon hours of training your staff). I eventually agreed, this of
course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route . always. It will take a
great deal of your time , but you will not have to spend any more money on mine.
We are scheduled to meet fri at 430 , I leave at 5 am sat morning.
Date: Mon, Apr 21, 2014 at 11:39 AM
Subject: trying to bridge the gap.
HOUSE OVERSIGHT 023270
To: Melanie Spinella <________________________
you were at 30 30/ me at 60 40. . / proposal 50 /25 and in additon I would be allowed to recommend
15 from directly from your own foundation. All payments to be made in addtion to currently owed. so
$40 on april 25 , $30 june 15 ,and the alreadly owed $10 as planned on oct 15. I would direct the 15
charity in the next 12 months, and the last 25 to be paid on conclusion.
leon
10 am - Arrival at White Plains / Westchester Airport
FB0 and US customs is "Jet Systems Aviation"
Adress: 85 Tower Road Hanger E, White Plains, NY, 10604
Telephone ________________
Date: Wed, Mar 25, 2015 at 11:52 PM
Subject: previously sent
To: Melanie Spinella <
I heard you when you said you believed i had already been paid for the work that is now required. The art
partnership has fully answered all your concerns and discharged all my obligations and more so.. ( FYI
Carlyns art partnership that you referenced is similar in only its title. ) You will also recall that you
required that my payments be at the end of my work not at the beginning as everyone else's .( my work
was never to include hours upon hours of training your staff). I eventually agreed, this of course
should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past
agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement
right out of the box. you said you preferred not. As you said ,I have produced results to date, far in
excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my
limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in
the amount still outstanding from last year if that helps .. However, As my best student , and my only
one, you are now capable of doing most, if not all, of the required work yourself. I can put my
whiteboard away when you come to eat and just have fun, trade stories,, share moments ideas etc. . I
am of course always available to guide you as a friend if you choose that route. always. It will take a
great deal of your time , but you will not have to spend any more money on mine. We are
scheduled to meet fri at 430 , I leave at 5 am sat morning.So there are no surprises 50m for the
year. . or 30m for until 7/ 15. you can roll the balance for last year as a concession. half up front. no
more all at the end. ive spoken to brad every day. more questions than answers. joslyn cannot be left
unsupervised, his answers are knee jerk. eillenn told me this , that the other
Date: Thu, Mar 26, 2015 at 12:07 AM
Subject:
To: Melanie Spinella ]_________________________________>
you need to build an entire office from scratch. no question that was never my obigation, - systems,
personel. finance tax, bookeeping„office. complinace. investment. monitoring, banking loans coming
due, review. gs jpm gs, . . plane boat houses construction, new will,. phaidon sale. you are no further
HOUSE OVERSIGHT 023271
ahead today than my nov memo layed out = no real candidates. etc.. Ill redo the art partnership under
new restrictions of course at no charge, and review the work done by tom/ joslin.
joslin you and I should sit. you won't like it. AT ALL> he is afraid of telling you the story, as he belives
brad is your guy and does not want to get fired. ada still refusing to share income tax opinions based
on privilege , not under control at all. ? ? joslin said that murphy is not the cfo, as you told me but the
coo. and the cfo is the same guy that reported to andrew, mistakes after mistakes not picked up by
murphy who joslin described as a kind buffoon . he suggested a new ceo or coo who can make
decisions. someone with some financail experience, he asked for a chief decision maker 50 for year roll
in money owed. 30 till july, most up front needed
Date: Tue, Mar 31, 2015 at 3:25 PM
Subject:
To: Melanie Spinella <
Nov of 13 : I told you tom Eileen and Ralph were not up to the job, you disagreed very vocally and
strongly, " Ralph wrote the book, Tom has been doing it for 15 years and Eileen ran the trading desk at
Morgan Stanley. " Ada who had been working on all your documents for years while at the bank had
been brought in- house but created more issues that didn't exist. and phaidon was its own animal
Dec 13. you were again annoyed that i said that they needed to be replaced and said "i was talking out of
both sides of my mouth." first time ( email available)
Jan 14, you decided that no third year was necessary for my help. and i told you i thought that unwise
and even suggested giving you an option at 40 m so there would be no tension
Mar 14, I told you that to do the job right, my team would need to do it. not yours it would not be
inexpensive, but it would get done properly, you chose not to do itand said lets wait and see
April 14. We agreed to clean up various past mess.with the end of my work OCT 15th only then
would i get paid.. urged JPM ( first of 14 reminders)
GS and db accounts to be set up in order to bring your financial structure into the 21 century
July 26 , I came to bens party, said new people needed to be hired, keep Eileen till end of year, and Ada
till march, you suggested getting ada out earlier
oct structured the art partnership , but you wanted to wait until you fully understood ramifications formed
the doc in dec to have it in 14,
nov/ dec 14 I told you I considered my work complete separate from art partnership. gave list of things to
do.
three months of you and your high school friend, trying to build a house with little of the relenavt
experience, its silly . still no accurate numbers accounting , charts, etc
jan 15, I told you joslin cannot hire people, has not so for more than 5 years, former job in a public
accounting firm.
april 15. no senior accountant even in the wings. joslin talking about reaching out to hire the only
person he knew( worked in the past with dagazsitno ) and i interviewed 15 months ago. and rejected.
HOUSE OVERSIGHT 023272
low level. He does not want to hire himself out of a job, spoke to brad last night he wants a coo so
that he does not feel demoted
your choice!, ( brad maybe does have insight - to your credit, might have been right when he said- jeffrey
you should realize this is only about leon not wanting to pay more money, ( i ignored his summary,
along with his comments on the risk of fracturing
summary
I can either do it for you or not. if i do it it means finding hiring organizeing, structuring reviewing re
negotiating, bring in my team under my control not brads. . stop -gap accounting - my people getting the
books software and procedure in shape. setting up the various brokerage and bank accounts and
rationalizing them, organizing Melanie, TPS , house, and all the intra family notes outstanding,
overseeing the phaidon mess.maybe sale re do some of estate given the new circumstances. etc. I 'ye
responded to every brad question , given him first lessons, not a good use of my time or his. he should
administrate, follow up, have signing authority instead of eileen, ( AFTER rationalized accounts ).
holding a position of trust. ONLY
talk whenever you like, NO STRESS, Mort had a skiing accident and sultan not fully comp es mentes.
no stress please for either of us . both of our reserves which are not insubstantial, can use a break
Date: Tue, Apr 7, 2015 at 4:29 PM
Subject:
To: Melanie Spinella <
agenda for tomorrow.
1 building an office from scratch. who does it. ? so far little or no progress in real terms. . brad
should remain and can administrate, follow up methodically, . has no idea of corrrect questions to ask.
or understanding of family office issues. procedures checlks and balances. etc .. consultants , diana
goldner foundtaion woman? office . focus.
2. without strong , very stroung direction, joslin will not make it. does not know where to focus. who
to respond to. and how. unfortunately now getting more and more answers like the powers that be , want
it that way.??
3. the priority list is still virtually the same, since dec. . accounting system. redone from scratch. etc.
4 . it will take 9 months. at a minimum now. . an outsider brought in when everything is clean, including
phaidon, notes. eileen. banks, jpm db, bam, etc.
5 disposition, of Phaidon. art space regan etc.( ressler??) sale of boat. plane. art, stock, investments,
athene? etc, tra, brh.
6 . new IT . complex. household. payroll insurance . recurring bills.
7 estate modification given new circunstances and altered probablities. ( use etc )
8 charity, new trusts,!!d IPI< harvard. fees,
I spoke to brad and made him aware of all my concerns and propsals to move forward. he is desperate
for help
Date: Tue, Apr 14, 2015 at 11:53 PM
Subject:
To: Melanie Spinella <
saved you 500k at the last minute, . brad has had the same chart since march 16th, its his job to review
NOT MINE .appears he is one of those living in the dark leiwe. I found 8 million dollars today, missed
deductions. . not yet in the numbers,.?
HOUSE OVERSIGHT 023273
Date: Tue, Apr 21, 2015 at 1:10 PM
Subject:
To: Melanie Spinella <___________________________t>
emblematic of my frustration and ,in the end what I believe is a waste of our time energy money and
resources. is the very simple question of bidco bank accounts. 4 months ago I asked the question, does
it have a bank account and if so , who has authority, where is it located and what transacations ran
through it. it is only one question out of hundreds that need to be answered. hundreds. . you asked that i
not behave like Zeus and try to explain why I want need certain things. since i said to placate Brad's
inquisitive ness and his desire to learn I said a filing might be required. instead of merely getting me the
answer. he has talked to joslin paul weiss , you, you wanted to ask brad karp. ( maybe a filing that
reopened things, )
none of this as a practical matter has any influence upon the ultimate action taken . I merely needed to
know a simple answer. and today after asking at least every week since then do not have an answer. I
have been trying not to add stress to your day. i try to explain things and take the time to do so gently, (
not my forte . this is one question out of hundreds. the fact that a 21 year old was in the office only
xeroxing for a month, was obvious to everyone in the office. having a 26 year old xeroxing instead doesnt
move us forward, answers first. copying old files. can wait.
Date: Wed, Apr 22, 2015 at 1:56 PM
Subject: another flowery email.
To: Melanie Spinella <_______________________
I am sorry. I realize you are under tremendous stress, In Bedford you asked me for my help I could not
have been more clear that thought it very unwise as in my words I did not want any financial arrangment
between us, it risked conflict and tension what neither of us needed more of. and did not want to risk
torturing our friendship into the likes of the kind you have with Mark nor Josh, : now,- I dont have
anyone but you yelling at me, in my own house. no one. it is highly unpleasant but I am trying my best to
be understanding. sorry. From the outset and as you told me you recall. i tsuggested that three years
should be the period of engagment. as planning is not a one year excericse . you declined to commit to a
number of alternatives presented to you for payment of the third year. I told you in nov that you should
decide whether to now sign on for that very third year as the vast majority of my work ended on oct 15.
you recently told me you thought i was kidding. .you hired brad patting him on the back that after months
of inquiry he can now, finallly tell you which 11c owns the cars??
once he has all the facts what next ??. whether or not you refer to a portion of the third year as after
care, or whatever term besides 'scoundrel you choose to use, I m not sure why you assume now it should
be free.( I HATE THIS CONVERSATION < HATE, ) and i heard you when you said you told me what
was 1 work still to be done you thought valuable enough to pay for. please tell me. and then we can
decide the next steps „, if any. I consider my work rarefied art. I guess the value is in the eye of the
beholder . IT reminds me of those people looking at a modern art piece and saying " my child could do
that" . hope you are feeling better.
Date: Fri, May 1, 2015 at 12:50 AM
Subject:
To: Melanie Spinella <________________
ada and brad are respondbile for the loan,. docs, at a minimum, leon he hasn't read the financial
statements SINCE DEC. !!. impossible ,had he done so the silly numbers jump off the page . ( sent in
another email ). it is a financial office., 190 million sitting unused in CASH , budget and planning person
HOUSE OVERSIGHT 023274
for what , its not a publice co. ? townhouse construciton , household operations, boat, plane, taxes, we
went through this with the cash flow, you and i know approx how much each will cost. its a week job not
a fulll time one- ada has no lien copies. none. ?! impossible not to know, ask, quesiton? two senior
accountants CPA s. not the 75k girl that they hired, . IT professional backed by a firm. high quality,can
we tap apollo resources? new lawyer , heather level . new receptionist, and bookeeper. get rid of ava.
next could be new office ,new furniture „ the whole place reeks of cheap. IT IS MAY< I have not
been asked to interview one person to date. not one. having cpas in there tomrrow woudl go a long
way. i dont understand the time line, coo first. ? in by july?? cpas in by sept. tax return due oct 15. ?
Date: Fri, May 1, 2015 at 2:36 PM
Subject:
To: Melanie Spinella <
I know that both you and I heard brads'. im out of here if i dont get a coo. . sorry,. i know that neither of
us have stood in the way of his finding/ gettting one.. JPM account DB account GS account, ??? its
MAY 1. nothing in the first quarter and these are only papers that need signing.
I suggest your thinking on my role and compensation for my work might benefit, from a mental shift -
think mark and josh, without the mutual resentment ( HAHA) only in terms of sharing ,thanks, I am and
have been your financial partner i.. rectifying circumstances that appear in hind sight unexplainable. I
wish you woudl have asked me earllier to review your things , but i understand. I do know that soley as a
result of my actions your personal bottom line has increased dramatically, if you had thought of me as
your partner in this endeavor , instead of an employee, i think your reaction to sharing t benefits would be
different.
If you recall, you wanted me to be paid , unlike others at the END of my work. we discussed this ad
nauseum, and agreed OCT 15, last year was the end. You had wanted more comfort initially on the art
partnership so that date was delayed. It has now been six monhts since then, your concept of aftercare.
. for free. was already unique, in your words this has to have an end.( weaned ) if the actions of josh
and mark led to one hundred million dollars , what would be their share. Im not sure why it is different
in your mind, but i respect the fact that it is, Is it because their work seems harder. it cannot be simply
because they devote more time to you .or it appears to involve more effort. I am happy to continue to
play a partnership role. as I have been in many areas of your life. . I am also happy to move on and have
no more of these emails. I find them as tedious as you do. if you prefer a partnership structure, ok with
me, I tried to minimize the amount of money i would recieve by making it a flat fee. as i wanted you to
feel good and have no second thoguths somehow if the payment comes from a partnership structure you
seem relaxed as opposed to writing a check, I focus on trust and friendship first, and the fact that you
don't include josh and mark in that category, gives me great pause . I proposed 33 percent of money
made for you. . in the past you agreed that amount. it will be huge, but ok with me, I can talk today at
945 as you suggested. or if you woudl rather over the weekend ok
Date: Fri, May 1, 2015 at 7:08 PM
Subject: Fwd: Picasso agreement - question
To: Melanie Spinella __________________________________
silly
Date: Fri, May 1, 2015 at 12:27 PM
Subject: Picasso agreement - question
To: Brad Wechsler <
eevacation@gmail. com>
>, "Jeffrey Epstein (jeevacation@gmail.corn)"
HOUSE OVERSIGHT 023275
Brad and Jeffrey,
Gagosian has one final change to the Picasso agreement. As you know, we have structured this
agreement with the Buyer as either Narrows Holdings LLC or AP Narrows LP, and given both of those
entities the right to assign the agreement to any one among Leon, Debra, the kids, or family trusts
including AP01 and AP02.
Gagosian wants us to agree that, if Narrows/AP Narrows assigns the agreement to someone else,
Narrows/AP Narrows "shall not be discharged from its liabilities under this Agreement and
shall remain primarily liable to Seller." Larry is concerned that we might assign to the
Black kids or to a trust that has no assets, and then when he has to sue us because we
don't make the final payment of the purchase price but have possession of the art, the
entity/person to which we have assigned the agreement has no money.
I think this is a valid concern and that we should agree to it.
However, Ada just reminded me that it is possible that Narrows/AP Narrows (really,
Leon's) agreeing to effectively guarantee payment by the assignee might be considered
a gift to the assignee. In the discussions with Alan about rearranging the bank loan once AP
Narrows is operational, Alan agreed that there could be deemed to be a potential gift from Leon to
AP01/AP02 if Leon provides a guarantee to the bank that is for the benefit of the trusts as partners in AP
Narrows. Alan suggested mitigating this risk by having the trusts sign side agreements with Leon which
say that if AP Narrows defaults on the loan and the bank goes after Leon on his guarantee, the trusts will
make him whole.
This issue only arises if we assign the agreement. The risk is also limited in time because it would run
from the moment we assigned the agreement until the final payment is made, which even if we assigned
immediately after signing, would only be 11 1/2 months.
Shall I agree to Gagosian's request that Narrows/AP Narrows remain liable even if they assign the
agreement?
I'm in the office if you would like to discuss this, but I would love to get back to Gagosian ASAP so we
can have this agreement signed today.
Thanks,
Heather
Date: Mon, May 11, 2015 at 3:08 PM
Subject:
To: Brad Wechsler < , Melanie Spinella < >, Ada Clapp
, Richard Joslin
lets look at funding the art partnership begin with 100 m of unencumbered art. plus 20 inveestment. and
the same amoiunt of value from trust. leon should choose b trustee and begin to use mechanics. . later
we can amend and add.
HOUSE OVERSIGHT 023276
2 hire an IT person asap
3.1 would hire jerry the woman. gittis. person
4 .I will find a subpart k person to handle partnership acct
5 , accounting software upgrade, onlilne banking needs to be seamless
6. not sure status of bringing plane boat acct inhouse?
7 prepare fbar report for june. draft next week
8 pahidon actuals vs projections. . new valuation
9. new valuation of tra contract?
jpm db goldman sachs acct? new llc?
review of dec 31 books for all entities? bfp . etc
Date: Wed, May 13, 2015 at 3:04 PM
Subject: Fwd: jobs ahead
To: Melanie Spinella
the list that we discussed.. i spent time with brad again. re the candidates . filling due, this week, next
month,.
Date: Sun, Dec 28, 2014 at 5:18 AM
Subject: jobs ahead
To: Brad Wechsler
>, Melanie Spinella >, Ada Clapp
1. review accounting system. Book keeping softaware. staff, ( senior accountant ) methods on line
banking, brokerage. cash mgmt. airplane reimbursement. boat sale. art purchases sales use and sales tax.
tax filings FBAR FATCA, gaming commsion, pfics, insurance . uk co law.
2. review docs for TRA BRH grats, trusts, heritage will, insurance, art lending. medical, springing
powers. two fire drill books. one needed for injury, other for death
3 review bills. boats , planes, legal, ( PW, McFarlands all outside. legal and accounting. Toms bills
over 400k. house projects. south ny ben
4 cashflow projections tax projections , interaction with Apollo accounting tax, Phaidon ,art space ,and
Regan. legal accounting. audit
5. children meetings, review to date and allocations
6 review all role in payables. files scanned, no paper
7 review invesmtents for tax basis and unrecognized gain
8 schedule of all hedge funds . redeemables commitments etc.
9 charities pledges strucutre, staff,
Date: Mon, May 18, 2015 at 2:17 PM
Subject: agenda for tomorrrow
To: Jeffrey Epstein leevacation@gmail.com>, Melanie Spinella <!
as a reflection on your voiced spirited concerns in the what have you done for me lately category ? ))::
. in the beginning . there was eileen and tom. ( eve and adam,-- however it appears, she declined to
eat the apple from the knowledge tree)
. that was it. ada was at the bank but reviewing docs. carlyn was in the kitchen making mush ( abel and
cain)
HOUSE OVERSIGHT 023277
books as they were mystersiously called was being kept soley by eileen, with little or no input ,correction
or advice from tom. herarely if ever asked questions. expenses ie airplane was done in house apollo.
(1031 exchange blown etc) at this time
as I recall you got quite annoyed, and agressive and initiated the" talking out of the both sides of your
mouth " tiddy, when i suggested that the level of their competence left much to be desired. ( ralph lerner's
came later ) .response - eileen ran the desk, tom is a partner, ralph wrote the book etc
re tax there was almost no oversight of income, estate, gift ,sales and use, transfer excise etc . IRS
SEC GAMING NYS. real estate, valuations ( many )tax filings- disclosures, etc. re grats trusts defect
trusts, llcs corps , trustees , partnerships. foreign corps. 100 bank accounts. gift taxes„ loans, notes.
payables. expenses. . , insurance.( life, art, split dollar), cashflows, operating biz„ investments,
contingent liabilitiites.( funds , miami ) , commitments dividends, BRH TRA, shareholder agreements,
bank loan agreements. wills, construction„ contracts planning permits etc. .employ rules. checking
account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs , brokerage
accts, old stock certificates. stock options,( environmental solutions still not done !). estate tax
calcualtion firedrill, ( note ,basis etc ) low basis, step ups , however with no accounting system, no
reveiw of boat expenses plane expenses etc. . many outside counsel with litle or no coordination.
Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse, Reich, withers bergman, Empire„ akin
gump, bbd seidman, Wendy, Apollo in house.
lumber, knowledge universe, ennvironmental, solutions 12 mu i in stock, . on and on
the priority list that you asked me to prepare for brad and you in dec , unfortunatlleyso far, little change
ie no accounting system that ties, no, brokerage accounts though strongly suggested, jpm db, gs, april
of 2014 . IT antiquated
dagastino hired , no inut from me, julie, temps, paralegals miriam. etc.
still need new accounting system - on line banking staff hires. ( seprate from samantha two years out of
school ). audit system, . ?? john murphy? joslin? dag? eva?. i strongly suggest workers at the highest
level of competence. two senior accountants. not managers workers who will get into the weeds. partn
expertise„ replace ava, get heather help. a new person legal , new IT,system and person, way way
overdue, new receptionist, bill opener, ability to oeversee
in house, boat plane review household ( 12million ) review, filings- partnerhip accounting,- familitarity
with grats, trusts etc . audit system put in place. that should be the easy part. then strategy to deal with :
As new facts on the ground develop , phaidon debra, children meeetings, ? stock sale sale of art„ apt(
large gain ), 1031 trade in , plane depreciation, boat sale. construction, brad will oversee brokerage and
investment, ?? pe. real es, . publishing, grats, tra, brh ( death). foundation , museum, tax proejctions cash
flow projections, cooridnation with tax from apollo. etc
Date: Fri, May 29, 2015 at 2:53 AM
Subject: ulysses 2.0
To: Melanie Spinella <
I realize it is only due to a lack of understanind of the job ahead. and not out of any sense of
unwillingess to pay
- as opposed to merely hiring people to set up a family office, someone will have to do the following-
separate from the art partnership which is my responsiblity. there still needs to be a huge amount of
work done for 2015,16. not to mention that brad at the moment is going to have train the incoming
team?? your call
strategic decisions re estate and other planning , sale of phaidon etc. . in addition setting up for the
accounting for each strategy ie.:
HOUSE OVERSIGHT 023278
income, estate, gift ,sales and use, transfer excise picasso, 1031 calder. . review and detailed oversite
of IRS SEC GAMING NYS. real estate, entity valuations ( many ) tax filings- disclosures, follow
up of grats, trusts ,defective trusts, llcs corps , trustees , partnerships. foreign corps. 100 bank
account need to be rationalized, not only having brad step in to children investments. gift taxes, trust
, loans, notes. payables. expenses allocations. . , insurance.( life, art, split dollar), cashflows,
operating biz„ investments, contingent liabilitiites.( funds , miami ) , commitments funds and charities
, dividend treatment -important review of transcations relating to BRH ( amendments) TRA sale (
nuanced ) , shareholder agreements, bank loan agreements new bank relationships. . wills,
construction accounting and oversite , contracts planning permits etc.. employee rules, regs,.
checking account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs
, brokerage accts,. stock options,( ie environmental solutions still not done !). estate tax calcualtion
firedrill, ( note ,basis etc ) review of boat expenses plane expenses, depreciation issues refunds etc. .
rationalize all outside counsels and accounting firms
Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse , Reich, withers bergman, Empire„
akin gump, bbd seidman„ Apollo in house counsel.
set up and oversee brokerage accounts at JPM DB GS and thoughfullly trade
. new IT system from top to bottom full time IT person
new accounting system - on- line banking cooridnated with reports . fire drills as per caruci ( he
sounds good ) and. audit system,s . review of john murphy? joslin? dag? eva?.
in house, review household ( 12million ) review, filings- partnerhip accounting,- familitarity with
grats, trusts etc . audit system put in place. that should be the easy part. then strategy re:
As new facts on the ground develop, phaidon debra, children meeetings, involvment , trustees
adjusted, stock sale sale of art„ apt( large gain ), 1031 trade in , plane depreciation, boat sale.
construction, brad will oversee brokerage and investment, ?? pe?. real estate?, . publishing,
grats, tra, brh ( death). foundation, museum, tax proejctions cash flow projections, cooridnation with
tax from apollo. etc
you are sitting on over 100 m of cash???!!
Subject: Re: we're calling the sales tax guy at 6:30 pm - I'll come to your office
To: Richard Joslin <_______________________ Brad Wechsler <
>, Heather Gray
<11X>
sorry but this is emblematic of the silliness that appears to continue. ..... 1. How can we ask for a legal
opinion when it is crystal clear that we don't yet have accurate facts or numbers , f. 2 Invoices have not
been reviewed! corporate structure is convoluted and unexplored in detail. ( was the boat captain on the
call?) 3 Paul weiss is the attny, and should be charged with getting us info. . 4. Bringing in yet another
outside lawyer without full vetting and consideration, a waste of time energy and money. . 5. ex. what is
the location of charters shown on the invoice? do you know. . ? if th invoices are incorrect, does that
give us any comfort in trying to defend an audit.. I saw three invoices only, and each had a different
owner or address . .
Date: Mon, May 18, 2015 at 8:17 AM
Subject: agenda for tomorrrow
To: Jeffrey Epstein <jeevacation@gmail.com>, Melanie Spinella <!_____________________________
as a reflection on your voiced spirited concerns in the what have you done for me lately category ? ))::
. in the beginning . there was eileen and tom. ( eve and adam,-- however it appears, she declined to
eat the apple from the knowledge tree)
HOUSE OVERSIGHT 023279
. that was it. ada was at the bank but reviewing docs. carlyn was in the kitchen making mush ( abel and
cain)
books as they were mystersiously called was being kept soley by eileen, with little or no input ,correction
or advice from torn. herarely if ever asked questions. expenses ie airplane was done in house apollo.
(1031 exchange blown etc) at this time
as I recall you got quite annoyed, and agressive and initiated the" talking out of the both sides of your
mouth " tiddy, when i suggested that the level of their competence left much to be desired. ( ralph lerner's
came later ) .response - eileen ran the desk, tom is a partner, ralph wrote the book etc
re tax there was almost no oversight of income, estate, gift ,sales and use, transfer excise etc . IRS
SEC GAMING NYS. real estate, valuations ( many )tax filings- disclosures, etc. re grats trusts defect
trusts, llcs corps , trustees , partnerships. foreign corps. 100 bank accounts. gift taxes„ loans, notes.
payables. expenses. . , insurance.( life, art, split dollar), cashflows, operating biz„ investments,
contingent liabilitiites.( funds , miami ) , commitments dividends, BRH TRA, shareholder agreements,
bank loan agreements. wills, construction„ contracts planning permits etc. .employ rules. checking
account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs , brokerage
accts, old stock certificates. stock options,( environmental solutions still not done !). estate tax
calcualtion firedrill, ( note ,basis etc ) low basis, step ups , however with no accounting system, no
reveiw of boat expenses plane expenses etc. . many outside counsel with litle or no coordination.
Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse , Reich, withers bergman, Empire„ akin
gump, bbd seidman, Wendy, Apollo in house.
lumber, knowledge universe, ennvironmental, solutions 12 mu i in stock, . on and on
the priority list that you asked me to prepare for brad and you in dec , unfortunatlleyso far, little change
ie no accounting system that ties, no, brokerage accounts though strongly suggested, jpm db, gs, april
of 2014 . IT antiquated
dagastino hired , no inut from me, julie, temps, paralegals miriam. etc.
still need new accounting system - on line banking . staff hires. ( seprate from samantha two years out of
school ). audit system, . ?? john murphy? joslin? dag? eva?. i strongly suggest workers at the highest
level of competence. two senior accountants. not managers workers who will get into the weeds. partn
expertise„ replace ava, get heather help. a new person legal , new IT,system and person, way way
overdue, new receptionist, bill opener, ability to oeversee
in house, boat plane review household ( 12million ) review, filings- partnerhip accounting,- familitarity
with grats, trusts etc . audit system put in place. that should be the easy part. then strategy to deal with :
As new facts on the ground develop, phaidon debra, children meeetings, ? stock sale sale of art„ apt(
large gain ), 1031 trade in, plane depreciation, boat sale. construction, brad will oversee brokerage and
investment, ?? pe. real es, . publishing, grats, tra, brh ( death). foundation , museum, tax proejctions cash
flow projections, cooridnation with tax from apollo. etc
Date: Tue, Jun 30, 2015 at 12:23 PM
Subject:
To: Melanie Spinella
1.I believe I have heard you, but i wanted to make certain that I have understood
Though after much discussion ,- much! you were adamant that i receive my fee only at the very END of
my work, oct 15 , this was a long discussion but you felt very strongly at the time . you now feel that as it
was a very large sum of money . some of my time this year should be spent on your recent concept of
"after care ". - and that after care should be for free . I have continued to pay others as well.
I have asked and you have previously said you would lay out for me what you thought was encompassed
by the concept. that was end of january Training brad?? who was your choice . not mine ,by a long
shot. only brought on in january? ? hundreds of hours spent . eileen debrief? 2. boat. plane household
HOUSE OVERSIGHT 023280
ex[penses. personal review?, trying to create accurate ledgers of capital expenses. so to minimize future
gain.? 3. phaidon - review from head to toe? though we agreed many times in the past this was not my
responsbility, 4. overseeing the opening of trading accts. proposed and sent over first docs in april of
14. .5. art partnership.? we agreed though the draft was sent in sept14 . and still not done though
little different from first draft. . 6 picasso contract? 7 art sale 1031 8 airplane review? 9. IT system
implementation. ? tra brh sec gaming comm, foerign filing , tax, disclosure. fondation returns. ?
planning for 16? not sure . 10. insurane review with josh? stock sale prep. ? filing ?
I am available by phone. you mentioned my travel schedule ----last yea,r I canceled three European trips
and two to seatle , none to my benefit.
I have been consistant , I dont have any new proposal, do you ? though i am" complicated" , I have no
intention of trying to convince you of value, its silly,
000000000000000000 i think if I have correctly deciphered your sophisticated code -
should represent -drool
Date: Tue, Mar 3, 2015 at 5:18 AM
Subject: Fwd:
To: Melanie Spinella _________________________________
lets set a time to speak today if possible. 30 minutes or so. my schedule is tight
From: jeffrey E. leevacation@gmail.com>
Date: Mon, Sep 21, 2015 at 6:36 PM
Subject: agenda for today 5 um?
To: Melanie Spinella < >, Brad S Karp <
1. put someone on asap to ascertain if she is still in london. 2. set up conference will uk criminal and uk
counsel. a give them more facts. 3. choose method of message delivery, my choice. - two highly
respected former ---- fill in the blank, immigration, scotland yard. sfo. . who may knock on her door
and present the terms. 4 if not. an alternative method. 5. Is it possible to find out if she has gone to
authorities? tabloid lawyer. 6. have the same types of individuals availble in new york if she decides to
return as stated.. i prefer former fbi, or immigration one man one woman. . 7 from opening a DA
investigation to arrest. how long? 8 , can we open a file in either jurisdiction, and maintain
confidentiality.
Date: Mon, Sep 21, 2015 at 6:48 PM
Subject: Re: agenda for today 5 pm?
To: Melanie Spinella
Cc: Brad S Karp
I think that Melanie should set up a separate email account for this correspondence. she currently is on
an apollo server.
There is not even a good solution. all have substantial risks, we are dealing with a wholly unpredictable
and bad minded person. I and Brad can only make suggestions/actions each less than stellar. - that being
said we should do our best to have all the facts. options etc. and to distinguish fact from opionion As
the consequences of any decision is likely to have some very bad parts , Leon needs to be cognizant of as
much as the downside as we can adequately foresee.
Date: Wed, Sep 23, 2015 at 12:07 AM
Subject: Fwd:
To: Melanie Spinella <
jan 2 of this year
Date: Fri, Jan 2, 2015 at 2:55 PM
HOUSE OVERSIGHT 023281
Subject:
To: Melanie Spinella ___________________________
Leon, I decided last week that there was little or no upside in disturbing your well earned holiday
especiaily as you seemed so peaceful happy and smiley ,getting yourself in shape and truly enjoying your
family time. etc. however the situation in your family office is unresolved. I am aware that brad starts
monday howver, two last days of the year madness. timber.deal not complete no jpm,acct activity no
partnership docs, old stock sales not complete , no bank doc redo. no phaidon note restructure, ., no
boat expense review, airplane same ,topco midco.etc still not finished ( trustee ) , projections mixed
with fiction. , legal exp out of control. no care for admin, silly ( audit). tom conversation with joslin.
notes. debra, trustee notes. trustees hiring. bens audit. interest payable made hoopjumping last day of
year. after weeks and months. of lectures , gifts to discuss- staff. -houseproject mgmt. . I will continue
to try, I had offered ajoint call with eileen before you left. as i said before , joslin takes instructions from
eileen. he said it was made clear to him that he doesn't work for me but works for you. . I tried.
Date: Tue, Sep 29, 2015 at 8:39 PM
Subject:
To: Melanie Spinella <
jeffrey
Brad Wechsler is asking if you could meet for a half hour with him and Rich Joslin to discuss Use Tax
Refund. Below are available dates/times...below that is your schedule. OK for me to schedule in?:
NO sorry not until i hear from leon
leon. to be fair, I had sent the first note to you one year ago . stating that my work would come to an
end on oct 15. that day had meaning as everything would be closed, you asked that i continue to help
brad. as of nov though he would officially start in jan. I said ok, but..... " you told me to continue as we
would work something out" I told you my fee then was 40. feb you came with ben while kathy ruemmler
was here. and said next week, debra got bad news. and I quickly prioritzed not adding stress to your
situation. I wont regurgitate the interim, though millions of dollars were saved since. millions. . it is now
one year later and you propose 10 mlllion , plus a contingent fee . I have said that i would work with
you, and if contingent and a percentage of something. I strongly believe that is not in your interest. I
continue to put our friendship first and dont want you to write a check for over 100million andthe i will
have to listen to lewie for the next few years. but if you prefer over my objection a percentage deal then it
should be of all savings not just phaidon. ( a random concept) . The idea that i am somehow even
marginally responsible for neither you nor heather, ever telling me that there was an unresolved issue,
though you said you had been pinged a number of times is emblematic.
I can do a call with you and Karp. anytime you like today, but i can assure you 100 percent that there is
no light between our positions. ZERO. and he is ready to do his best to try to explain it to you.
Date: Thu, Oct 1, 2015 at 11:03 PM
Subject: Fwd:
To: Melanie Spinella <
to refresh your recollection, as 4 states. 40 a year for three years. as i said today. . the other was in
addtion as you recall.
Date: Thu, Apr 11, 2013 at 4:02 PM
Subject:
To: Melanie Spinella <__________________________________
1. 80 percent of contracted job is accomplished, now drafting ,signing and few critical decisions on your
part still await , will fill in nec blanks, 1, how much of upside to kids. , 2, protections . 3 allocations. 4.
charitiable, inventory, securities,
HOUSE OVERSIGHT 023282
2 .to engage the second phase if you so choose , and considering there is only 8 more to be paid this
year in oct, for the job now almost completed, total of 23. that was agreed only for history fix.
3. with the necessary proprietary protections , proposal is for first year only an additional 17 . making it 40
, but full year balance on signing , ie 25. takes care of 2013
4, moving forward, 40 per year ,( approx 1 percent ) for three years, to be credited against an agreed
formula. Im open to suggestions total approx 120 for new workover 3 years , benefits to you over the
next 20.
5, can consider interests other than cash as payment. ?
6. need to speak re , bankers, valuations, mechanics and their continued importance.
Date: Fri, Oct 16, 2015 at 4:38 AM
Subject:
To: Melanie Spinella <__________________________k>
Office, - ada goes. , hire heather a paralegal. Joslin goes or is closely managed by new cfo with tax
experience. . castrucii goes asap.as he merely adds to mess.( too many people, ex 7 people or more to
pay a bill ) eva goes. outsource as much as possible. . bookkeeping systems built from scratch,
airplane restructure, boat. same, new grats. phaidon sale, decide on artspace survivability, regan, . do
the kids really want these? , children accounting ie bens house.etc. re do estate for new facts. redo
loans, trading accounts activity, . gaming -foreign- disclosures. . BRH TRA re thinks. household and
construction architects. . redone. art partnership, choice of paintings. . re do structure of consultants.
tax re family office. . decide if investments are a realistic option in the next three years.. insurance.
operations. airplane , etc. . art foundation , private. max charity contributions, financial reports. still
waiting. ? on line banking, . tax planning, family office deductions ( profit center ) . airplane certificate,
redone jet aviation redo. . paper gigi ( E )trust to avoid gift tax. .
today is Oct 15
With your full knowledge I paid out 8 mil to my staff before june, . so i guess I can safely assume that
after consideration of all the things I did for the entire past year separate and apart from your unique free
"after care" concept. , what you thought was ultimately fair was the contribution of 5 million to a
foundation and a total of 2 million dollars to me.
Date: Fri, Oct 16, 2015 at 1:08 PM
Subject:
To: Melanie Spinella <
I think you should consider the fact that your family office will be the most central component of what you
leave to your children, wife heirs. it is the core of your assets. your art might be sold. your houses may
lie empty, the apollo stock could be sold. you will pass on your office, . it will be the primary player in
your estate tax. probate, transition. Brad has taken it from a D minus to a C minus, If I were you I
would set the goal of an A. just like your paintings. . Like a house you could attempt to renovate it. it
will take more time and money . or . in essence as I suggested in dec of 13, start from scratch. A
financail head of office. - brad could move to being richards replacment as trustee.. barry cohen would
be perfect but carries the trustee taint now. . take a tax partner from a major firm. to replace joslin,
cost 1 + mil . keep heather and ssmantha. . bring in full time IT person. ASAP . your lighting
contractor in your new townhouse has better IT than your multi billlion dollar antique opersation. data
breaches are not your concern, precision is. . either re do the office layout . or get enterly new space.
the proposals to focus on following on a monthly basis the values of all your current investments is an
example of misplaced prioirties. . Your office is the heart of the familys financial life and temp future,
it needs a heart operation
Date: Mon, Oct 19, 2015 at 5:10 PM
HOUSE OVERSIGHT 023283
Subject:
To: Melanie Spinella <________________________>
Radical but my preferred idea. . START from total scratch. there is absolutely nothing worth
keeping in your family office except for heather , nothing at all . I remember when i bought my first
house in order to renovate and jack robertson said forget it. knock it down start again, I could n't
believe it. but he was right. Like your tax returns that were done in triplicate. TOM RICH ALAN.
tom and rich were not really useful in the end. Alan was the only smart one. you should in my
opinion Start a brand new office. hire cfo. bring joe over, heather and samantha, run parallel
for 6 months and close down the mess of elysium forever, leave your kids a functioning operation
professionally constructed and managed. NOT BY ME!!!
LAst nov i laid out priorities IT , being the first nothing as of today. in July I said focus on airplane
as a test. to examine procedure and proficiency, so far mostly a waste of resources time people
etc. Only last week told debra owns 49 percent of plane. no IT to speak of. bens house
unaccounted for. tax returns very very sloppy, . boat still argued as third home. . pilots bonuses?,
structure unkown by all. cash sitlling at the same time loans outstanding.
Phaidon, looks like close to breakeven in a few years. others totally unknown. Query, do you
really want this ? : I m not sure how you both want to have an investment office and have cash flow
being eaten by publishing and loans amounts outstanding increased by art. --interest rates will be
going up.- . your plane will cost 10 million to refinance - so will boat if sold next year-. art space and
regan , both needs more cash. with little return, taxes , art purchases. Part of radical solutition is to
sell publishing.altogether. (are the children really interested.) . restrucuture plane from scratch.
layers unncessary. simplify crazy structure s bank accounts trading accounts accounts payble. credit
cards. etc. The best way to wean yourself away from me is to have someone else do the whole thing
from scratch. . move brad to be the replacement for Richard. . he is nice but this is not what he does.
Him saying it is s0000 flicked up to me , was only an echo of me sayint it to you. .
Subject:
To: Melanie Spinella .MINIM
as brad can attest, I spent time today with joslin, joe. etc. no question at all, a failed experiment. In
the words of a banker that made a call on your office. what happened? leon seems to have replaced
Eillenn with a team of Shleppers. ? I know you care little for what they may think, but the legacy you
leave your kids is just that. you only have 60 days of planning left for this year. numbers are all over the
place.
I recieved a nice call from Karp today, . He touted me as a great friend to you. I am happy to be just
that.. He said it was important for me to tell you what others won't. Keep heather, fire EVERYONE
else.
Date: Mon, Oct 26, 2015 at 1:10 PM
Subject: CONSTRUCTIVE?
To: Brad Wechsler >, Melanie Spinella .cilil
1 cash flow projections for 16. . draft ok. i will be easy. i need relight projection. 2. phaidon chart
laid out now with who signs in sale of shares vs enitities. ? ie managing memebrs. . 2 . 3 new
trusts. Apo-o , dynasty, ( does leon want to put in new restrictions per child ). - publishing interests. .
3 11c, for investments 4 names insured? guarnatees? art loans, outstanding. sales or use tax owed? 4,
comparison of execu jet vs jet aviation. . 5. the bank loan on the jet is going to come due. does leon
prefer to extend f they would ( he is a guarantor. ? ) or will he need to pay 10 million cash to renew,
that wiill determine new structure of plane. getting rid of rance, wells fargo, john hannon, lisa gratizaino
etc. . 5. boat restructure . 6 grats - if leon decie to have another. 7 accountning for children, .
HOUSE OVERSIGHT 023284
Date: Mon, Oct 26, 2015 at 7:08 PM
Subject: draft
To: Melanie Spinella < >, Brad Wechsler
phaidon and art space. combined basis 96 million, ( reviewed with brad and joe.) . add ten for
restructuring . basis 106. mi. subtract total sale price, for both, lets say approx $8 - 15m . leaving
loss of between 90 and 98 million long term loss. . AMT rate 28 % obama . tax 3.8% . city and state
12% total aprox 43 %. tax rate. savings 38.7 - 44 m
0:51 PM (15 hours ago)
to me, Richard, Karen
Good afternoon
Removal of headers in Cabana's 1 and 2 started today
Dock Shelters proposed start date 16 Apr
LSJ staff cottage and Sams kitchen and bath cabinets are due in this week.
Have yet to schedule install.
Will have estimate for GSJ Staff Cottage from EB by the end of the week
Unable to contact Jimmy again regarding thIs project, Reached our Monday to schedule site meeting, got
a - No Can Do -
reply !!!
Regards Brice
Date: Mon, Oct 26, 2015 at 8:37 PM
Subject:
To: Brad Wechsler < , Melanie Spinella <
gain at 20 % not 28. . so total , 35.8%. tax rate. same for boat. and plane each around 10 m so total 7
m savings if both sold
Date: Fri, Jun 3, 2016 at 5:56 PM
Subject:
To: Heather Gray ______________________
heather leon seems to not recall the issue of finding an alternative to the eschange agents resale
cerificate. he didnt remeebr you suggesting a gallery instead, you mentioned that he did not want to get
another gallery involved. ? has any of the transactions been audited using this method , which even i find
agressive.
Date: Fri, Jun 3, 2016 at 3:02 PM
Subject: RE:
To: "jeffrey E." leevacation@gmail.com>
Hi Jeffrey,
As you will recall, we used this same exchange agent last year on the Calder
1031. At the time, we discussed the merits of using a gallery versus a
commercial exchange agent and my recommendation to Leon was to use a
gallery. I felt that there were advantages to using a commercial exchange agent
instead of a gallery on the 1031 side (e.g., less likelihood of a breach of
confidentiality, IRS familiarity with CDEC in the event of an audit, security of
HOUSE OVERSIGHT 023285
funds), but that a commercial exchange agent gave us less comfort on the sales
tax side. Leon did not want to use a gallery because he was concerned about
confidentiality and he did not want to have to ask a gallery that he did not do
much business with to act as exchange agent.
When Leon first discussed the exchange for the Cezannes with me a few
weeks ago, I asked him if he wanted to use the same exchange agent as last
year, or if he wanted to use a gallery. I said that a gallery carried little to no risk
on the sales tax side, but I reminded him that he had not wanted to use a gallery
last year for the Calder because of confidentiality reasons. He said to use the
same exchange agent as before, which made sense to me because he was
extremely concerned about confidentiality with the purchase of the Cezannes.
I will find out about sales tax audits and will let you know. The exchange agent
has had a New York resale certificate since 2014 and has been engaged in art
transactions like this since then, but I do not believe they have been audited. I
will check, though, and I will also ask the Herrick lawyer if any of his clients who
have done similar deals have been audited.
Best,
Heather
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