(CNN) - For years, victims of Jeffrey Epstein, the convicted pedophile who died in prison before facing trial on federal sex trafficking charges, have accused two of his closest advisers, his frequent attorney and his personal accountant, of facilitating the late financier's sexual abuse of hundreds of young women.
Now, a group of those victims is filing a new lawsuit that could prolong the process of settling Epstein's estate and affect the possibility that the two advisers, Darren Indyk and Richard Kahn, will eventually receive money from the remains of that estate.
“Each played a pivotal role in enabling Epstein to commit his actions by providing financial and legal support to his sex trafficking operations,” the lawsuit filed in August said.
Less than seven years have passed since Epstein's death in a New York prison, and efforts aimed at ensuring that his vast fortune is directed to compensate victims have reached a decisive stage. Court documents indicate that the value of the estate shrank from an initial estimate of $655.1 million following his death, to currently reach assets worth $107.6 million.
Allegations of conflict of interest
Indyk and Kahn, who are managing the trust as joint executors of the estate, are among the first beneficiaries eligible to receive millions of dollars; This is an arrangement that has raised questions and criticism from the victims, especially since the estate undertakes to defend itself against civil lawsuits filed by Epstein’s victims, and also bears the costs of defending the co-executors in civil lawsuits demanding compensation for their alleged role in the incidents of abuse.
Both Indyk and Kahn denied knowledge of or involvement in the sex trafficking operation that Epstein ran.
To date, Epstein's estate has paid out nearly $170 million to his victims since his death, according to calculations conducted by CNN. Trust documents show that Epstein recommended $100 million to his friend Karina Chuliak, $50 million to Indyk, $25 million to Kahn, plus millions more to more than 40 other people.
During the class-action settlement hearing last week, a lawyer representing the victims raised the issue of Indyk and Kahn's overlapping roles as beneficiaries, defendants and co-executors of Epstein's will as a potential conflict of interest.
Where did Epstein's money go?
In the seven years since Epstein's death in a New York prison, his wealth has shrunk dramatically.
At the time of his death, Epstein's assets included bank accounts, cash, stocks, bonds, a fleet of luxury cars, and multiple properties around the world, all distributed among dozens of financial entities.
A court document submitted shortly after his death indicated that the value of his estate amounted to about $577.6 million. By the end of the year, the estate's assets were valued at $634.7 million, while a later amended filing estimated the value of those assets at $655.1 million by the end of 2019.
The estate spent more than $86,000 on his funeral expenses, including $20,000 for a forensic report.
Some assets of the estate were sold in the few months after Epstein's death, including his 2018 Bentley for $195,000, three Chevrolet Suburbans, and an all-terrain vehicle (ATV). Later, specifically in late 2020, his private plane was sold for $10.5 million. It is noteworthy that another Epstein plane, known as the “Lolita Express,” was sold months before he was arrested on federal sex trafficking charges in 2019, something the new owner regretted.
The process of selling Epstein's five properties, located in Palm Beach, Florida, New Mexico, New York, and Paris, as well as private islands in the Caribbean, took several years. These locations were among the places where victims claimed to have been sexually assaulted.
By 2023, the estate had sold these properties for prices well below their original asking prices.
A large portion of the proceeds from the sale of Epstein's estate were allocated to pay settlements related to legal claims against the estate, including a settlement concluded with the US Virgin Islands.
Who will get the rest of Epstein's fortune?
Two days before his death in federal prison in August 2019, Epstein consulted with his attorney to sign a will intended to transfer his assets to the “1953 Trust,” likely named after the year of his birth. This revocable trust is designed to protect his wealth and its beneficiaries from public view.
Jill Miller, a New York estate attorney and lecturer at Columbia Law School, said a revocable trust is “a very popular and basic estate planning technique” that is primarily intended “to stay out of the public eye; that's the whole purpose of its creation.”
Trust documents show that Epstein recommended $50 million in cash to Shuliak, a dentist and his longtime girlfriend, plus another $50 million in annual payments to be disbursed to her in monthly installments throughout her life.
In addition to the amounts allocated to Indyk and Kahn, the trust allocated millions of dollars to about 40 other people, including individuals whose names were withheld. Epstein recommended $10 million each to his convicted accomplice, Ghislaine Maxwell, and his brother, Mark Epstein. The list of other beneficiaries also included his employees, friends, and children of his friends.
Miller explained that the money that goes to these beneficiaries of Epstein's estate will be tax-deductible; Because it is classified as a gift or donation, not as taxable income.
The trust stipulates that in the event of insufficient funds, the estate will pay the beneficiaries according to the order of their names on the list: Shuliak first, then Indyk, followed by Kahn, and so on. If sufficient funds are not available, the said wills are “deemed void” or annulled.
Indyk and Kan's lawyers told CNN that any fees will not be paid until the creditors and claimants of the estate are compensated, and after the procedures for inventorying and distributing the estate are completed.
He had testified in March that he had not participated in drafting the Epstein documents, and that he did not expect to receive anything from the trust, given the presence of financial assets and liabilities that had not yet been settled.
