Overview
Leon Black co-founded Apollo Global Management, one of the world’s largest private equity firms. It was revealed in 2021 that Black had paid Jeffrey Epstein approximately $158 million in fees between 2012 and 2017—years after Epstein’s 2008 sex offender conviction—for services described as tax and estate planning. The revelation prompted a board-commissioned review and ultimately Black’s resignation from Apollo’s chairmanship.
The Payment Relationship
Black had known Epstein since at least the early 2000s. After Epstein’s conviction and registration as a sex offender, Black continued to engage Epstein professionally for financial advisory services. The payments—$158 million over roughly five years—were extraordinary in scale for any advisory relationship, and the explanation that they were for “tax planning” received significant skepticism.
Black maintained that the payments were for legitimate financial advice that saved him hundreds of millions of dollars in tax liabilities. Independent reviewers engaged by Apollo’s board concluded that Epstein had provided legitimate valuable services—but the review also found that Black had concealed the relationship from Apollo’s board.
Epstein’s Services to Black
The described services included advice on charitable giving structures, trust arrangements, and tax-efficient asset transfers. Epstein, despite lacking formal credentials in tax law or accounting, cultivated a reputation (in certain circles) for creative financial structuring that could be of value to very high-net-worth individuals.
Whether the $158 million accurately reflected the value of services rendered, or whether some portion of it represented payments for other purposes—including silence, network access, or blackmail-related considerations—is a question that has not been definitively resolved.
Board Inquiry and Apollo Review
When the extent of the payments became public in 2021, Apollo’s board commissioned an independent review by Dechert LLP. The Dechert review found the services were real, but the process revealed that Black had not been transparent with his board about the relationship’s extent. Black subsequently announced he would step down as Apollo’s CEO (a transition already planned) and as board chairman.
The review was widely criticized as insufficiently independent—Dechert had prior business relationships with Apollo—and did not satisfy critics who believed the payments warranted closer scrutiny.
Broader Significance
The Black case illustrates the financial ecosystem that surrounded Epstein: ultra-high-net-worth individuals paying enormous sums for services whose nature and value were difficult to independently verify, through a financial structure (USVI incorporation) specifically designed to minimize disclosure. Whatever the ultimate explanation, a $158 million payment to a registered sex offender by a major financial institution’s co-founder is among the most concrete documented financial relationships in the Epstein file.
Sources
Dechert LLP review (published by Apollo Global Management, 2021); Apollo board announcement on Black’s departure; journalism on Black-Epstein relationship; USVI government civil suit referencing Financial Trust Company clientele.