Epstein’s fondness for elite lawyer ends in downfall

Before federal authorities charged Epstein in 2019 with sex trafficking of minors, the files show he and Karp veered between professional conversations and camaraderie. Photo by Jon Elswic/AP Photo/Postmedia files

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When private equity titan Leon Black needed help with creative tax and wealth strategies, he turned to Jeffrey Epstein. But when Black needed help with Epstein, he turned to a powerful Wall Street attorney and fixer, Brad Karp.

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The largest release yet of Justice Department records on Epstein reveal that Karp, the chairman of elite law firm Paul Weiss, was often in near orbit as Black paid the convicted sex offender US$158 million for financial advice over the years — with Karp sometimes helping set the amounts. In a twist, he and Epstein also formed what they both called a “friendship” — musing in messages, arranging to attend a Woody Allen film premier and meeting up, including for dinner at Epstein’s Manhattan home.

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Those old ties — now exposed — just came to an abrupt head, with Karp resigning from the perch he held atop one of New York’s biggest law firms since 2008.

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“Recent reporting has created a distraction and has placed a focus on me that is not in the best interests of the firm,” Karp said in a statement late Wednesday. Paul Weiss said he will continue serving clients at the firm.

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Epstein files now show how the pedophile and the powerhouse attorney worked as allies while reshaping the management of Black’s wealth. At times, Epstein characterized the billionaire’s office as sloppy and amateurish, exposing him to taxes and reputational risks while making sensitive payments. (Later, in 2021, Black publicly admitted he had tried to cover up a “consensual affair” with a Russian model by paying her “substantial” sums.)

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“He MUST be more careful,” Epstein wrote to Karp in late 2017, urging him to explain risks to Black and complaining that the billionaire needed to “re do his office with top line professionals.”

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“I understand. Can’t wait. :),” Karp responded.

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Over the years, Epstein also extolled Karp’s prowess to contacts across business, politics and academia. To Microsoft Corp. founder Bill Gates, it was “call Brad Karp.” To Donald Trump’s one-time adviser Steve Bannon, it was “I think you should meet Brad Karp.” To former Treasury Secretary and Harvard University professor Larry Summers, it was “Brad would be a good person for you.”

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On Wall Street, Karp needed no introduction. He’s known throughout its corridors of power, sometimes guiding the likes of Citigroup Inc. through legal issues. As the files became public, he abruptly dropped out of an industry conference this week where he was scheduled to speak on “leadership in uncertain times.”

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Before federal authorities charged Epstein in 2019 with sex trafficking of minors, the files show he and Karp veered between professional conversations and camaraderie.

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But throughout, the documents make clear that Karp worked for Black, the co-founder of Apollo Global Management Inc.

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A representative for Black didn’t immediately respond to a request for comment. Paul Weiss has said it was retained by Black to negotiate a series of fee disputes with Epstein. “The firm was adverse to Epstein,” the firm said. “And at no point did Paul Weiss or Brad Karp ever represent him.”

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In statements to the media, the firm also has said Karp “had a small number of social interactions by email” with Epstein, which he regrets.

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‘Appreciate Our Friendship’

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Black’s hiring of Epstein for estate planning and tax advice has been publicly known for years, contributing to his exit as Apollo’s chief executive in early 2021. At various points, the files show, Karp stepped into that work to deal with Epstein.