JEFFREY EPSTEIN TIED TO FINANCIAL TRUST CO. AND TOWERS FINANCIAL CORP. (Acquired by WHAM INC.)
Marvin Gerber and Kalma Koenig filed a complaint on behalf of themselves and all others similarly situated on Aug. 21 in the U.S. District Court for the Southern District of New York against The Financial Trust Co., Jeffrey E. Epstein, et al. alleging fraud, conversion and other counts.
According to the complaint, the plaintiffs were investors and/or noteholders of Towers Financial Corp. and allege that they lost money and been damaged as a result of defendants’ conspiring and participating in a Ponzi scheme perpetrated by Epstein. The suit states Epstein is an uncharged co-conspirator of convicted Steven Hoffenberg.
"Epstein knowingly and intentionally utilized funds he fraudulently diverted and obtained from this massive Ponzi scheme for his own personal use to support a lavish lifestyle. All of Epstein’s acts and omissions, as alleged herein, were in contravention to duties owed to TFC, plaintiffs and the class and in violation of the law," the suit state.
The plaintiffs hold The Financial Trust Co., Epstein, et al. responsible because Epstein allegedly invested the funds of TFC in securities that were inappropriate investments and caused TFC to suffer tremendous financial loss, transferred the assets to himself for his own personal gain or use, and the defendants acquired consistent and unlawful profits at the expense of plaintiffs and other investors.
The plaintiffs request a trial by jury and seek judgment against the defendants; award general, special, incidental, and consequential damages; attorney’s fees and costs, and additional or further relief as the court deems just. They are represented by Frank R. Schirripa, Daniel B. Rehns and Hillary M. Nappi of Hach Rose Schirripa & Cheverie LLP in New York and Gary H. Baise of Attorney at Law in Washington, D.C.
U.S. District Court for the Southern District of New York case number 1:18-cv-07580