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JEFFREY EPSTEIN TIED TO FINANCIAL TRUST CO. AND TOWERS FINANCIAL CORP. (Acquired by WHAM INC.)

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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

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Steven Hoffenberg is the former chairman of Towers Financial Corporation, a bill collection agency, that he used in a Ponzi scheme. The firm collapsed in 1993, and in 1995 Hoffenberg pleaded guilty to bilking investors out of $475 million. In 1997 Judge Robert W. Sweet sentenced him to 20 years in prison, plus a $1 million fine and $463 million in restitution (per the Bureau of Prisons he was released in October 2013). He settled a civil suit with the U.S. Securities and Exchange Commission for $60 million. Hoffenberg is currently paying back all of the above investors debt.[1][2] He was the owner of the New York Post.

At the time the SEC considered the fraud to be "one of the largest Ponzi schemes in history."[3]

In July 2019, he claimed that the American financier Jeffrey Epstein was his co-conspirator in the Ponzi scheme.[4]