Epstein's Frantic Palace Purchase Attempt Before Arrest
In the tense days preceding his 2019 arrest, disgraced financier Jeffrey Epstein made a desperate attempt to acquire a luxury palace in Morocco, with financial giant Charles Schwab processing multi-million dollar wire transfers on his behalf despite account deficiencies. Newly released U.S. Department of Justice documents reveal these startling transactions, shedding light on Epstein's final financial maneuvers.
The Opulent Target: Bin Ennakhil Palace
The property at the center of this saga is the magnificent Bin Ennakhil palace in Marrakesh, Morocco. According to property listings included in the DOJ files, this estate spans an impressive 4.6 hectares—larger than New York's Washington Square Park or approximately six standard soccer pitches. The palace boasts gold-draped walls, a traditional hammam steam spa, sixty ornate marble fountains, and both an outdoor pool and jacuzzi. Multiple gardens feature hundreds of olive trees and over two thousand palm trees, creating an oasis of luxury.
Financial Transactions Under Scrutiny
Charles Schwab wired approximately $27.7 million on Epstein's behalf to Moroccan realtor Marc Leon in the ten days before Epstein's arrest on July 6, 2019. This included one transfer from an account that lacked sufficient funds at the time of processing. Schwab had opened three accounts for Epstein's companies in April 2019, including one for Southern Trust Company, the entity attempting to purchase Bin Ennakhil.
The documents show that between June 26 and July 9, 2019, Southern Trust initially instructed Schwab to wire about $12.7 million in euros for the palace purchase, then reversed the order. Subsequently, Schwab received another wire request signed by Epstein himself and sent $14.95 million to acquire the same property, despite insufficient funds in the account pending the return of the original payment.
Regulatory Compliance and Suspicious Activity Reports
Schwab flagged these transactions in a suspicious activity report (SAR) filed with the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) on July 13, 2019—just seven days after Epstein's arrest. Under the U.S. Bank Secrecy Act, financial institutions must file SARs within thirty days of detecting potentially suspicious activity.
In its SAR, Schwab expressed "concerns with attempted wires for the purpose of real estate, in light of negative media surrounding Jeffrey Epstein" and worries about him being a possible flight risk ahead of his bail hearing. The brokerage noted this investigation resulted from an internal referral by their risk team.
Epstein's Banking History and Legal Context
Epstein turned to Schwab in 2019 as Deutsche Bank was winding down accounts held by the convicted sex offender. Epstein had pleaded guilty in 2008 to soliciting prostitution from an underage girl and served prison time. Schwab was among at least seven financial firms subpoenaed by the U.S. Virgin Islands in 2020 regarding documents related to the co-executors of Epstein's estate, though the subpoena contained no accusations of wrongdoing against the brokerage.
Realtor Marc Leon defended his role in facilitating Epstein's property bid, stating to Reuters: "Epstein had been convicted of sex crimes in 2008 and had served his sentence. There was therefore nothing to prevent him from attempting to purchase property in Morocco. We had no way of knowing that he had continued his terrible crimes." Leon added that Epstein first attempted to buy Bin Ennakhil in 2011, with negotiations continuing over subsequent years.
Account Management and Congressional Scrutiny
The Schwab corporate account listed Richard Kahn, Epstein's accountant, as an authorized individual, with Epstein identified as Southern Trust's president and sole beneficial owner. Kahn has been ordered to testify before Congress to answer questions about whether he helped facilitate Epstein's crimes through financial management. House Oversight Committee member Robert Garcia announced this in a January media statement, though Reuters has found no evidence of wrongdoing by Kahn.
In a follow-up exchange with Schwab after Epstein's arrest, an unidentified Epstein associate inquired whether future transfers for Southern Trust's account would still require two signatures, suggesting more money would be sent soon. This occurred while Epstein remained in jail facing federal sex trafficking charges.
Transaction Details and Banking Procedures
The initial $12.7 million transfer was sent to a Julius Baer account in Switzerland held by Leon. The next day, Schwab received a call from a redacted individual requesting termination of the transfer, citing unagreeable real estate deal terms. This person indicated another payment for a larger sum would be made to a different account.
Schwab successfully reversed the order, with funds due to be credited back on July 10. However, on July 4—just two days before Epstein's arrest—Southern Trust instructed Schwab to send Leon $14.95 million via a wire transfer request signed by Epstein and a co-signatory. Epstein's Southern Trust account lacked sufficient funds because Schwab had not yet returned money from the earlier transfer.
While Schwab might have reasonably expected the payment to be transferred back to Epstein's account, the bank would have been exposed to risk until the funds were returned. Reuters could not establish when the $12.7 million ultimately landed back in Epstein's account, though the SAR indicated it was due on July 10.
Corporate Responses and Current Status
Schwab declined to comment on specific account details, citing federal regulation, privacy laws, and internal policies requiring confidentiality. In an emailed response to Reuters, the company stated: "An associate of Epstein opened accounts in April 2019. Shortly after, our Risk team began investigating the accounts and within 60 days of starting the review, we notified the client of our decision to close and terminate the relationship. We also referred the matter to federal law enforcement."
Schwab declined to provide details on exactly when its risk team began investigating. A FinCEN spokesperson told Reuters that, per federal law, the agency cannot confirm or deny the existence of alleged suspicious activity reports.
Although Epstein's palace deal ultimately fell through—with Schwab canceling the second transfer on July 9 at the request of an Epstein representative—Bin Ennakhil is no longer vacant. "The property has since been sold to another buyer," Leon confirmed to Reuters. Epstein died in jail in August 2019 while facing federal sex trafficking charges, leaving behind a complex financial and legal legacy that continues to be unraveled through documents like those recently released by the Department of Justice.
