Charles Schwab wired about $27.7 million on behalf of Jeffrey Epstein to a realtor in Morocco as the disgraced financier tried to purchase a palace in the ten days before his 2019 arrest, according to files released by the US Department of Justice. The documents show one transfer was made from an account that lacked sufficient funds.
The brokerage handled funds for Epstein over several months at a time when he was under intense public scrutiny after reports in the Miami Herald in 2018. Schwab flagged the payments in a suspicious activity report (SAR) to the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) on July 13, seven days after Epstein's arrest.
An examination of more than a hundred documents shows Schwab opened three accounts for Epstein's companies in April 2019, including one for Southern Trust, a business attempting to buy the opulent Bin Ennakhil palace in Marrakesh, Morocco. Between June 26 and July 9, 2019, Southern Trust instructed Schwab to wire about $12.7 million in euros for the purchase but then reversed the order. Schwab then received another request, signed by Epstein, and sent $14.95 million for the same property, even though there were insufficient funds pending the return of the original payment.
Schwab declined to comment on the details, citing federal regulation and privacy laws. In an emailed statement, it said: "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." A FinCEN spokesperson said the agency could neither confirm nor deny the existence of an alleged suspicious activity report.
The realtor in Marrakesh, Marc Leon, said Epstein first tried to buy Bin Ennakhil in 2011 and negotiations continued over the years. The property, according to a listing in the DOJ files, spreads across 4.6 hectares with gold-draped walls, a hammam steam spa, 60 marble fountains, an outdoor pool and jacuzzi, and gardens with hundreds of olive trees and more than 2,000 palms. Leon defended his role, saying Epstein had been convicted of sex crimes in 2008 and had served his sentence, so there was nothing to prevent him attempting to purchase property in Morocco.
Epstein died in jail in August 2019 while facing US federal sex trafficking charges. He had turned to Schwab in 2019 as Deutsche Bank was winding down accounts held by the convicted sex offender. Schwab was among at least seven financial firms subpoenaed by the US Virgin Islands in 2020 in relation to Epstein's estate, but the subpoena contained no accusations of wrongdoing against the brokerage.
