Wexner Slams Former Confidant Epstein’s ‘Sickening Behavior’
Les Wexner Says He Was Unaware of Epstein's ‘Illegal Activity’
(Bloomberg) -- First it was Bill Clinton, followed by Donald Trump, Glenn Dubin and his wife Eva Andersson-Dubin and then Les Wexner.
They are the onetime friends, acquaintances or business associates of Jeffrey Epstein who have publicly distanced themselves from the financier since his July 6 arrest on charges of sex trafficking minors. For Wexner, particularly, as the head of a publicly traded company that could be rocked by scandal, it was none too soon.
“If you say nothing, every piece of news coverage will reinforce the connection,” said Michael Maslansky, chief executive officer of communications firm maslansky + partners.
Epstein, 66, is locked up in a Manhattan jail more than a decade after serving time in Florida for soliciting prostitution, in one case with a minor. His accusers urged on Monday that he stay behind bars after prosecutors said they found piles of cash, dozens of diamonds and an expired foreign passport with Epstein’s picture and a different name.
Highest Echelons
The roster of those speaking out is a reminder of how the Brooklyn-born college dropout rose to infiltrate the highest echelons of politics, Wall Street, Palm Beach and Manhattan society and corporate America through his charm and money. His financial disclosure form showed assets of at least $500 million, including investments in hedge funds and private equity.
His ties to Dubin, co-founder of hedge fund Highbridge Capital Management, and Andersson-Dubin go back decades.
Epstein had invested in Dubin’s hedge fund and was also considered a friend. Andersson-Dubin, a former model and Miss Sweden who became a renowned physician, previously dated Epstein and continued to socialize with him after his time in jail.
“The Dubins are horrified by the new allegations against Jeffrey Epstein,” they said in a statement. “Had they been aware of the vile and unspeakable conduct described in these new allegations, they would have cut off all ties and certainly never have allowed their children to be in his presence.”
Andersson-Dubin said she mistakenly believed Epstein had rehabilitated himself and deserved a second chance.
“She is mortified that she, like so many others, was deceived by him, and feels terrible for the young women who have been harmed by his actions,” according to the statement.
Epstein’s lawyers have said their client, who has pleaded not guilty, is being prosecuted a second time for a matter resolved in 2008 -- after a non-prosecution agreement with the U.S. -- with his conviction in Florida. They have said Epstein hasn’t broken the law in 14 years.
No one in the business community was as important to Epstein as Wexner, the billionaire founder of L Brands Inc., who told employees Monday that he was unaware of Epstein’s alleged crimes. The 81-year-old mogul behind Victoria’s Secret told employees in an email that he “was NEVER aware of the illegal activity” allegedly committed by Epstein. “As you can imagine, this past week I have searched my soul ... reflected ... and regretted that my path ever crossed his.”
The two men had a business relationship that started in the 1980s and evolved into what many people who knew them said was a friendship. Wexner opened doors for Epstein, who managed what Wexner described in the email as “many aspects of his financial life.”
By 1995, Epstein was a director of the Wexner Foundation and Wexner Heritage Foundation and president of Wexner’s N.A. Property Inc., which developed the Ohio town of New Albany, where Wexner lives. Epstein also was involved in Wexner’s superyacht, “Limitless,” attending meetings at the London studios of the firm that designed the vessel.
In the email, reported earlier by the Columbus Dispatch, Wexner reiterated that he severed ties with Epstein almost 12 years ago.
“I would never have guessed that a person I employed more than a decade ago could have caused such pain to so many people,” Wexner said in the email to employees. “I would not have continued to work with any individual capable of such egregious, sickening behavior as has been reported about him.”
L Brands has been struggling financially, tumbling more than 60% in the past four years as Victoria’s Secret failed to adapt to consumer demands and the #MeToo era even as its Bath & Body Works brand sees strong growth. After Epstein’s arrest this month, Wexner was criticized for not distancing himself from his former financial manager. The shares have dropped 3.9% since the latest arrest, compared with gains for the broader market.
Wexner, the company’s chairman and CEO, is its biggest shareholder and has a $6.6 billion fortune, according to the Bloomberg Billionaires Index.
Black, Dershowitz
Private-equity titan Leon Black also sought to clarify Epstein’s role with his family foundation after reports that the Apollo Global Management LLC co-founder kept Epstein as a director of his family foundation until 2012. The Black family requested Epstein resign from the Leon Black Family Foundation in 2007, they said. A spokeswoman declined to comment on why he served on the board in the first place.
Alan Dershowitz, who was part of a team of lawyers that helped negotiate a lenient plea deal and nonprosecution agreement for Epstein in 2007 following previous sex-abuse claims, said last week he’s had no contact with the financier for “many years.” While his family spent time at Epstein’s Florida home, they wouldn’t have done so if he believed anything was amiss, Dershowitz said. Lynn Forester de Rothschild, who Dershowitz said introduced him to Epstein, declined to comment beyond confirming she hasn’t spoken to Epstein since 2000.
‘Terrific Guy’
Epstein’s ties to current and former presidents have also come under scrutiny. Trump was quoted in a 2002 New York Magazine story describing Epstein as “a terrific guy,” based on having known him for 15 years. White House adviser Kellyanne Conway said July 9 that Trump hasn’t spoken to or seen Epstein in 10 to 15 years.
Clinton spokesman Angel Urena tweeted a statement on July 8 noting the former president also hadn’t spoken to Epstein in well over a decade.
Deutsche Bank AG severed business ties with Epstein earlier this year, just as federal authorities were preparing to charge him with operating a sex-trafficking ring of underage girls out of his opulent homes in Manhattan and Palm Beach.
Harvard Gift
Epstein donated $6.5 million to Harvard University in 2003. While the donation -- which has already been spent -- attracted criticism three years later when he was charged with soliciting sex, the university said at the time it was not returning the gift.
Harvard “does not comment on individual gifts or their status,” spokesman Jonathan Swain said last week.
And others linked to Epstein -- like British royal Prince Andrew -- have yet to make statements. That could be a mistake, according to Lida Citroen, who owns a reputation management and branding firm.
“I advise clients to be proactive and get out statements ahead of the news,” she said. “If this plays out in the media, that can become very scary, very fast.”
--With assistance from Jordyn Holman, Anders Melin and Michael McDonald.
To contact the reporters on this story: Sophie Alexander in New York at salexander82@bloomberg.net;Katherine Burton in New York at kburton@bloomberg.net;Tom Metcalf in London at tmetcalf7@bloomberg.net
To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Anne Reifenberg, Steven Crabill
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