Jeffrey Epstein 'misappropriated vast sums of money,' billionaire Leslie Wexner alleges

Kevin McCoy

Leslie Wexner, the billionaire retail executive whose L Brands labels include Victoria's Secret and Bath and Body Works, once counted financier Jeffrey Epstein as a personal advisor with broad authority over multi-million dollar decisions.

But today, as Epstein stands accused of sex trafficking girls as young as 14 — an echo of similar sex charges against him more than a decade ago — Wexner has accused the former advisor of major financial wrongdoing.

In a Wednesday letter to members of his Wexner Foundation charitable community, Wexner alleged that Epstein "misappropriated vast sums of money from me and my family."

"This was, frankly, a tremendous shock, even though it clearly pales in comparison to the unthinkable allegations against him now," Wexner added.

An attorney for Epstein did not immediately respond to a Thursday email that sought comment on the allegation. No charges have been publicly disclosed.

This Sept. 19, 2014, file photo shows retail mogul Leslie Wexner, right, and his wife, Abigail, as they tour the
This Sept. 19, 2014, file photo shows retail mogul Leslie Wexner, right, and his wife, Abigail, as they tour the

Providing information about the relationship between the two men, Wexner said he first met Epstein in the mid-1980s through friends who "recommended him as a knowledgeable financial professional."

After Epstein depicted his financial clients as respected individuals, the letter said Wexner entrusted the financier to handle his financial affairs. The billionaire even gave Epstein power of attorney, with "wide latitude to act on behalf with respect to my personal finances," the letter said.

The relationship changed by the early fall of 2007, as Epstein was investigated for alleged sex trafficking of young girls in Florida. Although Epstein "vehemently denied" the allegations, Wexner wrote that the two reached an agreement that the financier should "step back from the management of our personal finances."

Epstein pleaded guilty in 2008 to two state prostitution charges in Florida, part of a deal in which federal prosecutors there did not file a potentially tougher criminal case against him. Epstein served a 13-month sentence in a Palm Beach County stockade, though he spent many days in a work-release program than enabled him to go to his nearby office.

Epstein, a onetime friend of Bill Clinton, Donald Trump and Great Britain's Prince Andrew, is now behind bars in the Metropolitan Correctional Center in New York City's Manhattan borough. He faces decades in prison if convicted on the sex-trafficking indictment handed up last month.

Epstein has pleaded not guilty. His attorneys are appealing a Manhattan federal judge's ruling that ordered him detained without bail pending a criminal trial that could start next year.

Wexner said he discovered the former advisor's alleged misappropriation shortly after Epstein surrendered management of the billionaire's finances.

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"With his credibility and our trust in him destroyed, we immediately severed ties with him," wrote Wexner, who added, "we were able to recover some of the funds."

The recovery included the widely reported more than $46.6 million in combined 2008 transfers from Epstein's U.S. Virgin Islands-based Financial Trust Company and his then-active C.OU.Q. Foundation to The YLK Charitable Fund, a Wexner family philanthropy.

Wexner wrote that the transfers represented "a portion of the returned monies," and added that "all of that money — every dollar of it — was originally Wexner family money."

Saying he was embarrassed at having been deceived, Wexner referred to the victims of Epstein's alleged sex crimes.

"As the story has unfolded further, and the extent of the pain caused by Mr. Epstein continues to grow, I have spent time reflecting and searching for answers as to how this could have happened," Wexner wrote. "My heart goes out to each person who has suffered unthinkable pain and I pray for their healing."

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc

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This article originally appeared on USA TODAY: Billionaire Leslie Wexner says Jeffrey Epstein misappropriated money