A couple of weeks ago, LouisianaVoice revealed that convicted Ponzi scheme operator Steven Hoffenberg had established a super PAC for the benefit of Donald Trump and had pledged $50 million of his own money to the effort to raise $1 billion on behalf of the presumed Republican nominee. https://louisianavoice.com/2016/06/21/operator-of-1990s-ponzi-scheme-outed-by-ruston-newspaper-re-surfaces-quarter-century-later-as-major-trump-fund-raiser/
Many north Louisiana residents were victimized by his scam before John Hays and his Morning Paper in Ruston outed Hoffenberg for what he was—a snake oil salesman. Now he’s out of jail and his story just keeps getting curiouser and curiouser as we plunge deeper into that rabbit hole.
Hoffenberg, who bilked investors out of about $475 million, the largest Ponzi scheme on record at the time B.B.M. (before Bernie Madoff), appears to have made a strong rebound and the cast of players also has expanded to include his former high-rolling business partner, child trafficking, a “Christian” credit card scheme, movie stars, a prince, and Bill Clinton.
LouisianaVoice has since learned that though he was sentenced to 20 years’ imprisonment and ordered to make restitution, he has repaid only about $200 million to investors whose savings he wiped out. He even claimed in 1996 that he was too destitute to post $100,000 bail.
So how is it that after serving 18 years of that sentence, he (a) now has $50 million to toss at Trump and (b) why haven’t authorities ordered that money to go into a pool to repay investors?
As with most questions of a rhetorical nature, there are no clear-cut answers. There is no black or white, only varying shades of gray. Facts, accusations and outright lies become so intertwined that it becomes virtually impossible to separate one from another in trying to make sense of it all.
If you listen to Hoffenberg today, you get the idea he is doing his dead-level best to make his investors whole, a seemingly benevolent gesture to be sure. Incredibly, he still heads Towers Investors, the company through which he ran his Ponzi scheme from the late 1970s until 1993. The corporation’s Web page includes this MESSAGE:
Today, that same Web site attempts to shift the blame for the bilking of 200,000 individuals of their savings to fellow wealthy Wall Street prodigy Jeffrey Epstein who Hoffenberg now says is the one who ran the pyramid scheme through his Towers Investors company.
Typically, Hoffenberg says on his Web page that “authorities figured out what was happening” with his gigantic scam. It seems he still cannot bring himself to admit that a small town newspaper publisher was the one who “figured out” what was going on and ultimately was the one who brought the scheme crashing down, sending Hoffenberg to a federal lockup for 18 years in the process. Hays, as we pointed out in our story last month, won awards for his work on the story and was nominated for a Pulitzer Prize for investigative reporting.
So who is Jeffrey Epstein and how does he figure in the Hoffenberg-Trump-Clinton saga? A former school teacher, he worked for six years at the Wall Street banking firm Bear Stearns before launching his own financial investing firm in 1982.
The London Daily Mail on May 29, published an exclusive story that detailed the complicated partnership between Epstein and Hoffenberg, Hoffenberg’s $1 billion lawsuit that accuses Epstein of running the Ponzi scheme through Hoffenberg’s company, Towers Financial Corporation.
When Hoffenberg was first charged, prosecutors tried to offer him a reduced sentence in exchange for information about Epstein and his part in the scam but Hoffenberg refused at the time to cooperate.
Epstein, meanwhile, continued to live large. He owns a luxury townhouse in Manhattan, an $11 million mansion in Pam Beach, Florida, and a private island in the Virgin Islands. He current resides in the Virgin Islands, according to the Florida sex offenders’ registry.
Sex registry? Just when you think this story couldn’t get any more salacious, it does.
In unrelated legal action, two unidentified women are claiming they were sexually abused by Epstein in the early 2000s when they were teens. They said he made them into sex slaves and passed them on to his friends. http://www.miamiherald.com/news/local/community/broward/article5342709.html
In 2008, Epstein was accused of sending staff members to recruit underage high school girls in West Pam Beach to travel to his mansion to provide massages and sex. His legal defense team included Alan Derchowitz, Roy Black and Kenneth Starr. http://www.thedailybeast.com/articles/2011/03/25/jeffrey-epstein-how-the-billionaire-pedophile-got-off-easy.html
Starr became a household name with his report that led to the impeachment of President Bill Clinton in the Monica Lewinsky affair. Starr would then go on to become head of Baylor University but ironically was forced to step down over his handling of a sex scandal at the Baptist school that also brought down the school’s football coach. Black is best known as the attorney who defended William Kennedy Smith against rape charges in Palm Beach.
The three lawyers negotiated the deal of the century, prompting speculation that Epstein benefitted from his high-level social and political contacts. Those included actors Kevin Spacey, Chris Tucker and Woody Allen, Prince Andrew, and Bill Clinton, who used Epstein’s Boeing 727, The Lolita Express, on at least two dozen occasions. http://www.dailywire.com/news/5749/both-trump-and-clinton-went-jeffrey-epsteins-sex-amanda-prestigiacomo
Not even a prestigious publication like Newsweek could resist the temptation of covering the Epstein-Clinton-Prince Andrew connection in January 2015. http://www.newsweek.com/2015/02/06/sex-offender-who-mixes-princes-and-premiers-302877.html
Epstein’s 2008 plea agreement revealed that prosecutors suspected him of abusing up to 40 underage girls but gave him a secret plea bargain in lieu of prosecuting him. http://www.dailymail.co.uk/news/article-3364381/Notorious-billionaire-pedophile-ex-bestie-Prince-Andrew-Jeffrey-Epstein-hugs-squeezes-bum-one-young-blonde-escapes-New-York-Caribbean-holiday-beauty.html
As a sidebar to all this sleazy mess, Law Newz, an online legal news service, reported on Monday (July 4) that Trump himself is accused of sexually assaulting a 13-year-old girl in Epstein’s presence in 1994.
In the Doe v. Donald J. Trump federal civil case, a witness statement is attached to the lawsuit in which the alleged witness claims to have “personally witnessed the plaintiff being forced to perform various sexual acts with Mr. Trump and Mr. Epstein. Both Mr. Trump and Mr. Epstein were advised that she was 13 years old.”
The witness statement went on to say, “I personally witnessed four sexual encounters that the plaintiff was forced to have with Mr. Trump during this period, including the fourth of these encounters where Mr. Trump forcibly raped her despite her pleas to stop.” http://lawnewz.com/celebrity/why-isnt-anyone-paying-attention-to-the-sexual-assault-lawsuit-against-trump/
Of course, so-called witnesses can—and often do—say things under oath that are far removed from the truth. LouisianaVoice is in no position to authenticate or refute the claims but the fact that they are now part of court record gives them added significance. http://www.dailymail.co.uk/news/article-3564767/Donald-Trump-furiously-denies-woman-s-claims-raped-tycoon-billionaire-pedophile-Jeffrey-Epstein-s-sex-parties.html
Thrown into the mix of this bizarre story is Hoffenberg’s latest scheme, the “Christ Card,” a special “Christian” credit card being peddled to churches across the U.S. “The Christ Card holders have the benefit of gaining discounts in all of their purchases under the walk in grace serving out Lord Jesus Christ as customers and as our partners in faith, in our Christ Card family,” says Hoffenberg’s pitch on his Towers Investors Group Web page. http://towersinvestors.com/portfolio-view/christ-card/
Hoffenberg claims to have been converted to Christianity while serving time for cheating investors and now he’s pushing an idea that has spawned numerous scams—Christian debt. This, of course, is not say his promotion is another scam but he does have the pedigree as one who preys on others’ and as one ready, willing and able to lighten unsuspecting victims’ wallets.
He claims to have already completed the negotiation phase for the marketing of the card to more than 700,000 registered Christian churches in the U.S., according to another Web page of WHAM, Inc. http://whaminc.us/investor-questions-wham-answers
That number dwarfs the number of investor he bilked with his Ponzi scheme back in the ‘70s, ‘80s and ‘90s. In WHAM’s post of only three weeks ago, Hoffenberg was quoted as saying, “Towers Investors/ WHAM INC Steven Hoffenberg anticipate completion and delivery of the Christ Credit Card to the end users within the next 90 days. This multi-year endeavor by Steven Hoffenberg will change the entire financial picture for WHAM investors.” http://whaminc.us/
So what is WHAM, Inc. and how does it figure in all of this? Well, according to Globe Newswire’s Web posting of Feb. 8, 2016, WHAM acquired 100 percent of all stock owned by Hoffenberg’s New York Post Publishing (not to be confused with Rupert Murdoch’s New York Post, previously run briefly by Hoffenberg—got it?), Christ Credit and the trademarks of Christ Donations, Christ Faith Card com., and a few other enterprises run by Hoffenberg—including the “billions of dollars in the Jeffrey Epstein contract with Towers investor victims.” Epstein, the Globe Newswire post says, was Hoffenberg’s “best friend and former partner.” https://globenewswire.com/news-release/2016/02/08/808616/0/en/Additional-Details-Regarding-WHAM-INC-Collection-of-Jeffrey-Epstein-s-Billions-for-the-Towers-Investor-Victims.html
But given the Hoffenberg-Epstein relationship, the Epstein-Clinton ties, and the Hoffenberg-Trump connection (Hoffenberg’s latest marriage to his publishing company president was performed just outside Trump Towers where Hoffenberg maintains his offices), we can’t help be intrigued at this sordid story.
The Hoffenberg wedding party outside Trump Towers (from left to right: Associate Publisher of Post Publishing Flo Anthony, Post Publisher and the new Mrs. Hoffenberg, Maria Santiago, Hoffenberg, best man Steven Jude, pastor Copper Cunningham, and video photographer, identity unknown).
And given that Hoffenberg was first ratted out for swindling Louisiana residents by a north Louisiana publisher, we feel it newsworthy to monitor developments in these interconnected stories as they occur.
And whether subsequent events adversely affect any Republicans or Democrats who might be stupid enough to be caught up in this tangled web of deceit is immaterial to us. Any association with Hoffenberg or Epstein—either by Trump or the Clintons—cannot possible be in the best interests of the average American citizen.