From: jeffrey E. [jeeyacation@gmail.com] Sent: 4/8/2018 4:20:18 PM To: jeffrey epstein [jeeyacation@gmail.com] Importance: High Date: Mon, Oct 26, 2015 at 8:37 PM Subject: To: Brad Wechsler_____________________________Melanie SpineIla_______________________________ gain at 20 % not 28. . so total, 35.8%. tax rate. same for boat. and plane each around 10 m so total 7 m savings if both sold Date: Tue, Oct 27, 2015 at 11:35 AM Subject: Detailed constructive list. To: Melanie Spinel Cc: Brad Wechsler Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6 regan arts. .7 plane simplify re strucuture re finance. re purpose . 8 .boat restrucutre , sister, 9 re fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review, sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current and future pledges , gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay etc) . 18 debra and children ? current and future involvement. notifications etc. . new dynasty trust ? 19. tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl trading accouints 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22 . consolidate and review and reduce the number of all bank accounts and legal entities. decanting liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third party responsibilty Bens house, alex films . etc. Date: Wed, Oct 28, 2015 at 5:56 AM Subject: Fwd: Detailed constructive list. To: Lesley Groff______ please print two copes gift answer. blank re formattted so leon can go line by line ie . heading s question, who responsible. time frame. fee paid when? Date: Tue, Oct 27, 2015 at 6:35 AM Subject: Detailed constructive list. To: Melanie Spinella Cc: Brad Wechsler Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6 regan arts. .7 plane simplify re strucuture re finance. re purpose . 8 .boat restrucutre , sister, 9 re fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review, sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current and future pledges , gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay etc) . 18 debra and children ? current and future involvement. notifications etc. . new dynasty trust ? 19. tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl trading accouints. 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22 . consolidate and review and reduce the number of all bank accounts and legal entities. decanting liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third party responsibilty Bens house, alex HOUSE OVERSIGHT 023291 films . etc. From: jeffrey E. Date: Tue, Feb 24, 2015 at 2:20 PM Subject: To: Melanie SpineIla______________________________ Leon, Yesterday, I again spent hours upon hours of my time with your office. ,( speak to brad to get flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other weeks spent doing the things that I don;t have the time to do. In order to keep things in perspective, maybe reviewing an analogy I have used before with you, might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500 million dollars per year. It contains a few operating biz's , a large wide array of existing investments, in various categories, a desire to enter into others. A panoply of loans, notes. purchases, wide range of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants. construction consultants bill payers, home mgmt.,vast multitude ofllc's , including foreign, and with all that you only have a combined overhead of less that 3 million dollars. I have previously sent you the very same note that i have enclosed again below ,this time with highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to have been raised as one of your concerns , as a rule I try to memorialize things in writing in an attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't do , - my responsibilities. etc and those things that are not. below you will find details of things that I thought needed to be done, so that you wouldn't find yourself in the very place where you currently find yourself however ,you chose to defer many of my suggestions- see below -,until only weeks ago. ! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50 40 timber emails all carried with it a clear warning that you needed to do something re personnel if it were to stabilize,- you chose to wait. ONE YEAR AGO Feb 17 2014 i wrote : With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way before the beginning of my involvement ) I am also aware however of my overarching friendship obligations of ok, -given all the complexities who else can do it? problem. Your family office needs a daddy. children with good intentions are running around, sniping , nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take charge Everyone would report to him. Eileen included. He would however work for me. this is not, by a long shot my first choice as I prefer only being responsible and standing behind my own personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others ) With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in trying to think through the problem creatively. My organizations handling of the more complex issues I believe you might find very costly, very ! ( however many structures available some risk sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person. The increasing public profile needs to be taken into consideration. TODAY HOUSE OVERSIGHT 023292 With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me. and each time with my many annoying calls to you made immediately afterwards that she was g.....y!! No one was hired to run YOUR office until two months ago , no one was even interviewed and even now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to ignore mine saying " but Leon said " or" its on Leon's desk etc" , You would become frustrated when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in the instances where I inserted myself and personally had to do the weeks of grunt work ),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from where you were, to where you are currently . you have made a hell of a deal. -- negotiating down my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was partially my fault. ( though in that specific example, I had never been asked to do more than merely provide you the name of the most highly recognized atty in the field, not consulted,nor even asked again for my guidance along the way. ). I accepted the discount as your friend. ( by the way „suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-). however - that is all in the past. In order to move forward I would ask that you realize that very unlike yours, My business is only comprised of my personal attention and my personal time . Time that I was forced to grossly overspend on your various issues last year. . As you are my very close friend I will not have you participate in a bidding process that I have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your understanding of the final payment terms neither reflected the emails or my memory, we finished it up your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made serious dollar and time concessions last year.very serious I am wiling to continue to accommodate some of your concerns , but I am, under no circumstances , none, willing to spend my time for free. its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We were both highly aware of the dire circumstances in which you found yourself last year, and in fact due predominately to its seriousness, and those very circumstances I took extra care in our negotiations . (you had claimed I had you over a barrel, ( a horrible position to be in with my very close friend.), unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your own design ) I heard you when you said you believed i had already been paid for the work that is now required. The art partnership has fully answered all your concerns and discharged all my obligations and more so. . ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall that you required that my payments be at the end of my work not at the beginning as everyone else's .( my work was never to include hours upon hours of training your staff). I eventually agreed, this of course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement right out of the box. you said you preferred not. As you said ,I have produced results to date, far in excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in the amount still outstanding from last year if that helps .. However, As my best student , and my only one, you are now capable of doing most, if not all, of the required work yourself I can put my whiteboard away when you come to eat and just have fun, trade stories,. share moments ideas etc. . I am of course always available to guide you as a friend if you choose that route . always. It will take a great deal of your time , but you will not have to spend any more money on mine. We are scheduled to meet fri at 430 , I leave at 5 am sat morning. HOUSE OVERSIGHT 023293 Date: Wed, Nov 4, 2015 at 4:45 AM Subject: To: Melanie Spinella okay, its time for you to decide how you would like to move forward. ( fyi get your money from the 1031 . the screw up is only one of many,) If you decide to move foward on decanting. phaidon, note basis estate update , each requires many carefully orchestrated detailed steps. and precision. there are hundreds of millions in saving if done correctly and a huge mess if not. If you want me and my colleagues to do it, oversee it paper it and guide it, you should tell me. It is a big undertaking. If not, ok .. Brad and your crew can do it. I will have no real further involvement apart from confirming the outcome of my proposed structure, I will not risk the admonition of- they thought you said, they thought you meant, they understood it to be. but they said you said, ( i e ,I asked at our meeting that accounting be done properly for bens house, what came back was ada thought that I meant that we needed to go back to the 97 trust and give him a full third party accounting of where his money had gone??!! I kid you not). I dont think brad should talk to jane heller without a fully fleshed out plan in place and even then it should be you. Date: Wed, Nov 11, 2015 at 10:59 AM Subject: To: Richard Joslin Joe Avantario Brad Wechsler lets calculate the exact payoff amount for the leon note as of nov 30 ,DEC1 , dec 31. 1) does art space get folded in to phaidon. . middle cos disolved.? 2 collapse topco etc open bank accounts for apoo interest will be approx 50k per day . look at deduction. note payoff docs- notaries . new docs. releases ? , accountings? disclosures? ( gaming ? ) art partnership . renew. will? repaper lease guarantees? macfarlanes. ? do we pay down 10m. of plane. ? proposal for airplane , 91 , 135. exec , jet. .? remove debra. from plane? Date: Wed, Nov 11, 2015 at 11:00 AM Subject: To: Melanie Spinella________________________________ we should discuss e trust and j black trust. , brad buying phaidon. artspace folding ? plane/ boat. foundation. Date: Wed, Nov 11, 2015 at 9:09 PM Subject: To: Melanie Spinella we need to coordinate, brad bank, cannot be clumsy Date: Fri, Nov 20, 2015 at 10:50 AM Subject: agenda To: Melanie Spinella .1__________________________________________________ 1. brad or richard. makes litte difference. 2. gagosian . no written contract??!! fishy to me - who transfers 100 million dollars overseas without a contract ,- dont want you pulled into a scandal. careful especially as he is on the tax dept radar, . 3. I would like you to delineate what you would like me to do - the more specificity the better.- I think it important to avoid any misunderstandings as to each of our obligations and responsbilities. I will always give you my best advice. I have made my views re ada and the office clear . no hedging. . THEY should go. no hesitation. no zeus, your choice obviously, good news - I will not bring it up again, moving forward- These transactions will require a great deal of manpower over the next holiday month, every document needs minute review. . I would like to fix our fee agreement, in detail no later than this weekend. ie amounts , dates paid. entities paid. any concept you may have of" after care"? all on the table. .other questions such as how much to leave your children ,in what form, has no right answer. but you and I can dialougue as long as you like about issues of judgement. it is out of o friendship, not biz. ( bill hellman as a trustee? ) . we can talk about that during walks etc. I would like for you and Ito go back to HOUSE OVERSIGHT 023294 having fun. Date: Mon, Nov 23, 2015 at 11:53 AM Subject: To: Melanie Spinella 25 minutes needed. 1 new and vastly improved plan, needs your thoughtful input, decisions on legacy paintings bronzes. books etc. 2. we need to reach fee agreement. and authorities.( alan and I spent time over the weekend, ) , hundred documents to be drafted. 3. gagosiaon 4 revolver . 5 inspire - FBI . 6. Phaidon, solution. 7 plane. no need to reinvent the wheel. . ( rowen ). Date: Tue, Nov 24, 2015 at 2:41 PM Subject: Fwd: Loan To: Melanie Spinella Please talk to him Date: Tuesday, 24 November 2015 Subject: Loan To: Jeffrey Epstein Cc: Melanie S inella "Alan S. Hal erin' Ada Clapp Joe Avantario Jeffrey-given the high daily interest cost (50k+/-) on $$ borrowed which you pointed out yesterday, here's what I'm thinking, but I want to be 100% on the same page as you: 1. Close next monday on the credit line, but don't borrow any $$. (We can, of course push closing back but my preference wld be to close.) 2. Right now, at barry's request, Irene Steiner, on behalf of the trustees is reviewing apol and apo-ol. While probably not impt on a "substantive" basis it was (a) impt to barry and (b) is likely good for leon. 3. We are hoping to have signature pages to the trustees (and returned to us) by early to mid next week. (Ada will oversee.) 4. We will then get the new trust to bofa who, moving quickly (according to them), will have an acct open the following week, 12/7-9. 5. We need to manage execution of paperwork associated with decanting which I assume occurs once apo-ol and bank acct are operative. (Ada I'm sure you'll be on top of this). 6. I assume we will move $$ to pay down loan the day or day after (?) apo-01 bank acct open. As you know we cld do this as early as next monday/tuesday but then cash will be sitting in apo-1 while we're waiting for apo-01 bank acct. 7. If there are sales of assets (or 'lc's) from leon to apol or apo-01 that needs to be buttoned down and organized asap. 8. Same if you want another NEW trust in the mix as that will involve paperwork and opening an acct with bank. Let's discuss to make sure we're on the same page on process. B Sent from my Verizon Wireless BlackBerry Date: Mon, Nov 30, 2015 at 5:21 PM Subject: agenda To: Melanie Spinella__________________________________ 1 fees, amount and to what entities when and responsiblitis. 2. gagosian idea to save a minimum of 10 mill and maybe more. 3. i can walk you through carlyns screw up, 50 % would have made little difference and maybe made it worse. 4. we should have an all hands meeting with your family to talk about art distribution on death. . 5. phaidon, decantings ( already firmly in progress ) loans. ( alan ) pent. ( with follow up ) all part of same elegant transaction, 6 asymetric risk worth at least 50- 60 no matter how you calculate. I can explain. 7 lets get the money issue out of the way once and for all. I have my team set to start. HOUSE OVERSIGHT 023295 Date: Tue, Dec 1, 2015 at 12:26 PM Subject: To: Brad Wechsler I would like to consider the gaming commmison disclosure dates. . 2 we should put to bed once and for all adas concerns re the bronzes. . alan should opine on valuation ranges? rather than estimates. . 3. Leons input re gagosian purchase. ( trade in, 1031 if 17 likely transfer- . scream, phaidon. plane and boat. 4. I would like to review all assignment docs. decanting schedules. ( exhibits ). balance sheets for apol-2 . . loan docs re transfer of narrows inside . 5. Leon should be clear regard future steps . pent etc. swaps , paydowns 6 mock- ups of all before trigger pull. Date: Wed, Oct 28, 2015 at 12:56 AM Subject: Fwd: Detailed constructive list. To: Lesley Groff <=111.1111> please print two copes . re formattted so leon can go line by line ie heading s question, gift answer. blank who responsible. time frame. fee paid when? Date: Tue, Oct 27, 2015 at 6:35 AM Subject: Detailed constructive list. To: Melanie Spinelh Cc: Brad Wechsler <____________________________ Deciisions needed asap 1 phaidon. topco etc. . ( cash needs) many wires needed !! 2 new trustee or not. - new decantings 3 art in art partnership.??! .overdue ?! 4 grats? window - 5 art space. .6 regan arts. .7 plane simplify re strucuture re finance. re purpose . 8 .boat restrucutre , sister, 9 re fresh estate plan. to consider modifications Alex Victoria equal does not mean same. 10. tra review, sale. , 11 brh, doc review, 12. sale of stock or art ? tax, rent sale 13 . gifts of art. 14. charity current and future pledges , gifts, 15 cash flow. . 16 . new IT and new personnel. 17. operational re-do ( bill pay etc) . 18 debra and children ? current and future involvement. notifications etc. . new dynasty trust ? 19. tax plan and dislosures gaming. foreign apollo and phaidon related. 20. investments rationalize incl trading accouints. 21. bank loans . rates ? ? terms etc. consolidate, plane boat houses. disclosures? 22 . consolidate and review and reduce the number of all bank accounts and legal entities. decanting liquidating etc. . 23 all outside consultants? valuations etc. 24 review legal bills carefullly. 25. third party responsibilty Bens house, alex films . etc. ate: Fri, Dec 4, 2015 at 2:07 PM Subject: Fwd: moving forward To: Melanie Spinella________________________________ I had forgotten that Alan was actually at the table when i explained my note deal to you. it was at the end of the meeting described below. . as you will recall, not once , not even a peep did alan suggest contemporaneously his hand in the crafting, in fact brad said it was an idea. that HE brad, HAD HAD, from the begiining . my emails between alan and I that you can read, further confirm authorship. Im sure you recall the obnoxious tooting when alan said he agreed with my plan. . Date: Mon, Nov 2, 2015 at 10:03 PM Subject: moving forward To: Melanie Spinella________________________________ I have mixed emotions about what transpired today. really, You saw first hand in nauseating detail what i have been saying to you for quite a while now. Joslins answers were totally incomprehensible, the charts he prepared unreadable. Brads defensive posture was at a minum very surprising . He and I have recently gotten along quite well, I thought. Neither Joslin or Brad understood a 180 million dollar number. no cash flow HOUSE OVERSIGHT 023296 after weeks of requesting? odd. when you suggested that heathers behavior was emblematic of a sloppy office , brad said lets not talk about emblems??! bill pay, admittedly no change for the year. . plane not done. though it was the only thing i suggested doing first in july . . I sent you a list of 10 consultantts. brad said three, . i didnt want to push it. I was shocked that brad was opining on things he knows little or nothing about. tax issues. 1031. neg basis, note payoffs ( the same idea he said he had had from the beggining??!!) . answers re LBF holdings that can be corrected ( they cant) . valuations that have never been read. . When we met in your lobby he seems surprised that i was there. I dont know if he felt somewhat sandbagged. . . the savings on the note payoff is aprrox 33 % of 1.8 billion, real money if you do phaidon which i see no reason not to . if later josh and ben want to buy it back with you or without you they can. i will walk you through the structure one on one. . the losses will offeset the calder gain as well as apollo gain. Im aware that seeing what you saw frustrated you. I felt badly for you. You wanted a contingent deal. real value. etc. I will not of course hold you to your deal . . its silly. its not how i work or a reflection of our friendship, my proposal is as follows. I want away from your buisiness , but at the same time leaving you in good shape. I think you should pay the 25m that you did not for this year. for next year its the same 40 m as always, paid 20 in jan and 20 in july, and then we are done. I will give you advice and counsel but new people will be running your operating machine. I will oversee all the work that needs to be done you and I will hire new people , and it will be self running. ( it was may in my house when you told brad it had been 5 months and you were getting fed up ) I will set up a parallel. office , somenoe like wendy dolman or her quality is paramount. two accountants two bookeepers and two office admins. . alan and zoe will handle trusts and grats. heatehr diana george will be incolved in art partnership. if you want brad, analysts etc. and kids to do investments I have little to add in that regard ,except to be able to account for things properly. I suggest that the kids must have skin in any deal. Alternatively , we can continue to focus on fun and let someone else do the things that you want done. and you and I can kibbitz about it all. structures outcomes risk, museums. charity, ( joslins answer by the way was I had asked how much charity was leon planining to give this year , ( the 2 m ) he didnt include your foundation or the payment to me, or from debra and you??!! Date: Mon, Dec 7, 2015 at 5:39 PM Subject: Fee To: Melanie Spinella .1_____________________________ Amount ? Paid in kind ? Financed ? Plane ?Paid to ? Non charity, charity. Fixed dates Date: Mon, Dec 7, 2015 at 8:05 PM Subject: To: Melanie Spinella__________________________________ please re iterate that no further actions taken without careful document review. please Subject: To: Melanie Spinella Leon, As you are well aware, There is little I won't do for you, or at least try to do as a friend, and a great deal that I have already done ( both known and some things that willneed to remain unknown.) Our arrangement was for me to architect sophisticated structures that would be beneficial to you. that is what I have done and will continue do in order to fulfill my obligations under our agreement. The discovered fact that you in reality need an entire family office built from scratch has been trying I have aleady agreed de- facto to try to help. I would suggest that Phaidons payroll and attention pales in importance to your personal structure,which has taken a back seat, Some of my suggestions regarding the Eysium office are as follows you will need a budget of 3- 5 million per year. CEO 1 million, new tax person to work with rich, 250. new bookkeeper ,200 new paralegal to work with ADA ALan etc , coordinating with Apollo, Akin , paul weiss , new acct openings, sec filings , sales tax review, etc. $150 . art point person. loan, inventory, HOUSE OVERSIGHT 023297 purchasing support, $?? software servers, video conferencing, tax oversight. I believe You should rapidly address trustees , gift trust, succesion, wills of debra and children„ monetization events , cash flow. etc I can of course share my experiences with you on each issue. With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way before the begining of my involvement ) I am also aware however of my overarching friendship obligations of ok, -given all the complexities who else can do it? problem. Your family office needs a daddy. children with good intentions are running around, sniping , nitpicking with little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take charge Everyone would report to him. eileen included. He would however work for me. this is not, by a long shot my first choice as I prefer only being responsible and standing behind my own personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others ) With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in trying to think through the problem creatively. My organizations handling of the more complex isssues I believe you might find very costly, very ! ( however many structures available some risk sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a new person,- is. coordination with Suydam Kathy gregory, I would suggest limiting to one person. The increasing public profile needs to be taken into consideration. talk later.. Date: Sun, Dec 28, 2014 at 5:18 AM Subject: jobs ahead To: Brad Wechsler Melanie Spinella Ada Clapp 1. review accounting system. Book keeping softaware. staff, ( senior accountant ) methods on line banking, brokerage. cash mgmt. airplane reimbursement. boat sale. art purchases sales use and sales tax. tax filings FBAR FATCA, gaming commsion, pfics, insurance . uk co law. 2. review docs for TRA BRH grats, trusts, heritage will, insurance, art lending. medical, springing powers. two fire drill books. one needed for injury, other for death 3 review bills. boats , planes, legal, ( PW, McFarlands all outside. legal and accounting. Toms bills over 400k. house projects. south ny ben 4 cashflow projections tax projections , interaction with Apollo accounting tax, Phaidon ,art space ,and Regan. legal accounting. audit 5. children meetings, review to date and allocations 6 review all role in payables. files scanned, no paper 7 review invesmtents for tax basis and unrecognized gain 8 schedule of all hedge funds . redeemables commitments etc. 9 charities pledges strucutre, staff, Date: Fri, Feb 20, 2015 at 5:52 AM Subject: To: Melanie Spinella -___________________________________ 1) pg 1 A" unequal shares" . pg 23 "removal of trustees" absolute. dont be confused with abiltiy to set up seperate trusts„ 2) I am reachable this afternoon in europe. on cell. 3. on another note. -our financial agreement ended months ago . seperate from the art partnership (which i was told yesterday to my amazement is still not funded) . i am obligated to complete ? the time i have dedicated since oct/ dec has been spent mainly as your friend. tom, brad though i am fully cognizant of my responsiblities. I will try to help find people. I am not good at human resources. howevr If I don;t think they are good enough for you. I HOUSE OVERSIGHT 023298 will continue to say so , and you obviously decide. but I will reiterrate even in the face of your "nobody is good enough argument." keeping foremost in my mind that you and I have only beeen shown a very tiny handful of people. 4. I find the friction over fees , counterproductive, in an attempt to avoid it I had suggested a multi year deal early on. you rejected it. I then suggested, and urged you to have an option at a fixed fee , you also rejected that .you wanted the fee payment only at the end I argued but ,conceded. I suggested a structure that tom didn't like, you rejected it. 5 I suggest you make a fair proposal.- that i can either accept or reject. some payment up front this time is a requirement. I am willing to modify any outstanding obligations. - there are creative ways to assure you of your desired characterization of those payments. 6 you should open accts at Deutsh. and goldman. I am told that eilleen has set up over one hundred bank acccts for you???!!. few relevant 7 you should immediatly demand a list of all her acct authorites , exec poistions . director etc. bank authorizsations. etc. talk later or over the weekend if you like Date: Wed, Dec 9, 2015 at 10:16 AM Subject: Fwd: To: Jeffrey Epstein kkkjkjjjkjjyou said Date: Tue, Feb 24, 2015 at 8:20 AM Subject: To: Melanie Spinella Leon, Yesterday, I again spent hours upon hours of my time with your office. ,( speak to brad to get flavor) and you and i will discuss the results in gory gruesome detail on Friday. it mirrored many other weeks spent doing the things that I don;t have the time to do. In order to keep things in perspective, maybe reviewing an analogy I have used before with you, might be helpful. You and your family are a 6 billion dollar corp. with an income between 250 -500 million dollars per year. It contains a few operating biz's , a large wide array of existing investments, in various categories, a desire to enter into others. A panoply of loans, notes. purchases, wide range of all types of taxes. , planes. boats homes. . trusts ,grats. a crazy number of bank accts. ( with no oversight ) . law firms, acct firms, 800 page tax returns, foreign firms. art consultants. construction consultants bill payers, home mgmt.,vast multitude ofllc's , including foreign, and with all that you only have a combined overhead of less that 3 million dollars. I have previously sent you the very same note that i have enclosed again below ,this time with highlights . I wrote it to you over a year ago. As my acute disability ( selective memory) seems to have been raised as one of your concerns , as a rule I try to memorialize things in writing in an attempt to lay out issues that I fear may later turn out to be a problem. ie what i would and wouldn't do , - my responsibilities. etc and those things that are not. below you will find details of things that I thought needed to be done, so that you wouldn't find yourself in the very place where you currently find yourself however ,you chose to defer many of my suggestions- see below -,until only weeks ago. ! you chose to defer the jpm acct. the art partnership on and on - into this year. and though the 60- 50 40 timber emails all carried with it a clear warning that you needed to do something re personnel if it were to stabilize,- you chose to wait. ONE YEAR AGO Feb 17 2014 i wrote : With regard the more pressing issue I am uncertain of just how to proceed. I am torn, as my very strong inclination is not to be involved at all. It is extremely time consuming, delicate, fraught with many pitfall many that will make you very upset and a major pain in the ass. I wrote you months ago that the quality of the people involved need to be upgraded. ( lucky for me these last issues arose way before the beginning of my involvement ) I am also aware however of my overarching friendship obligations of ok, -given all the complexities who else can do it? problem. Your family office needs a daddy. children with good intentions are running around, sniping , nitpicking with HOUSE OVERSIGHT 023299 little direction. As a stopgap measure I am suggesting , we put in Larry Delson to take charge Everyone would report to him. Eileen included. He would however work for me. this is not, by a long shot my first choice as I prefer only being responsible and standing behind my own personal work ( ie the word DONE will no longer be transmitted to reflect status stated by others ) With no commitment on my part whatsoever, to do it. So far as I have failed in my attempt in trying to think through the problem creatively. My organizations handling of the more complex issues I believe you might find very costly, very ! ( however many structures available some risk sharing, maybe risk caps ,etc ) but would require my teams doing the work , not yours. Ada should be only a trust, grat administrator, not sure what role you prefer for Eileen as you hired her initially to oversee investments. whether Rich your controller stays or not, is not urgent. having Tom report to a new person,- is. coordination with Suydam Kathy Gregory, I would suggest limiting to one person. The increasing public profile needs to be taken into consideration. TODAY With your acquiesence , Eileen did not report to Delson ( he acting as a conduit directly to me) , she continued to provide bad info to both you ( cash flows , stock accts, structures. sales Etc) and me. and each time with my many annoying calls to you made immediately afterwards that she was g.....y!! No one was hired to run YOUR office until two months ago , no one was even interviewed and even now , Brad, a very nice man, is not even full time,(crazy ) Hours upon hours of time need to be spent training him. and his new staff. Eileen followed your instructions, not mine, in fact she continued to ignore mine saying " but Leon said " or" its on Leon's desk etc" , You would become frustrated when i pointed out each instance, of her obfuscation. originally you were given the clear choice, but to save money ,you chose not to hire my team. I was hired to do the architecture, you kept your own team. with Eileen at the head. instructions were given by me„ detailed but ignored by her. ( except in the instances where I inserted myself and personally had to do the weeks of grunt work ),ex. jpm morgan acct still not in use? That being said, If you do the cold calculation ,starting from where you were, to where you are currently . you have made a hell of a deal. -- negotiating down my original amount requested, calling upon our friendship and suggesting that the Carlyn mess was partially my fault. ( though in that specific example, I had never been asked to do more than merely provide you the name of the most highly recognized atty in the field, not consulted,nor even asked again for my guidance along the way. ). I accepted the discount as your friend. ( by the way „suggesting now, that your Tom is now that last word on tax characterization, frankly is a bit much,-). however - that is all in the past. In order to move forward I would ask that you realize that very unlike yours, My business is only comprised of my personal attention and my personal time . Time that I was forced to grossly overspend on your various issues last year. . As you are my very close friend I will not have you participate in a bidding process that I have decided i will have this year for my time. (hopefully a more fair way to allocate ) I would also ask that you keep in mind that though our deal expired months ago. (also keeping in mind , that your understanding of the final payment terms neither reflected the emails or my memory, we finished it up your way. ) I have answered every call Brad , joslin, Ada or you, have made . reviewed docs over and over/ until once again, I was forced to insert myself strongly as I thought it dangerous not to. I made serious dollar and time concessions last year.very serious I am wiling to continue to accommodate some of your concerns , but I am, under no circumstances , none, willing to spend my time for free. its not fair. After cleaning up Carlyn's mess , which was a few weeks and 30 million dollars . We were both highly aware of the dire circumstances in which you found yourself last year, and in fact due predominately to its seriousness, and those very circumstances I took extra care in our negotiations . (you had claimed I had you over a barrel, ( a horrible position to be in with my very close friend.), unfortunately I fear that if you are not cautious ,in the near future, another barrel will appear of your own design ) I heard you when you said you believed i had already been paid for the work that is now required. The art partnership has fully answered all your concerns and discharged all my obligations and more so. . ( FYI Carlyns art partnership that you referenced is similar in only its title. ) You will also recall that you HOUSE OVERSIGHT 023300 required that my payments be at the end of my work not at the beginning as everyone else's .( my work was never to include hours upon hours of training your staff). I eventually agreed, this of course should make clear that the 2014 tax year that will close Oct 2015 is not covered by our past agreement at all. I pointed this very fact out to you when I initially proposed a multi year agreement right out of the box. you said you preferred not. As you said ,I have produced results to date, far in excess of even my own exalted opinion of my projections. I have devoted a monumental amount of my limited amount of time-- way, way in excess of our agreement. I will be fair, I am willing to roll in the amount still outstanding from last year if that helps .. However, As my best student , and my only one, you are now capable of doing most, if not all, of the required work yourself I can put my whiteboard away when you come to eat and just have fun, trade stories,. share moments ideas etc. . I am of course always available to guide you as a friend if you choose that route . always. It will take a great deal of your time , but you will not have to spend any more money on mine. We are scheduled to meet fri at 430 , I leave at 5 am sat morning. Date: Fri, Dec 11, 2015 at 12:19 AM Subject: Re: Fw: sched To: " 'eevacation mail.com" Cc: From: Brad Wechsler Sent: Thursday, December 10, 2015 05:36 PM To: jeevacation@gmail.com' Cc: Jeffrey-joe tells me you want this to go live on 12/21. Possible, but an awful lot has to go right next week logistically for everything to fall into place. We'll try.... Subject: Fw: Fw: sched On different subject: general time frame is: docs (notes and purchase and sale agreement to you tomorrow end of biz); incorporate your comments monday and get docs to trust attorney tuesday; contemporaneously meet in person with you tuesday or wednesday and do a dry run. On these days ada will also take the trustees through outline of docs they will receive thursday. Docs to trustees, leon et al on thursday and signatures gathered by friday for first close 12/22. Tight but doable. Ada, alan agree? PS: ada, you shld begin to think abt where people are (jh, rr, bc, ldb) next week. From: Heather Gray [mailto_________________________ Sent: Thursday, December 10, 2015 05:24 PM To: Brad Wechsler Cc: Jeffrey Epstein (jeevacation@gmail.com) Subject: RE: Fw: Subject: Re: Fw: sched Barry-what we're going to do with jeffrey will be "small picture" and detailed. It might be better for you and jeffrey to have a higher level conversation some time next week; either way you'll have access to everything, obviously. From: Barry J. Cohen [mailto__________________ Sent: Thursday, December 10, 2015 05:55 PM To: Brad Wechsler Subject: RE: Fw: sched HOUSE OVERSIGHT 023301 I wouldn't mind attending a meeting or portion of a meeting with JE. If he is the mastermind, and you want to move quickly, it might get a lot of questions resolved quickly. From: Brad Wechsler [mailto_____________________________ Sent: Thursday, December 10, 2015 5:37 PM To: 'j eevacation@gmail.com' Cc: Melanie Spinella; Barry J. Cohen Subject: Fw: Fw: sched On different subject: general time frame is: docs (notes and purchase and sale agreement to you tomorrow end of biz); incorporate your comments monday and get docs to trust attorney tuesday; contemporaneously meet in person with you tuesday or wednesday and do a dry run. On these days ada will also take the trustees through outline of docs they will receive thursday. Docs to trustees, leon et al on thursday and signatures gathered by friday for first close 12/22. Tight but doable. Ada, alan agree? PS: ada, you shld begin to think abt where people are (jh, rr, bc, ldb) next week. From: Heather Gray [mailto_________________________ Sent: Thursday, December 10, 2015 05:24 PM To: Brad Wechsler Cc: Jeffrey Epstein (jeevacation@gmail.com) > Subject: RE: Fw: No, I'm meeting with him at 9:30 am tomorrow. Date: Fri, Dec 11, 2015 at 9:49 AM Subject: fee To: Melanie Spinella _________________________________ elegant solution ;re fee. , 30 million paid now. with purchase of noel kalb, paid with funds from the drawdown. you should use and keep open the line for the full 30m and leave it outstanding until its expiration. in four months. legit biz reason, very nice, - the balance of the fee - paid in kind either low basis art. or interest in either milenium ,lone cascade ,or king street. Date: Tue, Apr 14, 2015 at 5:53 PM Subject: To: Melanie Spinella saved you 500k at the last minute, . brad has had the same chart since march 16th, its his job to review NOT MINE .appears he is one of those living in the dark leiwe. I found 8 million dollars today, missed deductions. . not yet in the numbers,.? Date: Wed, Apr 15, 2015 at 8:59 AM Subject: To: Melanie Spinella 1 did the paul weiss bill get paid ??? 2. Talk to me before signing anything today important 10m paid today to gratitude america, a 501 c 3, willl make last year complete. 20 million paid today ftc. 10 million july 15 5 million sept 30. , 5 million jan 1 for all of 16. tax savings paid at 37 percent. of net. savings. 50 million credit. net. so 150 million free. 600 savings 225 million owed. - 50 credit, 175 owed. Date: Mon, May 18, 2015 at 8:17 AM Subject: agenda for tomorrrow To: Jeffrey Epstein , Melanie Spinella __________________________________ as a reflection on your voiced spirited concerns in the what have you done for me lately category ? )):: . HOUSE OVERSIGHT 023302 in the beginning . there was eileen and tom. ( eve and adam,-- however it appears, she declined to eat the apple from the knowledge tree) . that was it. ada was at the bank but reviewing docs. carlyn was in the kitchen making mush ( abel and cain) books as they were mystersiously called was being kept soley by eileen, with little or no input ,correction or advice from tom. herarely if ever asked questions. expenses ie airplane was done in house apollo. (1031 exchange blown etc) at this time as I recall you got quite annoyed, and agressive and initiated the" talking out of the both sides of your mouth" tiddy, when i suggested that the level of their competence left much to be desired. ( ralph lerner's came later ) .response - eileen ran the desk, tom is a partner, ralph wrote the book etc re tax there was almost no oversight of income, estate, gift ,sales and use, transfer excise etc . IRS SEC GAMING NYS. real estate, valuations ( many )tax filings- disclosures, etc. re grats trusts defect trusts, Ilcs corps , trustees , partnerships. foreign corps. 100 bank accounts. gift taxes„ loans, notes. payables. expenses. . , insurance.( life, art, split dollar), cashflows, operating biz„ investments, contingent liabilitiites.( funds, miami ) , commitments dividends, BRH TRA, shareholder agreements, bank loan agreements. wills, construction„ contracts planning permits etc. .employ rules. checking account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs , brokerage accts, old stock certificates. stock options,( environmental solutions still not done !). estate tax calcualtion firedrill, ( note ,basis etc ) low basis , step ups , however with no accounting system, no reveiw of boat expenses plane expenses etc. . many outside counsel with litle or no coordination. Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse , Reich, withers bergman, Empire„ akin gump, bbd seidman, Wendy , Apollo in house. lumber, knowledge universe, ennvironmental, solutions 12 mu i in stock, . on and on the priority list that you asked me to prepare for brad and you in dec , unfortunatlleyso far, little change ie no accounting system that ties, no, brokerage accounts though strongly suggested, jpm db, gs, april of 2014 . IT antiquated dagastino hired, no inut from me, julie, temps, paralegals miriam. etc. still need new accounting system - on line banking. staff hires. ( seprate from samantha two years out of school ). audit system, . ?? john murphy? joslin? dag? eva?. i strongly suggest workers at the highest level of competence. two senior accountants. not managers workers who will get into the weeds. partn expertise„ replace ava, get heather help. a new person legal , new IT,system and person, way way overdue, new receptionist, bill opener, ability to oeversee in house, boat plane review household ( 12million ) review, filings- partnerhip accounting,- familitarity with grats, trusts etc . audit system put in place. that should be the easy part. then strategy to deal with: As new facts on the ground develop, phaidon debra, children meeetings, ? stock sale sale of art„ apt( large gain ), 1031 trade in , plane depreciation, boat sale. construction, brad will oversee brokerage and investment, ?? pe. real es, . publishing, grats, tra, brh ( death). foundation , museum, tax proejctions cash flow projections, cooridnation with tax from apollo. etc Date: Thu, May 28, 2015 at 8:53 PM Subject: ulysses 2.0 To: Melanie Spinellal_____________________________________ I realize it is only due to a lack of understanind of the job ahead. and not out of any sense of unwillingess to pay - as opposed to merely hiring people to set up a family office, someone will have to do the following- separate from the art partnership which is my responsiblity. there still needs to be a huge amount of work done for 2015,16. not to mention that brad at the moment is going to have train the incoming team?? your call strategic decisions re estate and other planning, sale of phaidon etc. . in addition setting up for the accounting for each strategy ie.: income, estate, gift ,sales and use, transfer excise picasso, 1031 calder. . review and detailed oversite of IRS SEC GAMING NYS. real estate, entity valuations ( many ) tax filings- disclosures, follow up of grats, HOUSE OVERSIGHT 023303 trusts ,defective trusts, Ilcs corps , trustees , partnerships. foreign corps. 100 bank account need to be rationalized, not only having brad step in to children investments. gift taxes, trust, loans, notes. payables. expenses allocations . . , insurance.( life, art, split dollar), cashflows, operating biz„ investments, contingent liabilitiites.( funds , miami ) , commitments funds and charities, dividend treatment -important review of transcations relating to BRH ( amendments) TRA sale ( nuanced ) , shareholder agreements, bank loan agreements new bank relationships. . wills, construction accounting and oversite , contracts planning permits etc. .employee rules, regs, . checking account reconciliations, crediti cards. jewelry, cost basis ,( art stock etc.) foundations regs , brokerage accts, . stock options,( ie environmental solutions still not done !). estate tax calcualtion firedrill, ( note ,basis etc ) review of boat expenses plane expenses, depreciation issues refunds etc. . rationalize all outside counsels and accounting firms Paul Weisss , Mcdermit Will, Macfarlanes. Price Waterhouse , Reich, withers bergman, Empire„ akin gump, bbd seidman„ Apollo in house counsel. set up and oversee brokerage accounts at JPM DB GS and thoughfullly trade . new IT system from top to bottom full time IT person new accounting system - on- line banking cooridnated with reports . fire drills as per caruci ( he sounds good ) and. audit system,s . review of john murphy? joslin? dag? eva?. in house, review household ( 12million ) review, filings- partnerhip accounting,- familitarity with grats, trusts etc . audit system put in place. that should be the easy part. then strategy re: As new facts on the ground develop, phaidon debra, children meeetings, involvment, trustees adjusted, stock sale sale of art„ apt( large gain ), 1031 trade in, plane depreciation, boat sale. construction, brad will oversee brokerage and investment, ?? pe?. real estate?, . publishing, grats, tra, brh ( death). foundation, museum, tax proejctions cash flow projections, cooridnation with tax from apollo. etc you are sitting on over 100 m of cash???!! Date: Fri, Jan 2, 2015 at 2:55 PM Subject: To: Melanie Spinella_______________________________ Leon, I decided last week that there was little or no upside in disturbing your well earned holiday especiaily as you seemed so peaceful happy and smiley ,getting yourself in shape and truly enjoying your family time. etc. however the situation in your family office is unresolved. I am aware that brad starts monday howver, two last days of the year madness. timber.deal not complete no jpm,acct activity no partnership docs, old stock sales not complete , no bank doe redo. no phaidon note restructure, ., no boat expense review, airplane same ,topco midco.etc still not finished ( trustee ) , projections mixed with fiction. , legal exp out of control. no care for admin, silly ( audit). tom conversation with joslin. notes. debra, trustee notes. trustees hiring . bens audit. interest payable made hoopjumping last day of year. after weeks and months. of lectures , gifts to discuss- staff. -houseproject mgmt. . I will continue to try, I had offered ajoint call with eileen before you left. as i said before , joslin takes instructions from eileen. he said it was made clear to him that he doesn't work for me but works for you. . I tried. Date: Tue, Dec 29, 2015 at 7:26 AM Subject: Fwd: leon DO NOT SEND, hand deliver. To: Jeffrey Epstein Transaction complete ! . this - in spite of your collection of Elysium misfits. !!! With Brad out of the office and unable to run his usual interference , the level of his utter incompetence was brought front and center, he may be a step up from Eileen, but if he is, then it is not certainly not by much, . Though you and I have spent many many hours discussing the importance of details and mechanics. I was not shown one document re phaidon,- not one.. Brad wanted to keep it private between he and his so called" advisors" however as he was out of the office during the most important transaction of the year, I did get to spend time with joslin Joe and john, - the situation in your office is wholly ludicrous - to summarize - the list I provided to Brad last December - things I thought were a priority to get done after consulting with your office still remains virtually undone. HOUSE OVERSIGHT 023304 IT, still desperately needed- reporting flawed cumbersome and inaccurate . all done by hand as one -off exercises , - airplane: re structure, (my only suggested priority in june ) is really ,no further ahead, consultants up the kazoo but nothing at all done.( the office was told that i cannot even see the proposals received without brads specific authorization ) - brad has no idea even as to what questions to ask. he knows little of finance, is run roughshod over by almost everyone in the office. he is a little man , using your power, to appear larger. Eileen was self aware enough to know she was over her head , that is a huge difference. bad info is rampant ie 3 million in deductions Im told are taken for art space but on closer examination it turns out they cannot be used at all. ( ZERO benefit ) though you will be told yes they were deducted on the return they said that is the question they get asked ! " were they deducted " not 2 is there a benefit" !! I asked for the balance sheet and P and L for Regan arts , a basic first step in order to check your financials. "sorry we never got one?" though 9.8 million invested, no p&l, nothing, a construction project run amok, no budget, the coo fired after only 3 months. , no clue . I can add that artspace financials are also a total mess. As your friend and in order toturn the page. I will try to be constructive The following is a list of things I think would be in your interest to get done asap .but definitely not by me i suggest you form new grats. , hire a high level tax partner. use your trading accounts as they remain the paramount requirement 16 months after i emailed to you their importance. , I suggest you consider having the 49percent of phaidon merged into artspance and have Richard buy artspace. re-do bank loans, no need to pay interest at higher rates on boat or plane. . as Richard is now no longer trustee. re- do will, make suydam executor , with Barry, and john as back up. pay 1 million a year for executor role. get rid of Judy Black trust, deal with gifts and their tax returns, . review amounts to kids at fixed ages. put more protections in for Alex and Victoria. , distribute some money to kids let them make decisions. , decide art division with children in attendance . have fire drill done on estate. fill out estate returns as if you and Debra died today, choose advisers - rick bronstein said the only 1040 he ever filled out was his own. ( this is brads chosen advisor??!) Halperin has a conflict that should be addressed., Debra should enter a tenants in common agreement with kids. you have airplane consultants tax consultants it consultants. plane operation consultant. . boat consultants. architects, lighting , art, legal, . foundation, deal with TRA , BRH , rationalize investments, cash flow, reporting, gaming disclosures, foreign, gift. . prepare tax projections for 15 and 16,. deal with neg basis ( tufts gain, debt financed, art partnership, pledges. sell stock, art, deal with phaidon debt. athene,? income, capital, foreign, exit, corporate, insurance regs, out and inbound issues, basis, appropriate discount rates. ? terminations. control. , qualified dividends, corporate tolls, inversion rules. , grat issues, short swing and other sec disclosures, Rothshcild bank, 150 b they have a distribution network with no products , private bank Rockefeller Rothschild. financial service, deal with UK visa issue sooner rather than later. we can talk about Rowen request re Athene , 2 billion in taxes on transaction. ?! the facts as i see them in June and then again Sept, we both agreed to a 50% of phaidon payout., then after weeks of thinking about the issue ( which I fully understand ) . the payout was unilaterally changed. 5m woudl be reserved for the future ? . and out of the remaining 15m,? i would receive only 5. ( note : I'm confident that both the debt, and the artspace investment will also lead to a write off of another 30 m. plus ) In my dining room ,you were surprised when I said that i require most people to pay their advisory fee up front so that I am assured that I will be properly compensated for my work when strategies that I devise are implemented. you may recall that you appeared offended and said " are you suggesting that i would go back on my word" I said no , of course not ! you are my closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it actually comes time for them to pay,. From day zero a 50 - 60 million price was attached as the fair price of the transaction just completed . though this amount was already substantially less thanour agreed and negotiated formula. - I was never told that this was out of range. in fact, alternative methods of payment. plane -in-kind etc, were discussed ( ie keeping the 30m portion of fee outstanding till March ) ,I provided as requested a detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon was not HOUSE OVERSIGHT 023305 forthcoming ) in order to make my many corrections. I was then told that Alans involvement warranted a discount. Even in the best of light , though it is beyond question that not one-,not -one time in three years has he ever proposed a unique idea. (including the new tenant in common idea,) and lets say he made a contribution to the plan andeven that it was 50 %. though no one could posit such a large amount unless they were wearing a brightly colored clown suit. , the price of doing the deal was known . It had both sent in writing and spoken about on the phone numerous times, a detailed execution plan was provided. then and only then after all was laid out for the group I was told that after a number of conversations with brad karp that only 20m would be paid, (and even that was more than originally contemplated ) for both transactions . I feel It was remarkably unfair. Did brad even know of our prior agreement.? I called him and he said he was never told.?, I would ask that you I and Brad karp sit together if you think it would be helpful. . I would like to send him this email, with your consent of course. If the transactions were never consummated, i would not be owed a dime, however , the price was known up front. , the detailed step by step plan was followed and overseen by me, the price that had been requested before the transaction was begun, and had 'ready heavily discounted, out of friendship, from our agreement. I believe the decision re paying only 20 m has frankly left me felling quite uneasy. since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in eileens drawer.. went through cash flows for phaidon shwoing that john murphy is not an accountant. redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created 8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems, . . reorg bad art purchases , funds taken„ charibale decustions , helped with fincnacil sttment gamoing commions fling. . boat deductions, rescued stock from grats.. may 1 after months of brad not finding anyone i sent an email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could figure out the basis issue, please see attached,. questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts. . doesnt exist ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you why the proposed phaidon transaction DOES not work. . as them to give you a plan for the plane. ? ask them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system progress after one year. . the approval process for payables. . the cash flow projections? assumptions? ask for a comparative review of investments. ask haperin to describle to you in any detail BRH, the major asset of his two biggest clients, tax basis, disposiotion in the estate. . etc. ask brad to show you the liquidation of the inteveing art space cos? . Last year you asked, for my help I told you I preferred not as we would be better off having no financial intereactions. the risk was not worth it. You told me that as my friend i had to do it I agreed., here we are in what I find to be an awkward situation. the transactions that i decvised were used , our agreement was ignored. and im not sure how to respond. -- since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in eileens drawer.. went through cash flows for phaidon shwoing that john murphy is not an accountant. redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created 8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems, . . reorg bad art purchases , funds taken„ charibale decustions , helped with fincnacil sttment gamoing commions fling. . boat deductions, rescued stock from grats.. may 1 after months of brad not finding anyone i sent an email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could figure out the basis issue, please see attached,. questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts. . doesnt exist HOUSE OVERSIGHT 023306 ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you why the proposed phaidon transaction DOES not work. . as them to give you a plan for the plane. ? ask them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system progress after one year. . the approval process for payables. . the cash flow projections? assumptions? ask for a comparative review of investments. ask haperin to describle to you in any detail BRH, the major asset of his two biggest clients, tax basis, disposiotion in the estate. . etc. ask brad to show you the liquidation of the inteveing art space cos? . ----------Forwarded message---------- From: jeffrey E. Date: Tue, Apr 14, 2015 at 5:53 PM Subject: To: Melanie Spinella saved you 500k at the last minute, . brad has had the same chart since march 16th, its his job to review NOT MINE .appears he is one of those living in the dark leiwe. I found 8 million dollars today, missed deductions. . not yet in the numbers,.? ----------Forwarded message---------- From: jeffrey E. Date: Wed, Apr 15, 2015 at 8:59 AM Subject: To: Melanie Spinellal_____________________________________ 1 did the paul weiss bill get paid ??? 2. Talk to me before signing anything today important 10m paid today to gratitude america, a 501 c 3, willl make last year complete. 20 million paid today ftc. 10 million july 15 5 million sept 30. , 5 million jan 1 for all of 16. tax savings paid at 37 percent. of net. savings. 50 million credit. net. SO 150 million free. 600 savings 225 million owed. - 50 credit, 175 owed. 600 savings 225 million owed. - 50 credit, 175 owed. Date: Tue, Jan 5, 2016 at 6:36 PM Subject: Fwd: leon DO NOT SEND, hand deliver. To: Jeffrey Epstein Transaction complete ! When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple times that i thought it was a very bad idea, in that I preferred to have no financial interactions. I dont have many friends and didnt want money to interefer with our unique relationship. For five years you had the kind but goofy Eileen Alexandersson managing your accounting, legal, investments, reporting, trusts etc. When I told you in no uncertain terms that I firmly believed she was incompetent you admonished me for" speaking out of both sides of my mouth" . With regard Brad Wechsler, there is no " both sides. ". I have consistantly maintained since day one that he was highly unsuited for the job. When you initially asked me to help convince him to take the role , promising him a postion to manage mirage investments I sent you a note saying instead you should pay up and get first class people. I have reiterated the same message for over a year now.. Brad, not me was tasked with hiring new people and as you wanted him to take ownership of the staff,he conducted many interviews, you may recall that as late as may, you told him in my presence that he had had six months and had not hired anyone. since then I have rectified errors in sales tax, use tax, income tax, fbar reporting, 1031 reporting, 8 million of deductions. ,( last nov ) 11 million found in dormant accounts and 4 million in the drawer. errors in cash flow both personal and Phaidon. Oversight on new grats first at 22 and then at 19 that were done without my consulatation were resolved only as aresult of my intervention. . 600 million in after tax savings was just accomplished. With Brad out of the office and unable to run his usual interference , the level of his total and utter incompetence was brought clearly, front and center. He may be a step up from Eileen, but, if he is, then it is certainly not by much, A major difference is that Eileen knew she was over her head. Brad struts his stupiditly whenever he gets a chance. A critical example. - Though you and I have spent many many hours discussing the importance of care HOUSE OVERSIGHT 023307 and attention to details and mechanics. with regard Phaidon I was not shown one single document, not one.!! Brad wanted to keep it private between he, and his so called" advisors" however as he was out of the office during the most important transaction of the year, I did get to spend time with joslin Joe and john, - the situation in your office is totally ludicrous - to summarize - the list I provided to Brad last December - of things I thought were a priority to get done - still remains in the whole unresolved. The IT, is virtually untouched and is still in desperate need of a format - reporting flawed cumbersome and inaccurate . all done by hand as one -off exercises , when either you or brad ask for it - airplane: re structure, (my only suggested priority in june ) is really ,no further ahead, consultants up the kazoo but nothing at all done.( the office was told by Brad not to share the outside proposals with me - brad has no idea even as to what questions to ask. he knows little of finance, is bullshitted over by almost everyone in the office. a little man , using your power, to appear larger. Eileen was self aware enough to know she was over her head , that is a huge difference. bad info is rampant a simple emblematic example- 3 million in deductions Im told were taken for art space but on closer examination it turns out they cannot be used at all. ( ZERO benefit ) though you will be told yes they were deducted on the return they said that is the only real question you were focused on ! " were they deducted" not 2 is there a benefit" !! I asked for the balance sheet and P and L for Regan arts , a basic first step in order to check your financials. "sorry we never got one?" though 9.8 million invested, no p&l, nothing!, a construction project run amok, no budget, the coo fired after only 3 months., no clue. fyi artspace financials are also a total mess. ( no receivables ??). when i asked for a list of what got done and did not, i received the email from Brad basicailly mind you own business, so much was promised. !!! As in your words probably your closest friend and in order to turn the page. I hope the following to be constructive Here is a list of things I think would be in your interest to get done asap .but definitely not by me. i suggest you form new grats. , hire a high level tax partner. use your trading accounts as they remain a paramount requirement 16 months after i emailed you re their importance. THe Phaidon transaction papered and structured as contemplated DOES NOT WORK, its as simple as that. DOES NOT !! I suggest again that you re-do bank loans, no need to pay interest at higher rates on boat or plane. . as Richard is now no longer trustee. re- do will, make suydam executor , with Barry, and john as back up. pay 1 million a year for executor role. get rid of Judy Black trust, deal with gifts and their tax returns, . review amounts to kids at fixed ages. put more protections in for Alex and Victoria. , distribute some money to kids let them make decisions. , decide art division with children in attendance. have fire drill done on estate. fill out estate returns as if you and Debra died today, choose advisers - rick bronstein said the only 1040 he ever filled out was his own. Halperin has a conflict that should be addressed., A strategy of the use of art should be implemented. . you have tax consultants it consultants. plane operation consultant. . boat consultants. architects, lighting , art, legal, . foundation, deal with TRA, BRH , rationalize investments, cash flow, reporting, gaming disclosures, foreign, gift. . prepare tax projections for 15 and 16,. deal with neg basis ( tufts gain, debt financed, art partnership, pledges. sell stock, art, deal with phaidon debt. athene,? income, capital, foreign, exit, corporate, insurance regs, out and inbound issues, basis, appropriate discount rates. ? terminations. control. , qualified dividends, corporate tolls, inversion rules. , grat issues, short swing and other sec disclosures, I still think you might consider a Rothshcild bank transaction they have 150 b and a distribution network with no products , private bank Rockefeller Rothschild. financial service, deal with UK visa issue sooner rather than later. we can talk about Rowen request re Athene , complex 2 billion in taxes on transaction. ?! the facts as i see them in June and then again Sept, we both agreed to a 50% of phaidon payout., then only after weeks, when you delayed any detailed discussion of money wanting to give the issue a thoughtful response ( which I fully understand ) . you unilaterally changed changed our agreement. . 5m would be reserved for the future ? . and out of the remaining 15m,? i would receive only a third. ( note : I'm confident that both the debt, and the artspace investment will also lead to a write off of another 30 m. plus ) In my dining room ,you were HOUSE OVERSIGHT 023308 surprised when I said that i require most people to pay their advisory fee up front so that I am assured that I will be properly compensated for my work when strategies are implemented. you may recall that you appeared offended and said " are you suggesting that i would go back on my word" I said no , of course not ! you are my closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it actually comes time for them to pay I included in this letter the email i sent to you on April 15, the day i was examining your returns It laid out my understanding of the compensation for a transaction of the magnitude to the penny of the one just completed. though the number was great it was clear. When it appeared that the details could now be worked out I was the first to say, it is too much money, however. From day zero I proposed to discount to 50 - 60 million the fair price of the transaction just completed. including Phaidon. . though this amount was already substantially less than our agreed and negotiated formula. - I was never told that this was out of range. in fact, alternative methods of payment. plane, or an -in-kind payment were discussed ( ie including keeping the 30m portion of fee outstanding till March ) ,I provided as you specifically requested a detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon was not forthcoming ) in order to make my many corrections. I was then told that Alans involvement warranted a discount. Even in the best of light , though it is beyond question that not one time in the three years of his retainer has he ever proposed a unique idea. (including any wayt to deal with the use issue on debras death ,or even the most basic review of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to the plan and stretch reality beyond the pale and say it was 50 %. though no one could posit such a large amount unless they were wearing a brightly colored clown suit., the payment associated with the deal was known . It had both sent in writing and spoken about on the phone numerous times, a detailed execution plan was provided. then and only then after all was laid out for the group I was told that after a number of conversations with brad karp that a total of only 20m would be paid, (and even that was more than originally contemplated ) for both transactions . Leon I feel It was remarkably unfair. I wondered whether brad even knew of our prior agreement.? I called him and he said he was never told.?, I would ask that you I and Brad karp sit together if you think it would be helpful. . I would like to send him this email, with your consent of course. If the transactions were never consummated, i would not be owed a dime, however , the expected fee was known up front. , the detailed step by step plan was followed and overseen by me, the amount that I had requested before the transaction was even begun, and had already been heavily discounted, out of friendship, from our agreement . I believe the decision re only paying 20 m has frankly, left me felling quite uneasy. since you asked since last nov. i found 11 million dollars in dormant accounts. 4 million dollars in eileens drawer.. went through cash flows for phaidon showing that john murphy is not an accountant. redid your gagosian contract , . organized structure in case of divorce, set up gift trust. stopped ada from including multiple times things not in your interest, dealt with bad sales tax use tax income tax . created 8 millino in deductions ,500k in mistakes , found bank of scotland fbar problems, . . reorg bad art purchases , funds taken„ charitable decisions , helped with fincancial statements, gaming commission. . boat deductions, rescued stock from grats.. may 1 after months of brad not finding anyone i sent an email saying you would have to pay more. . on april 15. I sent an email detailing payments owed if i could figure out the basis issue, please see attached,. questions you might ask your team ask them to provide a balance sheet or p&l for REgan arts. . doesn't exist ask. either wechsler or haperin to tell you what brh is, or how the tra works. . . ? as bronstein to tell you why the proposed phaidon transaction DOES not work. . ask them to give you a plan for the plane. ? ask them to show you the cash mgmt for over 100 million dollars. . ask them to show you the IT system progress after one year. separate from making it more secure though you are not a trader with inside info the approval process for payables. . the cash flow projections? assumptions? ask for a comparative review of investments, ask haperin to describe to you in any detail BRH, the major asset of his two biggest clients, tax basis, disposition in the estate. . etc. ask brad to show you the liquidation of the intervening art space cos? that has been on the table for HOUSE OVERSIGHT 023309 months. . Date: Wed, Jan 6, 2016 at 3:44 AM Subject: Fwd: To: Jeffrey Epstein PLEASE READ CAREFULLY, Mark was here this morning , the proposed transactions are extremely complex . and would take a great deal of detailed time. I do not know how, and if ,to move forward - our last transaction. a transaction which you saved 600 million in tax. even if as you say it could be 20 years away, ( i hope longer) discounted to today is a savings of 300 million . for some reason you chose to ignore our agreements , verbal written and emailed - and decided that it was only worth 8 million dollars to you.. ( assuming phaidon -richard happens. the calculation that you can see is a 24 m savings not including artspace and debt benefits- certain to come later .. IMPORTANT NOTE : the phaidon transaction as currently contemplated will not work . NOT CLOSE When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple times that i thought it was a very bad idea, in that I greatly preferred to have no financial interactions. I don't have many friends and didn't want money in any way to interfere with our unique relationship. Reminder, For five years you had the kind, but very goofy Eileen Alexandersson as the sole manager of your massive accounting, legal, investments, reporting, trusts etc. When I first told you in no uncertain terms that I firmly believed she was incompetent you admonished me for" speaking out of both sides of my mouth" . With regard Brad Wechsler, there has never been a " both sides. ". I have consistantly maintained since day one that he was highly unsuited for the job. When you initially asked me to help convince him to take the role , promising him a position to manage mirage investments I sent you a note saying that instead of hiring him you should pay up and get first class people. I have reiterated the same message for over a year now. . Brad, not me ,was tasked with hiring new people , according to his biz school org chart.(nauseating ) and as you wanted him to take ownership of the staff,he conducted many interviews alone. . you may recall that as late as may, you told him in my presence that though six months had passed he had not hired anyone. since then I have rectified errors in sales tax, use tax, income tax, fbar reporting, 1031 reporting, 8 million of deductions missed errors of millions on the returns, a cashflow that is misleading helped prepare financial statements ( april ) Oversight on new grats- first at 22 and then at 19 that were done without my consultation and were "resolved" soley as a result of my last minute intervention. . 600 million in after tax savings was just accomplished. (BTW- for some reason you left the 30 million outstanding that I had said should only be done" if" that was my additional fee. and not used for non biz purposes and not art. Sorry but in June and then again Sept, we both agreed to a 50% of phaidon payout first projected at 20 . but less when artspace and debt taken out, - then only after weeks, when you delayed any detailed discussion of money wanting to give the issue a thoughtful response ( which I fully understand ) . you unilaterally changed our agreement. . 5m would be reserved for the future ? . and out of the remaining 15m,? i would receive only a third. ( note : I'm confident that both the debt, and the art space investment will also lead to a write- off of another 30 m. plus ) In my dining room ,you were surprised when I said that i require most people to pay their advisory fee up front so that I am assured that I will be properly compensated for my work when strategies are implemented. you may recall that you appeared offended and said " are you suggesting that i would go back on my word" I said no , of course not! you are my closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it actually comes time for them to pay. ., I include below the email i sent to you on April 15, the day i was examining your returns It laid out my understanding of the compensation agreed for a transaction of the magnitude to the penny of the one just completed.ie 600m When it appeared that the transcation would and could go foward I was the first to point out that our agreement would cost you too much money, therefore From day one I proposed to discount our agreement to a 50 - 60 million range. An extremely fair price for HOUSE OVERSIGHT 023310 all the transactions just completed. including Phaidon. - I was never told that this was out of range. in fact, alternative methods of payment. ie my plane, or an -in-kind payment were discussed ( ie including keeping the 30m portion of the fee outstanding till March ) ,I provided, only because you specifically requested a detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon was never forthcoming ) in order to make my many corrections. ( as i said more needed on phaidon ) . I was then told that Alans involvement warranted a discount. Even in the best of light , though it is beyond question that not one time in the three years of his retainer has he ever proposed a unique idea. (including any way to deal with the use issue on debras death ,or even the most basic review of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to the plan and stretch reality beyond the pale and say it was 50 %. though no one could posit such a large amount unless they were wearing a clown suit. , the payment and our formula of 37 percent associated with the deal was known . It had both sent in writing and spoken about on the phone numerous times, a detailed execution plan was provided. then and only then, after the entire transaction was laid out for the group to follow You told me that after a number of conversations with brad karp that a total of only 20m would be paid, (and even that was more than you originally contemplated ) for both transactions . Leon I feel It was remarkably unfair. Did brad even knew of our prior agreements.? ?, I would ask that you I and Brad karp sit together if you think it would be helpful. . I would like to send him this email, with your consent of course. If the transactions were never consummated, i would not be owed a dime, however , the expected fee was known up front. , the detailed step by step plan was followed and overseen by me, the amount that I had requested before the transaction had even begun, had already been heavily discounted, out of friendship, . I believe the decision re only paying 20 m has frankly, left me felling quite uneasy. and colors the view about the Athene or Rothschild transaction. Date: Wed, Jan 6, 2016 at 12:44 PM Subject: Fwd: To: Jeffrey Epstein PLEASE READ CAREFULLY, In the spirit in which it is sent. our friendship is intact and solid , though ,it has taken a hit. Mark was here this morning , the proposed transactions are extremely complex . and would take a great deal of my detailed time. I do not know how, and even, if ,to move forward - . After months of hearing that you would have no problem paying a large fee if you could only ascertain value. The last transaction. a transaction which you saved over 600 million in tax. declared bullet proof by your attnys, and even if you want to disoccount for its future realization, creating a savings of over 300 million real dollars. For some reason you chose to ignore our agreements , verbal written and emailed -and at the very last minute , after the deal was complete decided that it was only worth 8 million dollars to you and your family. . ( assuming phaidon -richard happens. there is a 24 m savings not including artspace and debt write down benefits- certain to come later .. IMPORTANT NOTE : the phaidon transaction as currently contemplated will not work . WILL NOT!! When we had our meeting in your home in Bedford. You asked me for my help. I told you multiple times that i thought it was a very bad idea, in that I greatly preferred to have no financial interactions. I don't have many friends and didn't want money in any way to interfere with our unique relationship. Reminder, For five years you had the kind, but very goofy Eileen Alexandersson as the sole manager of your massive accounting, legal, investments, reporting, trusts etc. When I first told you in no uncertain terms that I firmly believed she was incompetent you admonished me for" speaking out of both sides of my mouth" . With regard Brad Wechsler, there has never been a " both sides. ". I have consistantly maintained since day one that he was highly unsuited for the job. When you initially asked me to help convince him to take the role , promising him a position to manage mirage investments I sent you a note saying that instead of hiring him you should pay up and get first class people. I have reiterated the same message for over a year now. . Brad, not me ,was tasked with hiring new people , according to his biz school org chart.(nauseating ) and as you wanted him to take ownership of the staff,he conducted many interviews alone. . you may recall that as late as may, you told him in my presence that though six months had passed he had not hired anyone. since then I have rectified errors in sales tax, use tax, income tax, fbar reporting, 1031 reporting, 8 million of deductions missed errors of millions HOUSE OVERSIGHT 023311 on the returns, a cashflow that is misleading helped prepare financial statements ( april ) Oversight on new grats- first at 22 and then at 19 that were done without my consultation and were "resolved" soley as a result of my last minute intervention. . 600 million in after tax savings was just accomplished. (BTW- for some reason you left the 30 million outstanding that I had said should only be done" if" that was my additional fee. and not used for non biz purposes and not art. Sorry but ., in June and then again Sept, we both agreed to a 50% of phaidon payout first projected at 20 . but less when artspace and debt taken out, - then only after weeks, when you delayed any detailed discussion of money wanting to give the issue a thoughtful response ( which I fully understand ) . you unilaterally changed our agreement. . 5m would be reserved for the future ? . and out of the remaining 15m,? i would receive only a third. ( note : I'm confident that both the debt, and the art space investment will also lead to a write- off of another 30 m. plus ) In my dining room ,you were surprised when I said that i require most people to pay their advisory fee up front so that I am assured that I will be properly compensated for my work when strategies are implemented. you may recall that you appeared offended and said " are you suggesting that i would go back on my word" I said no , of course not! you are my closest of friends ,but my experience is that when amounts get large, people tend to get unhappy when it actually comes time for them to pay. I include below the email i sent to you on April 15, the day i was examining your returns It laid out my understanding of the compensation agreed for a transaction of the magnitude to the penny of the one just completed.ie 600m When it appeared that the transcation would and could go foward I was the first to point out that our agreement would cost you too much money, therefore more details From day one I proposed to discount our agreement to a 50 - 60 million range. An extremely fair price for all the transactions just completed. including Phaidon. - I was never told that this was out of range. in fact, alternative methods of payment. ie my plane, or an -in-kind payment were discussed ( ie including keeping the 30m portion of the fee outstanding till March ) ,I provided, only because you specifically requested a detailed step by step execution plan and reviewed all documents that i was given access to. ( Phaidon was never forthcoming ) in order to make my many corrections. ( as i said more needed on phaidon ) . I was then told that Alans involvement warranted a discount. Even in the best of light , though it is beyond question that not one time in the three years of his retainer has he ever proposed a unique idea. (including any way to deal with the use issue on debras death ,or even the most basic review of your largest asset by far , the BRH agreement. ) O.K. - lets say he made a contribution to the plan and stretch reality beyond the pale and say it was 50 %. though no one could posit such a large amount unless they were wearing a clown suit. , the payment and our formula of 37 percent associated with the deal was known . It had both sent in writing and spoken about on the phone numerous times, a detailed execution plan was provided. then and only then, after the entire transaction was laid out for the group to follow You told me that after a number of conversations with brad karp that a total of only 20m would be paid, (and even that was more than you originally contemplated ) for both transactions . Leon I feel It was remarkably unfair. Did brad even knew of our prior agreements.? ?, I would ask that you I and Brad karp sit together if you think it would be helpful. . I would like to send him this email, with your consent of course. If the transactions were never consummated, i would not be owed a dime, however , the expected fee was known up front. , the detailed step by step plan was followed and overseen by me, the amount that I had requested before the transaction had even begun, had already been heavily discounted, out of friendship, . I believe the decision re only paying 20 m has frankly, left me felling quite uneasy. and colors the view about the Athene or Rothschild transaction. Date: Fri, Jan 29, 2016 at 2:39 PM Subj ect: To: Melanie Spinella you've agreed that HOUSE OVERSIGHT 023312 Your office is a multi billion dollar responsibility, your children will inherit it, in order to oversee their financial lives- I feel for you, truly ,but the facts are the facts, your ceo ( Brad) has provided one bad document after another for over a year, no getting away from it,, bad cash flows no new IT, each time with" its gettting better" no in fact -! its not. - the excuse, that Brad is not the numbers guy, is ludicrous. of course he didnt actually prepare the statements. - no ceo would ,- but over and over he presented them to you and me , after, holding them back for his personal review multiple times and after multiple drafts. weeks of his editing, the consistant but "inexplicable "missing the obvious serious errors . ( gaming ) inaccuracies, ( cashflow ) and mistakes (tax returns). why, ?! the simple answer is that at best, he is a c minus, (note. I, like you ,also give points for effort. )- ! an elegant art partnership gone fallow. ??!!I and its core reason to exist. not used ? no docs for plane?, still ! why? no docs for decantings why? the docs for deal 1 received last night, " no docs at all for deal 2, the biggest " . why wasn't Tom brought in, after 4 times of my incessant reminders i spoke to him , he knows little of either transaction except for over view, never saw pahidon anything except projections until yesterday ? ?and this after your clear admonition etc. re the trading accounts no activity, at all, Barry Cohen is great. more like him please . you asked, - I did my best trying to train your brad chosen people in the face of my telling you that they were never going to be more than c-minuses, thousands of emails thousands ? Brad at its head . you can't as a ceo, have an accountant give you multiple pages with the most important numbers missing altogether and not notice, you and I saw the errrors right away ,as did my very junior bookeeper after only a cursory glance. He told me he didnt know the details of his note? ! , my guess is that he wanted to pay less. no more than that, any other story is blather. its silly. Talk to richard yourself. re your estate. Yes another Brad issue - your will, needs revision, the tenants in common structure I assume Alan has carefully walked you through. it is way overdue, needed and exciting. I won't list the more serious issues in an email but we can speak over the weekend. How can I help? We agreed at the time when you hired Castrucci , that when you fired him, I would bear no responsibility because it was clear that he shouldnt be hired. brad and you both said ," its on us", but... the equivalent of your art consultant pointing to a picasso and calling it a renoir. then a brancusi and calling it a michaelangelo. those were the types of erros that i saw immediatily, you said give them more time. at least they saw it was a painting and not a photo? being weaned of our biz /pay realtionship has been our mutual goal. However since novemebr, you chose to do so by ignoring' our agreement re, phaidon,and your oft stated commitment to me of large payments for large value, ( 37 percent was our number ). chose to pay me a number picked by what appears to be only by whim,- have yet to justify it except for telling me that you and Brad Karp talked.. . What should we do? the next two years in biz world appears to both you and I , very fragile. Im happy to have brad sit in ? Date: Thu, Oct 15, 2015 at 10:38 PM Subject: To: Melanie Spinella Office, - ada goes. , hire heather a paralegal. Joslin goes or is closely managed by new cfo with tax experience. . castrucii goes asap.as he merely adds to mess.( too many people, ex 7 people or more to pay a bill ) eva goes. outsource as much as possible. . bookkeeping systems built from scratch, airplane restructure, boat. same, new grats. phaidon sale , decide on artspace survivability, regan,. do the kids really want these? , children accounting ie bens house.etc. re do estate for new facts. redo loans, trading accounts activity, . gaming -foreign- disclosures. . BRH TRA re thinks. household and construction architects. . redone. art partnership , choice of paintings. . re do structure of consultants. tax re family HOUSE OVERSIGHT 023313 office. . decide if investments are a realistic option in the next three years.. insurance, operations. airplane, etc. . art foundation , private. max charity contributions, financial reports. still waiting. ? on line banking, . tax planning, family office deductions ( profit center ) . airplane certificate, redone jet aviation redo. . paper gigi ( E )trust to avoid gift tax.. today is Oct 15 With your full knowledge I paid out 8 mil to my staff before june, . so i guess I can safely assume that after consideration of all the things I did for the entire past year separate and apart from your unique free "after care" concept. , what you thought was ultimately fair was the contribution of 5 million to a foundation and a total of 2 million dollars to me. Date: Thu, Feb 4, 2016 at 10:01 PM Subject: To: Melanie Spinella .____________________________________ josh's arrival cut short our needed conversation. I understand we have a difference of opinion, friends sometimes disagree, I shook on the 20 so you have no further obligation, none, I am willing to have brad karp hear both sides. as my view, you and i had an agreement. on phaidon /publishing, and then a long standing what you say is 28, which is correct AFTer TAx. , 37 pre. . that was our numbers. I was clear what i thought the transactions were worth. far less than full. alan etc. , had you said i will pay you only 20. i would have said ill pass. you never told me that 50-60 the number that i put on the table at the very beginning was not right, you asked that i lay out my plan step by step. and what i believe would have been the fair thing to do is say to me, I will pay you only 20 if you do as i ask, not tell me for the first time only after i laid it all out. had it not been you, i would have required payment in escrow. BEFORE fyi the reason I sent you an invoice so that if you decided that you wanted me to continue this year . it would be applied to last years income. I think today was a beginiing for you. I am glad I will meet wendy the 23, rd, . separate and aprt from being your sounding board for personal issues, I do not see my involvment moving forward. Date: Wed, Feb 10, 2016 at 12:56 AM Subject: Fwd: To: Melanie Spinella this was sent four months ago, nothing has changed sent oct 15. before big transaction.