Jeffrey Epstein surrounded himself with sultans, former heads of state, British royalty and tech visionaries to domesticate the picture of a high-flying financier.
However in actual property, Epstein typically leaned on a down-on-his-luck New York Metropolis developer with a path of lawsuits and an array of enterprise ventures that ranged from a deli to a houseware retailer to boutique luxurious condos: David Mitchell.
Epstein’s beforehand undisclosed actual property investments with Mitchell present deeper perception into Epstein’s enterprise technique. He invested in actual property not only for paper returns however to reinforce his connections and stature, particularly turning to Mitchell to construct out his ever-expanding Rolodex.
One supply who is aware of Mitchell mentioned that Epstein noticed Mitchell — whose father was a famed NYC restaurateur — as somebody who might open doorways and make social connections for the outer borough-born Epstein in New York’s upper-crust society. The connection advanced as Mitchell’s investments went south and he relied on Epstein for short-term loans and monetary recommendation. Epstein offered a minimum of $7 million in loans and investments in Mitchell’s tasks, based on a TRD estimate primarily based on transactions specified within the paperwork.
The hundreds of emails exchanged between Epstein, Mitchell and Epstein’s assistants had been launched as a part of 3.5 million pages of paperwork by the Division of Justice into the investigation of Jeffrey Epstein. The emails counsel the connection was principally transactional, though they did sometimes alternate birthday and vacation messages. Epstein as soon as requested Mitchell about an erectile dysfunction drug and Mitchell invited Epstein to a celebration in Tel Aviv, telling him it must be “fairly demonic and enjoyable.”
Epstein offered Mitchell funding for a lot of of his tasks, together with a $1.5 million mortgage in 2017 to cowl shortfalls on the Life Resort, Mitchell’s formidable rebrand of the Herald Sq. Resort. Epstein additionally invested in a minimum of 4 of Mitchell’s ventures, together with a six-unit condominium improvement on the Higher East Facet, based on emails launched by the Division of Justice.
Mitchell, regardless of his blue blood bona fides, typically discovered himself needing money infusions from Epstein, emails present. Epstein, whose liquid property had been within the lots of of tens of millions for many of their relationship, appeared joyful to assist, offering over $2 million in loans to Mitchell.
“Don’t sweat it, life is lengthy . No stress from me,” Epstein mentioned in response to Mitchell making an attempt to barter a reimbursement plan for one of many loans he had acquired.
Epstein didn’t seem to financially profit from his relationship with Mitchell. However after the Division of Justice charged Epstein with intercourse trafficking dozens of underage ladies in July 2019, Epstein’s attorneys sought to place property from two people up for a bond bundle: Epstein’s brother and Mitchell, who was described by Epstein’s attorneys as a “buddy.”
Between 2009 and 2019, Epstein additionally frequently sought connections from Mitchell. Epstein turned to the dealmaker to discover a buddy of Woody Allen’s son a restaurant job. Epstein requested Mitchell for a rabbi who would do a conversion for “shiksas,” or non-jewish girls. And he requested Mitchell’s assist with a Soho Home membership.
Epstein additionally provided Mitchell profession recommendation, warning him he was in too many offers.
“Attempt to be disciplined about offers. breaking the habit shouldn’t be straightforward,” mentioned Epstein in an electronic mail to Mitchell in 2016. “As your buddy i believe too many… decelerate, I would like you round.”
Mitchell didn’t reply to a number of requests for remark.
Two connectors
Mitchell hailed from the world Epstein at all times aspired to be part of. Mitchell’s father, Jan Mitchell, revived famed New York eating places Lüchow’s and Longchamps. He purchased an property in Southampton modeled after the Villa Medici in Rome and amassed a group of pre-Columbian gold, donating some to the Metropolitan Museum of Artwork.
Jan’s son dabbled in actual property, specializing in retailers and small high-end condos in Manhattan and Brooklyn Heights. Amongst his extra notable ventures was Gracious Properties, an upscale housewares chain, which filed for chapter in 2016.
Epstein and Mitchell had a longstanding relationship. When Epstein’s comfortable 13-month jail sentence in Palm Seaside County ended for costs of soliciting prostitution and soliciting a minor for prostitution in July 2009, Mitchell referred to as Epstein’s workplace to supply “congratulations… or welcome again.”
“I’m simply so joyful for you. Give me a name when you may,” Mitchell mentioned.
Mitchell acted as deal man for Epstein. Over the course of their relationship, Mitchell introduced quite a lot of funding alternatives and enterprise concepts to Epstein.
Mitchell’s pitches had been typically for brand new and off-the-beaten-path offers, stepping into loansharking, shopping for properties in Alberta, Canada, and a self-storage property in Tampa. However Mitchell not often appeared to have the funds to shut on these investments.
After Epstein’s jail sentence in Palm Seaside led to 2009, Epstein considered Mitchell as a trusted confidante. Epstein requested Mitchell to rearrange conferences with a few of his most valued contacts. In 2010, Epstein requested that Mitchell go to Dubai with an Epstein affiliate to fulfill Sultan Ahmed Bin Sulayem, the CEO of logistics large DP World. A 12 months later, Mitchell was asking Epstein, then a convicted intercourse offender, for “credibility assist” within the U.Ok., whereas he tried to make a bid on the Silverstone racing observe with Guggenheim Companions. Epstein hosted a gathering at his NYC townhouse with Peter Mandelson, a member of the U.Ok’s Home of Lords, and Mitchell. The deal fizzled out and Mitchell mentioned he was on the lookout for new companions and requested Epstein if he might pitch the deal to the “Sultan.”
Again in 2011, Epstein appeared to have practically blind belief in Mitchell.
“[I’m] closing as we speak in your deal„ with no due diligence. I’m merely relying in your representations . thanks and good luck,” mentioned Epstein in a single electronic mail.
Epstein additionally provided to assist Mitchell out when was quick on capital. In 2011, Mitchell requested for Epstein to point out “proof of funds” to buy 7 million British kilos. Mitchell mentioned he simply wanted a “flash.” In 2012, Mitchell as soon as once more requested Epstein to offer a “proof of funds” letter for $21 million to fulfill an “edgy” vendor in one other deal.
A partnership within the pink
Epstein invested tens of millions with Mitchell, along with loaning him cash straight, based on monetary paperwork made public by the DOJ. Lots of these investments didn’t reap returns.
Mitchell and Epstein had been companions on a number of condominium developments, together with an Higher East Facet condominium conversion undertaking of a Beaux-Arts mansion at 320 East 82nd Avenue that Mitchell had bought for $16 million in 2015. In addition they co-invested in a four-unit condominium undertaking in Flatiron that attracted A-listers like Chelsea Clinton, Jeff Gordon and Jennifer Lopez after launching gross sales in 2013.
However the Higher East Facet improvement hardly noticed any consumers, not to mention celebrities, come by means of the door after Mitchell’s then-wife, Douglas Elliman agent Jamie Mitchell, launched gross sales in 2017. After pestering Mitchell for months a couple of undertaking replace, Epstein’s accountant Richard Kahn was dismayed on the numbers Mitchell despatched over in Might 2018. “This abstract sheet is ineffective and [Mitchell] is clearly misplaced,” he wrote to Epstein. “It seems from gross sales situation…we get again $0 on our $3,480,000 funding.”
Mitchell’s different tasks had been rapidly unraveling, as nicely.
He purchased the Herald Sq. Resort for $40 million in 2015 and sunk $30 million into renovations and rebranding because the boutique, 98-room Life Resort, with ground-floor eating from restaurateur Steven Hanson, who additionally invested within the undertaking.
Almost instantly, the lodge seemed to be a dropping proposition. Emails from October 2017 present Mitchell asking his accomplice Hanson for $2,600 to cowl overdraft charges, and by 2018 he was seeking to promote the property however couldn’t discover a bidder to make him and his traders complete, based on a lawsuit filed in opposition to Mitchell in state court docket.
Epstein performed the function of strategic advisor and, when needed, bridge lender. He advised Mitchell he wished “no tie to lodge.” In 2017, Epstein’s firm, Monetary Belief Actual Property, agreed to increase a $1.5 million mortgage to Mitchell for the Life Resort. In 2023, Mitchell misplaced the lodge after the lender foreclosed on the underlying mortgage.
As Mitchell grew to become extra indebted to Epstein, Epstein offered Mitchell different methods to make some money, like serving to dealer Epstein’s buy of his neighbor, Invoice Cosby’s townhome on East 71st Avenue. He additionally enlisted Mitchell to public sale off a Hercules statue and one other Roman statue with a projected worth of $1.5 million.
Nonetheless, Mitchell continued to ask Epstein for a number of short-term loans.
In October 2018, Epstein wired Mitchell $70,000. In January 2019, Mitchell requested Epstein for $100,000 wire. Epstein’s accountant emailed Epstein, “he’s determined.”
Epstein’s accountant was particularly doubtful of Mitchell’s capability to repay his money owed and the whereabouts of the statues.
“Looks as if he’s stumbling uncontrolled all solutions noncommittal..and data he provides us isn’t correct,” mentioned Kahn.
Kahn emailed Mitchell, “fairly disturbing that your story retains altering… try to be extra cautious as jeffrey trusts you but you give me unhealthy data day-after-day.”
Data of ledgers from Epstein’s accounts present that Mitchell and his spouse made funds in increments as small as $2,200 to Epstein over the course, totaling over $600,000, ending in April 2019.
Mitchell’s cash issues
After Epstein’s demise in a federal detention heart whereas awaiting costs of intercourse trafficking minors, Mitchell continued to face monetary and authorized challenges.
A New York decide discovered he owed over $6 million to a dealer he stiffed on a land deal in Las Vegas over a decade prior. Two totally different regulation companies sued him for unpaid authorized charges, he was evicted from his Midtown East co-op for failing to pay 18 months of upkeep charges and his spouse filed for divorce.
In 2020, a roughly $42,000 examine bounced for his youngsters’s tuition at elite non-public faculty Columbia Grammar & Preparatory. When the college administrator was knowledgeable over electronic mail, she responded: “You didn’t inform me…nevertheless it doesn’t shock me in any respect.”
By 2021, he listed simply $1,200 in his Chase checking account, based on a court docket submitting.
Simply final month, Mitchell was sued by an artwork gallery proprietor who collects Pre-Columbian artwork for an unpaid mortgage of $34,200.
In an electronic mail, the gallery proprietor provided Mitchell one final probability to pay up earlier than commencing litigation.
“This case has been extended by repeated misrepresentations and delays,” he mentioned.
