Dossier

Southern Financial LLC

A USVI-registered trading subsidiary wholly owned by Southern Trust Company Inc and controlled by Jeffrey Epstein, Southern Financial LLC functioned as a derivatives vehicle, an internal lending conduit, an investment-fund disbursement account, and a liquidation vehicle across distinct financial institutions from 2013 to 2019.

Jeffrey Epstein
13 findings 6 connections 0 entities

Southern Financial LLC was a limited liability company registered at 6100 Red Hook Quarter B3, St Thomas, US Virgin Islands 00802, wholly owned by Southern Trust Company Inc and beneficially owned 100% by Jeffrey Epstein 1. The company held a GLEIF Legal Entity Identifier alongside its parent and shared the same registered address Connection #766. Deutsche Bank AG opened a brokerage account for Southern Financial LLC on August 19, 2013, designating its stated purpose as "invest long term with the bank" 2. From that date through December 2018, Southern Financial LLC served as Epstein's primary derivatives and trading vehicle within a Deutsche Bank relationship that ultimately encompassed 40+ accounts across Epstein entities and associates, classified high-risk with enhanced due diligence from inception 2. A Deutsche Bank KYC document circa 2018 recorded estimated annual income above $10,000,000 and investable assets of $50M–$100M, with source of wealth characterized as "High Risk financial Institutions" 1.

Within Epstein's layered entity structure, Southern Financial LLC occupied a distinct functional role: it was the derivatives and active-trading overlay, while Southern Trust Company Inc served as the primary cash and money-market custodian. A portfolio snapshot from June 30, 2013 placed Southern Financial's cash balance at $14.59M; by August 2014 that figure had grown to $48.77M — a $34M increase in 14 months — while Southern Trust's cash grew from $24.75M to $70.78M over the same period 3. The August 31, 2014 comprehensive valuation showed Southern Financial holding a $16.7M+ fixed-income bond portfolio consistent with its role as the active portfolio vehicle distinct from Southern Trust's cash functions 4. Analysis of Deutsche Bank's internal DS10 transaction data indicates a peak cash balance of approximately $10.72M in June 2015 and peak portfolio value of $16.72M by late 2018 5.

In the weeks preceding Jeffrey Epstein's July 6, 2019 arrest, Richard Kahn of HBRK Associates Inc coordinated the liquidation of Southern Financial LLC's remaining positions across Deutsche Bank and TD Ameritrade, extracting both securities and cash 67. DS10 transaction analysis indicates the account balance reached zero by May 2019 5. Three months earlier, in April 2019, Southern Financial LLC had opened new accounts at Charles Schwab, which subsequently launched an AML investigation involving Southern Financial LLC, Southern Trust Company Inc, Southern Country International Ltd, Jeffrey Epstein, and Richard Kahn 8.

Corporate Structure and Ownership

Southern Financial LLC was a wholly owned subsidiary of Southern Trust Company Inc, sharing the same registered address at 6100 Red Hook Quarter B3, St Thomas, USVI 00802 Connection #766. Both entities held GLEIF Legal Entity Identifiers. A Deutsche Bank KYC document dated circa 2018 recorded Jeffrey Epstein as the sole owner at 100% of 100 shares issued, with Southern Trust Company Inc listed as the sole member of Southern Financial LLC 1. Darren Indyke, Epstein's long-serving attorney, was listed as co-signor on the Deutsche Bank account 1. The relationship manager at Deutsche Bank was Stewart Oldfield 1.

The Deutsche Bank KYC document designated Epstein as an Honorary Politically Exposed Person, citing connections to Prince Andrew and Bill Clinton 1. Expected monthly account flows were recorded as 10–15 transactions per month in the $100,000–$350,000 range. The entity was designated within Deutsche Bank's systems as the "SOUTHERN FINANCIAL RELATIONSHIP," an internal grouping that encompassed multiple Epstein-controlled entities including Jeepers Inc and Prytanee LLC 8.

Derivatives and Trading Operations

Southern Financial LLC was the counterparty on an ISDA derivatives master agreement with Deutsche Bank AG's London branch (Winchester House), faxed to the entity's USVI address at 340-775-2528, attention Jeffrey Epstein 9. Documented trading activity included a Twitter equity swap with a 100,000-share TWTR position structured with monthly resets and a Libor+75bps spread 10; a Japanese yen/US dollar put option at a 102.5 strike, $10M notional, $190,000 premium dated January 31, 2014 10; and a Twitter IPO allocation of 1,500 shares at $26 per share, arranged by Tazia Smith, DB Director of Key Client Partners 10.

A Deutsche Bank internal note flagged sizeable equity gains in Southern Financial LLC account x804 when the S&P 500 exceeded 2,000, recorded by Vahe Stepanian 10. Wire authority for all outflows from Southern Financial LLC, Haze Trust, Jeepers Inc, and Southern Trust Company at Deutsche Bank ran through Harry Beller via verbal approval 10. Account statements also show Southern Financial holding Global Mortgage Securitization 2005-A Class B2 bonds at $8.25M face value (5.250% coupon, maturing 2032) traded through JPMorgan Securities LLC, indicating trading activity spanning multiple institutions 9.

By August 2014, Southern Financial's fixed-income portfolio reached $16.7M+ in bonds across Bank of America 8.125% perpetuals ($2M face), Barclays 7.75% 2023 ($300K), Earthlink 8.875% 2019 ($1M), GE Capital 7.125% perpetuals ($2M), Headwaters 7.625% 2019 ($1M), HSBC structured notes, JP Morgan structured notes, and JP Morgan Chase preferred 7.9% perpetuals ($5M total) 4. Analysis of DS10 transaction data suggests Southern Financial received legacy distributions from Bear Stearns Asset Management — $8,200 in August 2015 and $780 in June 2015 — positions predating the 2008 Bear Stearns collapse 5. Deutsche Bank internally pitched Glendower Capital Secondary Opportunities Fund IV LP (a $1.75 billion secondaries fund) specifically to "GLOUS238 SOUTHERN FINANCIAL LLC," using what appears to be a Deutsche Bank internal client code 11.

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Internal Lending and Pass-Through Flows

Beyond active trading, Southern Financial LLC functioned as an internal lending vehicle for members of Epstein's staff. Lesley Groff, Epstein's executive assistant, held at least three personal loans from Southern Financial LLC with monthly interest obligations. A December 2018 email chain documents Groff inadvertently writing an interest payment check to the wrong entity — Southern Trust Company — for $2,110 (representing 2.11% annual interest on a $100,000 principal); Bella Klein, an office administrator, directed the payment to be rewritten to Southern Financial LLC instead. Richard Kahn at HBRK Associates Inc drafted promissory note templates for the Groff loans, dated December 19, 2017 12.

Southern Financial LLC also provided a $1,000,000 nine-year below-market-rate loan (1.41% AFR) to Harlequin Dane LLC, an entity connected to Darren Indyke, in June 2016, using the same below-market structure as a May 2015 loan to the same entity Connection #1120. In May 2019, Harlequin Dane repaid $51,000 to Southern Financial LLC. DS10 transaction analysis indicates $51,000 then moved from Southern Financial LLC to Citibank the following day, May 3, 2019 512. DS10 transaction records indicate $51,000 received from Harlequin Dane LLC on May 2, and $51,000 transmitted to Citibank on May 3 5.

Investment Fund Disbursements

Southern Financial LLC was the designated vehicle for at least one external private fund capital call. In April 2015, Richard Kahn at HBRK Associates Inc received a $1,000,000 capital call for Neoteny 3 LP — Joi Ito's venture fund — and forwarded it to Epstein on April 10–13, 2015, asking "please advise if ok to send from SFL LLC." The capital call notice came from Danielle Prague at Neoteny. Kahn served as the operational intermediary managing fund disbursements and holding approval authority for the Southern Financial LLC designation 13.

Southern Financial LLC also maintained an account connected to The 2017 Caterpillar Trust, listed as a new account under the Southern Financial relationship at Deutsche Bank Private Bank since 2013 Connection #887. DS10 transaction analysis indicates a separate $500,000 wire to JPMorgan Chase dated May 5, 2017 as an outflow from Southern Financial LLC 5. A Financial Trust Company corporate connection is documented but its nature is not fully specified in available records Connection #732.

Southern Financial LLC

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Pre-Arrest Liquidation

Starting in April 2019 — three months before Jeffrey Epstein's July 6, 2019 arrest — Southern Financial LLC and affiliated entities opened accounts at Charles Schwab. Charles Schwab subsequently initiated an AML investigation naming Southern Financial LLC, Southern Trust Company Inc, Southern Country International Ltd, Jeffrey Epstein, and Richard Kahn as subjects 8.

On May 31, 2019 — five weeks before the arrest — Richard Kahn coordinated the liquidation of Southern Financial LLC's TD Ameritrade positions. Kahn worked with Senior Financial Consultant Chad Markland to correct a transfer error and move "the remaining shares to move the remaining full amount of that position." Upon confirmation, Kahn immediately stated he would "transfer out money now as well," indicating simultaneous extraction of both securities and cash. Jeanne Brennan was copied on the correspondence under the designation "Aloha Group Capital" 6. DS10 transaction analysis indicates the Southern Financial LLC balance reached zero in May 2019, consistent with the coordinated extraction from both DB and TD Ameritrade 5.

All Connections

6 total
The 2017 Caterpillar Trust financial strong

Caterpillar Trust was a new account under the Southern Financial relationship at DB Private Bank since 2013

Darren Indyke financial strong

SFL LLC provided 1M 9-year below-market loan (1.41% AFR) to Harlequin Dane LLC (Indyke entity) in Jun 2016, using same structure as May 2015 loan. In May 2019, Harlequin Dane repaid 51K to SFL. SFL had 10.7M peak balance and 16.7M portfolio. Indyke was authorized signatory at SFL.

Deutsche Bank AG financial strong

Brokerage account opened Aug 19, 2013 for Southern Financial LLC (wholly owned subsidiary of Southern Trust Company Inc). KYC purpose: to invest long term with the bank.

Financial Trust Company corporate medium
Harlequin Dane LLC financial medium

DS10: 51K pass-through May 2-3 2019

Southern Trust Company Inc corporate medium

Same address 6100 Red Hook Quarter B3. Both GLEIF LEIs. STC owns SF LLC (entity_relations). SF wholly owned subsidiary.

All Findings

13 total

financial (12)

financial confirmed 2013

ISDA derivatives master agreement between Deutsche Bank AG (London branch) and Southern Financial LLC. Key details: (1) Southern Financial LLC address: 6100 Red Hook Quarter B3, St Thomas USVI 00802, (2) Attention: Jeffrey Epstein, (3) Fax: 340-775-2528, (4) Deutsche Bank AG London Winchester House as counterparty. This confirms Southern Financial LLC was the entity used for derivatives/swap trading with Deutsche Bank. Separately, account statements show Southern Financial holding Global Mortgage Securitization 2005-A Class B2 bonds ($8.25M face value at 5.250%, maturing 2032) traded through JPMorgan Securities LLC, confirming cross-bank trading activity.

[efta] EFTA01390592
financial medium 2013-06-30

JEE portfolio summary as of 6/30/2013 (EFTA02678941) shows total cash across entities: Southern Financial LLC USD 14.59M, J.Epstein USD 2.23M, Haze Trust USD 28K, Southern Trust Company USD 24.75M, Jeepers USD 28.02M, J.Epstein VI Foundation USD 4.62M, Total Cash USD 74.24M. Comparison with Aug 2014 snapshot (EFTA02435864 / finding #221): Southern Trust USD 70.78M, Southern Financial USD 48.77M, Jeepers USD 22.68M, Haze Trust USD 9.86M — showing Southern Financial grew from USD 14.59M (June 2013) to USD 48.77M (Aug 2014), a USD 34M increase in 14 months, while Southern Trust grew from USD 24.75M to USD 70.78M. Combined Southern Financial + Southern Trust balances: USD 39.3M (June 2013) to USD 119.55M (Aug 2014) to over USD 230M at peak per DB characterization. This demonstrates rapid asset growth in the 2013-2014 period.

[efta] EFTA02435864
[efta] EFTA02678941
financial medium 2014-01-31

Southern Financial LLC was Epstein's primary trading and derivatives vehicle at Deutsche Bank. Key documented activities: (1) Twitter IPO allocation: 1,500 shares at USD 26 allocated by Tazia Smith (DB Director, Key Client Partners), EFTA02577080; (2) Twitter equity swap: 100,000 share TWTR position with monthly resets and Libor+75bps spread (EFTA02348007); (3) Currency derivatives: JPY/USD put at 102.5 strike, USD 10M notional, USD 190K premium on 1/31/2014 (EFTA02383565); (4) DB internal note (EFTA02719222): Vahe Stepanian flagged sizeable equity gains in SFLLC account x804, 'SPX > 2,000'; (5) Wire authority: Harry Beller managed verbal approval for all wires from Southern Financial LLC, Haze Trust, Jeepers, and Southern Trust Co at DB (EFTA02575944); (6) DB KYC/onboarding documents for Southern Financial LLC: ISDA uncleared margin, Volcker screening, account opening checklist (EFTA01368144-EFTA01368146). Southern Financial operated as a brokerage/derivatives overlay vehicle distinct from Southern Trust Company (the cash/investment entity).

[efta] EFTA01368144
[efta] EFTA01368146
[efta] EFTA02348007
+5 more sources
financial high 2014-08-31

Aug 31, 2014 comprehensive valuation report shows Southern Financial LLC fixed income portfolio holding $16.7M+ in bonds including: Bank of America 8.125% (Dec 2049) $2M face, Barclays 7.75% (2023) $300K, Earthlink 8.875% (2019) $1M, GE Capital 7.125% (Dec 2049) $2M, Headwaters 7.625% (2019) $1M, HSBC structured notes, JPM structured notes, multiple JP Morgan Chase preferred 7.9% (Apr 2049) $5M total, LBG Capital bonds $3.1M. Southern Trust Co held separate fixed income: Ally Financial 8.5% preferred, Nationwide 6.875% GBP callable 2019, and Petroleos de Venezuela (PDVSA) 10/28/15 $2M position (sovereign risk). Total STC fixed income: $6.9M. Combined SFL+STC investment portfolios plus cash ($163.4M) plus hedge funds ($105.7M) totaled $403.8M across all entities. This shows SFL as the primary bond/derivatives vehicle and STC as the primary cash/money market vehicle — deliberate functional separation.

[efta] EFTA02711200
financial confirmed 2015-04

Richard Kahn forwarded a $1,000,000 capital call for Neoteny 3 LP (Joi Ito's venture fund) to Epstein on April 10-13, 2015. Kahn asked 'please advise if ok to send from SFL LLC' confirming Southern Financial LLC (abbreviated SFL LLC) was the investment vehicle for this capital call. The capital call notice came from Danielle Prague at Neoteny. Kahn managed this from HBRK Associates Inc at 575 Lexington Avenue 4th Floor. This connects: (1) Southern Financial LLC to Joi Ito's venture fund, (2) Richard Kahn/HBRK as the operational fund administration center, (3) Epstein having approval authority over all fund disbursements.

[efta] EFTA02505285
financial medium 2017-05-05

DS10 confirms Southern Financial LLC operated as the DERIVATIVES/TRADING vehicle with distinctive patterns. DS10 captures 6 transactions ($602K out, $59K in) but the balance data reveals far more: peak cash balance $10.72M (Jun 2015), portfolio value peaked at $16.72M (Dec 2018-Jan 2019). KEY FLOWS: (1) $500K to JPMorgan Chase (May 5, 2017 — likely an investment payment), (2) $51K received from Harlequin Dane LLC (May 2, 2019 — an entity not seen elsewhere in the investigation), (3) $51K immediately passed through to Citibank (May 3, 2019 — same-day pass-through). (4) Two Bear Stearns Asset Management payments received ($8.2K Aug 2015, $0.78 Jun 2015 — legacy distributions from collapsed Bear Stearns funds). The Harlequin Dane LLC pass-through is notable: $51K in from an unknown entity, $51K out next day to Citibank — classic conduit behavior. Harlequin Dane LLC needs investigation. The Bear Stearns distributions confirm SFL inherited legacy BS positions. The ISDA derivatives master agreement with Deutsche Bank AG London branch (finding #648) confirms SFL as the counterparty for swaps/options. SFL balance trajectory: zero (Nov 2013) -> $10.7M (Jun 2015) -> $8K (May 2017) -> $157K (May 2019) -> zero (May 2019 closure).

[efta] EFTA01297003
[efta] EFTA01365967
[efta] EFTA01377570
+1 more sources
financial confirmed 2017-12-19

Southern Financial LLC operated as internal lending vehicle: Lesley Groff had 3 personal loans from Southern Financial LLC (not Southern Trust), with interest payments due monthly. Dec 2018 email chain reveals Groff wrote check to wrong entity (Southern Trust) for $2,110 interest payment (2.11% on $100,000). Bella Klein (office admin) instructed rewrite to Southern Financial LLC. Kahn directed 'deposit in SFL.' Groff's next payment was $1,970 (1.97% on $100,000). Promissory notes were drafted by Kahn at HBRK Associates (Dec 19, 2017 note template 'Promissory Note of Lesley Groff to Southern Financial, LLC'). Additionally, $51,000 flowed from Harlequin Dane LLC to Southern Financial LLC on May 2, 2019, then immediately out ($51,000) to Citibank on May 3 — pass-through transaction. This confirms SFL operated as both a lending and pass-through vehicle.

[efta] EFTA02270094
financial confirmed 2018

Deutsche Bank KYC/NCA document for Southern Financial LLC reveals: (1) Jeffrey Epstein sole owner - 100% of 100 shares issued, (2) Darren Indyke is co-signor on account, (3) Southern Trust Company Inc is sole member of Southern Financial LLC, (4) PEP flag cites 'Connection with Prince Andrew and Bill Clinton', (5) Estimated annual income $10,000,000+, (6) Investable assets $50M-$100M, (7) Source of wealth: 'High Risk financial Institutions', (8) Business Owner + Investment as wealth categories, (9) Expected monthly flows: 10-15/month at $100K-$350K, (10) Relationship Manager: Stewart Oldfield, (11) Account status: Approved in 2018 periodic review. This is the most detailed primary source on Southern Financial's structure at Deutsche Bank.

[efta] EFTA01298740
financial high 2019-04

Southern Financial LLC was the subject of Charles Schwab AML investigation alongside Southern Trust Company Inc, Southern Country International Ltd, Jeffrey Epstein, and Richard Kahn. Opened Schwab accounts April 2019 (3 months before arrest). Also referenced in Deutsche Bank periodic reviews as the SOUTHERN FINANCIAL RELATIONSHIP that grouped multiple Epstein entities including Prytanee LLC. The Southern Financial relationship at DB was classified as HIGH RISK requiring enhanced due diligence and periodic KYC reviews.

[efta] EFTA01265973
[efta] EFTA01384509
financial confirmed 2019-05-31

On May 31, 2019 (5 weeks before Epstein's July 6 arrest), Richard Kahn at HBRK Associates was transferring money out of SF LLC (Southern Financial LLC) through Aloha Group Capital. Kahn wrote 'great news, thank you again for your help, i will transfer out money now as well.' A processor had been working to 'correct the transfer' which was 'in queue for this evening to process.' Cc: Jeanne Brennan at Aloha Group Capital. This suggests pre-arrest asset movement through an intermediary financial institution, with urgency ('now as well'). Combined with the $52.5M Valar wire and other fund subscriptions, Southern Financial LLC served as the primary disbursement vehicle for Epstein's investment operations.

[efta] EFTA01268485
financial high 2019-05-31

Pre-arrest asset extraction from Southern Financial LLC through TD Ameritrade brokerage (May 31, 2019 -- 5 weeks before arrest). Richard Kahn at HBRK Associates urgently coordinated with Chad Markland (Senior Financial Consultant, TD Ameritrade) to transfer remaining stock positions out of SF LLC. The email chain reveals: (1) A processor had incorrectly handled the transfer -- Markland found the error and corrected it. (2) The correction was for 'the remaining shares to move the remaining full amount of that position.' (3) Once stocks transferred, Kahn immediately stated 'i will transfer out money now as well' -- indicating both securities AND cash were being extracted. (4) Jeanne Brennan was Cc'd as 'Aloha Group Capital' -- this appears to be a brokerage account name/alias at TD Ameritrade, not a separate financial institution. (5) This follows an earlier Oct 2017 asset transfer where Kahn moved stocks into the same account, asking about a credit for bringing in new money. The SF LLC extraction coincides with DS10 records showing SF LLC balance going to zero in May 2019, and Schwab accounts being opened in April 2019 for STC/SFL/SCI. Kahn was simultaneously zeroing DB accounts and TD Ameritrade positions.

[efta] EFTA01268485
financial confirmed

Southern Financial LLC was pitched for investment in Glendower Capital Secondary Opportunities Fund IV LP, a $1.75 billion secondaries fund. The full Confidential Private Placement Memorandum (PPM) was prepared specifically for 'GLOUS238 SOUTHERN FINANCIAL LLC' (the GLOUS238 appears to be a Deutsche Bank client code). This documents Southern Financial as an active institutional-scale investor being marketed to by major PE fund-of-funds, consistent with DB's description of accounts holding 'marketable securities and cash' and 'invest long term.' Documents span EFTA01383008 through EFTA01383032+.

[efta] EFTA01383008
[efta] EFTA01383032

legal (1)

legal medium 2013-08-19

Per NYDFS Consent Order (2020), Southern Financial LLC was a wholly owned subsidiary of Southern Trust Company Inc. The DB-Epstein relationship officially began August 19, 2013 when DB opened brokerage accounts for both Southern Trust Company Inc. (self-described 'database company and services' founded in USVI 2011) and Southern Financial LLC. KYC purposes: Southern Trust to 'hold marketable securities and cash,' Southern Financial to 'invest long term with the bank.' Over the relationship, Epstein/entities/associates opened 40+ accounts at DB. Classified 'high-risk' from onset with enhanced due diligence. Designated 'Honorary PEP' due to connections to prominent political figures. ARRC reviewed in Jan 2015, was 'comfortable with things continuing' despite 40 underage victims and co-conspirators as Butterfly Trust beneficiaries.

[ref] NYDFS-Consent-Order-2020-p12
[ref] NYDFS-Consent-Order-2020-p8

Full Timeline

13 events
ISDA derivatives master agreement between Deutsche Bank AG (London branch) and Southern Financial LLC. Key details: (1) Southern Financial LLC address: 6100 Red Hook Quarter B3, St Thomas USVI 00802, (2) Attention: Jeffrey Epstein, (3) Fax: 340-775-2528, (4) Deutsche Bank AG London Winchester House as counterparty. This confirms Southern Financial LLC was the entity used for derivatives/swap trading with Deutsche Bank. Separately, account statements show Southern Financial holding Global Mortgage Securitization 2005-A Class B2 bonds ($8.25M face value at 5.250%, maturing 2032) traded through JPMorgan Securities LLC, confirming cross-bank trading activity.
2013
JEE portfolio summary as of 6/30/2013 (EFTA02678941) shows total cash across entities: Southern Financial LLC USD 14.59M, J.Epstein USD 2.23M, Haze Trust USD 28K, Southern Trust Company USD 24.75M, Jeepers USD 28.02M, J.Epstein VI Foundation USD 4.62M, Total Cash USD 74.24M. Comparison with Aug 2014 snapshot (EFTA02435864 / finding #221): Southern Trust USD 70.78M, Southern Financial USD 48.77M, Jeepers USD 22.68M, Haze Trust USD 9.86M — showing Southern Financial grew from USD 14.59M (June 2013) to USD 48.77M (Aug 2014), a USD 34M increase in 14 months, while Southern Trust grew from USD 24.75M to USD 70.78M. Combined Southern Financial + Southern Trust balances: USD 39.3M (June 2013) to USD 119.55M (Aug 2014) to over USD 230M at peak per DB characterization. This demonstrates rapid asset growth in the 2013-2014 period.
2013-06-30
Brokerage account opened Aug 19, 2013 for Southern Financial LLC (wholly owned subsidiary of Southern Trust Company Inc). KYC purpose: to invest long term with the bank.
2013-08 to 2018-12
Per NYDFS Consent Order (2020), Southern Financial LLC was a wholly owned subsidiary of Southern Trust Company Inc. The DB-Epstein relationship officially began August 19, 2013 when DB opened brokerage accounts for both Southern Trust Company Inc. (self-described 'database company and services' founded in USVI 2011) and Southern Financial LLC. KYC purposes: Southern Trust to 'hold marketable securities and cash,' Southern Financial to 'invest long term with the bank.' Over the relationship, Epstein/entities/associates opened 40+ accounts at DB. Classified 'high-risk' from onset with enhanced due diligence. Designated 'Honorary PEP' due to connections to prominent political figures. ARRC reviewed in Jan 2015, was 'comfortable with things continuing' despite 40 underage victims and co-conspirators as Butterfly Trust beneficiaries.
2013-08-19
Southern Financial LLC was Epstein's primary trading and derivatives vehicle at Deutsche Bank. Key documented activities: (1) Twitter IPO allocation: 1,500 shares at USD 26 allocated by Tazia Smith (DB Director, Key Client Partners), EFTA02577080; (2) Twitter equity swap: 100,000 share TWTR position with monthly resets and Libor+75bps spread (EFTA02348007); (3) Currency derivatives: JPY/USD put at 102.5 strike, USD 10M notional, USD 190K premium on 1/31/2014 (EFTA02383565); (4) DB internal note (EFTA02719222): Vahe Stepanian flagged sizeable equity gains in SFLLC account x804, 'SPX > 2,000'; (5) Wire authority: Harry Beller managed verbal approval for all wires from Southern Financial LLC, Haze Trust, Jeepers, and Southern Trust Co at DB (EFTA02575944); (6) DB KYC/onboarding documents for Southern Financial LLC: ISDA uncleared margin, Volcker screening, account opening checklist (EFTA01368144-EFTA01368146). Southern Financial operated as a brokerage/derivatives overlay vehicle distinct from Southern Trust Company (the cash/investment entity).
2014-01-31
Aug 31, 2014 comprehensive valuation report shows Southern Financial LLC fixed income portfolio holding $16.7M+ in bonds including: Bank of America 8.125% (Dec 2049) $2M face, Barclays 7.75% (2023) $300K, Earthlink 8.875% (2019) $1M, GE Capital 7.125% (Dec 2049) $2M, Headwaters 7.625% (2019) $1M, HSBC structured notes, JPM structured notes, multiple JP Morgan Chase preferred 7.9% (Apr 2049) $5M total, LBG Capital bonds $3.1M. Southern Trust Co held separate fixed income: Ally Financial 8.5% preferred, Nationwide 6.875% GBP callable 2019, and Petroleos de Venezuela (PDVSA) 10/28/15 $2M position (sovereign risk). Total STC fixed income: $6.9M. Combined SFL+STC investment portfolios plus cash ($163.4M) plus hedge funds ($105.7M) totaled $403.8M across all entities. This shows SFL as the primary bond/derivatives vehicle and STC as the primary cash/money market vehicle — deliberate functional separation.
2014-08-31
Richard Kahn forwarded a $1,000,000 capital call for Neoteny 3 LP (Joi Ito's venture fund) to Epstein on April 10-13, 2015. Kahn asked 'please advise if ok to send from SFL LLC' confirming Southern Financial LLC (abbreviated SFL LLC) was the investment vehicle for this capital call. The capital call notice came from Danielle Prague at Neoteny. Kahn managed this from HBRK Associates Inc at 575 Lexington Avenue 4th Floor. This connects: (1) Southern Financial LLC to Joi Ito's venture fund, (2) Richard Kahn/HBRK as the operational fund administration center, (3) Epstein having approval authority over all fund disbursements.
2015-04
DS10 confirms Southern Financial LLC operated as the DERIVATIVES/TRADING vehicle with distinctive patterns. DS10 captures 6 transactions ($602K out, $59K in) but the balance data reveals far more: peak cash balance $10.72M (Jun 2015), portfolio value peaked at $16.72M (Dec 2018-Jan 2019). KEY FLOWS: (1) $500K to JPMorgan Chase (May 5, 2017 — likely an investment payment), (2) $51K received from Harlequin Dane LLC (May 2, 2019 — an entity not seen elsewhere in the investigation), (3) $51K immediately passed through to Citibank (May 3, 2019 — same-day pass-through). (4) Two Bear Stearns Asset Management payments received ($8.2K Aug 2015, $0.78 Jun 2015 — legacy distributions from collapsed Bear Stearns funds). The Harlequin Dane LLC pass-through is notable: $51K in from an unknown entity, $51K out next day to Citibank — classic conduit behavior. Harlequin Dane LLC needs investigation. The Bear Stearns distributions confirm SFL inherited legacy BS positions. The ISDA derivatives master agreement with Deutsche Bank AG London branch (finding #648) confirms SFL as the counterparty for swaps/options. SFL balance trajectory: zero (Nov 2013) -> $10.7M (Jun 2015) -> $8K (May 2017) -> $157K (May 2019) -> zero (May 2019 closure).
2017-05-05
Southern Financial LLC operated as internal lending vehicle: Lesley Groff had 3 personal loans from Southern Financial LLC (not Southern Trust), with interest payments due monthly. Dec 2018 email chain reveals Groff wrote check to wrong entity (Southern Trust) for $2,110 interest payment (2.11% on $100,000). Bella Klein (office admin) instructed rewrite to Southern Financial LLC. Kahn directed 'deposit in SFL.' Groff's next payment was $1,970 (1.97% on $100,000). Promissory notes were drafted by Kahn at HBRK Associates (Dec 19, 2017 note template 'Promissory Note of Lesley Groff to Southern Financial, LLC'). Additionally, $51,000 flowed from Harlequin Dane LLC to Southern Financial LLC on May 2, 2019, then immediately out ($51,000) to Citibank on May 3 — pass-through transaction. This confirms SFL operated as both a lending and pass-through vehicle.
2017-12-19
Deutsche Bank KYC/NCA document for Southern Financial LLC reveals: (1) Jeffrey Epstein sole owner - 100% of 100 shares issued, (2) Darren Indyke is co-signor on account, (3) Southern Trust Company Inc is sole member of Southern Financial LLC, (4) PEP flag cites 'Connection with Prince Andrew and Bill Clinton', (5) Estimated annual income $10,000,000+, (6) Investable assets $50M-$100M, (7) Source of wealth: 'High Risk financial Institutions', (8) Business Owner + Investment as wealth categories, (9) Expected monthly flows: 10-15/month at $100K-$350K, (10) Relationship Manager: Stewart Oldfield, (11) Account status: Approved in 2018 periodic review. This is the most detailed primary source on Southern Financial's structure at Deutsche Bank.
2018
Southern Financial LLC was the subject of Charles Schwab AML investigation alongside Southern Trust Company Inc, Southern Country International Ltd, Jeffrey Epstein, and Richard Kahn. Opened Schwab accounts April 2019 (3 months before arrest). Also referenced in Deutsche Bank periodic reviews as the SOUTHERN FINANCIAL RELATIONSHIP that grouped multiple Epstein entities including Prytanee LLC. The Southern Financial relationship at DB was classified as HIGH RISK requiring enhanced due diligence and periodic KYC reviews.
2019-04
On May 31, 2019 (5 weeks before Epstein's July 6 arrest), Richard Kahn at HBRK Associates was transferring money out of SF LLC (Southern Financial LLC) through Aloha Group Capital. Kahn wrote 'great news, thank you again for your help, i will transfer out money now as well.' A processor had been working to 'correct the transfer' which was 'in queue for this evening to process.' Cc: Jeanne Brennan at Aloha Group Capital. This suggests pre-arrest asset movement through an intermediary financial institution, with urgency ('now as well'). Combined with the $52.5M Valar wire and other fund subscriptions, Southern Financial LLC served as the primary disbursement vehicle for Epstein's investment operations.
2019-05-31
Pre-arrest asset extraction from Southern Financial LLC through TD Ameritrade brokerage (May 31, 2019 -- 5 weeks before arrest). Richard Kahn at HBRK Associates urgently coordinated with Chad Markland (Senior Financial Consultant, TD Ameritrade) to transfer remaining stock positions out of SF LLC. The email chain reveals: (1) A processor had incorrectly handled the transfer -- Markland found the error and corrected it. (2) The correction was for 'the remaining shares to move the remaining full amount of that position.' (3) Once stocks transferred, Kahn immediately stated 'i will transfer out money now as well' -- indicating both securities AND cash were being extracted. (4) Jeanne Brennan was Cc'd as 'Aloha Group Capital' -- this appears to be a brokerage account name/alias at TD Ameritrade, not a separate financial institution. (5) This follows an earlier Oct 2017 asset transfer where Kahn moved stocks into the same account, asking about a credit for bringing in new money. The SF LLC extraction coincides with DS10 records showing SF LLC balance going to zero in May 2019, and Schwab accounts being opened in April 2019 for STC/SFL/SCI. Kahn was simultaneously zeroing DB accounts and TD Ameritrade positions.
2019-05-31
Sources
  1. 1.Finding #641
    Sources: EFTA01298740Open sourceView source record
  2. 2.Finding #596
    Sources: NYDFS-Consent-Order-2020-p12View source record, NYDFS-Consent-Order-2020-p8View source record
  3. 3.Finding #592
    Sources: EFTA02435864Open sourceView source record, EFTA02678941Open sourceView source record
  4. 4.Finding #1310
    Sources: EFTA02711200Open sourceView source record
  5. 5.Finding #1495
    Sources: EFTA01297003Open sourceView source record, EFTA01365967Open sourceView source record, EFTA01377570Open sourceView source record, EFTA01389013Open sourceView source record
  6. 6.Finding #1581
    Sources: EFTA01268485Open sourceView source record
  7. 7.Finding #650
    Sources: EFTA01268485Open sourceView source record
  8. 8.Finding #626
    Sources: EFTA01265973Open sourceView source record, EFTA01384509Open sourceView source record
  9. 9.Finding #648
    Sources: EFTA01390592Open sourceView source record
  10. 10.Finding #590
    Sources: EFTA01368144Open sourceView source record, EFTA01368146Open sourceView source record, EFTA02348007Open sourceView source record, EFTA02383565Open sourceView source record, EFTA02575944Open sourceView source record, EFTA02577080Open sourceView source record, EFTA02700407Open sourceView source record, EFTA02719222Open sourceView source record
  11. 11.Finding #628
    Sources: EFTA01383008Open sourceView source record, EFTA01383032Open sourceView source record
  12. 12.Finding #1307
    Sources: EFTA02270094Open sourceView source record
  13. 13.Finding #649
    Sources: EFTA02505285Open sourceView source record