00:09:24.640From 1988, Towers Financial Corporation went on a bond selling spree.
00:09:28.600Yo, the power of being a white guy on Wall Street, just like getting that trust initially is like, it's just being a white guy with a suit.
00:09:39.480And instead of showing investors the company's real finances, Epstein and Hoffenberg would use all the debt they bought for dirt cheap as their assets.
00:09:46.740For example, they would buy a million dollars worth of debt from a hospital for $50,000.
00:09:51.180But instead of listing the asset as $50,000 on their balance sheets, they would list it as the original $1 million.
00:09:58.180All of a sudden, instead of having $50,000 in assets, the company now had a million dollars, at least in the eyes of investors.
00:11:39.240One of the first indicators that something was off at Towers Financial was the fact that Stephen Hoffenberg was in charge of almost every position.
00:11:54.820He was the founder, chairman, CEO, and the president of the company.
00:11:58.340In fact, Towers didn't even have a financial manager because Hoffenberg was just that good.
00:12:03.180This also meant that no one was there to oversee any of the financial decisions the company made.
00:12:07.560Which meant that Hoffenberg and Epstein were free to pocket that money as they pleased.
00:12:11.360They would continue selling bonds to investors based on those fake financial reports.
00:12:15.000They claimed to be collecting 30% of the debt they bought.
00:12:17.320You know what's fucked up is like people will get mad at the people who do PPP fraud and unemployment fraud to get like 50k, 20k.
00:12:26.980That level of scamming, that's who they indict.
00:13:29.220These are what the real people with money are doing.
00:13:31.320I'm scamming the shit out of all of us, fucking up inflation, fucking up the economy, while they fly out to Miami, buy property, get yachts, and do whatever they want.
00:14:37.680Steven Hoffenberg had gotten a little too confident, and he attracted a little too much attention by trying to buy and save the dying New York Post.
00:14:45.100His knight in shiny armor act attracted too many eyeballs.
00:14:48.160And one of those eyeballs was the SEC.
00:14:50.300And they got to wondering how he made his money.
00:14:52.640It didn't take a genius to figure out something was wrong.
00:14:54.820And from there, things came crashing down.
00:14:57.340In February 1993, the SEC began civil action against Towers Financial Corporation.
00:15:02.200And a month later, the company declared bankruptcy.
00:15:40.000But up until today, he's still paying out the $462 million, or around three quarters of a billion dollars in today's money, he owes to his victims.
00:15:47.800Back when the case against Towers Financial was still ongoing, two other high-level executives were sentenced to seven and nine years for their participation in the scheme.
00:15:59.480But Epstein, the architect behind the scam, the genius with no moral compass, he wasn't one of them.
00:16:04.720And somehow, he got away without a single charge.
00:16:11.160From that point on, Epstein would use that Ponzi scheme money to slither his way into the most powerful circles in the world.
00:16:19.880Eventually setting up his operation, where he would bring powerful, wealthy people to his properties to party, have underage girls there, and record all these powerful men with the girls via secret hidden cameras.
00:17:57.860If you still trust the government, if you still, like, don't doubt, if you still doubt conspiracy theories and shit like that, look up Epstein.
00:18:03.820And then everything will start to make sense because really all the most powerful people were involved with him, all of them, the Clintons, Trump, probably Elon, all the famous celebrities, they were all going to that island too.