Jeffrey Epstein's Secret Money Manager: Private Banker's Role Uncovered
Newly released documents have revealed that convicted sex offender Jeffrey Epstein employed a former JPMorgan private banker as his personal money manager during his final years. Paul Barrett, who worked at JPMorgan's private bank for nearly two decades, quietly transitioned to managing Epstein's investments through a newly established family office.
The Proposal and Establishment of Alpha Group Capital
In May 2017, Epstein received what was described as an "exciting proposal" from Barrett, his former private banker at JPMorgan. According to emails released by the United States Department of Justice, Barrett suggested creating a new family office in New York specifically designed to oversee and manage Epstein's substantial wealth and various legal entities.
By September of that same year, Barrett had left his position at JPMorgan and founded Alpha Group Capital in New York. This new entity was established with the explicit purpose of trading stocks, bonds, and derivatives on behalf of the controversial financier. The revelation of Barrett's previously undisclosed role provides fresh insight into Epstein's trading strategies during his later years.
Trading Activities and Performance Issues
Email records show that Barrett engaged in diverse trading activities for Epstein, ranging from currency options to shares in Apollo Global Management. Notably, Apollo's co-founder Leon Black maintained close ties with Epstein, adding another layer of complexity to the financial relationships involved.
Despite Barrett's extensive experience in high-octane trading strategies favored by ultra-wealthy clients, his performance for Epstein appears to have been underwhelming. The emails suggest he generated minimal trading profits, which eventually led to tensions with the financier. Barrett repeatedly assured Epstein in correspondence that he was willing to continue working for him in "any capacity" needed, even as their professional relationship showed signs of strain.
Career Transitions and Institutional Knowledge
Following his work for Epstein, Barrett joined Citigroup in 2019, just weeks after winding down his trading activities for the convicted sex offender. He remained at Citigroup until 2023, departing shortly after media reports surfaced about his earlier meetings with Epstein at JPMorgan. Notably, these initial reports did not disclose that Barrett had actually managed Epstein's money.
The revelations have raised serious questions about due diligence and screening processes at major financial institutions. While Citigroup has claimed in litigation that it only discovered Alpha Group's role in servicing Epstein "weeks earlier," Barrett's lawyers have alleged that several bankers involved in his hiring process were aware of his connections to the financier.
Background and Professional Reputation
Originally from South Africa, Barrett spent nearly two decades at JPMorgan's private bank beginning in 2000. He worked on a desk that catered specifically to ultra-wealthy clients who preferred aggressive trading strategies over more conservative investment approaches. Former colleagues described him as "well put together," sophisticated, intelligent, and possessing a "certain air of confidence" when it came to market activities.
During his tenure at JPMorgan, Barrett served as one of several "coverage" bankers for Epstein, who reportedly maintained hundreds of millions of dollars in deposits at the institution. Records show Barrett pitched various trade ideas across multiple asset classes, including strategies to bet against Israel's currency after Epstein specifically requested ways "to short the Israeli market" in 2011.
Institutional Relationships and Reputational Risks
JPMorgan continued to retain Epstein as a client even after his 2008 guilty plea for soliciting sex from a minor, which required him to register as a sex offender. However, by 2013, the bank decided to sever ties with Epstein due to growing reputational concerns, prompting him to transfer his financial operations to Deutsche Bank.
The newly uncovered details about Barrett's role managing Epstein's money add another dimension to the complex web of financial relationships that supported the convicted sex offender's operations. Both Barrett and Citigroup declined to comment on the revelations, while the documents continue to shed light on how Epstein maintained and managed his wealth through connections within elite financial circles.
