A new book by author William D. Cohan, "Money to Burn," details the close relationship between Apollo Global Management founder Leon Black and convicted sex offender Jeffrey Epstein. The book chronicles how Black, a highly successful financier, became entangled with Epstein, who served on the board of Black's family foundation and provided tax advice and other services.
Epstein, introduced to Black in 1996, reportedly helped with arcane tax issues and Black's family office, charging substantial fees. Emails quoted in the book suggest Epstein sought payment in various forms, including real estate and financing for a private plane, citing Black's cash position. An investigation by the Dechert law firm, cited in the book, reported that Black paid Epstein a total of $158 million over the years. While Dechert found no evidence of Black or Apollo being involved in Epstein's criminal activities, Cohan expresses incredulity at Black's "loosey-goosey fee arrangement" with Epstein, especially given Black's reputation as a tough negotiator.
The revelations come as the book explores the rise and fall of Apollo Global Management, a firm founded by Black and other Drexel Burnham Lambert alumni. Apollo, which grew into a financial colossus by investing in distressed assets and later by funding lending through retirement savings, propelled Black and his partners Marc Rowan and Josh Harris to billionaire status.
Black's personal life and business dealings unraveled publicly in early 2021. On January 25, 2021, the same day the Dechert report was released, Black announced a succession plan where he would transition from CEO to chairman. However, on March 17, former Russian model Guzel Ganieva accused him of harassment, coercion, and abuse, later filing a lawsuit alleging rape. The book details that Black had previously worn a wire during meetings with Ganieva in 2015, when she demanded $100 million for her silence. They eventually settled on $21 million to be paid over 15 years, a settlement Black was fulfilling when Ganieva's accusations surfaced.
This conflict reportedly strained Black's relationship with his partner Josh Harris, whom Black accused of conspiring to remove him from the company. Harris has denied these accusations, stating they were "made up."
Days after Ganieva's public accusations, Black resigned from Apollo, though he remained the firm's largest shareholder. The book, described as a modern Greek tragedy, also touches upon Apollo's aggressive business practices, including its acquisition of Noranda Aluminum and its involvement during the bankruptcy of Caesar's. Cohan notes that some in the industry viewed Apollo's methods as creating "a race to an ethical bottom on Wall Street."