Epstein's Attempt to Acquire Moroccan Palace
Jeffrey Epstein sought to purchase a multimillion-dollar palace in Morocco the day prior to his 2019 arrest, as revealed in documents released by the US Department of Justice last month.
His pursuit of the property, known as Bin Ennakhil, began in 2011 but was hindered by prolonged disputes with the seller regarding price and purchase terms.
The palace, situated in Marrakech's upscale Palmeraie neighborhood, is regarded as an architectural masterpiece. It was constructed by 1,300 craftsmen and features intricate carvings and mosaics.
On 5 July 2019, Epstein authorized a wire transfer of $14.95 million (£11 million), the day before his arrest, following an agreement to acquire the offshore company owning the property for €18 million (£13.3 million).
These documents indicate that this wire transfer was Epstein's last significant financial transaction before his arrest by US authorities on sex trafficking allegations upon his return to New York.
Three days after his arrest, Epstein's accountant, Richard Kahn, canceled the wire transfer, and the purchase was never finalized.
Morocco lacks an extradition treaty with the United States, leading local media to speculate that Epstein might have intended to use the property as a retreat to evade arrest if additional charges were filed against him.
However, a former associate of Epstein, who wished to remain anonymous, stated that the transaction suggested Epstein "had no clue" about his impending arrest.
"It would make sense if he was thinking of a potential sanctuary where he could still live like a king."
The released files do not contain any reference to Epstein considering Morocco as a refuge from US authorities.
Epstein's ties to Morocco date back to at least the early 2000s. Virginia Giuffre, one of his most prominent accusers, described in her memoir being flown to Tangier by Epstein and Ghislaine Maxwell to inspect the interior design of several luxury properties.
At that time, Epstein intended to redesign parts of his island residence in a Moroccan style.
In 2002, Epstein attended the wedding of Moroccan King Mohammed alongside Maxwell, having been invited by former US President Bill Clinton.
Epstein's Connections
Epstein was convicted in the United States in 2008 for soliciting underage sex. After his release from house arrest in 2010, his interest in Morocco appeared to increase.
The released documents suggest that in 2010, Epstein requested former Labour cabinet minister Peter Mandelson to find him an assistant who could "fin[d] a house in Marrakesh".
The files detail Epstein's periodic visits to Morocco beginning in 2012, during which he stayed in the exclusive Palmeraie district. This area is home to a wealthy expatriate community, including Jabor al Thani of the Qatari royal family, whom Epstein referred to as his "Arab brother."
It is important to note that being mentioned or pictured in the Epstein files does not imply wrongdoing.
Bin Ennakhil and 'Mr Kiss'
Epstein's long-term girlfriend, Karyna Shuliak, led the search for a property in Marrakech, with numerous visits and negotiations documented in emails under her name.
Marc Leon, a partner at Kensington Luxury Properties, told the BBC that Epstein's interest focused on their property Bin Ennakhil — Arabic for "between the palm trees" — as early as 2011.
At that time, Epstein considered the palace, owned by German waste magnate Gunter Kiss, to be overpriced at €55 million. His initial offer was so low that Kiss was offended and refused to engage with Epstein further, according to a source close to Epstein.
Subsequently, Epstein utilized Shuliak and his Moroccan contacts to conduct further inspections of the property. In 2018, Epstein personally visited the palace before Shuliak submitted final bids, pretending to act on behalf of Leon Black, a billionaire investor and friend of Epstein.
Eventually, it became evident that Epstein was the actual prospective buyer, but the seller, referred to as "Mr Kiss" in the emails, agreed to continue negotiations, as per the documents and the source close to Epstein.
The files reveal that Kensington Luxury Properties proposed a "sale and tax strategy" to Epstein, whereby the property would be registered with Moroccan authorities as sold for €10 million, while a €20 million transaction would take place for the shares of an offshore company owning the property.
This arrangement would have allowed Epstein to register his name on the property's title deeds while minimizing the tax payable to Moroccan authorities.
Kensington Luxury Properties denied any unethical or illegal attempt to reduce tax payments.
"This transaction did not violate any tax regulations," Mr Leon told the BBC. "Mr Epstein wanted to pay registration fees in Morocco, even though he was under no obligation to do so… in order to own the property in his own name."
At the time, the property company was the local real estate representative of the UK-based auction house Christie's.
Ultimately, Epstein chose to purchase the property solely by acquiring the shares of the offshore company and was in the process of determining how to register it in Morocco when he was arrested in 2019.
