Steven Hoffenberg

After his release, Hoffenberg repeatedly claimed that Jeffrey Epstein had been an unindicted co-conspirator, or even the true financial architect, of the Towers scheme. These statements were widely reported following Epstein's arrest in 2019.

Attribution

Personally implicated

Hoffenberg was found dead at his home in Derby, Connecticut, in August 2022. His earlier connection to Epstein immediately attracted particular media attention.

State of the evidence

Documented

Attribution

Directly implicated

After his release from prison, Hoffenberg established a company and website using the name 'New York Post Publishing Inc.' and claimed rights to the newspaper's trademark and assets. NYP Holdings sent a cease-and-desist letter and then sued. In November 2014, a federal judge upheld an injunction preventing Hoffenberg and his entities from using the NEW YORK POST trademarks in violation of the Lanham Act.

State of the evidence

Documented

Attribution

Accused

From prison, Hoffenberg brought repeated actions concerning his conviction and former lawyers. In Hoffenberg v. Hoffman & Pollok, the court noted a succession of unsuccessful cases, ignored warnings and repeated grievances, before dismissing his complaint and barring him from bringing further proceedings based on the same facts without prior court permission.

State of the evidence

Established by a court

Attribution

Protagonist is the complainant

Hoffenberg was criminally prosecuted for the Towers scheme and pleaded guilty on 20 April 1995 to five counts including securities fraud conspiracy, mail fraud, conspiracy to obstruct justice, tax evasion and a further count of mail/wire fraud. He subsequently attempted unsuccessfully to withdraw his plea. In 1997, he was sentenced to 20 years in prison, a $1 million fine and over $475 million in restitution; the conviction was upheld on appeal.

State of the evidence

Established by a court

Attribution

Accused

Under Hoffenberg's leadership, Towers Financial sold hundreds of millions of dollars in notes and bonds to thousands of investors while using new funds to pay earlier investors and finance other needs. Towers went bankrupt in 1993. SEC litigation and civil proceedings established losses exceeding $450 million.

State of the evidence

Established by a court

Attribution

Direct responsibility

As the New York Post approached closure, Hoffenberg offered to take over the newspaper and temporarily managed it. His solvency and the source of funding were quickly challenged; the SEC alleged that entities linked to the Post had received or were due to receive funds arising from Towers' fraudulent securities sales. Executives and journalists left the newspaper amid distrust of the new management.

State of the evidence

Documented

Attribution

Directly implicated

Hoffenberg hired Jeffrey Epstein as a consultant to Towers Financial and subsequently described him as a significant participant in some of the company's financial operations. This professional relationship is one of the earliest publicly documented links between Epstein and a major financial fraud.

State of the evidence

Documented

Attribution

Directly implicated

Role of the person profiled

Protagonist not prosecuted

The SEC sued Towers Credit, Towers Financial and Steven Hoffenberg after the sale of more than $20 million in high-yield notes to over 400 investors in 26 states without complying with registration rules. In November 1988, a permanent judgment imposed an injunction and required an offer of rescission to investors.

State of the evidence

Documented

Attribution

Accused

Later biographical and judicial accounts indicate that Steven Hoffenberg pleaded guilty in 1971 to attempted second-degree larceny following an attempt to steal a diamond ring in New York. He subsequently acknowledged in civil proceedings that he had been involved in a theft.

State of the evidence

Established by a court

Attribution

Personally implicated