Exclusive-A palace in Marrakesh: How Schwab moved $27.7 million in payments for Epstein days before his arrest

Charles Schwab wired approximately $27.7 million on behalf of Jeffrey Epstein to a realtor in Morocco as the disgraced financier attempted to purchase a palace in Marrakesh in the 10 days before his 2019 arrest, including one transfer from an account which lacked sufficient funds, according to documents released by the U.S. Department of Justice. Details of the transactions, reported by Reuters for the first time, show how the U.S. brokerage handled funds for Epstein over several months at a time when he was under intense public scrutiny following reports in the Miami Herald in 2018. Schwab opened three accounts for Epstein's companies in April 2019, including one for Southern Trust, a business attempting to buy the opulent Bin Ennakhil palace in Marrakesh, with Richard Kahn, Epstein's accountant, listed as authorized individual and Epstein as Southern Trust's president and sole beneficial owner. Between June 26 and July 9, 2019, Southern Trust instructed Schwab to wire about $12.7 million in euros for the purchase but then reversed the order. Schwab later sent $14.95 million to buy the same property, even though there were insufficient funds in the account pending the return of the original payment. Schwab flagged these payments in a suspicious activity report to the U.S. Treasury Department's Financial Crimes Enforcement Network on July 13, seven days after Epstein's arrest. The brokerage declined to comment on details of the accounts, citing federal regulations, privacy laws, and internal policies, stating that their risk team began investigating and within 60 days notified the client of their decision to close and terminate the relationship, referring the matter to federal law enforcement. The Bin Ennakhil palace, which means "amidst the palms," is an opulent property with gold-draped walls, a hammam steam spa, 60 marble fountains, an outdoor pool and jacuzzi, multiple gardens with hundreds of olive trees and more than 2,000 palms, spreading across 4.6 hectares. Marc Leon, the realtor in Marrakesh, defended his role, stating Epstein had been convicted of sex crimes in 2008 and served his sentence, and that there was nothing to prevent him from attempting to purchase property in Morocco. He noted that Epstein had first tried to buy the property in 2011 and negotiations continued over the years. While Epstein's deal fell through, the palace has since been sold to another buyer.