Tower Financial Ponzi Scheme
The Tower Financial Ponzi Scheme was, at the time, the largest Ponzi Scheme in US history. It was carried out by Jeffrey Epstein and his partner Steven Hoffenberg, then the chairman of Tower Financial Corporation, a debt collection agency. Former Secretary of the Navy John Lehman helping Epstein and Hoffenberg with their bid to take over Pan-American Airlines in 1987.
Epstein and Hoffenberg acquired the parent company of two insurance firms, one called Associated Life Insurance and United Fire of Illinois. They siphoned funds from the insurance companies in a bid to take over Pan-American Airlines, but the scam fell apart because of the Lockerbie Scandal, with the bets they placed on Pan-American causing the siphoned money to be lost, causing the insurance companies to become insolvent. Steve Hoffenberg went to jail for eighteen years, but the Maxwells called in all their connection to prevent Epstein from facing any consequences, despite Epstein having been the brain of the operation. The cover run for Epstein was so bad, that by mid trial, they stopped using Epstein's name, and the court began referring to the perpetrators as "Hoffenberg and his co-conspirators, and others", so that Epstein's name would stop being brought up. The trial was in 1993, when the President of the United States was Bill Clinton, a frequent flyer on Epstein's Lolita Express, tallying up twenty-six logged flights on the child rape plane. Most of the financial losses as fallout were born by insurance companies and retirement homes. For more financial crimes that Jeffrey Epstein was central to, see: St. Joe Minerals Corp Insider Trading Scheme, Liquid Funding Ltd. One woman reported having lost her entire retirement, 107,000 dollars, a lot of money in the late 1980s.