Jeffrey Epstein fund abruptly halts payouts to victims

February 4, 2021 Associated Press

In this July 2, 2020, file photo, Audrey Strauss, acting U.S. attorney for the Southern District of New York, points to a photo of Jeffrey Epstein and Ghislaine Maxwell during a news conference in New York. AP Photo/John Minchillo, File

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A fund set up to provide money to victims of financier Jeffrey Epstein has abruptly suspended payouts, saying Thursday that it has temporarily run out of money.

The announcement by the Epstein Victims’ Compensation Program came through a release that blamed the suspension on uncertainty about the liquidity of estate assets needed to finance payouts.

Payments will not resume before March 25, the deadline to file claims. The deadline to register for the program is Monday.

According to the release, the program’s 150 claims to date have far exceeded expectations. So far, $50 million in claims has been paid out.

Jordy Feldman, the fund’s administrator, said the suspension of payouts was necessary to protect those who have not yet resolved their claims.

“Issuing a compensation offer that cannot be timely and fully funded and paid, consistent with the way the Program has operated to date, would compromise claimants’ interests and the guiding principles of the Program,” Feldman said.

The fund, launched last June, provides an alternative to pursuing claims through the courts.

It was established after Epstein killed himself at a Manhattan federal jail in August 2019 while he awaited trial on sex trafficking charges.