Sarah Ferguson called jailed Jeffrey Epstein for bankruptcy advice | UK | News

Newly released emails from the Ministry of Justice reveal that Sarah Ferguson turned to Jeffrey Epstein for help managing his £6m debt pile, while the convicted sex offender remains behind bars for soliciting prostitution from a minor.

The documents reveal the lengths Ferguson was willing to go to get himself out of trouble, from knocking on the doors of wealthy businessmen to considering selling his personal jewelery collection.

Ferguson found the experience “very demoralizing” and said he was “nearly exhausted from exhaustion.”

“Death is easier than this,” he seems to have said.

Ferguson was invited to comment through his representatives.

Duchess exposed to debt crisis

By 2009, Ferguson divorced Andrew Mountbatten-Windsor but retained the title of Duchess of York. The end of a lucrative Weight Watchers deal had left a significant gap in his finances and he was running out of options as his debts soared to £6m.

The emails make clear how Ferguson’s financial fragility made him an easy target for those who could offer a lifeline; No more so than with Epstein, who cast himself as his financial protector.

Epstein’s main point of contact for Ferguson was David Stern, a German national who operated out of London, whose business interests spread throughout China and who developed strong relationships with royal circles. Stern appears to refer to Epstein as “boss” in his emails.

Stern had apparently warned Epstein that Ferguson was heading “to the middle east”; here “he has a chance to be with people who will take advantage of him once again.”

The tone of the conversations between the two men about Ferguson was thoroughly derogatory. By September, Epstein apparently wrote, “it’s time to get serious, get real tough, be like a cheating girlfriend.”

“Treating her like the cheating girlfriend works,” came Stern’s obvious response.

Billionaire’s extraordinary offer

Ferguson appears to have had direct contact with Epstein on July 13, 2009, as he was nearing the end of his prison sentence in Palm Beach County, the BBC reported.

“Jeffrey, you are a true friend,” the email reads, before asking him for guidance on an extraordinary offer from Phones4You founder John Caudwell, who offers to clear his entire debt load.

“He has decided to give me £10 million, but in return he wants 50% of my net profits for life.”

Epstein apparently responds: “Make him put the agreement in writing.”

A spokesman for Caudwell confirmed he was “discussing a potential business transaction to help pay off his debt” but said he was completely unaware that Ferguson was simultaneously advising Epstein and had no relationship with him. Nothing was signed.

Epstein takes control

Back outside, Epstein immediately began claiming responsibility, telling Stern to identify all the creditors he had against Ferguson. “She’s a woman who has no idea about this [sic]” he wrote.

Stern’s frustration became clear the following month: “Fergie data collection remains slow and what it takes to obtain basic information is incredible.”

Ferguson sent Stern a long email signed “Sarah” explaining the various revenue streams in books and television and asking who was managing them.

“I need to employ a CEO or Manager who will put all my life in order. Warts and all the small, boring jobs like cleaning up my copyright statements from all my book deals. I’ve written 26 books. There should be an income from there,” the email apparently says.

“I know we don’t need to go bankrupt because revenues are high. [sic] and can be created. But I am one person and I am my accountant, my brand police manager, my personal assistant, my TV manager, etc. “I can’t be, it’s absolutely not possible,” he continues.

Stern conveyed this to Epstein in a brief note: “Don’t waste time reading what follows, just skim through the pages to get a taste of the confusion.”

Ferguson’s bill was clear. “I just talked to Jeffrey. I told him we’re working on everything. Wow, this is so depressing. I’m about to go crazy with exhaustion,” he apparently told Stern in September.

Strict financial controls recommended

Stern proposed appointing a general manager who would take responsibility for Ferguson’s business dealings. Under the deal, Ferguson would receive an annual salary of $200,000, but Epstein would have final authority over any purchases exceeding $1,000. A minimum 30% ownership stake would be required to make the whole thing “remotely valuable.”

According to the report, Stern also told Epstein that Ferguson asked him to meet someone he identified as a Russian billionaire named Vladimir; He couldn’t remember her last name.

“He thinks if you don’t he’ll finance everything himself.” This sentence implies that Epstein may be considering contributing money to Ferguson’s bailout.

Vladimir Zemtsov was later identified as the mysterious Russian. Stern apparently confirmed that he was “important, pragmatic and prudent by Russian standards” and added that he was prepared to step in financially if the “professional hired believes the revenue side of the firm outweighs the debt.” Nothing came of it.

Bankruptcy is coming

All three appear to have moved beyond discussion and into active preparations for bankruptcy proceedings. Stern sent a message to Epstein titled “F liabilities” — the single initial was the customary way of referring to Ferguson — and attached an affidavit of liability of the sort usually drawn up when someone is on the verge of declaring bankruptcy.

Stern returned to Epstein in October 2009 after spending time with Ferguson. “We met [redacted] with her daughters yesterday. As you guessed, he made statements such as ‘I surrendered, I am ready to die, death is easier than this’. My mission continues.”

Ferguson refused to let the chaos derail his money-making efforts and continued to maintain business ties with American retailer Target and cruise line Cunard.

While talks with Target showed some promise, Epstein poured cold water on potential customers, noting: “I see very little revenue for a long time.”

Ferguson apparently told Stern that Cunard had promised to pay him one million dollars a year in exchange for four cruises on its ships. When Stern checked, the cruise line’s president gave a completely different account of their meeting with the Duchess, saying he “enjoyed meeting” her but “there was no specific opportunity.”

Andrew steps in.

Word reached Stern in January that Andrew might have reached into his pocket. He wrote: “Just received this mail from Attorney Eric: I met PA [Prince Andrew]. “It puts 1 mm.”

April brought new problems when Ferguson found himself in court over a claim filed by Davenport Lyons, a case that received significant media coverage.

“F. is being sued, PA [Prince Andrew] accepted the payment. Strange things are happening. I feel like it might explode soon,” Stern apparently told Epstein in May 2010.

Stern could not have known that events would prove him so quickly. Ferguson was soon caught up in the News of the World operation and was apparently recorded on film offering to sell access to Andrew for £500,000.

The crisis was finally resolved

Ferguson never filed for bankruptcy.

It is not yet known whether Ferguson’s creditors have been paid in full. A former member of his personal team received about half the amount owed to him in 2011; The money apparently came indirectly from Andrew.

An email from PwC has revealed creditors were quietly approached with an “unofficial” offer of just 25p per pound.

A September 2010 deal for a six-episode series called Finding Sarah to air on Oprah Winfrey’s television network finally gave her finances a much-needed boost.

Vladimir Zemtsov and David Stern did not respond to requests for comment. Andrew has consistently denied any wrongdoing.