Emails exchanged between Jeffrey Epstein and former Israeli Prime Minister Ehud Barak highlight concerns regarding Cyprus as a potential jurisdiction for corporate structuring. The correspondence, dated July 2017, discusses the expansion plans of the Israeli technology firm Reporty, particularly regarding the establishment of a European subsidiary.
Photo: in-cyprus.philenews.com
Criticism of Cyprus as a Corporate Base
In the emails, Epstein openly criticised the idea of using Cyprus for tax avoidance, describing the strategy as “silly, antiquated, and dangerous.” His comments indicate that he viewed Cyprus not as an appealing option for business, but rather as a potential risk to reputation and strategy.
Photo: in-cyprus.philenews.com
Barak Confirms Abandonment of Cyprus Plan
Barak confirmed in the same email thread that the idea of establishing a Cyprus-based entity was ultimately rejected. He communicated that he had instructed his associates to “stop all steps re the Cyprus co. and be ready to change for a real European jurisdiction.” While he did not disclose whether any formal actions had been taken towards setting up a Cyprus company, his remarks reflect a decisive shift away from the island as a corporate location.
Investor Concerns and Alternative Suggestions
The exchange also brought to light comments from investor Nicole Junkermann, who warned that Cyprus was “raising eyebrows” in the investment community. She proposed Luxembourg as a more favourable alternative for European operations. Junkermann’s insights underscored the importance of perception and investor confidence in determining corporate structure, rather than solely focusing on regulatory compliance.
No Indication of Business Activities in Cyprus
It is notable that the emails do not reference any specific Cypriot institutions, banks, law firms, or officials. Furthermore, there is no indication that Epstein or Barak were involved in any business activities in Cyprus as part of their discussions. Their correspondence solely centres around the strategic implications of choosing Cyprus as a jurisdiction.
Context of the Epstein Files Release
This exchange comes from a newly released batch of documents related to Epstein, disclosed by the US Department of Justice. On a recent Friday, the department made public over three million pages of materials connected to the Epstein case, illuminating various aspects of his controversial dealings and associations.
Epstein’s Troubling Legacy
Jeffrey Epstein was found dead in his New York jail cell in August 2019 while awaiting trial on federal sex-trafficking charges. Epstein had previously pleaded guilty in 2008 to procuring a minor for prostitution, a case that drew significant backlash due to the leniency of his sentence. Allegations against him included running a widespread sex-trafficking operation involving underage girls, as well as maintaining connections with prominent political, financial, and social figures.
Calls for Transparency
The Epstein case continues to generate controversy in the United States, with ongoing demands from lawmakers across party lines and advocates for victims calling for increased transparency regarding Epstein’s extensive network. This includes scrutiny of the extent to which others may have enabled his activities or failed to intervene.
Continued Public Interest
As more documents are released, public interest remains high, with revelations about Epstein’s past and connections making headlines. Recent disclosures have indicated that former President Donald Trump flew on Epstein’s private jet multiple times in the 1990s, sparking renewed discussions about the implications of his associations.
The discussions between Epstein and Barak regarding Cyprus serve as another piece of the puzzle in understanding the complex web of Epstein’s business and personal relationships. The rejection of Cyprus as a viable option for corporate structuring underscores the broader implications of choice in jurisdictions amidst concerns over reputation and investor perception.
