New Mexico Attorney General Raúl Torrez has filed a federal lawsuit seeking to prevent Jeffrey Epstein's longtime attorney and accountant from receiving up to $75 million in potential bequests from his estate, alleging that the two men helped finance and conceal his sex-trafficking operation. The lawsuit directly involves the Virgin Islands, where Epstein's estate remains under probate administration and the defendants continue to oversee its assets.
The 49-page complaint, filed October 21 in the U.S. District Court for the District of New Mexico, names attorney Darren K. Indyke, accountant Richard D. Kahn, Epstein's estate and the 1953 Trust established before his death. Mr. Indyke and Mr. Kahn serve as co-executors of the estate and administrators of the trust, placing them in control of assets that New Mexico is now seeking to preserve for potential compensation to survivors.
According to the complaint, Epstein designated $50 million for Mr. Indyke and $25 million for Mr. Kahn under the terms of the trust, provided sufficient funds remain available. The estate's reported value has declined from $577,672,654 when probate proceedings began in August 2019 to more than $107 million, according to an accounting covering the period through June 30, 2026.
The two potential bequests total $75 million, representing a substantial portion of the estate's remaining reported value. The complaint does not establish that either payment has been made, and New Mexico is asking the federal court to prohibit distributions while its claims are litigated.
Mr. Torrez alleges that the two men went beyond providing ordinary legal and accounting services to Epstein, participating in financial arrangements that supported his trafficking activities and helped conceal the abuse of girls and young women.
The complaint identifies Epstein's Zorro Ranch in Santa Fe County, New Mexico, as a major location where women and girls were allegedly recruited, transported, isolated and sexually abused. Prosecutors allege that Mr. Indyke and Mr. Kahn maintained financial accounts, managed corporate entities and authorized payments that enabled those activities over several years.
According to the lawsuit, Mr. Indyke received more than $16 million from Epstein and related entities between 2011 and 2019, while Mr. Kahn received more than $10 million during the same period. The state alleges that the financial benefits were connected to the men's participation in Epstein's operations, an allegation both defendants dispute.
The complaint further alleges that the men held or managed at least 140 bank accounts associated with Epstein and his companies as of 2005. It accuses them of arranging payments to women and girls, covering expenses associated with the abuse, and helping conceal the purpose of financial transactions. Mr. Indyke is also accused of structuring cash withdrawals below federal reporting thresholds, while Mr. Kahn allegedly handled payments for medical expenses and monitored spending by some of Epstein's victims.
Virgin Islands Companies Identified in Lawsuit
Several corporate entities linked to the Virgin Islands feature in the New Mexico complaint, including Cypress Inc., which held title to Zorro Ranch at the time of Epstein's death.
According to the filing, Cypress was incorporated in the Virgin Islands, with Epstein serving as president and director. Mr. Indyke held positions as vice president, secretary and director, while Mr. Kahn served as treasurer and director. The complaint states that Mr. Indyke handled the December 2011 transfer of Zorro Ranch to Cypress.
Another company, Zorro Management LLC, was registered in the Virgin Islands and maintained an account at Deutsche Bank on which Epstein and Mr. Indyke were authorized signatories, according to the complaint.
New Mexico also identifies Little Saint James LLC among the entities allegedly used in Epstein's broader financial operations. The state contends that companies associated with Epstein held property, maintained accounts and transferred money among themselves in ways that helped conceal the activities of what it describes as the Epstein Enterprise.
The estate itself remains subject to probate proceedings before the Superior Court of the Virgin Islands, where Mr. Indyke and Mr. Kahn have administered its assets since Epstein's death in August 2019.
The Consortium previously reported that the V.I. Department of Justice raised concerns about possible conflicts of interest involving the executors during its own litigation against Epstein's estate. In February 2020, the territorial government sought to protect its claims against the estate and questioned the executors' roles in companies associated with Epstein's operations.
New Mexico Seeks Damages and Restrictions on Estate Distributions
The new lawsuit brings claims under the federal Trafficking Victims Protection Act and the New Mexico Racketeering Act. It accuses the defendants of participating in a sex-trafficking venture, racketeering, conspiracy and unjust enrichment.
In addition to seeking a halt to estate distributions, the state wants the court to require the defendants to surrender financial benefits allegedly obtained through unlawful activities and award compensation, restitution and punitive damages to survivors. The complaint also seeks damages equal to three times the losses established under applicable state racketeering provisions, along with restrictions on certain future investments and business activities.
"Those who allegedly enabled this exploitation should not be allowed to profit from it while survivors continue to live with its consequences," Mr. Torrez said in announcing the lawsuit.
The attorney general said the litigation is intended to ensure that individuals who allegedly helped sustain Epstein's operations cannot benefit financially from the assets he left behind. The filing represents the first law enforcement action brought against Mr. Indyke and Mr. Kahn, according to the New Mexico Department of Justice.
The two men have strongly denied the allegations.
Their attorney, Daniel Weiner, said neither man participated in or witnessed Epstein's sexual abuse and that no woman had accused either of personally committing such acts. He also rejected the allegation that they knowingly facilitated trafficking, maintaining that they were unaware of Epstein's criminal conduct while providing professional services.
Mr. Weiner criticized New Mexico authorities for filing the lawsuit without first interviewing his clients, saying both men would have cooperated with investigators.
The defendants previously agreed to a settlement of up to $35 million in a separate class-action lawsuit brought by Epstein accusers, without admitting wrongdoing.
New Mexico's civil action follows the reopening of a criminal investigation into activities at Zorro Ranch earlier this year. That investigation remains ongoing.
