Jeffrey Epstein’s private islands sold to billionaire investor for $60 million

Jeffrey Epstein's infamous Caribbean islands have been purchased by Stephen Deckoff, founder of private equity firm Black Diamond Capital Management, after more than a year on the market.

The two islands, which span the 70-plus-acre Little St. James and 160-plus-acre Great St. James islands, were sold to Deckoff for $60 million, less than half of their initial asking price of $125 million, reports Forbes.

On Wednesday, Deckoff claimed that he never met Epstein and never set foot on the islands until they were marketed following Epstein's 2019 death and that he plans to develop a 25-room luxury resort on the property

"I've been proud to call the US. Virgin Islands home for more than a decade and am tremendously pleased to be able to bring the area a world-class destination benefitting its natural grace and beauty," Deckoff tells Forbes. "I very much look forward to working with the US Virgin Islands to make this dream a reality."

Deckoff is in the process of recruiting architects and engineers to work on developing the resort, which he plans to open in about two years. however, already boasts a helipad, multiple pools and several guest villas.

Deckoff's plan is to construct a "state-of-the-art, five-star, world-class luxury 25-room resort" on the property, according to a press release Wednesday, to help boost tourism and economic development "while respecting and preserving the important environment of the islands."

Due to the scandals and legal issues surrounding Epstein, a dark shadow over the islands despite the natural beauty of their palm tree-dotted beaches and crystal clear water.

Purchased in 1998 for a reported $8 million, the disgraced financier lived in a large mansion in Little St. James and constructed several bizarre structures on the property, which has been dubbed "pedophile island" for its role in Epstein's sex trafficking ring.

Alleged victim Virginia Giuffre has claimed that Prince Andrew, Duke of York, raped her on Little St. James. Epstein bought the neighboring Great St. James, which is largely undeveloped, in 2016 for a reported $22.5 million.

In 2019, Epstein died in a Manhattan jail cellwhile facing federal charges for trafficking minors in Florida and New York. Ghislaine Maxwell, his associate, was found guilty of child sex trafficking in December 2021 for her role in helping Epstein procure underage girls and was sentenced to 20 years in prison.

According to Forbes, Epstein's estate agreed to pay $105 million to the US Virgin Islands, including the repayment of $80 million in tax benefits, after the territory's attorney general sued in 2020, claiming the Virgin Islands were duped into granting Epstein's company, Southern Trust Company, tax benefits that allowed Epstein to use his residence there to abuse girls and women.

Deckoff–who has a net worth of $3 billion, built a fortune in private equity, including Drexel Burnham Lambert, Bear Stearns and Kidder, Peabody & Co, before striking out on his own in 1995 with Black Diamond Capital.

Today, the Stamford, Connecticut-based company manages some $9 billion in assets and specializes in high-yield debt, distressed debt, restructuring and business turnarounds.

A native of New York City, Deckoff moved to the US Virgin Islands in 2011. He has donated more than $1.2 million to nonprofits there, mostly to private schools and nature preservation organizations.