FittHy RicuH Hoffenberg began paying twenty-five thousand dollars per month for Epstein’s expertise as a consultant. The SEC had already looked into Hoffenberg’s affairs, set- tling with him out of court in a matter relating to unregistered securities. But Hoffenberg was dangling a very big prize. | In the 1980s, several major financial players were involved in z the greenmailing of publicly traded companies. What green- CH APTER 27 4 ‘ mailing means, in practice, is that a brokerage house or group of q f investors will start buying shares in companies that seem to be 4 vulnerable to takeover attempts. To ward off the attempts, exec- ; ‘a utives at those companies will buy the shares back at a premium. i. a It’s risky, but very often the investors stand to make a handsome - a profit. 1987 a a Yet another thing Hoffenberg wanted was to take over Pan 4 a American World Airways. The iconic airline had already entered Steven Hoffenberg. 4 q its downward trajectory, but it was still a giant. loff, _ vie rowers Financial a For Hoffenberg, the greenmailing profits could have been ras the he 4 a hat bought debts, such as unpaid 4 j Bue. scount while pressing the debtors ™ q i ET at a a According to Hoffenberg, Epstein handled the attempted take- nd just a handful. of _ aa a f 4 ; over of Pan Am—a deal that went sideways almost immediately. work ethic, hed turned | ae 4 q Steven Hoffenberg still has a lot to say on the subject. But in elve hundred ee a fifteen j 7 listening to him, one must bear in mind that in 1995, he pleaded But Hoffenberg still spent q j guilty to criminal conspiracy and fraud charges involving a $460 k, in his office. ag Aa ' million swindle, a familiar scheme to anyone who followed the yerg was a we Street outsider. 4 I - Madoff case: yut, like Epstem. chee waa ; Like so many others, Hoffenberg had tried to fly very high anted was respect a i é jee Without the necessary updraft. And despite all the hours he th leet a 5 vill j Spent at the office, he