NEWS: Bombshell Epstein Report Reveals Trump/CBS Cover-Up of Money Trail, Military Runs out of Munitions, DOJ Drops More Cases
Good morning everyone. I told you there would be major Epstein news today, and we have it: a new report from Senator Ron Wyden details how big banks failed to report Epstein’s suspicious transactions for decades, and how the Trump Administration and CBS are working to cover it up. Follow the money. That’s what we do today. Meanwhile, Todd Blanche is set to move forward in the confirmation process today, Epstein survivors are speaking out, Trump is seeking reparations for himself, and the U.S. military is quickly running out of munitions. I told you I would never stop talking about the Epstein files, and I meant it. More interviews are coming. I cannot stop until survivors get the justice they deserve. If you believe this reporting matters, subscribe today or upgrade your subscription. Your support helps me keep bringing these stories to millions of people and keeps the pressure on those in power. Here’s the news: Epstein: Follow the Money: A new bombshell report from Senator Ron Wyden reveals that JPMorgan Chase, Deutsche Bank, and Bank of America systematically failed to report Jeffrey Epstein’s suspicious transactions for nearly two decades despite knowing he was a convicted sex offender with ties to human trafficking and now, the Trump Administration is covering it up. JPMorgan filed just seven SARs totaling $4.3 million between 2002 and 2016, then retroactively flagged over 5,000 wire transfers worth $1.3 billion only after Epstein’s 2019 arrest, six years after the bank had already terminated him as a client in 2013 over money laundering concerns. Deutsche Bank, which took over as Epstein’s primary bank from 2013 until his death, similarly waited until after his arrest to flag $250 million in suspicious transfers, despite compliance staff catching his attorney Darren Indyke repeatedly asking how to withdraw cash without triggering government alerts. Bank of America waved through $170 million in wire transfers from billionaire Leon Black to Epstein for supposed “tax advice,” only flagging them as having “no apparent economic, business or lawful purpose” nearly eight months after Epstein’s arrest. Leon Black was overwhelmingly Epstein’s largest funding source, providing 90% of the roughly $184 million in revenue Epstein’s shell company Southern Trust reported between 2013 and 2017, and USVI’s settlement with Black explicitly states Epstein used that money to partly fund his sex trafficking operations there. Top JPMorgan executives, including Mary Erdoes (now the bank’s Asset and Wealth Management CEO) and Jes Staley (former investment bank CEO), maintained close personal contact with Epstein for years, with unsealed emails showing Staley telling Epstein “say hello to Snow White” and wanting to give him a “long heartfelt hug,” while a 2012 exchange between two executives joked about the “nymphettes” at Epstein’s house. Even after JPMorgan formally cut ties with Epstein in 2013, Erdoes personally approved continuing to work with him informally so he could keep serving as an intermediary to Leon Black, and banker John Duffy coached Epstein on withdrawing cash through his aviation account instead of personal accounts to avoid scrutiny. Despite these findings, virtually none of the bankers involved have faced consequences, Erdoes remains employed with total compensation exceeding $50 million this year, and most others named in the report still hold senior positions at JPMorgan or Bank of America. The report also reveals that Senator Wyden taped an interview about this investigation with then-60 Minutes correspondent Sharyn Alfonsi in March 2026, but CBS News leadership under Bari Weiss fired Alfonsi shortly afterward and the segment has not aired. Treasury Secretary Scott Bessent has refused three separate requests to turn over the Treasury’s Epstein files to the Senate Finance Committee, even though the same records were reportedly given to the Republican-led House Oversight Committee, and Senate Republicans, including Finance Chair Mike Crapo, blocked Wyden’s bill (PETRA) that would have forced their release. Wyden’s report calls for DOJ and Treasury investigations into all three banks and named executives, criminal probes into Epstein aides Darren Indyke, Richard Kahn and Harry Beller (who control his $100 million estate and remain unquestioned by DOJ), and new legislation requiring annual compliance attestations from banks serving ultra-wealthy clients, harsher penalties for bankers who fail to report suspicious activity, and mandatory disclosure when banks quietly offboard high-risk clients. Total settlements paid out by the banks and Epstein’s estate related to his crimes now exceed $900 million, but Wyden notes this figure is likely understated given evidence of dozens or possibly hundreds of additional secret NDA settlements between victims and wealthy Epstein associates that have never been made public. Todd Blanche/Department of Justice: Acting Attorney General Todd Blanche is poised to advance toward Senate confirmation after rescinding the order that created Trump’s $1.776 billion “anti-weaponization” fund on Sunday, a move that won over holdout Senators John Cornyn and Thom Tillis. The senators said they secured a “legally enforceable document” ending the fund and limiting audit protections, and pledged to vote his nomination out of committee. However, Blanche’s rescission only killed the May order implementing the fund, not the underlying settlement provision requiring its creation, and the settlement itself can only be modified with written agreement from Trump, his sons, and the Trump Organization, none of whom signed Sunday’s order. Blanche also clarified that Trump’s audit protections apply only retroactively and only to the named plaintiffs, narrower than the original agreement’s language covering any “related or affiliated” individuals or companies, though Trump had complicated talks Saturday by threatening to revive the fund if Blanche wasn’t confirmed. The Senate Judiciary Committee has scheduled a vote for Tuesday. Epstein survivors release powerful statement ahead of Todd Blanche's confirmation vote today. Senator Tillis and Cornyn refused to sit down and meet with them. "The message was unmistakeable: they wanted us to go away. We are not going away." Beyond dropping the felony case against former Olympian David Hearn, prosecutors in Jeanine Pirro’s office also moved to dismiss misdemeanor charges against three other people accused of damaging the Lincoln Memorial Reflecting Pool: Justin Carreno, Sophie Dennison-Gibby, and Cameron Thiers. Prosecutors said new evidence, including internal Interior Department documents, showed the damage came from a botched contractor installation rushed ahead of America 250 events, not vandalism, though Trump and Interior Secretary Doug Burgum have insisted the damage was caused by vandals. Attorneys for the defendants described the ordeal as a “nightmare,” with one client fired from his government contracting job and forced to move after his arrest, and said they’re considering legal action against the government, calling the case a fabricated crime and “the epitome of the politicization of the criminal justice system.” Trump has publicly criticized Pirro for dropping the cases, saying she “choked,” even as she was seen visiting the White House hours after his comments. While defending his administration’s now-dead $1.8 billion anti-weaponization fund, Trump told reporters he is personally deserving of “reparations,” calling Obama and Biden’s presidencies “corrupt” for what he described as unfair treatment. The fund grew out of Trump’s settlement of his own $10 billion lawsuit against the IRS over leaked tax returns showing his family evaded up to $500 million in taxes, a settlement a federal judge called “self-dealing” last month since Trump, as head of the executive branch, effectively settled a case against himself; Acting AG Todd Blanche confirmed Sunday the fund is dead after Republican senators threatened to sink his confirmation over it. On a private call with faith leaders last week, as his confirmation hung by a thread, acting Attorney General Todd Blanche told anti-abortion supporters the Justice Department was working with federal health agencies and the White House “so that the Dobbs decision becomes permanent in every single state,” vowing “victory will be soon, and it will be permanent.” He suggested specific action was coming on telehealth prescriptions and mail delivery of abortion pills, saying the administration is “putting practices and policies in place” to stop shipments to states where the procedure is banned, remarks that go well beyond what he told the Senate Judiciary Committee at his July confirmation hearing and directly conflict with Trump’s 2024 campaign pledge to keep the federal government out of the issue. Blanche didn’t specify whether he’d use FDA safety regulations or the long-dormant 1873 Comstock Act, a distinction that matters because Comstock could be used to block mail delivery of both abortion pills nationwide, while the Biden DOJ’s 2022 legal opinion protecting doctors who mail the pills is now under “thorough review” by Trump’s Justice Department. Iran war: According to Reuters, The U.S. military has used up “virtually all” of its ATACMS and Precision Strike Missiles during the five-month Iran war, according to three sources familiar with the data, along with roughly half its global Tomahawk cruise missile supply, raising concerns about American readiness for future conflicts with adversaries like Russia or China. CENTCOM has nearly exhausted the land-based missiles it had before the war began but has been able to reload from stockpiles elsewhere in the military, according to a fourth source, and officials say the drawdown reflects a decision to rely on these precision weapons rather than riskier piloted airstrikes. Defensive stockpiles have also been hit hard, with a CSIS report estimating about 65% of Patriot interceptors and at least 38% of THAAD interceptors expended since February, figures two sources say match internal U.S. data, and military leaders have reportedly warned Trump for weeks that dwindling supplies factored into his decision not to launch another major offensive inside Iran, though a U.S. official disputed that account and attributed the pause to pressure from Gulf states. The White House pushed back, with Trump saying the U.S. has “far more munitions than anyone in the world” and touting record production, while Pentagon spokesperson Sean Parnell said the military “has everything it needs.” Raytheon has reached a tentative multi-year deal with the Pentagon to boost Tomahawk production as the war, still unauthorized by Congress, continues without a declaration of war or AUMF. Trump said that Iran has a “last chance” to strike a deal on the Strait of Hormuz, warning that if an agreement isn’t reached “today or tomorrow,” the U.S. could launch major airstrikes. He wants Iran to quickly reach terms with Oman restoring shipping through the waterway but rejected any deal letting Tehran charge transit fees, saying flatly “there’s not going to be charging.” The comments come as talks appear stalled, with Iranian officials insisting Tehran has the right to regulate maritime traffic and an adviser to Iran’s supreme leader warning U.S. warships and bases face “serious danger” unless Washington lifts its blockade of Iranian ports. Bloomberg reports little sign of progress in the Oman-mediated negotiations despite Trump’s latest ultimatum. Trump accused ExxonMobil and Chevron of “making too much money” from the energy market disruption caused by his war on Iran, saying at the White House Monday that the companies should “give some of that back to the public” and cut consumer prices. The comments came after both companies reported massive quarterly profits: Chevron posted a record $12.2 billion, a fivefold jump from last year, while ExxonMobil reported $14.5 billion, double the prior year and its highest since Russia’s 2022 invasion of Ukraine, with U.S. oil companies making more than $26 billion combined in the quarter. Trump spoke just hours before BP reported its own profits had doubled to $5.7 billion, and BP’s CEO responded to his criticism by noting the company sells “a global commodity” whose price is set by the broader market. Climate campaigners also blasted the earnings as “obscene,” and Trump’s complaints follow weeks of pressure on retailers to lower gas prices and a DOJ investigation he ordered into potential price gouging, even as U.S. gas still averages $4.11 a gallon despite oil prices falling well off their post-war peak of $126 a barrel. Other news: A 37-year-old Spokane resident with a prior manslaughter conviction, Aaron Farinacci, was arrested Monday in connection with the largest of three wildfires burning in the region, taken into custody by a SWAT team after a judge signed a warrant on a first-degree arson allegation. Authorities say a witness saw a man matching his description near the Old Trails Fire acting suspiciously shortly before it started Saturday morning, and deputies detained and questioned Farinacci that same day about a half-mile from the origin point, finding waterproof matches and a butane lighter on him before releasing him. Detectives later linked him to the fire and determined its origin matched exactly where witnesses saw him kneeling in the grass; prosecutors say he had previously been questioned over “arson-related behavior” but never charged, and has a 2012 manslaughter conviction from Arizona. The Old Trails Fire, at 3,619 acres, is the largest of the three Spokane-area blazes that have destroyed roughly 700 structures and forced 67,000 evacuations, with no evidence so far tying Farinacci to the other two fires; he’s due in court Tuesday. Twenty-five states sued the Trump administration Monday over its latest tariffs, arguing they’re a pretext for replacing the import taxes the Supreme Court struck down in February. The U.S. last month imposed double-digit tariffs, ranging from 10% to 12.5%, on 59 countries and the EU under Section 301 of the Trade Act of 1974, citing failures to crack down on forced-labor imports, after Trump’s earlier IEEPA-based tariffs were ruled illegal and his subsequent temporary 10% worldwide tariffs expired July 24. New York Attorney General Letitia James, leading the coalition of Democratic-led states, said the administration is “once again trying to illegally raise taxes on families and businesses” after its Supreme Court loss, while the White House defended the move as lawful, noting Section 301 tariffs survived court challenges when Trump used them against China in his first term. Edwin Lopez-Cornejo, a 41-year-old man from El Salvador, died Saturday at Delaney Hall, an immigration jail in Newark, New Jersey, where he’d been held since his arrest on June 18, ICE said. His official cause of death is pending further medical examination, and ICE maintains he “received proper medical care and was seen by medical professionals” while in custody, though Democratic officials including Sen. Cory Booker are questioning whether the death was preventable and renewing calls to close the facility, which has faced months of protests over conditions. It’s the second death at Delaney Hall since Trump’s second term began, after a December death ruled natural by a medical examiner, and one of at least 56 deaths in ICE custody nationwide during this term, with detainees at the facility previously staging a hunger strike over complaints of denied medication. New Jersey Gov. Mikie Sherrill said her administration is still working to understand the circumstances but says it continues to face obstruction in trying to conduct a full health inspection of the facility, which is run by private contractor Geo Group. A drone struck a crowded beach in the Russian resort town of Gelendzhik on Monday, killing seven people, including three children, and injuring 58 others, according to Russian officials. Moscow accused Ukraine of deliberately targeting civilians, calling it a war crime, and launched a barrage of retaliatory strikes, while Ukrainian officials didn’t confirm responsibility but didn’t deny it either, with a Ukrainian security official arguing Russian air defenses shot the drone down onto the beachgoers and blaming Putin, saying “it was Putin who killed these Russians” for starting the war. The strike comes amid an intensifying Ukrainian campaign to push attacks closer to Moscow, targeting shipping vessels, oil sites, and ammunition depots, as Russia has also killed at least 377 Ukrainians in July alone, the deadliest month since April 2022, with fresh strikes early Tuesday killing two children and an elderly woman in Sumy and two more people in Zaporizhzhia. Shipping has increasingly been caught in the crossfire too, prompting Turkey to call for enhanced navigational safety Tuesday after a Turkish-owned vessel was hit, following similar complaints from India last month over attacks that killed its nationals. Ukraine and Russia are locked in a battle to destroy each other's energy infrastructure, a fight Ukrainian Energy Minister Denys Shmyhal told POLITICO will define any future peace talks, describing it as "the 12th round" where each side hopes the other collapses first. Ukraine's long-range strikes have knocked out about 40% of Russia's primary oil refining capacity, and Kyiv hopes that pressure, combined with allied sanctions, will force Putin to end the war this fall, though Ukraine is bracing for another brutal winter campaign if talks fail, this time targeting water supplies rather than just electricity and heating. To survive the winter, Ukraine needs PAC-3 interceptors for its Patriot systems, but U.S. stocks are low due to the Iran war, pushing Kyiv and allies to lobby countries like Spain and Greece to donate theirs, while Ukraine is also racing to build protective infrastructure covers and distribute smaller, harder-to-target modular generators. See you soon. — Aaron
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