Unions Demand SEC Probe into Apollo's Undisclosed Epstein Meetings

WASHINGTON—Leaders from the American Federation of Teachers (AFT) and the American Association of University Professors (AAUP) have formally requested an investigation by the Securities and Exchange Commission (SEC) into alleged discrepancies in regulatory filings by Apollo Global Management. The filings, which detail the firm's connections with Jeffrey Epstein, have come under scrutiny following revelations from the Epstein files.

These files disclose multiple interactions over the years between Epstein, Apollo CEO Marc Rowan, and former CEO Leon Black, including private discussions on tax-related issues for their family offices. Notably, documents suggest that Black's secretary solicited co-founder Joshua Harris to direct a $2.4 million payment to Epstein in 2014.

Despite these revelations, a 2021 SEC 8-K document and a subsequent legal review downplayed Epstein's connections to Apollo, acknowledging only minor imprecision in Black's 2019 statements regarding Epstein's services.

In their communication to the SEC, AFT President Randi Weingarten and AAUP President Todd Wolfson contend that these statements are "at the very least, misleading" and imply awareness among Apollo's leaders about their misleading nature. They emphasize the troubling nature of Apollo's lack of transparency concerning Epstein's involvement with the firm.

Previously, when Epstein's ties to Apollo were initially questioned, investors expressed concerns about the financial risks associated with continuing investments in the firm. The AFT and AAUP, representing substantial investments through pension funds, argue that these risks are heightened with the latest document disclosures.

The AFT's pension funds have a capital commitment of at least $27.5 billion with Apollo, with an additional 700 members employed at Apollo's Lifepoint Health facilities. These investments potentially expose members to Apollo-related pension risks, extending beyond private equity or debt funds to public equity allocations. University endowments are also notably affected.

Around 420,000 AFT and AAUP members could be impacted by Marc Rowan’s recent "Compact for Academic Excellence in Higher Education," which ties federal research funding to institutional pledges of loyalty to the Trump administration.

The released Epstein files, detailing interactions involving Rowan, Black, and Apollo, reveal several meetings, including:

• A meeting on Sept. 3, 2013, at Apollo’s offices between Rowan and Epstein.
• A follow-up meeting on Sept. 8, 2013.
• A breakfast meeting with Rowan, Black, and Epstein on Oct. 22, 2013.
• In January 2014, Black directed Rowan to consult Epstein about donor advised funds.
• On Jan. 6, 2016, Rowan had breakfast with Epstein.
• Rowan visited Epstein at his New York City mansion on Jan. 14, 2016, to discuss various matters.
• In January 2016, Epstein inquired about a plane Rowan was selling.
• Epstein discussed financing an Apollo inversion with Rowan in February 2016, facilitated by Edmond de Rothschild.
• Rowan sought advice from Epstein on tax receivable agreements on March 4, 2016.
• In March 2016, Epstein introduced Nicholas Ribis to Rowan. Ribis attempted to secure a role in the bankruptcy proceedings of Caesars Entertainment Inc.
• On September 2016, Apollo’s Brad Wechsler instructed staff to include Epstein in discussions on tax matters for the founders.

The full letter can be read here.