Teachers’ Unions Call for SEC Investigation into Apollo Executives’ Connections with Epstein

AFT President Randi Weingarten and American Association of University Professors President Todd Wolfson have jointly sent a letter urging the Securities and Exchange Commission (SEC) to launch an examination into potential inaccuracies in official paperwork submitted by Apollo Global Management. The concern arises from recent disclosures in the Epstein files, which shed light on several undisclosed interactions between convicted sex offender Jeffrey Epstein and top Apollo executives.

The Epstein files brought to light multiple undisclosed encounters over several years between Epstein, Apollo CEO Marc Rowan, former CEO Leon Black, and other key figures at the firm. These meetings encompassed discussions on various matters, including private tax affairs concerning the founders’ family offices. Moreover, the documents suggest that Black’s secretary sought assistance from another Apollo co-founder, Joshua Harris, to facilitate a significant financial transaction involving Epstein in 2014.

Despite the revelations presented in the Epstein files, Apollo’s official filings with the SEC in 2021 and subsequent legal review downplayed Epstein’s connections to the firm. While Black acknowledged in 2019 that he did not endorse Epstein’s services to other executives, the disclosures from the files challenge the accuracy of these statements. Weingarten and Wolfson expressed concerns over the misleading nature of Apollo’s representations, suggesting that the firm’s partners were likely aware of the inaccuracies.

The heightened scrutiny stems from the potential financial risk associated with continued investments in Apollo following the exposure of additional contacts between the firm’s leadership and Epstein. The AFT and AAUP, with a combined membership of 1.8 million, emphasized the increased risk faced by investors, particularly pension funds linked to Apollo. Approximately 700 AFT members are employed at Lifepoint Health facilities, a subsidiary of Apollo, further underscoring the unions’ financial entanglement with the private equity giant.

Additionally, concerns were raised over the implications of Rowan’s conditional loyalty oath tied to federal research funding in higher education institutions. The unions highlighted the interconnection between their members and Apollo’s financial dealings, emphasizing the potential impact on university endowments and public equity investments influenced by Apollo’s activities.

The correspondence sent to the SEC listed various interactions detailed in the Epstein files involving Rowan, Black, and other Apollo executives. These encounters, spanning several years, reflect a close personal and professional relationship between Epstein and key figures at the firm. The disclosures underscore the need for a comprehensive investigation to determine the extent of Epstein’s influence on Apollo and its partners.

In light of these revelations, the AFT and AAUP emphasized the imperative for transparency and accountability in Apollo’s disclosures. The unions reiterated their commitment to safeguarding the financial interests of their members and emphasized the need for robust oversight to ensure ethical conduct within the private equity industry. The full extent of Epstein’s involvement with Apollo remains a subject of ongoing scrutiny, prompting calls for a thorough examination by regulatory authorities.