Electric vehicle startup Lucid Motors was scrambling to raise a Series D funding round in 2017. It had courted Ford as a potential investor, but Jia Yueting, the founder of rival EV startup Faraday Future, had quietly amassed around a 30% stake and was essentially blocking new investors.<\/p>\n
David Stern, a mysterious businessman and close advisor to former Prince Andrew, saw an opportunity to break the logjam: bring in Jeffrey Epstein.<\/p>\n
\u201cFord will likely be lead in $400m Series D in Lucid. Big strategic move,\u201d Stern wrote to Epstein in emails released last week as part of the Department of Justice\u2019s latest disclosure of 3 million documents related to Epstein. Jia \u201chas massive cash issues\u201d at Faraday, he wrote, and needs to \u201csell now to make payroll for his other business.\u201d<\/p>\n
It wasn\u2019t the first EV startup Stern pitched Epstein, and it wouldn\u2019t be the last, according to hundreds of documents reviewed by TechCrunch.<\/p>\n
At the time, legacy automakers and newly minted startups, fueled by the breakthrough success of Tesla and progress by Google\u2019s self-driving project, were jumping into electric and autonomous vehicles. And Stern was apparently hungry to take advantage of the resulting deal flow. The documents show he also pitched investments in Faraday Future and in another EV startup, Canoo.<\/p>\n
It\u2019s unlikely Epstein invested in any of them. Lucid didn\u2019t close its Series D until late 2018, when it raised more than $1 billion from Saudi Arabia\u2019s sovereign wealth fund. Faraday ultimately received a major investment from Chinese real estate conglomerate Evergrande in late 2017. Epstein said in a 2018 message included in the Justice Department\u2019s files that he had no \u201cdirect\u201d or \u201cindirect\u201d interest in Canoo.<\/p>\n
These discussions instead provide greater insight into the many connections Epstein, a convicted sex offender, had to Silicon Valley startups up until his arrest and death in 2019. They also provide a snapshot of a relationship that has not been explored in previous reporting.<\/p>\n
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By the time of the Lucid emails, Epstein and Stern had been working together closely for nearly a decade, the newly released documents show. To Epstein, Stern was \u201cmy china contact.\u201d To Stern, Epstein was \u201cmy mentor, and I do what he tells me.\u201d<\/p>\n
A \u2018ghost\u2019 of a businessman<\/p>\n
Prince Andrew, Duke of York (left) at the opening of Pitch@Palace 6.0. David Stern is sitting next to Queen Elizabeth II. Image Credits:John Stillwell \u2013 WPA Pool \/ Getty Images<\/p>\n
Stern is a mostly digital ghost with little information available about him on the internet prior to the release of the files.<\/p>\n
He is perhaps best known as the director of Prince Andrew\u2019s Pitch@Palace startup contest, which ran for a few years until Andrew\u2019s connections to Epstein were exposed. Andrew even referred to Stern as a \u201cghost\u201d in one 2010 email.<\/p>\n
Stern appears to have first approached Epstein in 2008, according to the emails released by the DOJ \u2014 just one month before the financier pled guilty to soliciting a minor for prostitution in Florida. Stern was creating a fund, called AGC Capital, to take advantage of the economic boom in China, and he wanted Epstein to invest.<\/p>\n
It\u2019s not clear how Stern was introduced to Epstein. Stern did not respond to a detailed list of questions for this article.<\/p>\n
Stern, who is German, attended the University of London and Shi-Da University in China in the late 1990s, and served as chairman of China Millennium Capital, the Chinese arm of Millennium Capital Partners, according to the bio section of the AGC Capital pitch deck, which is in the DOJ\u2019s files.<\/p>\n
Stern also worked for Siemens, negotiating \u201cindustrial Joint Ventures with Chinese State Owned enterprises,\u201d before joining the Shanghai office of Deutsche Bank. He started a company called Asia Gateway in 2001 that \u201cadvised blue chip companies, Chinese enterprises as well as the Chinese government in growth strategies and investments.\u201d<\/p>\n
These jobs appear to have helped Stern make connections with powerful and wealthy Chinese businessmen, including Li Botan \u2014 the son-in-law of the fourth-most senior leader in China under Xi Jinping\u2019s predecessor Hu Jintao. (Li would eventually go on to become a founding investor in Canoo with Stern.)<\/p>\n
It\u2019s not clear if Epstein invested in AGC Capital; the financier spent the next year serving his sentence. But Stern and Epstein remained in touch, and in 2009 Stern started pitching other ideas.<\/p>\n
The documents reveal a relationship that starts off formal and terse, with Epstein at one point excoriating Stern for not having properly prepared a potential business deal.<\/p>\n
\u201c[I]f you want to do real deals you have to be precise and careful\u201e every error is a fortune,\u201d Epstein wrote. \u201c[Y]our first grade is an F.\u201d<\/p>\n
David Stern with Duchess of York, Sarah Ferguson, and former Prince Andrew. Image Credits:Department of Justice (screenshot)<\/p>\n
One of the first big projects the two men collaborated on was helping the Duchess of York, Sarah Ferguson, with her miserable finances, according to the emails.<\/p>\n
The relationship deepened over the following decade. The two men got close enough that Stern felt comfortable asking Epstein in 2016 to become the godfather of one of his children. (Epstein wrote that he was \u201cflattered\u201d but declined because he \u201cmade a promise to my goddaughter that I would not be godfather to anyone else.\u201d)<\/p>\n
It\u2019s hard to say how fruitful the relationship was on the business side. But between 2009 and 2019, Stern brought Epstein a number of potential deals across various industries.<\/p>\n
Early on, he seemed dead set on starting a \u201csecret\u201d new fund with Epstein to invest in Chinese businesses together, which he referred to as JEDS \u2014 the two men\u2019s initials combined. (It was also referred to in some emails as \u201cSerpentine Group.\u201d) Stern later pitched buying farmland in Russia, suggested purchasing the news organization Al Jazeera and taking it public, discussed buying troubled music publisher EMI, and considered acquiring an apparently distressed (and unnamed) undersea cable company.<\/p>\n
They also had their eyes on banks. Stern and Epstein attempted to buy Luxembourg-headquartered private bank Sal. Oppenheim, the emails show. In 2016, they even discussed a buyout of Deutsche Bank, which had for years transacted with Epstein.<\/p>\n
Stern repeatedly flaunted his connections with high-profile businessmen and politicians in his emails to Epstein and his other contacts. In February 2012, Stern suggested Epstein introduce Jes Staley \u2014 the head of J.P. Morgan\u2019s investment bank at the time \u2014 to Malaysian politician Anwar Ibrahim.<\/p>\n
\u201cI know Anwar well,\u201d Stern wrote. \u201cIf he becomes prime minister of malayisa [Staley] will clean up and it could be a gold mine for JPM.\u201d (Ibrahim lost a contested election in 2013 but became prime minister in 2022.)<\/p>\n
Stern also claimed to have had dinner with Jack Ma, had a planned meeting \u201calone\u201d with UAE president Mohamed bin Zayed Al Nahyan, and said he was \u201cfriends\u201d with the grandson of former Chinese president Jiang Zemin.<\/p>\n
Going electric<\/p>\n
By 2017, Stern was apparently eyeing the rush to build new mobility companies.<\/p>\n
He tried to get Epstein to meet Faraday Future founder Jia to discuss an investment. It\u2019s not clear if that ever happened; the company and Jia did not respond to requests for comment.<\/p>\n
But former BMW and Deutsche Bank CFO Stefan Krause, who had been brought in to save Faraday Future, made a direct appeal to Epstein in April 2017.<\/p>\n
\u201cFaraday Future (FF) is a great story in itself, regretfully surrounded by a lot of noise around Jia Yueting (YT) and his other enterprises (LeEco, LeMall, LeSports, to name a few). These businesses are not working, so he run out of cash. FF is starving,\u201d Krause wrote to Epstein. \u201cGreat chance to build a better Tesla.\u201d<\/p>\n
(Krause is described as a \u201cfriend\u201d and a business partner of Stern\u2019s in the documents. He didn\u2019t respond to a request for comment.)<\/p>\n
It appears those conversations petered out. Soon after, Stern suggested the Lucid Motors investment.<\/p>\n
In May 2017, a pitch deck landed in Epstein\u2019s inbox. It was put together by a fund called Monstera that Stern had created. \u201cMonstera can gain a 32% shareholding in Lucid through the acquisition of the stake currently controlled by Yueting Jia,\u201d one slide reads. Other emails show that Stern expected to spend around $300 million to acquire the 32% stake.<\/p>\n
He referred to it as a \u201cfire sale\u201d in emails. Monstera could either hold the position or \u201c[o]ffload\u201d it \u201cwhen Ford comes in.\u201d<\/p>\n
Ford ultimately pulled out, and Lucid had to wait to close its Series D until August 2018, when Saudi Arabia\u2019s Public Investment Fund invested more than $1 billion. (SEC filings show the Saudi sovereign wealth fund repurchased Jia\u2019s shares over the next few years. Lucid did not respond to a request for comment.)<\/p>\n
When Krause left Faraday Future to start a new EV company in late 2017 \u2014 first called Evelozcity and later, Canoo \u2014 Stern was one of the original backers. He contributed just $1 million alongside larger sums from Li, the CCP-connected Chinese businessman, and Michael Chiang, a billionaire who runs Taiwanese electronics giant TPK. (Li\u2019s involvement later triggered a national security review when Canoo went public in 2020.)<\/p>\n
In June 2018, Stern sent Epstein a document about the startup, to which Epstein responded: \u201cfun.\u201d<\/p>\n
But Epstein never invested in Canoo, either. He did, however, pitch powerful people on Stern\u2019s behalf. Epstein emailed Deepak Chopra in May 2018 and told the self-help guru that \u201cdavid has a new electric car co in los angeles.\u201d He told Chopra \u201cthey are going to build the next gen health sensors into the car. you guys should talk.\u201d<\/p>\n
In June 2019, Epstein sent a message to Eduardo Teodorani, an Italian businessman who is a senior vice president of agriculture machinery giant CNH. \u201cMy friend David stern\u2026 has a electric car co that I think you should explore before he sells it to another co,\u201d Epstein wrote. Epstein also connected Stern with Sheikh Jabor al Thani, a member of the Qatari royal family, on June 29 so he could \u201chear more about your car co.\u201d<\/p>\n
One week after he sent that message, Epstein was arrested. He died in prison a month later.<\/p>\n
It\u2019s not clear when Stern last spoke to Epstein. But in March 2019, he forwarded a story to Epstein titled: \u201cWarren Buffet: Electric Cars Are Very Much in America\u2019s Future.\u201d In the body of the email, Stern wrote: \u201cHow do we get him ??\u201d<\/p>\n
Source: RhinoEasy News<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Electric vehicle startup Lucid Motors was scrambling to raise a Series D funding round in 2017. It had courted Ford<\/p>\n","protected":false},"author":1,"featured_media":1120,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[6],"tags":[],"class_list":["post-1121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech"],"_links":{"self":[{"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=\/wp\/v2\/posts\/1121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1121"}],"version-history":[{"count":0,"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=\/wp\/v2\/posts\/1121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=\/wp\/v2\/media\/1120"}],"wp:attachment":[{"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhinoeasy.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}