Proceeds of mansion sale to go to legal bills
Ghislaine Maxwell’s husband’s $7 million oceanfront home
The real estate listing for the Tidewood, a five-bedroom, 6.5-bathroom house in Manchester-by-the-Sea, Massachusetts, boasts ocean views and Colonial roots.
But the home’s most notable feature doesn’t appear in the property description.
It was the one-time home of convicted sex trafficker Ghislaine Maxwell, who now lives 1,300 miles south in a federal prison in Tallahassee, Florida.
And proceeds from the sale of the house — currently listed for $6.95 million — could be earmarked for paying Maxwell’s legal bills.
That’s according to an agreement Maxwell’s husband, Scott Borgerson, reached with Maxwell’s long-term law firm, Haddon, Morgan and Foreman, in September.
The Denver firm is trying to collect more than $880,000 it says Maxwell owes for the firm’s work defending her in her New York sex trafficking trial last year.
Maxwell was ultimately convicted on five of six counts for recruiting and grooming girls to be sexually abused by Maxwell’s onetime boyfriend, Jeffrey Epstein. Prosecutors said Maxwell participated in the abuse herself on at least one occasion.
The firm initially sued Maxwell, Borgerson and Maxwell’s brother, Kevin.
Borgerson was dismissed from the suit, but a September agreement accidentally included in one of the firm’s filings shows that Borgerson agreed that if the firm was unable to collect the money owed from either Ghislaine or Kevin Maxwell, proceeds from the sale of the house would be used to repay the debt.
Borgerson agreed to provide testimony in the case if needed and “to not dispose of or transfer any money, securities, real or personal property, or other assets that are or were owned, in whole or part, by Ghislaine Maxwell, or any entity associated with her, including any assets acquired during your marriage to Ghislaine Maxwell, without written consent of (the law firm).”
The firm is still pursuing Ghislaine and Kevin Maxwell and has asked the court to grant judgments against them.
The inmate life, now
Ghislaine Maxwell now calls FCI Tallahassee, a low-security prison, home after she was sentenced to 20 years in prison in June.
Her current circumstances are a far cry from the life Maxwell once lived, cavorting with celebrities and royalty and shuffling between Epstein’s mansions in Palm Beach, Manhattan York and the Virgin Islands.
Maxwell married Borgerson in 2015, according to the complaint filed by the law firm, years after her relationship ended with Epstein.
Borgerson, according to the complaint, bought several highend properties using Maxwell’s money, including the Manchester-by-the-Sea home and a 156acre estate in New Hampshire where Maxwell was arrested in July 2020, roughly one year after Epstein had been arrested on sex charges.
At Maxwell’s trial, prosecutors showed that Epstein had made payments totaling more than $30 million to accounts connected to Maxwell in the late 1990s and early 2000s. Epstein also left Maxwell $10 million in his will, though Maxwell’s lawyers indicated at her sentencing in June that they didn’t expect she would ever see that money.
Epstein died in federal custody in August 2019 in what has been ruled a suicide and Maxwell was held in federal custody after her arrest in 2020, with much of her time spent in solitary confinement and closely monitored.
Another sentence: Paying lawyers
After Maxwell was taken into custody, her brother Kevin assumed responsibility for paying her legal bills.
The Denver law firm was initially hesitant to represent Ghislaine Maxwell in her criminal case over concerns about whether she would be able to pay, but ultimately reached an agreement with Kevin Maxwell.
Overall, the firm billed Ghislaine Maxwell nearly $2.2 million for its work on her criminal case and is owed more than $880,000 of that amount.
At Maxwell’s sentencing, her lawyers indicated that her finances were limited and would be further impacted by a pending divorce settlement with Borgerson.
As of his September agreement with the law firm, Borgerson appeared to still be married to Ghislaine Maxwell. Borgerson didn’t comment on the agreement, the status of his marriage or the house, but pointed to the notice of his dismissal in the case, which cited that he had “expressed cooperation, transparency, and honesty,” in his discussions with the law firm.
The Manchester-by-the-Sea
home was purchased in 2016 for $2.45 million in cash by a company Borgerson is the manager of called Tidewood LLC.
Tidewood, LLC took out a $2.15 million mortgage on the property in January from Saxon Spencer Capital.
The home, which boasts of original floorboards and fireplaces mixed with modern flourishes such as a Tesla charging station, was first listed in April with an asking price of $7.8 million, but the price was reduced in August to $6.95 million.
Crooked family
Kevin Maxwell is no stranger to financial controversy, having once filed what was then the biggest bankruptcy in the history of the United Kingdom.
As the Herald previously reported, Kevin and his brother Ian Maxwell were connected to several companies registered in the island of Jersey, largest of the Channel Islands between England and France, whose activities, experts said, bore the hallmarks of fraud.
After their father, Robert Maxwell’s, mysterious 1991 death, both Kevin and Ian were accused of having helped Robert Maxwell plunder the family’s media empire, which included the U.K. media company Mirror Group.
Kevin Maxwell declined to comment on the status of the suit or the repayment, saying in an e-mail, “I am not in the habit nor under any obligation to provide a running commentary on the private affairs of my sister (nor my own) to members of the press and nor will I.”
A lawyer who represents Ghislaine Maxwell, Leah Saffian, declined to comment. Haddon, Morgan and Foreman also declined to comment.
While Ghislaine Maxwell was not named in any of the offshore files connected to her brothers, she was denied bail, in part, because of concerns that she had not been truthful about her finances.
Epstein was accused of sexually abusing hundreds of girls, a number of whom said that Ghislaine Maxwell had recruited them and then normalized them to the idea of sexual activity.
Epstein was first investigated in Florida in 2005 over complaints that he had sexually abused numerous girls, but he struck a deal in 2008 with federal prosecutors in the Southern District of Florida that allowed him to plead guilty to two state counts of solicitation, one involving a minor, and forced him to serve only 13 months in a Palm Beach county jail where he was allowed to leave for several hours a day.
Epstein’s remarkably lenient plea deal was the subject of the Herald’s 2018 Perversion of Justice series.