Brussels orders probe of Mandelson’s Epstein ties while EU trade rep

BRUSSELS (AP) — The European Union has ordered its anti-fraud office to investigate Peter Mandelson, the disgraced former British ambassador to the United States, over his ties to convicted sex offender Jeffrey Epstein while serving as Brussels’ trade representative.

“Given the circumstances, and the significant amount of documents made available publicly, the European Commission also asked OLAF on 18 February to look into the matter,” a commission spokesperson who was not authorized to be publicly named said late Thursday.

The European Anti-Fraud Office, known by its French acronym OLAF, is the EU’s watchdog agency that has tackled migration authorities and lawmakers for financial fraud and rights violations, among other violations. Its office did not confirm the investigation.

An influential British figure, Mandelson is under investigation for alleged misconduct in public office linked to his relationship with Epstein.

Mandelson’s ties to Epstein have threatened the leadership of Prime Minister Keir Starmer, who appointed the veteran statesman to the diplomatic post despite warnings about his friendship with the disgraced financier.

Mandelson has been a major player for decades in the center-left Labour Party, known as a skilled political operative dubbed the “Prince of Darkness” for his cunning and ruthlessness.

He helped the party return to power in 1997 as “New Labour” under Prime Minister Tony Blair and served in senior positions until 2001. He served again, under Prime Minister Gordon Brown, from 2008 to 2010. In between those high-level positions in London, he was in Brussels, serving as the EU’s trade commissioner from November 2004 to October 2008 back before Brexit wrenched the U.K out of the bloc.

Mixing professional and private

Mandelson was in contact with Epstein and Ghislaine Maxwell before, during and after that time in Brussels, according to documents analyzed by the AP.

“I love disgusting. That’s why I am wild and dangerous, and twice shy…” Mandelson wrote to Maxwell in a 2002 email.

“Pete I have warned you about that before” said Maxwell in reply. “Behave or you will be punished like the bad boy you are.”

In 2003, he messaged Maxwell about family travel arrangements using the title “Member of Parliament for Hartlepool, House of Commons.”

Payment records suggest Epstein gave Mandelson or his husband, Reinaldo Avila da Silva, $75,000 in 2003 and 2004. Mandelson said he had no recollection of receiving that money, questioned the authenticity of bank statements and believed the allegations were false.

Just after returning to London from Brussels, on Oct. 7, 2008, Epstein counseled Mandelson on how to frame the 2008 financial crisis as an opportunity.

Epstein offered to host Mandelson in a New York apartment in 2009, about five months before the two discussed by email manipulating then-British premier Gordon Brown to step down.

Possible privileged information shared

Mandelson appears to have sent Epstein, whom he referred to as his “best pal,” sensitive government information that could potentially influence markets when he was a senior minister in the British government in 2009 just after leaving the helm of the EU’s trade negotiations. The EU probe could be focused on Mandelson’s sharing of similar privileged information with Epstein.

Mandelson seems to have tipped Epstein in 2010 about the EU’s colossal half-trillion-euro bailout package to save the euro after the 2008 financial crisis. He wrote to Epstein that “sources tell me 500 b euro bailout” and should be “announced tonight” on May 9, 2010 — a day before the package was public. That information could be useful for insider trading.

All European commissioners are bound by ethical obligations and an official code of conduct during and after their time in office. Suspected breaches of those obligations can prompt investigations by OLAF.

Mandelson was released from British custody early Tuesday morning after more than nine hours of questioning. He has previously denied wrongdoing and hasn’t been charged, though the investigation is continuing.

Mandelson’s lawyers said Tuesday that he had voluntarily agreed to speak with police next month and that his arrest was the result of a “baseless suggestion” that he planned to flee the country.