Epstein Island Twist: Billionaire Fights Tax Hit

The Caribbean islands where Jeffrey Epstein committed some of his worst crimes sold for $60 million in 2023, and the new owner is now suing the government over taxes while the deed to one island sits with a Delaware shell company most people never hear about.

Story Snapshot

Billionaire investor Stephen Deckoff bought Great St. James and Little St. James in May 2023 for $60 million through his firm SD Investments.
Deckoff is now suing the U.S. Virgin Islands government, seeking a $5.7 million tax refund tied to his 2021 taxes.
Title to Little St. James reportedly sits with LSJVI, LLC, a Delaware-registered holding company, not Deckoff’s name directly.
A promised 25-room luxury resort has not broken ground years after the sale was announced.
No public deed or land-registry record has surfaced to confirm the full ownership chain behind the purchase.

Billionaire Buyer Takes Over Epstein’s Notorious Islands

SD Investments LLC announced on May 3, 2023 that it had bought Great St. James and Little St. James islands in the U.S. Virgin Islands. The firm named its leader as “renowned entrepreneur and investor Stephen Deckoff”. News outlets including the Associated Press, NPR, CNBC, and Forbes all reported the same deal that week, confirming the $60 million price tag and Deckoff’s role as the buyer.

The price marked a steep drop from what Epstein’s estate first wanted. The islands had been listed for $125 million, and Forbes reported they sold for less than half that figure after more than a year on the market. Part of the proceeds reportedly went toward victim services tied to Epstein’s crimes, according to the sale announcement.

Tax Fight Lands Islands Back in Court

Deckoff is now suing the U.S. Virgin Islands government, according to a 2026 Newsweek report that reviewed the court complaint. His attorneys argue he overpaid more than $5.7 million in 2021 income taxes. The dispute reportedly began after the Internal Revenue Service reviewed his 2021 return and found he may not have been a legal resident of the territory at the time, a status that affects how much tax he owed.

Deckoff reportedly owns homes in California, Colorado, and New York in addition to his Caribbean property. He filed a refund claim with the territory’s tax bureau in November 2025, setting up a legal fight that keeps his name and his island properties in active court records nearly three years after the purchase.

Ownership Runs Through a Delaware Shell Company

Some later reporting says title to Little St. James is held not by Deckoff personally, but by LSJVI, LLC, described as a Delaware-registered holding company tied to his investment operation. This kind of corporate layering is common in high-value real estate deals, where a holding company often holds the deed while an individual investor controls it through ownership of that company.

No source reviewed for this story includes the actual recorded deed, title abstract, or Virgin Islands land-registry entry that would spell out the full legal ownership chain. The public record rests on company statements and wire-service reporting rather than a published conveyance document, which is standard practice but leaves some structural details undisclosed.

Stalled Resort Plans Keep Questions Alive

SD Investments said it planned to build a 25-room luxury resort on the islands, with hopes of opening by 2025. That timeline has slipped. Later reporting found little visible progress on permitting or construction, and no planning applications had been filed as of last year, according to media accounts tracking the property.

Given Epstein’s history, any property tied to his name draws extra scrutiny, and corporate ownership structures that would be unremarkable elsewhere can look suspicious here. The core facts remain consistent across every major outlet: Deckoff and his firm bought the islands, and he is now fighting the government over taxes. The deeper ownership details, though, remain only partly public.