Epstein was asked to leave Bear Stearns for, according to his sworn testimony, being guilty of a “Reg D violation”. In his S.E.C. testimony, given on April 1, 1981, Epstein claimed that he had found “offensive” the way Bear Stearns management had handled a disciplinary action following its discovery that he had committed a possible “Reg D” violation – evidently, he had lent money to his closest friend. (In the 1989 deposition he said that he’d lent approximately $20,000 to Warren Eisenstein, to buy stock.)
Sources:
https://www.vanityfair.com/news/2003/03/jeffrey-epstein-200303