Two private islands in the Caribbean previously owned by the late convicted sex offender Jeffrey Epstein have been bought by an investment firm led by billionaire Stephen Deckoff after more than a year in the market.

Deckoff confirmed to CNBC Wednesday the purchase of the two islands in the US Virgin Islands for $60 million, less than half of the initial asking price of $125 million.

Deckoff is the founder of the private equity firm Black Diamond Capital Management. Court filings showed that one of the islands, Little St. James, where Epstein had a mansion, was used by him to sexually abuse young women for years.

A press release said Deckoff intends to develop "a state-of-the-art, five-star, world-class luxury 25-room resort that will help bolster tourism, create jobs, and spur economic development in the region."

It added that it would be constructed while "respecting and preserving" the island's important environment. The statement also said a huge portion of the sale proceeds would be given to the government of the US Virgin Islands under a previously announced settlement between the government and Epstein's estate.

Deckoff only confirmed the purchase of the islands, Little St. James and Great St. James, to CNBC but refused to give details regarding his plans for it.

However, he told Forbes he was "tremendously pleased to be able to bring the area a world-class destination benefitting its natural grace and beauty," and is looking forward to "make this dream a reality."

Great St. James is more than double the size of its neighbor, Little St. James, which covers over 70 acres. 

Epstein's estate was sued by the government of the US Virgin Islands in 2020 over the sexual abuse of young girls on his island getaways on that territory.

The lawsuit noted that in 2016, Epstein used a straw purchaser to hide his identity and bought Great St. James. It added that Epstein was already a convicted sex offender at the time.

READ NEXT: Ghislaine Maxwell and Prince Andrew Suspected to Have Had Intimate Relations

Jeffrey Epstein's Private Islands

The property, spanning the more than 70-acre Little St. James and over 160-acre Great St. James islands, is reportedly located just off the shores of tourism hub St. Thomas. It has a helipad, several pools, and numerous guest villas.

Forbes noted that Stephen Deckoff is in the process of recruiting architects, including engineers, to develop the resort he plans for the private islands he purchased.

Jeffrey Epstein reportedly purchased the Little St. James in 1998 for around $8 million. He had a large mansion in the area as his residence and constructed other structures on the property.

He bought the Great St. James in 2016 for $22.5 million. Epstein's estate reportedly paid $105 million to the US Virgin Islands, including the repayment of $80 million in tax benefits after the estate was sued in 2020.

Jeffrey Epstein

Jeffrey Epstein was arrested in July 2019. The charges against him were sex trafficking and conspiracy to engage in sex trafficking. He died on August 2019 at Metropolitan Correctional Center in New York.

His death was officially ruled a suicide by the New York City medical examiner, Town & Country reported. Many women had come forward and said that Epstein sexually abused and exploited them as minors.

Epstein's girlfriend and longtime associate, Ghislaine Maxwell, has been accused of being a recruiter of some teenage girls.

Maxwell was found guilty of five out of six charges. In June 2020, she was sentenced to spend 20 years in prison.

Epstein started his career in New York City as a math teacher at Dalton School, an elite academic institution. He then worked at the investment bank Bear Stearns before founding his own firm, J. Epstein and Co., in 1982.

Epstein specifically marketed his services to those with "assets of more than $1 billion." He then operated his company out of the US Virgin Islands for taxation purposes.

READ MORE: Ghislaine Maxwell's Siblings Speak Up as Her Trial Looms Closer

This article is owned by Latin Post.

Written by: Mary Webber

WATCH: New Look At Jeffrey Epstein's Private Island - From TODAY