How the Epstein files brought down lobbying powerhouse Global Counsel

LONDON — Global Counsel started the year riding high.

The public affairs agency had just posted its best-ever financial results, could boast of staff in multiple countries, and was in the process of expanding its international operations.

In a matter of weeks, the lobby shop’s 16-year legacy had been all-but wiped out, and it had collapsed into administration under the weight of the Epstein scandal.

Co-founder Peter Mandelson, the former U.K. ambassador to Washington and one of the commanding figures of British politics over the past four decades, is facing fresh revelations over his links to convicted sex offender Jeffrey Epstein. Despite frantic efforts to distance itself from Mandelson, the influence business he masterminded was forced to fold.

POLITICO spoke to more than half a dozen members of staff and former clients since the agency announced it was going into administration last Thursday.

They paint a picture of a dramatic and sudden disintegration which left more than 100 staffers in London, Brussels and Washington scrambling to find new jobs. Many were granted anonymity to speak openly about their experience.

Never seen him

Staff insist Mandelson — who founded Global Counsel in 2010 after Labour lost power — had very little to do with the firm when the latest documents on his contact with Epstein dropped at the end of January.

Among them were emails suggesting Mandelson leaked sensitive information to Epstein when serving as business secretary. He is now subject to a police investigation. Mandelson’s lawyers Mishcon de Reya say he is cooperating with the police investigation, and his overriding priority is to “clear his name.”

“There was a feeling of bewilderment initially because it seemed blindingly obvious to us that [Mandelson] was out of the picture,” a senior staff member said. “But the reporting, or maybe more the response from people to the reporting, made it sound like he was still sitting in on pitches and approving our expenses.”

The former Labour heavyweight’s association with the firm had long been seen as a major asset — particularly as Labour’s Keir Starmer prepared for power, backed by Mandelson ally Morgan McSweeney.

But Mandelson formally stepped back from any day-to-day involvement with Global Counsel when he became U.K. ambassador to Washington in December 2024. When he was sacked from the post by Starmer last September over previous revelations about his links to Epstein, the firm announced his 21 percent stake would be sold. He would be barred from drawing financial benefits, and his shares would be reclassified so he would no longer have a say over business decisions.

But the senior staff member quoted above said a failure to complete the divestment process quickly, given the complex legal and financial process involved, meant it was “impossible to argue there was clear blue water” from Mandelson.

Mandelson was sacked from the ambassador post by Keir Starmer last September over previous revelations about his links to Epstein. | Rick Friedman/Corbis via Getty Images

This was particularly frustrating for staff members who said they had never seen Mandelson in the flesh. Even those with years of service said he had only been present a handful of times.

‘Blown out of proportion’

Matters were also complicated by the appearance of Global Counsel co-founder Benjamin Wegg-Prosser — then still the company’s chief executive —in the Epstein emails released by the U.S. Department of Justice.

He was copied into conversations about the business between Mandelson and Epstein, and directly emailed Epstein with a draft statement the company had prepared seeking to downplay links between Mandelson and the convicted sex offender. Global Counsel was approached for comment about the Wegg-Prosser emails at the time they were released, but they declined to comment. POLITICO was unable to reach Wegg-Prosser for comment ahead of the publication of this article.

Wegg-Prosser’s involvement was simply “one of those circumstances where you’re asked to do something by your chairman and you do that,” a Global Counsel director said. His role, they argued, had been “blown significantly out of proportion” by media reporting. “Anyone that works in public affairs will know that a meeting is a meeting, and you’re never always going to know who that person is.”

In an attempt to put a lid on the growing crisis, Wegg-Prosser announced his departure from Global Counsel on Feb. 6, just hours before the firm confirmed it had finally completed the divestment of Mandelson’s shares.

But it wasn’t enough.

An associate director of the agency said Wegg-Prosser’s exit came as a “real shock” to staff, and argued that his links had been “seriously overblown” by the media.

Wegg-Prosser’s “principled” decision to step down, they suggested, may have instead “perversely” fueled an erroneous impression that the links between Epstein and the firm were deeper than the reality.

Not just headlines

Staff initially hoped the Mandelson backlash would be limited to a series of gruesome headlines. But those hopes were dashed when a host of household names — including Tesco, Bank of America and Barclays — called time on their relationship with the firm.

Some major clients did stick by the embattled agency, including banking giant Santander. Samir Dwesar, the bank’s senior public affairs and public policy manager told POLITICO the staff “don’t deserve this,” but predicted the “consummate professionals, who have deep expertise in their areas” would “all be snapped up pretty quickly.”

Another public affairs professional at a company which employed Global Counsel said there had been “no discussions” about ending their contract. “Our assessment was that Global Counsel’s leadership had taken the correct decisions under incredibly difficult circumstances,” they said. “We were confident they’d get through it.”

Many staff believed the same when they gathered for the all-hands meeting at the firm’s London HQ last Thursday — only to be told that not only was Global Counsel to close, but that administrators had been appointed to oversee the company’s affairs. A note to staff from Chief Executive Rebecca Park said “the decision to wind up the UK business affects all of GC. We will be discussing separately with each country office how the process will work for them.”

Staff present for the London HQ announcement soon decamped to local bars to digest the news and drown their sorrows. | Daniel Sorabji/AFP via Getty Images

“I think for a lot of people, it was a shock,” the same director at the firm quoted above said. “We’d amazingly retained a significant number of clients. In terms of business, that’s not easy, particularly when you’re politically exposed. So I think there should be a big thanks to them and the loyalty they showed as well.”

The associate director quoted above said staff had sought solace in the survival of  business lobby group the Confederation of British Industry, which weathered its own storm of sexual misconduct claims. A mass exodus of members, and the icing of Whitehall meetings by government ministers wary of association with the group, was overcome under new leadership.

“Maybe I was naïve, but lots of business leaders and politicians are brought down by scandals that leave their companies or parties bruised, and they still survive,” the associate director quoted above said. “I’d started to believe that might be the case with us too.”

Staff present for the London HQ announcement soon decamped to local bars to digest the news and drown their sorrows. Some who had dialed in from half-term holidays had to return to their families knowing they’d just lost their livelihoods. Everyone — from decade-long veterans to new joiners — was affected.

There remains a sense of genuine anger and grief among staff, who say their time at Global Counsel was among the most rewarding of their careers. While some had begrudgingly started job-hunting when the scandal first broke, others had opted to stay given a belief that the firm was entirely disconnected from Mandelson’s historic behavior.

“I spent the weekend speaking to my partner, my parents, and my closest friends about what to do,” the associate director quoted above said of the days after the scandal broke. “I looked through some of the emails [in the Epstein files] and felt physically nauseous. I didn’t want to have even a microscopic link to what I was reading about, but at the same time I didn’t see that reflected whatsoever in the culture or people at Global Counsel.”

The lingering question for many is whether the collapse could have been prevented.

The failure to divest Mandelson’s shares left a tangible legal link, but a second associate director said frequent references to Mandelson in Global Counsel media coverage meant people outside the operation saw him as “central to its DNA” — even if that was not the experience of those working there.

New Horizons

Park, who stepped up as CEO following Wegg-Prosser’s departure, was praised by some of the staff for how she handled the final days of the crisis. Staff POLITICO spoke to highlighted efforts she had overseen to try and secure new jobs for those out of work.

There is even more urgency to find a new job for those staff whose visas are linked to their work at the firm. Under U.K. laws they will have just 60 days to find new employment or face having their visas revoked. It has left some Global Counsel staff at risk of losing their immigration status, along with family members listed as their dependents.

One staff member left in that situation said the change to their visa status meant they are no longer entitled to unemployment benefits or other public funds. With the firm entering into the administration process, other staff also lost access to enhanced parental pay packages.

Despite initial fears that staff at the agency would be stained by their association, several of those who spoke to POLITICO have already secured new jobs. One staff member at rival firm FGS Global said it the lobbying agency is planning a hiring spree, with as many as two dozen ex-Global Counsel staff being lined up for new gigs. Those are expected to include a raft of senior staffers who’d been working on financial services and private equity briefs.

“I think people do recognize that this is an insane opportunity from a talent perspective, just given how [Global Counsel] was respected and the people that were there, I think they genuinely are recognized as top of the class in the field,” the ex-Global Counsel director quoted above said.

This reporting first appeared in POLITICO London Influence, a weekly newsletter on lobbying, campaigning and influence in Westminster and beyond.