Billionaire financier Jeffrey Epstein has pleaded not guilty to sex trafficking, after prosecutors said they found "nude photographs of what appeared to be underage girls", when federal agents searched his apartment.

Appearing before a US magistrate judge in Manhattan in blue prison overalls, he entered his plea to one count of sex trafficking and another of sex trafficking conspiracy.

Epstein, 66, was arrested on Saturday in New York on charges relating to claims dating back to the 2000s.

Image: Epstein is facing charge relating to underage girls

The charges faced by the American, who once counted Bill Clinton, Donald Trump and Prince Andrew among his friends, relate to underage girls.

It is alleged Epstein abused the children in his Palm Beach mansion in Florida.


Epstein has also been accused of creating and maintaining a network that allowed him to sexually exploit dozens of girls, some as young as 14, from 2002 to 2005.

An indictment said Epstein "intentionally sought out minors and knew that many of his victims were in fact under the age of 18, including because, in some instances, minor victims expressly told him their age".

In a press conference, US attorney Geoffrey Berman said that they found the inappropriate photos during a search on Epstein's property following his arrest on Saturday night.

Prosecutors have already opposed any release on bail, with Mr Berman adding: "He has enormous wealth. The charges are very serious and carry with them a maximum sentence of 45 years, which to someone of Epstein's age is basically a life sentence, so we think he has every incentive to try and flee the jurisdiction."

Image: Prosecutors found nude photographs of what appeared to be young girls in his home

His bail hearing will take place on next Monday, and will remain behind bars until then.

His accusers have spoken out, saying that they are "encouraged" by Epstein's arrest.

In court documents, Epstein maintained that any sexual contact was consensual and that he believed the girls were 18 at the time.

In 2007, he struck a deal which saw him plead guilty to a lesser Florida state felony prostitution charge when he was accused of sexually abusing dozens of girls as young as 14 from 1999.

Image: Jeffrey Epstein (left) was previously friends with current US President Donald Trump

The allegations claimed he directed others to abuse them and paid employees to bring victims to him.

He served a 13-month sentence in county jail, during which he was allowed to leave during the day to go to his office.

Earlier this year, a judge ruled the deal violated the law, although last month the US Department of Justice said there was no reason to cancel the agreement.