Woody Allen, who was once accused of molesting their seven-year-old daughter Dylan by ex-lover Mia Farrow, was seen hugging it up with Jeffrey Epstein, the billionaire who was convicted in 2008 of two counts of soliciting a minor for prostitution and soliciting prostitution.

Allen, 77, and wife Soon-Yi Previn, 42, went for a walk with Epstein on the Upper East Side of Manhattan while Epstein put his arm around Allen and conversed. One onlooker said, “[Epstein] was hugging him and talking close to his ear . . . [He] had his arm on Woody’s shoulder.”

Epstein was accused of paying a 14-year-old girl $200 for a massage at his Palm Beach home in 2005. Allen and Epstein have known each other for years; Allen was a guest at Epstein’s party for Britain’s Prince Andrew in December 2010.

Allen sparked countless headlines in the early 1990s when he started an affair with Soon-Ye Farrow Previn, the adopted daughter of Farrow. Allen later married Previn, but not after the repercussions of their romance rocked both Hollywood and the auteur’s career.