DOJ-OGR-00023028.jpg

Il. THE FBI AND THE USAO INVESTIGATE EPSTEIN, AND THE DEFENSE TEAM ENGAGES WICH THE SAG wn emenansmuns crecsmmscins eecemanemetneems mcs 16 A. May 2006 — February 2007: The Federal Investigation Is Initiated, and the USAO Opens a Case File oo... eeeececeneceeeeeeeeeeeeecnneeeeeeeneesaeecaeeeseeeaeeenatens 16 1. The PBPD Presents the Matter to the FBI and the USAO....... eee 17 2 May 2006: The USAO Accepts the Case and Opens a Case File............. 18 3. July 14, 2006: Villafafia Informs Acosta and Sloman about the Case......18 4 Late July 2006: The State Indicts Epstein, and the USAO Moves Forward with a Federal Investigation ............:.cccccssseeeeeeeeeeeeeeeeeees 20 5. October 2006 — February 2007: Epstein’s Defense Counsel Initiate Contact with Villafafia, Lourie, and Sloman, and Press for a Meeting .........cecceseeeeeeeeeceeeeeeeeeneesneecaecaeeseeeesaeecaeenereseeeeeanees 22 6. February 2007: Defense Counsel Meet with Lourie and Villafafia and Present the Defense Objections to a Federal Case.............. 24 B. February — May 2007: Villafafia and the FBI Continue to Investigate; Villafafia Drafts a Prosecution Memorandum and Proposed Indictment for USAO Managers to REVICW.........eccecceseeceneceereeeneeeseecnaeceseeeseeesaeecaeeeeesaeeraeens 24 Ci May — June 2007: Miami Managers Consider the Prosecution Memorandum and Proposed Charges ..........cccsscecesceseeeeneeeneeceaeeeeeeeeeesaeeceaeeeeeesaeeseaeeneeseneesaeesaeens 27 D. Defense Counsel Seek a Meeting with Senior USAO Managers, which Villafafia OppOSes .........cccccececeeeeseeeceeeeeeeesneeseeecseecaeeeseeeseeesaeecaeseneesseesaeeeeneseneeeaees 30 E. June 2007: Villafafia Supplements the Prosecution Memorandum .................06 33 F. The June 26, 2007 Meeting with Defense Counsel ............ecceeceeeceeeeeeeereeeneeeneeees 33 IV. ACOSTA DECIDES TO OFFER EPSTEIN A TWO-YEAR STATE PLEA TO RESOLVE THE FEDERAL INVESTIGATION .........cecececssseseeeneeneeeeeeeseeeeeseeaeseneaeenees 35 A. June — July 2007: The USAO Proposes a State Plea Resolution, which the Defense Rejects... cecceeeeeeeeeeeecneeeeneceeeeseeeseeeneseneesaeesnaeeeeneeeneeeanes 36 1. Acosta’s Explanation for His Decision to Pursue a State-based Resolution... eecessssesseeseesecesecnsecseesseeseesseesaeeaesnaesaeeeneees 37 2. July 2007: Villafafia and Menchel Disagree about the Proposed State Resolution ............ecceeceeeseeeeeeceeeceneeeeneeeneeceaeeeeeeeneeeneesnaeens 40 B. Villafafia Attempts to Obtain the Computer Equipment Missing from Epstein’s Palm Beach Home, but the Defense Team Opposes Her Efforts........... 45 C. July 2007: The Defense Continues Its Efforts to Stop the Federal Investigation............cccescceeceeeseeeseeeeeceeneeseeeceeceaeeeneseneesseesnaeeneneseneeseneeeaees 47 D. Acosta Decides on a Resolution That Includes a Two-Year Term of TnCarCeration ...... cece eesessseseeesecsseensecseeseeeseesaecnaecnsesaeesaeeeesaesnaessaesaeeseesseeaeenaeesaesas 48 1. The July 26, 2007 Meeting in Miam........... cece eeceeeeeeeneeeeeeeeeeeeneeseecnaeenes 48 X1V DOJ-OGR- 00023028