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Case 1:20-cr-00330-PAE Document 204-3 Filed 04/16/21 Page 17 of 348 2. The Subjects’ Explanations for the Decision to Offer Epstein a Sentence with a Two-Year Term of Incarceration... ce cesses eeeeeeees 49 E. Villafafia Drafts a “Term Sheet” Listing the Requirements of a Potential Agreement with the Defense... cece eeceesneceneceereeeeeecececeaeeeeeseneeseeeaeeeeneeeneeenaes 51 THE USAO PRESENTS EPSTEIN WITH KEY TERMS OF A DEAL: PLEAD GUILTY TO STATE CHARGES REQUIRING A TWO-YEAR TERM OF INCARCERATION AND SEXUAL OFFENDER REGISTRATION, AND AGREE TO A MEANS FOR THE VICTIMS TO OBTAIN MONETARY DAMAGES ............. 53 A. July 31, 2007: The USAO Presents Its Proposal to the Defense Team, which Makes a Counteroffer. oc ceeeeesesssesseeseeesecsseenneeseesseeaecnaesaeesaeeseeeeenaees 54 B. In an August 3, 2007 Letter, the USAO States That a Two-Year Term of Imprisonment Is the Minimum That Will Vindicate the Federal Interest ............. 55 Cc. August — September 2007: Epstein Hires Additional Attorneys, Who Meet with Acosta 0... cece ceecssecseesseeseessecesecssesaeesseseesaeesaecnsesaeeseesseesaeenaeenaesaeesaeens 59 Ls Acosta Agrees to Meet with Epstein’s New Attorneys ..........:ceeeeeeeenees 59 2. Leading to the Meeting with Defense Counsel, Investigative Steps Are Postponed, and the Defense Continues to Oppose Villafafia’s Efforts to Obtain the Computer Evidence.............ceeeeeeeeees 60 3. September 7, 2007: Acosta, Other USAO Attorneys, and FBI Supervisors Meet with Epstein Attorneys Starr, Lefkowitz, AN SaNncheZ oo... eee eeeeceesseeseeeseesseeseceessevseessesaeenaesseessevseesseenaeesaesaeesneeas 62 SEPTEMBER 2007: THE PLEA NEGOTIATIONS INTENSIFY, AND IN THE PROCESS, THE REQUIRED TERM OF IMPRISONMENT IS REDUCED..............0. 63 A. The Incarceration Term Is Reduced from 24 Months to 20 Months... 63 B. September 12, 2007: The USAO and Defense Counsel Meet with the State Attorney .........ecceeceseceeeseecseeceeeeeneeseeesneecnaeeeeeesaeesaeecaeeaeessneesseeenaeeeeneesee 64 Cc. The Evidence Does Not Clearly Show Why the Term of Incarceration Was Reduced from 24 Months to 20 Months to 18 Months... eee eeeeeeees 66 D. The Parties Continue to Negotiate but Primarily Focus on a Potential Plea to Federal Charges ..........cesccseccesseesseeceeeeeseeeeeeeseeenaeesseesseeesaeecaeeeseeesneesseeenaeeeeneenes 68 The Parties Appear to Reach Agreement on a Plea to Federal Charges................ 72 F. Defense Counsel Offers New Proposals Substantially Changing the Terms of the Federal Plea Agreement, which the USAO Rejects ............ eee 73 G. Villafafia and Lourie Recommend Ending Negotiations, but Acosta Urges ‘That They “Dry 16 Work Tt Out so acorns asmemecnmrmcnann mrmeom amen seamen 76 H. Acosta Edits the Federal Plea Agreement, and Villafafia Sends a Final Version to the Defense... eeceeessessesseeseeseensecnsecaeeseeeseesaeenaeenaesaeesaeeas cr, XV DOJ-OGR-00003193