EFTA00726199.pdf

6,000 E-MAILS, 10 BOXES TURNED OVER FOR CASE AGAINST RRA About 6.000 e-mails and 10 boxes of work files relating to con- victed billionaire Jeffrey Epstein • will be turned over to his lawyers and attorneys for investors who lost millions of dollars in the Scott Rothstein's Pont scheme. But a special master will be ap- pointed to review the documents beforehand to ensure nothing ro- tected by attorney-client privilege is revealed. U.S. Bankruptcy Judge Raymond Ray ruled Wednesday. Epstein will be required to pay for the special master, who will be cho- sen jointly by all the parties. ' In 2008, Epstein pleaded guilty to acharge of soliciting prostitution af- ter accusations that he had sex with minor girls. lie recently finished a one-year house arrest sentence. The documents relate to Epstein. who has faced civil suits brought by the families of underage girls he al- legedly had serwith. It is unclear if the files are from legitimate cases or cases that Rothstein may have fab- ricated to recruit investors as part of his $1.2 billion.Ponzi scheme. The e-mails and boxes of records are being sought by parties involved in litigation against Rothstein and his defunct Rothstein Rosenfeldt Adler law firm. They Include com- mtmications between lawyers, contingency fee agreements and information about and names of Epstein's alleged underage victims. i The law firm represented six of tpstein's victims before Rothstein's $1.2 billion settlement financing scheme collapsed last November, PELANIE BELL The e-n ails and boxes are in the possession of Gary Farmer, right and Bradley Edwards, former Rothstein Rosenfeklt Adler attorneys who opposed releasing them. They say they contained protected work product for active cases against Jeffrey Epstein, left, Including new ones. but he also allegedly recruited in- vestors for settlements with nonexa latent victims. The e-mails and boxes are in the possession of Gary Farmer and ' Bradley Edwards. former RRA at- torneys who opposed releasing them. They say they contained pro- tected work product for active cas- es against Epstein, including new ones. But attorneys for Epstein — Idly Ann Sanchez, Joseph Ackerman Jr. and Christopher Knight of Fowler White Burnett in Miami — argued subpoenas were issued for the ma- terials inApril and they still have not been turned over. Epstein's attor- neys say they need the material .to prepare for an October trial in Palm Beach Circuit Court. where Epstein is suing Rothstein and Edwards. Epstein, a part-time Palm Beach resident, has settled with some of the victims confiden- tially. He is now su- ing Rothstein and Edwards for. alleg- edly filing a frivolous cast "Thesis docu- ments have been used by others," Knight said. "I think invoking privilege is a smoke- screen." Farmer responded: "Mr. Epstein .,. has settled with tons of people. Despite this, he has filed a law- suit against (the victim) and Mr. SEE ROTHSTEIN, PAGE All Ray EFTA00726199 An Athol Publication DAILY BtiSititSS REVIEW THURSDAY, AUGUSTS, 2010 daltybusinessreview.com A17 FROM PA GE 1-13 ROTHSTEIN° Rothstein. It Is a blatant attempt to obtain privileged documents from (the victim)." But BM Scherer, who is rep- resenting victims claiming losses of $13.5 million in Rothstein's scheme, said he also wants the Epstein-related mateiaL He said some of bis clients were brought into Rothstein's confer- ence room last October, told by two investigators about Epstein settlements and shown 10 boxes of related documents. "He used a real case to de- fraud my clients," scherer said. want to see those 10 boxes and e-mails. We want to see the documents and see who in the firm bad involvement." Scherer argued that letting Farmer and Edwards decide which documents to release. would be like "letting the fox guard the henhouse. I don't know how they had the right to Attorneys, investors want access to informaticn ABOUT JEFFREY EPSTEIN Jeffrey EPstein, 57, is a billionaire with homes in New York, Palm Beach and. New Mexico. In 1982, he founded a financial management firm, J. Epstein and Co. in the US. Virgin Islands. In 2008, he pleaded guilty to a charge of scilidting prostitution after accusations that he had sex with minor girls. lie recently finished a one- year house artist sentence. After his guilty plea, several politicians — Including Eliot Spitzer and Bill Richardson — returned donations they had received from him Epstein has been sued by many families of underage girls who allege sexual moles-ninon, and he has settled with some. Epstein also is suing imprisoned former law firm chailman ScottRothstein, who allegedly used Epsteln's name as a recruiting tool in his $1.2 billion fraud. take those boxes." While Scherer argued law firm bankruptcy trustee Herbert Stettin should oversee the turn- oyez Stetdn's attorney. Chuck Lichtman of Berger Singerman, said that would cost the estate money and suggested a special master be appointed. If the par- ties can't agree who should be appointed, Ray said they should submit three names and he will choose. One floor down in the Fort Lauderdale federal courthouse, attorneys for the government Stettin and investors such as auto magnate Ed Morse, battled in criminal court over $3 million seized from FtRA bank accounts after Rothstein's arrest. The is- sue of whether the government has the right to the wilds under criminal forfeiture law or the bankruptcy estate should get the funds to distribute to victims will be decided by U.S. District Judge James Cohn after a hearing Aug. 16. Meanwhile, Cohn partially agreed to a request by Stettin and his lawyer Sharon IG3gerreis of Berger Singerman by ordering federal prosecutors to turn over all bank records from Jan. 1, 2009, to the time of Rothstein's arrest The information must in- clude the name of each investor transferring money into REA ac- cotmts, bank account numbers and transaction dates. Berger Singerman is seeking the information to assess the gov- ernment's claim that the $3 mil- lion was all derived from fraud. The firm had sought records go- ing back years, but Cohn agreed to release records for less than a year in the four-year fraud. At Wednesday's hearing, two other parties claimed the right to intervene at the Aug 16 hear- ing and stake partial claim to the 'fund's. Ed Pozzuoli of Tripp Scott, who represents Morse. and Bill Salim of Moskowitz Mandell & Salim, who represents an inves- tor who claims a $68.000 loss. asked for the right to question witnesses. Cohn agreed. Kegerris said she plans to call four to six witnesses at the hear ins — all federal ages Federal prosecutors .said they will call Just one witness, also an agent. mar can be reached Mal Mt."111.• thane EFTA00726200