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Case 1:20-cr-00330-PAE Document 293-1 Filed 05/25/21 Page 17 of 349 I. THE FBI AND THE USAO INVESTIGATE EPSTEIN, AND THE DEFENSE TEAM ENGAGES WITH THE USAO wesssosseses scsssesnsssneons senssounesatoeie sevenesnesenss 16 A. May 2006 — February 2007: The Federal Investigation Is Initiated, and the USAO Opens a Case File... ceeceeeeeeneesneecneecenaeeeeeeeneesaeecnaeeneeseneeeneees 16 1. The PBPD Presents the Matter to the FBI and the USAO......... ee 17 2Z 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 .............:ccccccssseeeteeeereeeeeeeeees 20 5. October 2006 — February 2007: Epstein’s Defense Counsel Initiate Contact with Villafafia, Lourie, and Sloman, and Press for a Meeting ..........eceeseeeeeeeeeeeceeeeeeeeeneeeeeecaeceaeeseneesaeecnaeeneeeseeeeeaeees 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.........c:cecceseseceeeceeeeeeneeeeeeceaeeeseeesneesaeesnaeeneeseneeeneees 24 C: May — June 2007: Miami Managers Consider the Prosecution Memorandum and Proposed Charges ..........ccccssceceseceseeeeeeeseeceeeeeeeesneesaeecaeeeeeeeeeesaeecaeeseeeeneeeneees 27 D. Defense Counsel Seek a Meeting with Senior USAO Managers, which Villafafia Opposes .........ccceeseseeeesececeeeceeeeeseeeseeesseecaeeesneeseeesaeecsaeeseeesaeesaeessatentnetnes 30 E. June 2007: Villafafia Supplements the Prosecution Memorandum................:0+ 33 F. The June 26, 2007 Meeting with Defense Counsel ............eeeecceeececeeeeeeeeeeeeeeeeees 33 IV. ACOSTA DECIDES TO OFFER EPSTEIN A TWO-YEAR STATE PLEA TO RESOLVE THE FEDERAL INVESTIGATION .........ccseseseseneeeeenseseeeneseesaesaeeseenevsneneees 35 A. June — July 2007: The USAO Proposes a State Plea Resolution, which the Defense Rejects... ceceeeeeeeeeeseecneeceseeeeeeesaeesseeceaeeeeeesneesaeesnaeeneneeeaee 36 1. Acosta’s Explanation for His Decision to Pursue a State-based Resolution... ce ceecsssssesseeseeesecesecssecneesseeseevseesseenaesseesaeeeaeees 37 2. July 2007: Villafafia and Menchel Disagree about the Proposed State Resolution ...........cccceseseceeeceeeeeeneeceeeceeeeesneesaeecnaeeeneeeeneeeaeees 40 B. Villafafia Attempts to Obtain the Computer Equipment Missing from Epstein’s Palm Beach Home, but the Defense Team Opposes Her Efforts........... 45 CG. July 2007: The Defense Continues Its Efforts to Stop the Federal Investigation............ecccceccesscesseeceneeeeeeeeneecaeceseeesneesaeecsaeenaeeesneesaeecnaeenerensnes 47 D. Acosta Decides on a Resolution That Includes a Two-Year Term of TnCarceration 00... eee eeseeescessessesneesseeseeesecsaecnsecseesaeeeeeaeesaeensesseeseeeseeaeenaesnaesseesaeens 48 1. The July 26, 2007 Meeting in Miam............ ec eeeceeeeeeeseeeeeeeeeeeseeeeneeenaeenes 48 XIV DOJ-OGR-00004314