EFTA00174338.pdf

UNCLASSIFIED//LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY FEDERAL BUREAU OF INVESTIGATION INTELLIGENCE NOTE (U//FOUO) Affluent Socialites Use Status and Luxuries Likely As a Form of Recruitment to Facilitate Sex Trafficking, Expanding on Traditional Recruitment Methods (U) PREPARED BY FBI NEW YORK 20 AUGUST 2021 (U) LAW ENFORCEMENT SENSITIVE: The information marked (U//LES) in this document is the property of the Federal Bureau of Investigation and may be distributed within the federal government (and its contractors), U.S. intelligence, law enforcement, public safety or protection officials, and individuals with a need to know. Distribution beyond these entities without FBI authorization is prohibited. Precautions should be taken to ensure this information is stored and/or destroyed in a manner that precludes unauthorized access. Information bearing the LES caveat may not be used in legal proceedings without first receiving authorization from the originating agency. Recipients are prohibited from subsequently posting the information marked LES on a website on an unclassified network without first obtaining FBI approval. (U) This product expresses the judgments and perspective of this office and may not reflect the national perspective of the Federal Bureau of Investigation. Information herein may not be uploaded to any databases, used for any purposes, or disseminated to any other recipient without advance authorization. (U//FOUO) FBI New York assesses affluent socialitesa use their status and luxuries likelyb as a form of recruitment to facilitate sex trafficking, expanding upon traditional recruitment tradecraft. This assessment is made with medium confidence,c based on victim and witness FBI reports all with direct access and open source reporting. (U//FOUO) FBI New York bases this assessment on the key assumption luxurious atmosphere and influence of people with power often pressure individuals to engage in acts they would not otherwise commit. FBI New York assess in the near term the use of socialite's wealth and power to recruit victims and facilitate sex trafficking will likely decrease due to the ongoing high profile investigation of prominent socialites putting them under larger scrutiny; however, in the long term as the investigation seizes and media coverage of the high profile investigation lessens it will likely increase due to their improved opportunity to use their influence to stay undetected creating a lower risk to recruit victims. New or additional reporting indicating the victims knowingly and willing engaged in sexual activity with the socialites to better their status would lead to a revised a (U) Analyst Note: Socialites are defined as a person who is well known in society, usually of high class, and spends a significant amount of time attending high end social events. b (U) See Appendix A: Expressions of Likelihood. (U) See Appendix B: Confidence in Assessments and Judgments Based on a Body of Information. FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174338 UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY judgment or change the confidence level of this assessment. This intelligence note addresses FBI New York's Criminal band III threat, Human Trafficking. [UNCLASSIFIED//FOR OFFICIAL USE ONLY] (U) Source Summary Statement (UNFOUO) Reporting in this Intelligence Note (IN) was derived primarily from FBI victim and witness interviews. The victim and witness interviews all had direct access to the trafficking operation and main subjects of the investigations. Reporting from the FBI interviews were essential to the assessment in this IN as it provides corroboration and context to the assessment. Open source reporting was used to provide context to the assessment. Open source reporting was derived from The National Labor Organization, The National Human Trafficking Tip Line, Polaris, and The National Prevention Tool Kit; all of which are deemed credible. This collection occurred between 24 April 2019 and 04 November 2020. The reporting was current as of 20 August 2021. (U//FOUO) Affluent Socialites Use Status and Luxuries Likely As a Form of Recruitment to Facilitate Sex Trafficking, Expanding on Tradition Recruitment Methods (U//FOUO) FBI New York assesses socialites use their status and luxuries likely as a form of recruitment to facilitate sex trafficking, expanding on traditional recruitment tradecraft. FBI New York based this assessment on reports detailing socialites using their wealth to build a framework of sex trafficking that involved private island estates, large houses, private planes, and luxurious parties. A majority of the victims were minors and promised opportunities to make money and advance their future careers. The socialites manipulated, sexually exploited, and trafficked the victims through their prestige and networks. • (U//LES) As of 27 February 2020 according to a witness with direct access, Peter Nygard (Nygard)d directed his office manager to recruit girls aged 16-19 to come to his Pamper Partiese at his estate in the Bahamas by telling them he would help them with their modeling careers. According to a victim with direct access as of 16 June 2020, Nygard singled out females at these pamper parties to meet with him and further discuss their careers. He sexually assaulted them and paid them afterwards. The witness does not believe Nygard ever assisted the females with their careers.I'2 • (U//LES) As of 09 March 2020 according to a witness with direct access, Nygard sent his girlfriends to solicit young females at malls in California and stores in Time Square to lure them to the pamper parties. A majority of the girls recruited were minors. Nygard served punch with crushed pills to girls he was interested in at the pamper d (U) Analyst Note: Peter Nygard is a fashion executive and founder of Nygard International, a women's apparel company. Nygard International has major warehouses and offices in New York City. e (U) Analyst Note: Pamper Parties were hosted by Nygard at his home in Los Angeles and the Bahamans. The parties were invite only and guests were provided massages, pedicures, manicures, food, drinks, pool time, and volleyball. Upon arrival guests had their photos taken and signed a Non-Disclosure Agreement. c> 2 FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174339 UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY parties, the pills usually consisted of sleeping pills and ecstasy. Nygard sexually assaulted these girls and paid them between $300 to $1000 dollars.3 • (U//LES) As of 04 March 2020 according to a victim with direct access, Jeffery Epstein (Epstein) lured girls with the promise of a modeling career stating he had connection with Victoria's Secret. Epstein recruited the victim claiming he wanted to see her modeling portfolio. During career talks Epstein forced the victim to massage him and then sexually assaulted her. The victim claimed to be scared of Epstein because he was powerful! According to another victim with direct access, Epstein threated she would never work in modeling since she would not go further with him when he tried to and caused a scene.5 • (U//LES) As of 24 March 2019 according to a victim with direct access, a young female recruited the victim at 14 years old to massage a "rich guy". The victim agreed and was sexually assaulted while giving the massage. Epstein paid her $300 and told her to bring more friends with her next time but wanted them under 18 years old. The victim brought an estimate of 50 girls to Epstein between the ages of 13-16. Epstein paid the victim $600 to $900 a week to bring him new girls. 6 • (U//LES) As of 17 July 2019 according to a victim with direct access, Epstein recruited the victim at 17 years old through the victim's older sister. Epstein flew the sisters to his private island for the weekend along with other young females. Epstein brought the victim to his mom for a massage and sexually assaulted her. Epstein paid the sisters $9500.7According to another victim with direct access, as of 18 September 2019 Epstein recruited the victim at 15 years old through her older sister. Epstein flew the sisters out to his private ranch in New Mexico along with other young females on his plane. Epstein sexually assaulted the victim when she provided him with a massage. Epstein then talked about the victim's future and paid her $5,000 for college. 8 (U) Perspective (U//FOUO) Human trafficking is one of the world's fastest growing criminal enterprises with an estimate of 20 million victims trafficked worldwide, according to the International Labor Organization.9 Roughly 20 percent of those victims are minors and over four million of them have been subjected to sexual exploitation. In 2019 according to Polaris, 805 victims and 173 traffickers were identified within the New York AOR.10 Traditionally a wide range of criminal enterprises including pimps, gangs, and international organized criminals are known to conduct trafficking operations." Common trafficking sites including hotels/motels, make up an estimated 55 percent of trafficking locations with additional common sites of brothels, truck stops, and massage parlors.12 However, high profile sexual exploitation cases came to light including R. Kellyr, Jeffrey Epstein, and Peter Nygard. These new facilitators bring expansive activity sites including mansions, tropical islands, private planes, yachts, and luxurious parties. Additionally, their power and affluence provide new leverage to recruit victims due to their ability to act on promises of FY 2021 IN I 1OC1 2020 r Analyst Note: R. Kelly, born Robert Kelly, is an American singer and record producer. 3 FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174340 UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY luxuries and connections. These cases exposed a new network of trafficking, traffickers, activity sites, and tactics that are not traditionally seen. (U//FOUO) This IN expands upon the FBI New York Intelligence Note from 22 January 2021, "(U//FOUO) Commercial Sex Traffickers Use of Facebook to Recruit Victims" which assessed new recruitment tactics being utilized to conduct sex trafficking, expanding on traditional recruitment methods. This IN further builds on the previous assessment by examining a new nontraditional recruitment tactic of affluent socialites using their status and luxurious lifestyle to recruit new victims for sexual exploitation. (U) Analysis of Alternatives (U//FOUO) FBI New York considered the alternative hypothesis individuals willing engaged in sexual activity with affluent socialites to gain access to their social network and further their career. FBI New York deemed this hypothesis less likely due to reports detailing socialites' use of force, targeting of minors, and victims reporting their unawareness of the true intentions of the encounters with the socialites. If reports indicating individuals of age willing and knowingly engaged in sexual activity with socialites to bolster their status and enjoy a lavish lifestyle, FBI New York would adjust its likelihood statement and confidence level in this IN. (U) Outlook (U//FOUO) FBI New York assesses in the near term the use of socialite's wealth and power to facilitate sex trafficking will likely decrease due to the ongoing high profile investigation of prominent socialites like Epstein, R. Kelly, and Nygard putting them under larger scrutiny. The increase of public scrutiny on human trafficking and media attention to hold people of high power accountable inhibits their ability to use status to create a sex trafficking network and recruit victims. In the long term, as the investigation seizes and media coverage of the high profile investigation lessens, FBI New York assesses the use of socialite's wealth and power to facilitate sex trafficking will likely increase due to their improved opportunity to use their influence to stay undetected creating a lower risk. Socialite's can use their power and influence to create deals and stay under law enforcement radar building larger opportunities to recruit victims. Indicators corroborating this assessment include increase complaints to the National Human Trafficking Resource Center Hotline, increase of police reports, and increase in source reporting citing sexual exploitation from a socialite. FBI New York could identify some of these indicators by continuing to collaborate with local law enforcement and the National Human Trafficking Center Tip line, as well as, querying sources who likely have access to sex trafficking networks. Similarity, further coordination between FBI New York Human Trafficking threat team and similar threat teams bureau wide may identify emerging trends and provide further insight. (U) FBI New York prepared this intelligence note. Please direct comments and queries to the FBI New York Intelligence Division at I (U) If you would like to provide qualitative feedback on this product. please send an email to the appropriate addrcss with the product title as the subject line 0 z 4 FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174341 UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY (U) Appendix A: Expressions of Likelihood (U) Phrases such as "the FBI judges" and "the FBI assesses," and terms such as "likely" and "probably" convey analytical judgments and assessments. The chart below approximates how expressions of likelihood and probability correlate with percentages of chance. Only terms of likelihood should appear in FBI products; the chart includes terms of probability strictly for comparison, as they sometimes appear in reporting of other government agencies. Furthermore, the FBI does not arrive at judgments through statistical analysis and will not use terms of probability to convey uncertainty in FBI external intelligence products. UNCLASSIFIED VY 2021 IN I 1 OC I 2020 Terms of Likelihood Terms of Probability Percentages of Chance Almost No Chance Remote 1.5% Very Unlikely Roughly Unlikely Even Likely Chance Very Almost Likely Certain(ly) Highly Improbable Roughly Probable Highly Nearly Improbable (Improbably) Even ( Probably) Probable Certain Odds 5.20% 45% 45-55% 55-80% (U) Table showing terms of likelihood aligned with terms of probability and percentages of chance. 5 FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174342 UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY (U) Appendix B: Confidence in Assessments and Judgments Based on a Body of Information (U) Confidence levels reflect the quality and quantity of the source information supporting a judgment. Consequently, the FBI ascribes high, medium, or low levels of confidence to assessments, as follows: (U) High confidence generally indicates the FBI's judgments are based on high quality information from multiple sources. High confidence in a judgment does not imply the assessment is a fact or a certainty; such judgments might be wrong. While additional reporting and information sources may change analytical judgments, such changes are most likely to be refinements and not substantial in nature. (U) Medium confidence generally means the information is credibly sourced and plausible but not of sufficient quality or corroborated sufficiently to warrant a higher level of confidence. Additional reporting or information sources have the potential to increase the FBI's confidence levels or substantively change analytical judgments. (U) Low confidence generally means the information's credibility or plausibility is uncertain, the information is too fragmented or poorly corroborated to make solid analytic inferences, or the reliability of the sources is questionable. Absent additional reporting or information sources, analytical judgments should be considered preliminary in nature. FY 2021 IN I 'FOCI 2020 6 FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174343 UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY (U) Endnotes I U//FOUO FBIIFD-302150D-NY-3184048, serial 54124 March 2020127 February 20201"(U) Interview of "1UNCLASSIFIED I UNCLASSIFIED. 2M UO) FBIIFD-302150D-NY-3184048, serial 125106 July 20201 16 June 2020I"(U) Interview of UNCLASSIFIED I UNCLASSIFIED. 1, 11O) FBIIFD-302150D-NY-3184048, serial 62109 April 2020109 March 20201"(U) Interview of 3/9/2020"1UNCLASSIFIEDIUNCLASSIFIED. 4 //FOUO FBI 1 FD-3021 50D-NY-3027571, serial 5551 13 January 2021 104 November 20201"(U) Interview of IUNCLASSIFIEDIUNCLASSIFIED. 5 (U//FOUO) FBIIFD-302150D-NY-3027571, serial 394123 April 2020123 October 20191 "(U) Interview of 'IUNCLASSIFIEDIUNCLASSIFIED. 6 (U//FOUO) FBIIFD-302150D-NY-3027571, serial 20106 May 2019124 April 2019I"(U) Interview of l= I UNCLASSIFIED I UNCLASSIFIED. 7 (U//FOUO) FBI I FD-302 150D-NY-302757I, serial 171 123 July 20191 17 July 20191"(U) Interview of= ' IUNCLASSIFIEDI UNCLASSIFIED. 3 URFOUO FBIIFD-302150D-NY-3027571, serial 3491 14 January 20201 18 September 20191,U) Interview of UNCLASSIFIED I UNCLASSIFIED. 9 (U) Website I International Labor OrganizationI"(U) Global Estimate of Modem Slavery https://ilo.org/wcmsp5/groups/public/dgreports/dcomm/documents/publication/wcms_575479 I accessed on 19 August 2021. (U) WebsiteIPolarisI"(U) New York Spotlight-2019 U.S. National Human Trafficking Hotline Statistics" 130 July 20201 https://polarisproject.org/wp-content/uploads/2020/11/2019-New-York-State-Report I accessed on 19 August 2021. " (U) Website I National Human Trafficking HotlineI"(U) The Traffickers" https://humantraffickinghotline.org/what-human-trafficking/human-trafficking/traffickers I accessed on 17 August 2021. 12 (U) Website I The National Prevention Toolkit I "(U) Sex Trafficking"Ihttps://nationaltoolkit.cws.fsu.edu/leo/part- 2/sex-trafficking/ I accessed on 19 August 2021. FY 2C21 IN I 1 OC. I 2020 7 FBI INTERNAL USE ONLY-DO NOT DISSEMINATE EXTERNALLY UNCLASSIFIED// LAW ENFORCEMENT SENSITIVE EFTA00174344