EFTA00207398.pdf

Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 1 of 17 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. PODHURST ORSECK, P.A. Plaintiff, vs. JEFFREY EPSTEIN, Defendant. COMPLAINT Plaintiff, Podhurst Orseck, P.A., sues Defendant, Jeffrey Epstein, for attorney's fees and costs incurred in the representation of over a dozen minor women sexually abused and exploited by Defendant, and for which Defendant expressly agreed to pay pursuant to a Non-Prosecution Agreement that he entered into with the United States Attorney's Office for the Southern District of Florida. Plaintiff further alleges: ALLEGATIONS PERTAINING TO ALL COUNTS Jurisdiction I. Plaintiff, Podhurst Orseck, P.A. ("Podhurst firm" or "Plaintiff') is a law firm organized and operating as a professional association under the laws of the State of Florida with offices in Miami-Dade County, Florida. For over four decades, the Podhurst firm has concentrated its practice exclusively in trial and appellate litigation in both federal and state COUR. 2. Defendant, Jeffrey Epstein ("Epstein" or "Defendant', is fifty-seven years old and is a convicted sexual offender who is a citizen of the Territory of the United States Virgin Islands, where he owns a residence on his own private 70-acre island called "Little St. James." EFTA00207398 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 2 of 17 3. This Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332(aXI) because the parties are from different states, and federal question jurisdiction pursuant to 28 U.S.C. § 1331 because the claims brought are founded on federal common law and implicate a unique federal interest, for they relate to a Non-Prosecution Agreement entered into by the United States of America, through the United States Attorney's Office for die outhern District of Florida ("USAO"). Venue 4. Defendant currently can be found in Palm Beach, Palm Beach County, Florida, at his mansion located at 358 El Brillo Way, valued at $6.8 million. Until June 2008, he maintained his principal place of residence in the largest dwelling in Manhattan, a 51,000- square-foot eight-story mansion on the Upper East Side. Defendant also owns a S30 million, 7,500 —acre ranch in New Mexico. In addition to these properties and the Island of Little St. James, and upon information and belief, Defendant is believed to own, or has owned, either directly or indirectly, various residences, including an apartment on the prestigious Avenue Foch in Paris, France; a Boeing 727, a. Gulfstream jet, and a helicopter; and a fleet of luxury automobiles, including a Ferrari 575 M. 5. Defendant currently remains in Florida subject to community control while completing a sentence pursuant to a plea of guilty to two felony counts - - Solicitation of Prostitution and Procuring Person Under 18 for Prostitution - - entered in state court in Palm Beach County on June 30, 2008. As one of several conditions of his sentence, Defendant was designated as a Sexual Offender pursuant to Florida law. 2 EFTA00207399 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 3 of 17 6. Plaintiff's third-party claims are derived from a Non-Prosecution Agreement between the United States of America, through the USAO and Defendant, which was executed on or about October 30, 2007 and consists of an initial agreement ("Agreement") and an Addendum ("Addendum"), which, collectively, are referred to as the Non-Prosecution Agreement ("NPA"). eittacWiterekt.ps.CQMPOsfite Exhibit A. 7. Defendant and one of his several attorneys signed the Agreement in New York on September 24, 2007 and the Addendum on September 29, 2007. Upon information and belief, another counsel for Epstein executed the Agreement on September 24, 2007 and the Addendum on October 29, 2007 while in California or Miami. The Assistant United States Attorney who investigated Defendant signed the NPA on September 27, 2007 in West Palm Beach, Florida on behalf of the USAO, whose main office was in Miami, Dade-County, Florida. The last person to sign the agreement was the Chief Assistant United States Attorney, who signed the Addendum for the USAO in Miami on October 30, 2007.' The Non-Prosecution Agreement 8. The NPA provided that the USAO and the Federal Bureau of Investigation ("FBI") had investigated Defendant for sexually related federal crimes involving minor females, including, but not limited to, the following: (I) knowingly and willfully conspiring with others known and unknown to commit an offense against the United States, that is, to use a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution, in violation of Title 18, United States Code, Section 2422(b); all in violation of Title 18, United States Code, Section 371; 1 On December 7, 2007, Epstein signed a one-sentence Affirmation of the NPA and Addendum, which he acknowledged were dated October 30, 2007. 3 EFTA00207400 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 4 of 17 (2) knowingly and willfully conspiring with others known and unknown to travel in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females in violation of Title 18, United States Code, Section 2423(b); all in violation of Title 18, United States Code Section 2423(e); (3) using a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution; in violation of Title 18, United States Cock, Sections 2422(6) and 2; (4) traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females; in violation of Title 18, United States Code, Section 2423(b); and (5) knowingly, in and affecting interstate and foreign commerce, recruiting, enticing, and obtaining by any means a person, knowing that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act as defined in 18 U.S.C. § 1591(cX1); in violation of Title 18, United States Code, Sections 1591(aX1) and 2. 9. The NPA further provided that federal prosecution for these crimes would be deferred in favor of prosecution by state authorities, provided that Defendant abided by all of the terms and conditions set forth in the NPA. 10. Among the terms to which Epstein expressly agreed was the appointment of an attorney representative to represent the young women he victimized as minors by his illicit, sexual conduct. 11. Epstein not only agreed to the appointment of the attorney representative, but agreed to pay for any fees and costs that the attorney representative incurred before, during, and through settlement of the various cases. More specifically, Epstein agreed to the following: 7. The United States shall provide Epstein's attorneys with a list of individuals whom it has identified as victims, as defined in 18 U.S.C. § 2255, after Epstein has signed this agreement and been sentenced. Upon the execution of this agreement, the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein. Epstein's counsel may 4 EFTA00207401 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 5 of 17 contact the identified individuals through that representative. 7A. The United States has the right to assign to an independent third-party the responsibility for consulting with and, subject to the good faith approval of Epstein's counsel, selecting the attorney representative for the individuals identified under the Agreement. If the United States elects to assign this responsibility to an independent third-party, both the United States and Epstein retain the right to make good faith objections to the attorney representative suggested by the independent third-party prior to the final designation of the attorney representative. 7C. Pursuant to additional paragraph74 Epstein has agreed to pay the fees of the attorney representative selected by the independent third party. This provision, however, shall not obligate Epstein to pay the fees and costs of contested litigation filed against him. Thus, if after consideration of potential settlements, an attorney representative elects to file a contested lawsuit pursuant to IS U.S.C. § 2255 or elects to pursue any other contested remedy, the paragraph 7 obligation of the Agreement to pay the costs of the attorney representative, as opposed to any statutory or other obligations to pay reasonable attorneys fees and costs such as those contained in § 2255 to bear the costs of the attorney representative, shall cease. 8. If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over his person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to and an amount as agreed to between the identified individuals and Epstein, so long as the identified individuals elect to proceed exclusively under 18 U.S. C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 5 EFTA00207402 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 6 of 17 12. According to the NPA, Epstein's failure to pay the fees and costs of the attorney representative would constitute a material breach of the NPA because, by "signing this agreement, Epstein assert[ed] and certifie[d] that each of [the NPA's] terms is material to this agreement and is supported by independent consideration and that a breach of any one of these conditions allows the United States to elect to terminate the [NPA] and to investigate and prosecute Epstein and any other individual or entity for any and all federal offenses." 13. The attorney representative who was to counsel, advise, and represent the young women who, as minors, were victimized by Defendant's illicit, sexual conduct was to be chosen by a Special Master, The Honorable Edward B. Davis, former Chief Judge of the United States District Court for the Southern District of Florida, whose office was in Miami, Florida. The Special Master was instructed by the USAO to identify a lawyer with extraordinary experience and abilities. Specifically, in selecting the attorney representative, the USAO instructed the Special Master that, "glue to the circumstances of the case and the number and caliber of the attorneys who represent Mr. Epstein, in selecting the victims' attorney representative, the United States suggests that you consider the following criteria:" 1. Experience doing both plaintiffs' and defense litigation. 2. Experience with state and federal statutory and common law tort claims. 3. The ability to communicate effectively with young women. 4. Experience litigating against large law firms and high profile attorneys who may test the veracity of the victims' claims. 5. Sensitivity to the nature of the suit and the victims' interest in maintaining their privacy. 6. Experience litigating in federal court in the Southern District of Florida. 6 EFTA00207403 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 7 of 17 7. The resources to hire experts and others, while working on a contingency fee basis, in order to prepare for trial, if a settlement cannot be reached (defense counsel has reserved the right to challenge such litigation). 8. The ability to negotiate effectively. Letter dated October 25, 2007, from First Assistant United States Attorney to the Honorable Edward B. Davis (Ret), attached hereto as Exhibit B. 14. The attorney representative recommended by the Special Master and agreed to by the USA() and Epstein was Robert C. Josefsberg, Esq., a partner in the .Podhurst_firm.. .. A__ graduate of Darmouth College and Yale Law School, Mr. Josefsberg is one of Florida's premier trial lawyers. For years he has been listed in the Best Lawyers in America as both a business litigator and a criminal defense lawyer, and, since 2003, has been listed in Chambers & Farmers as one of the top four commercial litigators in Florida. Mr. Josefsberg is a past President and Dean of the International Academy of Trial lawyers, a fellow of the American College of Trial Lawyers, and a Member of the American Board of Trial Advocates. Throughout his career, Mr. Josefsberg has received numerous awards, including the David Dyer Professionalism Award and the Tobias Simon Pro Bono Award, which is "presented annually by the Chief Justice [of the Florida Supreme Court) to the attorney who best exemplifies the highest ideals of the profession in assuring the availability of legal services to the poor." IS. Mr. Josefsberg devoted his time and effort as the attorney representative for those victims of Defendant who chose to avail themselves of his services according to the terms provided in the NPA. The attorney representative began his work relying upon the obligation of Defendant to pay his fees and costs, as well as the representation of Defendant's counsel that the attorney representative would be paid his "usual and customary hourly rates" for his work. EFTA00207404 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 8 of 17 Letter dated September 2, 2008 from Epstein's counsel to Assistant United States Attorney, attached hereto as Exhibit C. 16. Throughout the defense of the claims that were made by the young women being represented by the attorney representative, as well as the settlement of those claims, Epstein was represented by a large number of nationally and locally recognized lawyers, including, but not limited to, Kenneth Starr, Esq. and Jay Lefkowitz, Esq. of Kirkland & Ellis LLP, a global law _fun with approxitnately_1,500 lawyers; Alan_Dershowitz, the renowned Harvard Law Professor who has been called the "top lawyer of last resort in the country;" Roy Black, Esq., recognized as one of the country's premier trial lawyers; Martin G. Weinberg, Esq., one of the country's most prominent criminal defense lawyers; Jack A. Goldberger, Esq., a prominent Palm Beach lawyer; and Robert D. Critton, Jr., Esq. and Michael Burman, Esq. of the firm Burman, Critton Luttier & Coleman, LLP, a prominent Palm Beach law firm. 17. Because of the number and caliber of lawyers representing Epstein, as well as the number of women being represented and the severe psychological injuries that these young women had sustained as victims of Epstein, the attorney representative recognized early on that he would need additional support from both inside and outside the Podhurst firm. This additional support was critical to ensure that these women were thoroughly and adequately represented. Accordingly, the attorney representative, Mr. Josefsberg, sought and obtained the assistance of his partner, Katherine W. Ezell, other employees of the firm, and two independent contractors, Amy Josefsberg Ederi, Esq. and Susan E. Bennett, Esq., who were chosen for their respective skills and experience (collectively, the "team"). Epstein, either directly or through one of his many lawyers, was aware of the specific lawyers assisting the attorney representative. EFTA00207405 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 9 of 17 18. As a result of, and in reliance upon, the representations of Defendant and his attorneys, and pursuant to Defendant's obligations in the NPA, Mr. Josefsberg and his team undertook the legal representation of over a dozen of Defendant's victims, all of whom were among the thirty-three (33) females identified by the USAO as those upon whose testimony the USAO was prepared to move forward in federally prosecuting Defendant 19. The representation of these young women who had been sexually abused and exploited as minors by Epstein was arduous and difficult. 20. The representation was arduous and difficult in large part because of the psychological and physical damages these females had suffered, and continue to suffer, as a result of Defendant's sexual conduct. By way of example only, Defendant began sexually abusing and exploiting one of his female victims when she was only fifteen (15) years old. After luring this fifteen-year-old to his mansion and assaulting her with the assistance of one of the several women who would procure minor females for Defendant's pleasure, Defendant lured her to his Palm Beach mansion every day for the next two weeks in order to engage in a similar pattern of sexual abuse and exploitation. 21. Defendant eventually "groomed" this adolescent minor and immersed her into his lewd and sexually exploitive lifestyle. Specifically, Defendant's daily routine required this minor female to perform sexually on Defendant multiple times per day. This minor victim had absolutely no say as to when, how many times, or what was done during each sexual encounter. 22. In addition to being continually exploited to satisfy Defendant's every sexual whim, this adolescent was required to be sexually exploited by Defendant's adult male peers, including royalty, politicians, academicians, businessmen, and other professional and personal acquaintances. 9 EFTA00207406 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 10 of 17 23. The other women whom Mr. Josefsberg and his team represented also suffered sexual abuse and exploitation as minor victims of Defendant. 24. Throughout the representation, Mr. Josefsberg and his team met with, advised, and counseled these sexually abused and exploited young women on their potential claims against Defendant, as well as the prospects of settlement. 25. The representation of these young women by Mr. Josefsberg and his team included, but was not limited to: a. meeting with and receiving training and information from experts in child sex abuse in order to be able to recognize perpetrators' patterns and effects on the lives of young female victims; • conducting a nation-wide search for the most qualified, appropriate, and effective experts to evaluate clients with injuries of this type, including research and initial requests for proposals from numerous psychologists as candidates; • reviewing qualifications, consulting with peers, and talking to and corresponding with candidates; • conducting interviews in person with the final candidates; • working with selected psychological experts to understand and assess the damages suffered by the young women; • negotiating and formulating the evaluation procedure; and • coordinating the arrangements to enable the chosen experts to conduct testing, interviews, and evaluations of each client; b. interviewing the young women at length to assess their background, the conduct to which they had been subjected, and the physical and psychological damage they had suffered as a result of Defendant's conduct; c. interviewing collateral witnesses, including parents, siblings, husbands, and others relating to each of the young women as a means of assessing the injuries they had sustained; 10 EFTA00207407 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 11 of 17 d. researching the damages and other remedies available under 18 U.S.C.§ 2255, a seldom used federal statute under which the young women were proceeding pursuant to the NPA; e. researching 18 U.S.C. § 2255, which was amended in 2006, in order to assess the applicable version of the statute; 1. researching the predicate offenses upon which claims under § 2255 could be established; determining the implication of the statutes of limitations on each young woman's case; h. investigating and assessing the background, history, and ongoing status of Defendant; i. reviewing and examining the records of the young women, including, but not limited to, medical, educational, and mental health; j. in some instances where the clients had journals, photographs, and/or scrap books, reviewing those materials; k. researching and briefing certain critical issues and negotiating agreements pertaining thereto, only to have to resort to court intervention, including, but not limited to, location and preservation of evidence and the need and practical application of a No-Contact Order to protect clients from harassment and intimidation; 1. engaging in extensive and protracted settlement negotiations with Defendant and his multitude of lawyers; m. often drafting from Defendant's specifications, the results of which when presented, were rejected in favor of substantive changes never before discussed. 26. In spite of Defendant's non-compliance throughout this process, after extensive, lengthy, and protracted negotiations with Defendant and several of his attorneys, settlements have been finalized and executed in many of the cases handled by the attorney representative. tt EFTA00207408 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 12 of 17 27. During those extensive, lengthy, and protracted settlement negotiations, Defendant took positions that, at best, were tuireasonable, and, at worst, exemplified his continuing bad faith. 28. Extensive and lengthy discussions similarly ensued when it became clear that Defendant did not intend to abide by the NPA by promptly paying the fees and costs of the Podhurst firm, Mr. Josefsberg, and his team for their representation of the young women who, as minors, were sexually abused and exploited by Defendant. Intense and frustrating negotiations regarding Defendant's obligation to pay were conducted between the Podhurst firm and Defendant's multitude of lawyers over the course of more than twenty (20) months of representation. 29. The representation and legal work done by Mr. Josefsberg, the attorney representative, and his team on behalf of the young women who, as minors, were sexually abused and exploited by Defendant has generated, and continues to generate, significant attorney's fees and costs that Defendant expressly agreed to pay pursuant to the NPA. 30. For the extensive legal work done on behalf of these young women through settlement by Mr. Josefsberg and his team, the Podhurst firm is currently owed a total of more than Two Million Dollars ($2,000,000) in fees and costs, with additional fees and costs being incurred and billed to Defendant in the future. 31. Defendant's failure to pay the fees and costs of the attorney iiiiliescntative and the Podhurst firm is a material breach of his obligations under the NPA and has totally thwarted and frustrated the intent and purpose of having the attorney representative and his team represent the many youdg women who, as minors, were sexually abused and exploited by Defendant. 12 EFTA00207409 Case 1:10-cv-21586-ASG Document 1 Entered on F LSD Docket 05/17/2010 Page 13 of 17 32. Epstein's failure to pay the attorney's fees and costs he expressly agreed to pay the attorney representative is not his only material breach of the NPA. Despite his agreement and promise in the NPA to waive his right to contest liability in any suit brought pursuant to 18 U.S.C. § 2255, Epstein has breached this obligation by contesting liability in the cases against him by the young women who, as minors, he sexually abused and exploited. On at least one occasion, the USAO placed Defendant on notice that he was in breath of the NPA. 33. It has become abundantly clear that Epstein, having obtained the benefits of the NPA and having escaped federal criminal prosecution, now believes that he can simply ignore— without consequence—the obligations imposed under the NPA. Put simply, Epstein believes he is above the law. COUNT I BREACH OF THIRD PARTY AGREEMENT 34. Plaintiff realleges paragraphs 1 through 33 as though they were fully set forth herein. 35. The NPA is an enforceable agreement between the Defendant and the United States, both of whom entered into the NPA with the intent of benefiting certain third parties. 36. The NPA specifically and clearly intended to benefit the Podhurst firm, in that the attorney representative, a Podhurst partner who is compensated by the firm, was to be paid for his services at his regular customary hourly rate by Epstein. 37. The attorney representative, certain other members and employees of the Podhurst firm, and the independent lawyers and experts they hired to assist them in the representation of the young women who, as minors, were abused and exploited by Defendant, generated fees at their usual hourly rates, as well as expenses and costs. 13 EFTA00207410 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 14 of 17 38. Despite Defendant's express agreement and obligation under the NPA to pay for the fees and costs incurred by the attorney representative in connection with the representation of the many minor females who Defendant sexually abused and exploited, Defendant has paid only a small portion of the fees and costs incurred, and has failed—despite numerous meetings and repeated requests-to pay the remainder of the outstanding fees and costs due the attorney representative and the Podhurst firm. 39. Defendant's failure to pay the attorney representative and his team the attorney's fees and costs incurred is a clear and material breach of Defendant's obligation under the NPA. 40. Such material breach of the NM has caused substantial damages to the Podhurst firm, the attorney representative, and the independent lawyers who were intended beneficiaries under the NPA. ORE, as a result of Defendant's breach of the NPA and the resulting damages to its intended third party beneficiary, Plaintiff seeks damages in excess of Two Million Dollars ($2,000,000), representing the attorney's fees and costs incurred by the Podhurst firm and the attorney representative on behalf of Defendant's victims, along with the reasonable fees and costs associated with their efforts herein to make themselves whole, including, but not limited to, attorney's fees and costs pursuant to Florida Statutes, pre-judgment and post-judgment interest, and any other relief this Court deems just and proper. COUNT II BREACH OF COVENANT OF GOOD FAITH AND FAIR DEALING 41. Plaintiff realleges paragraphs 1 through 33 as though fully set forth herein. 42. The NPA is an enforceable agreement between Defendant and the United States. Defendant and the United States entered into the NPA with the clear and expressed intent to 14 EFTA00207411 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 15 of 17 benefit certain third parties, including the attorney representative, Mr. Josefsberg, and the Podhurst finn. 43. The NPA contains an implied covenant of good faith and fair dealing. 44. Under the NPA, Defendant expressly agreed and was obligated to pay the fees and costs of the attorney representative, a partner at the Podhurst firm, before, during, and through any settlement of each case that he and the Podhurst firm were handling on behalf of the victims whom Defendant sexually abused and exploited. 45. Specifically, the NPA expressly provides that, "[u]pon the execution of this agreement, the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein." 46. The NPA further provides that "Epstein has agreed to pay the fees of the attorney representative." 47. Defendant breached the implied covenant of good faith and fair dealing contained in the NPA, as well as in those provisions in which Defendant agreed to pay the fees and costs of the attorney representative, by, among other things, (a) repeatedly delaying the payment of the fees and costs incurred through settlement by the attorney representative and his team; (b) despite suggesting that a Special Master be selected to sett►e the issue of fees and costs incurred by the attorney representative, initially denying the existence of the parties' agreement to do so, and delaying the selection of such Special Master by making numerous, unreasonable, and often surreptitious changes to the proposed Special Master agreement; and 15 EFTA00207412 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 16 of 17 (e) causing the attorney representative and the Podhurst firm to incur additional fees and costs by not responding to requests in a timely fashion, or at all; by taking unreasonable positions, including contesting liability of a § 2255 claim; and by reaching agreement on various issues and then reneging on the agreements reached, all the while contending that the fees and costs incurred by the attorney representative and his team were excessive and unreasonable. 48. By his actions, Defendant has acted in bad faith, unfairly, unconscionably, and maliciously toward the attorney representative and his team, who were clearly intended beneficiaries under the NPA, and has caused the Plaintiff damages. WHEREFORE, as a result of Defendant's unreasonable and unconscionable actions, which constitute a breach of the implied covenant of good faith and fair dealing in the NPA, Plaintiff seeks damages in excess of Two Million Dollars ($2,000,000), representing the attorney's fees and costs incurred by the Podhurst firm on behalf of Defendant's victims through 16 EFTA00207413 Case 1:10-cv-21586-ASG Document 1 Entered on FLSD Docket 05/17/2010 Page 17 of 17 settlement and pursuant to the NPA, along with the reasonable fees and costs associated with its efforts herein to make itself whole, attorneys fees and costs pursuant to Florida Statutes, pre- judgment and post-judgment interest, and any other relief this Court deems just and proper. DATED this 17" day of May, 2010. Respectfully submitted, PODHURST ORSECK, P.A. Attorneys for Plaintiff' City National Bank Building 25 W. Flagler Street, Suite 800 Miami, FL 33130 Telephone: (305) 358-2800 Facsimile: (305) 358-2382 By: /s/ Peter Prieto Steven C. Marks (FBN 516414) smarks@podhurst.com Peter Prieto (FBN 501492) pprieto@oodhurst.com John Gravante, Rl (FBN 617113) • v t igeton/ 17 EFTA00207414 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 1 of 15 COMPOSITE EXHIBIT A NON-PROSECUTION AGREEMENT AND ADDENDUM EFTA00207415 - "- Case 1: 10-Cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 2 of 15 IN RE: INVESTIGATION OF JEFFREY EPSTELN PipNT-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorneys; Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted en investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictnxt with solicitation of prostitution, in violation of Florida Statutes Section 796.07; IT APPEARING that the United States Attorney's Office and the Federal Bureau of Investigation have conducted their own investigation into Epstein's backgrotmd and any offmses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: (I) knowingly and willfully conspiring with others known and triknown to commit an offense against the United States, that is, to use a facility or means of intestate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution, in violation of Title 18, United States Code, Section 2422(b); all in violation ofTitle 18, United States Code, Section 371; (2) knowingly and willfully conspiring with others known and unknown to travel in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(0, with minor females, in violation of Title 18, United States Code, Section 2423(b); all in violation of Title 18, United Slat= Code, Section 2423(e); (3) (4) using a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution; in violation of Title IS, United States Code, Sections 2422(6) and 2; traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females; in violation Page 1 of 7 EFTA00207416 Case 1:10-cv-21586-ASG Document 1-3 Entered on F LSD Docket 05/17/2010 Page 3 of 15 of Title 18, United States Code, Section 2423(b); and (5) knowingly, in and affecting interstate and foreign commerce, recruiting, enticing, and obtaining by any means a person, knowing that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act as defined in 18 U.S.C. § 1591(cXl); in violation of Title 18, United States Code, Sections 1591(a)(1) and 2; end IT APPEARING that Epstein seeks to resolve globally his state and federal criminal liability and Epstein understands and acknowledges that, in exchange for the benefits provided by this agreement, be agrees to comply with its terns, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epnein's backgrotmd by both State and Federal law enforcement agencies, and after doe consultation with the State Attorney's Office, that the interests of the United States, the State of Florida, and the Defendant will be served by the following prneedurm THEREFORP, on the authority of R. Alexander Acosta, United States Attorney for the Southern District of Florida, prosecution in this District for these offenses shall be deferred in favor of prosecution by the State of Florida, provided that Epstein abides by the following conditions and the requirements of this Agreement set forth below. If the United States Attorney should determine, based on reliable evidence, that, dining the period of the Agreement, Epstein willftally violated any of the conditions of this Agreement, then the United States Attorney may, within ninety (90) days following the expiration of the term of home confinement discussed below, provide Epstein with timely notice specifying the condition(s) of the Agreement that be has violated, and shall initiate its prosecution on any offense within sixty (60) days' of giving notice of the violation. Any notice provided to Epstein pursuant to this paragraph shall be provided within 60 days of the United States learning of facts which may provide a basis for a determination of a breach of the Agreement. Alter timely fulfilling all the terms and conditions of the Agreement, no prosecution for the offenses set out on pages 1 and 2 of this Agreement, nor any other offenses that have been the subject of the joint invatigr.lon by die Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand hay investigation will be instituted in this District, end the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00207417 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 4 of 15 Terms of the Agreement: 1. Epstein shall plead guilty (not nolo contendere) to the Indictment as currently pending against him in the 15th Judicial Circuit in and for Palm Beach County (Case No. 2006-cf-009495A)COChe) charging one (1) count of solicitation of prostitution, in violation of FL Stat. § 796.07. In addition, Epstein shall plead guilty to an Information filed by the State Attorney's Office charging Epstein with an offense that requires him to register as offender, that is, the solicitation of minors to engage in prostitution, in violation °Moeda Statists Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as ibllows: (a) Epstein shall be sentenced to consecutive terms of twelve (12) months and six (6) months in county jail for all charges, without any opportunity for withholding adjudication or sentencing, and without probation or community control in lieu of imprisonment and (b) Epstein shall be sentenced to a term of twelve (12) months of community control consecutive to his two terms in county Jail as described in Term 2(a), supra. 3. This agreement is contingent upon a Judge of the 15th Judicial Circuit accepting and executing the sentence agreed upon between the State Attorney's Office and Epstein, the details of which are set forth in this agreement. 4. The terms contained in paragraphs 1 and 2, supra, do not foreclose Epstein and the State Attorney's Office from agreeing to recommend any additional charge(s) or any additional term(s) of probation and/or incarceration. 5. Epstein shall waive all challenges to the Information filed by the State Attorney's Office and shall waive the right to appeal his conviction and sentence, except a sentence that exceeds what is set forth in paragraph (2), supra. 6. Epstein shall provide to the U.S. Attorney's Office copies of all Page 3 of 7 EFTA00207418 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 5 of 15 proposed agreements with the State Attomey's Office prior to entering into those agreements. 7. The United States shall provide Epstein's attorneys with a list of individuals whom It has identified as victims, as defined in 18 U.S.C. § 2255, after Epstein has signed this agreement and been sentenced. Upon the execution of this agreement, the United States. in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein. Epstein's counsel may contact the identified individuals through that representative. 8. If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida ovchis person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an arm= as agreed to between the identified individual and Epstein, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 9. Epstein's signature on this agreement also is not to be construed as an admission of civil or criminal liability ore waiver of any jurisdictional or other defense as to any person whose name does not appear on the list provided by the United States. 10. Except as to those individuals who elect to mooted exclusively under 18 U.S.C. § 2255, as set forth in paragraph (8), supra, neither Epstein's signature on this agreement, nor its terms, nor any resulting waivers or settlements by Epstein arc to be construed as admissions or evidence of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person, whether or not her name appears on the list provided by the United States. I. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00207419 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 6 of 15 sentenced not later than October 26, 2007. The United Slates has no objection to Epstein self-reporting to begin serving his sentence not later than January 4, 2008. 12. Epstein agrees that he will not be afforded any benefits with respect to gain time, other than the rights, opportunities, and benefits as any other inmate, including but not limited to, eligibility for gain time credit based on standard rules end regulations that apply in the State of Florida- At the United States' request, Epstein agrees to provide an accounting of the gain time he earned during his period of incarceration. 13. The parties anticipate that this agreement will not be made part of any public record. lithe United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agrcaricril, it will provide notice to Epstein before making that &clone. Epstein %aide/stands that the United States Attorney has no authority to require the State Attorney's Office to abide by any terms of this agreement. Epstein understands that it is his obligation to undertake discussions with the State Attorney's Office and to use his best efforts to ensure compliance with these procedures, which compliance will be necessary to satisfy the United States' interest Epstein also understands that it is his obligation to use his best efforts to convince the Judge of the 15th Judicial Circuit to accept Epstein's binding recommendation regarding the sentence to be imposed, and understands that the failure to do so will be a breach of the agreement. In consideration of Epstein's agreement to plead guilty and to provide compensation in the manna described above, if Epstein successfully fulfills all of the terms and conditions of this agreement, the United States also agrees that it will not institute any criminal a es tug an potential co-co ' tiding but not limited tom or Further, upon execution of this agreement and a plea agreement en the State Attorney's Office, the federal Grand Jury investigation will be suspended, and all pending federal Grand Jury subpoenas will be held in abeyance unless and until the defendant violates any tarn of this agreement The defendant likewise agrees to withdraw his pending motion to intervene and to quash certain grand jury subpoenas. Both parties agree to maintain their evidence, specIficaDy evidence requested by or directiy related to the grand jury subpoenas that have been issued, and including certain computer equipment, inviolate until all of the terms of this agreement have been satisfied. Upon the success:id completion of the terms of this agreement, all outstanding grand Jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00207420 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 7 of 15 By signing this agreenamt, Epstein assers and certifies that each of these terms is material to this agreement and is supported by independent consideration and that a breach of any one of these conditions allows the United States to elect to terminate the agreement and to investigate and presentee Epstein and any other individual or entity for any and all federal offenses. By signing this agreement, Epstein asserts and certifies that he is aware of the fact that the Sixth Amendment to the Constitution of the United States provides that in all criminal prosecutions the accused shall enjoy the right to a speedy and public trial. Epstein fiatha is aware that Rule 48(b) of the Federal Rules of Criminal Procedure provides that the Court may dismiss an indictment, information, or complaint for unnecessary delay in presenting a charge to the Grand Jury, filing an information, or in bringing a defendant to trial. Epstein hereby requests that the United States Attorney for the SouthemDistict ofFlorida defer such prosecution. Epstein agrees and consents that any delay from the date of this Agreement to the date of initiation of prosecution, as provided for in the terms expressed herein, shall be deemed to be a necessary delay at his own request, and he hereby waives any defense to such prosecution on the ground that such delay operated to deny him rights under Rule 48(b) of the Federal Rules of Criminal Procedure and the Sixth Amendmentto the Constitution artist United States to a speedy trial or to bar the prosecution by reason of the running of the statute of limitations for a period of months equal to the period between the signing of this agreement and the breach of this agreement as to those offenses that were the subject of the grand jury's investigation. Epstein further asserts and certifies that he understands that the Fifth Amendment and Rule 7(a) of the Federal Rules of Criminal Procedure provide that all felonies must be charged in an indictment presented to a grand jury. Epstein hereby agrees and consents that, if a prosecution against him is instituted for any offense that was the subject of the grand jury's investigation, it may be by way of an Information signed and filed by the United States Attorney, and hereby waives his right to be indicted by a grand jury as to any such offense. 111 Page 6 of 7 EFTA00207421 Case 1 :10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 8 of 15 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: 74409 -- Dated: Dated: ASSISTANT U.S. ATTORNEY GERALD LEFCOURT, ESQ, COUNSEL TO JEFFREY EPSTELN LILLY ANN SANCHEZ. ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00207422 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 9 of 15 By signing this agreement, Epstein asserts and certifies that the above has been rand and explained to him. Epstein hereby states that In understands the conditions of this Non- Prosecution Agreement and agrees to comply with Ilatta. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: Dated: Dated I9-tt ( 7 Dated: By. ASSISTANT U.S. ATTORNEY LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00207423 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 10 of 15 By signing this agreement, Epstein asserts and certiEes that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non. Prosecution Agreancut and agrees to comply with than. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated• By ASSISTANT L'.S. ATTORNEY Dates: JEFFREY EPSTEIN Dated: Dated:` -4 14 • GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN ESQ. ATTORNEY FOR JEFFREY EPSTEIN Pap? or 7 EFTA00207424 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 11 of 15 EC RE: INVESTIGATION OF JEFFREY EPSTEIN ADDENDUM TO TILE NON-PROSECUTION AGREEMENT IT APPEARING that the parties seek to clarify certain provisions of page 4, paragraph 7 of the Non-Prosecution Agreement (hereinafter "paragraph 71, that agreement is modified as &glows: 7A. The United States has the right to assign to an independent third-party the responsibility fen• consulting with and, subject to the good faith approval of Epstein's counsel, selecting the attorney representative for the intfividuals identified under the Agreement. If the United States elects to assign this responsibility to an independent third-party, both the United States and Epstein retain the right to make good faith objeciims to the attorney representative suggested by the independent third-party prior to the final designation of the attorney representative. 7B. The panics will jointly prepare a short written submission to the independent third-party regarding the role of the attorney representative and regarding Epstein's Agreement to pay such attorney representative his or her regular customary hourly rate for representing such victims subject to the provisions of paragraph C, infra 7C. Pursuant to additional paragraph 7A, Epstein has agreed to pay the fees of the attorney representative selected by the independent third party. This provision, however, shall not obligate Epstein to pay the fees and costs of contested litigation filed against him. Thus, If after consideration of potential settlements, an attorney representative elects to file a contested lawsuit pursuant to 18 U.S.C. a 2255 or elects to pursue any other contested remedy, the paragraph 7 obligation of the Agreement to pay the costs of the attorney representative, as opposed to any statutory or other obligations to pay reasonable attorneys foes and costs such as those contained ins 2255 to bear the costs of the attorney representative, shall cease. EFTA00207425 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 12 of 15 By signing this Addendum, Epstein asserts end eatifies that the above has been read and explained to film. Epstein hereby sates that he undastands the clarifications to the Non- Prosecution Agreement and agrees to comply with then. IL ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: /0/3h /D7 Dated: / T 2-1 / 1" Dated: Dated: ASSISTANT L'.S. ATTORNEY GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR. JEFFREY EPSTEIN EFTA00207426 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 13 of 15 By signing this AdrIendtnn, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Noo- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITE) STATES ATTORNEY Dated: /0 hohn Dated: Dated: ASSISTANT U.S. ATTORNEY JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00207427 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 14 of 15 By signing this Addendum, Epstein asserts and certifies that the above hes been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement end agrees to comply with them. R. ALEXANDER ACOSTA Dated: it) / 3 DA '7 Da& Dated: ifraffi" ASSISTANT U.S. ATTORNEY JEFFREY EPSTEDI GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTED4 LILLY ATfORNEY YOR JEFFREY EPSTEIN EFTA00207428 Case 1:10-cv-21586-ASG Document 1-3 Entered on FLSD Docket 05/17/2010 Page 15 of 15 tar-tr-01 t4:5Sps F res-FowIat-lid to Barna tt Affirmation tttTtttttt T-N6 F. Waillit Fern lotEroy R. Eintain tin hereby rola= the Nost-Psoseastins Agrycmc•• to,.1.4 444-9hu, m set= Sued October 50, 2007, LYte EFTA00207429 Case 1:10-cv-21586-ASG Document 1-4 Entered on FLSD Docket 05/17/2010 Page 1 of 7 EXHIBIT B LETTER DATED OCTOBER 25, 2007 FROM FIRST ASSISTANT UNITED STATES ATTORNEY TO THE HONORABLE EDWARD B. DAVIS (Ret.) EFTA00207430 Case 1:10-cv-21586-ASG Document 1-4 Entered on FLSD Docket 05/17/2010 Page 2 of 7 U.S. Department of Justice United Stela Attorney Southern District of Fart& 99 WE 416 Street Jaunt Fl 33132 Telgilume: p05) 961-9299 Facsimile: (305)530404 October 25, 2007 pELIVER.Y BY FACSIMILE The Hon. Edward B. Davis (Rat.) Akaman Senterfitt One Southeast Third Avenue, 25th Floor Miami, Florida 33131 Re: Service as a Special Master Dear Judge Davis: Thank you for agreeing to serve as a Special Mester and for assisting the United States Attorney's Office in the selection of an attorney representative to represent a group of identified victims. This letter is meant to assist you in pertbrming your duties by providing you with background information regarding the agreement between the United States and Jeffrey Epstein and the duties that the attorney representative will have to perform. The Federal Bureau of Investigation and the U.S. Attorney's Office conducted an investigation of Mr. Epstein. As a result of that investigation, fael.J.S. Attorney's Office and Mr. Epstein entered into a Non-Prosecution Agreement and an Addend= that contains, Sr alia, the following terms: 7k The United States has the right to assign to an independent third-party the responsibility for consulting with and, subject to the good faith approval of Epstein's counsel, selecting the attorney represerna.tive for the individuals identified under the Agreement If the United States elects to assign this responsibility to an independent third-party, both the United States and Epstein retain the right to make good faith objections to the attorney representative suggested by the independent third-party prior to the final designation of the atorney representative, EFTA00207431 Case 1:10-cv-21586-ASG Document 1-4 Entered on FLSD Docket 05/17/2010 Page 3 of 7 TEE HON. EDWARD B. DAVIS (Rs,.) °croon 25, 2007 PAGE 2c/r4 7B. The parties will jointly prepare a short written submission, to the independent third-party malting Me role gibe atiorneyssoresentatiye and regarding Epstein's Agreement to pay such attorney representative his or her regular customary hourly rate for representing such victims subject to tlfe provisions of paragraph 7C, infra. 7C. Pursuant to additional paragraph 7A, Epstein has agreed to pay the fees of the attorney representative selected by the independent third party. This provision, however, shall not obligate Epstein to pay the fees and costs of contested litigation filed against him. Thus, if after consideration of potential settlements, an attorney representative elects to file a contested lawsuit pursuant to 18 U.S.C. § 2255 or elects to pursue any other contested remedy, the paragraph 7 obligation of the Agreement to pay the costs of the attorney representative, as opposed to any statutory or other obligations to pay reasonable attorneys fees and costs such as those contained in § 2255 to bear the costs of the attorney representative shall cease. 81f any of the individuals referred to [in the paragraphs above] elects to file suit pursuant to 18 U.S.C. § 2255,Bpstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over his person and/or the subject matter, and Epstein waives his right to wntest liability and also waives his right to contest damages up to an amount agreed to totiveen E2stem and the ipatteg inlviahal; so wit as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, with respect to those individuals whose names appear on the list provided by the Milted States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 9.Epstrin's signature op this agreement also is not to be construed admission of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person whose, name does not appear on the list provided by the United States. 1O.Except as to those individuals who elect to proceed exclusively under 18 U.S.C. § 2255, as set forth in [the above paragraphs], neither Epstein's EFTA00207432 Case 1:10-cv-21586-ASG Document 1-4 Entered on FLSD Docket 05,1712010 Page 4 of 7 Tics HON. EDWARD B. DAVIS (REM) OCTOBER 25,2007 ?tau 3 av 4 signature on this agreement, uor its terms, nor any itching waivers or settlements by Epstein axe to be construed as admissions or evidence of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person, whether or not her name appears on the list provided by the United States. The most recent version of the statute referenced above, 18 U.S.C. § 2255, provides that Any person who, while a minor, was a victim of a violation of section ...2422 or 2423 of this title and who stiffen personal injury as a result of such violation, regardless of whether the injury occurred while such person was a minor, may sue in any appropriate United States District Court and shall recover the actual damages such person sustains and the cost of the suit, including a reasonable attorney's fee. Any person as described in the preceding sentence shall be deemed to have sustained damages of no less than $150,000 in value.' Section 2422 prohibits the use of a facility of interstate commerce to induce minors to engage in sexual activity and prostitution, and section 2423 prohibits interstate travel for the purpose of engaging in sexual activity or prosfitufion with minors. The United States has identified 34 victims as de5nedby this statute. The United States takes no position as to the validity of any such claim under this statute. Due to the circumstances of the case and the nmnber and caliber of the attorneys who represent Mr. Epstein, in selecting the victims' attorney representative, the United States suggests that you consider the following criteria: 1. Experience doing both plaintiffs' and defense litigation. 2. Experience with state and federal statutory and common law tort claims. 3. The ability to comnumicate effectively with yormg women. 4. Experience litigating against large law firms and high pro fil e attorneys who An earlier vmsion of this statute deems that any person described in the preceding sentence shall have sustained damages of no less than $50,000 in valve. EFTA00207433 Case 1:10-cv-21586-ASG Document 1-4 Entered on FLSD Docket 05/17/2010 Page 5 of 7 TEE RON. EDWARD B. DAVIS (fir.) Ocrossa25, 2007 PAGE 4 OF4 may test the veracit4 of the victims! claims. 5. Sensitivity to the nature of the suit and the victims' interest in maintaining their privacy. 6. Experience litigating in federal court in the Southern District of Florida. 7. The resources to hire experts and others, while working on a contingency fee basis, in order to prepare for trial, if a settlement cannot be reached (defense counsel has reserved the right to challenge such litigation). 8. The ability to negotiate effectively. Pursuant to this letter, the United States assigns to you the responsibilityfor consulting with and selecting the attorney representative for the individuals. The United States and Epstein retainthe right to make good faith objections to the attomeyrepresentative you select prior to the final designation of the attorney representative. In that regard, after you have readied a decision regarding the attorney representative, please provide mo with his or her name and contact information. DI can provide you with any further information, please do not hesitate to contact me and/or the U.S. A rn and/or Jay Lelkowitz, Esq. =behalf ofEpstein Mr. Lercowitz can be reached at -Kirkland & Ellis IL?, Citigroup Center, 153 East 53'd Street New York, New York 100224611. Thank you again for your assistance with this matter. Sincerely, R. Alexander Acosta By cc: AUSA First Assistant United States Attorney EFTA00207434 Case 1:10-cv-21586-ASG Document 1-4 • Entered on FLSD Docket 05/17/2010 Page 6 of 7 PROPOSAL FORPROCEEDING ONCE ATTORNEY IS SELECTED 1. Provide selected attorfiey with: a. a copy of the relevant portion of the Non-Prosecution Agreement; b. the names and contact information for the identified victims; and c. a retainer agreement i. The retainer agreement will provide for the monthly billing of fees at an hourly rate and monthly expenses. The billing statements will be sent to and paid by en attorney or accountant not involved in the damages litigation, and will not be made available to any person or firm involved in the damages litigation. iii. Billing statements will have privileged and work product information redacted. iv. Disputes regarding fees will be referred to a Special Mesta (perhaps the Special Master who selected the attorney). 2. The agents and I will contact the girls individually to inform them of the resolution of the case, including the selection of an attorney to represent them, if they so choose. I will provide them with the name and telephone mmaber of the attorney and also let tens know that the attorney will be contacting them. 3. The selected attorney will contact each victim and review with her the facts of her case and the options that she has, namely: a. selecting another attorney and handling everything through that attorney; b. attempting to reach an agreement with Mr. Epstein for an amount of damages pursuant to 18 U.S.C. § 2255; c, filing suit seeking other state and/or federal damages or restitution; and d. not seeking any money damages from Mr. Epstein. EFTA00207435 Case 1:10-cv-21586-ASG Document 1-4 Entered on FLSD Docket 05/17/2010 Page 7 of 7 4. If the specific victim selects option (3)(b), the selected attorney will contact counsel for Mr. Epstein to negotiate a settlement amount and the terms of that settlement 5. If the specific victim selects option (3)(b) and the parties are imable to reach an agreement regarding a settlement amount, then the victim can: a. ask the selected attorney to file suit in the U.S. District Court for the Southern District of Florida, pursuant to 18 U.S.C. § 2255; or b. file suit in state or federal court pursuing damages under any state or federal remedy. 6. If the specific victim selects option (5Xa), the representation of the victim by the selected attorney will continue using the same monthly billing and payment system contained in the retainer agreement 7. If the specified victim selects option (5)(b), Mr. Epstein will have no further obligation to pay the attorney, except as ordered by the Court hearing the suit. EFTA00207436 Case 1:10-cv-21586-ASG Document 1-5 Entered on FLSD Docket 05/17/2010 Page 1 of 2 EXHIBIT C LETTER DATED SEPTEMBER 2, 2008 FROM EPSTEIN'S COUNSEL TO ASSISTANT UNITED STATES ATTORNEY EFTA00207437 Case 1:10-cv-21586-ASG. Document 1-5 EnteredonFLSDDocket05/17/2010cPagp'29f2 A 4 a t8 /OP KIRKLAND & ELLIS LLP MO Amur:D raaratasaars Jay P. Leavitt, P.C. To Call %Mtw DIrsay: (212) 446-4010 latoratekkklandtan VIA. FACSIMILE (561) 820-8777 Cli(gnxip Canter iS Ee t8arS Stant Now York, Mn Y0tk10O22-41111 F8000faill (S 440-4800 (212) 4411-4880 ravvalarkiact.corn September 2, 2008 United States Attorney's Office Scuds= District of Florida West Palm Beach, Plo:ids 33401 Ra. Jeffrey Epstein Deer In response to your letter dated August 26, 2008, lam confmarng that Mr. Goldberger should continue to be listed m the contact pason in the amended victim notification letthrs and should receive the carbon copies of those letters as they are sent. Also, we plan on speaking to Mr. Josefaberg this week to discuss a procedure for paying his fees. We intend to comply fully with the agreement and Mr. Epstein will pay Mr. 3°5M-erg's usual and customary hourly rates for his work pursuant to the agreement facilitating settlements under 2255. cc: Karon Atkinson, Chief,' Northers Division Jack Goldberg= Roy Black Cake Haan gene Loa Mclean Mu rich Ban Pranciaca Wahblarne, D.C. eSed >1 ti'lat OSTS-ESZ-SO€ TJaP3 WcISO:S 800e 80 'tut 06TS ZSE SE 61:8T 600E/80/90 EFTA00207438 Ado y :E1,90a,15p9A9se Document 1-2 Entered on FLSD Docket 05/17/2010 Page 1 of 2 UNITED STATES DISTRICT COURT Southern District of Florida PODHURST ORSECK. v. JEFFREY EPSTEIN. Case Number: Plaintiff Defendant SUMMONS IN A CIVIL CASE TO: (Nene and address of defaldant) JEFFREY EPSTEIN 358 El Milo Way Palm Beach. Florida YOU ARE HEREBY SUMMONED and required to serve upon PLAINTIFF'S ATTORNEY warm and teddreni Peter Prieto, Esq. PODHURST ORSECK, P.A. City National Bank Building - Suite 800 25 West Flagler Street Miami, FL 33130 an answer to the complaint which is herewith served upon you, within 20 days after service of this summons upon you, exclusive of the day of service. If you fail to do so, judgment by default will be taken against you for 11w relief demanded in the complaint. You must also file your answer with the Clerk of this Court within a reasonable period of time after service. CLERK DATE MY) DEPUTY CLERK EFTA00207439 SRC Mt-2158USSDocuinent 1-2 Entered on FLSD Docket 05/17/2010 Page 2 of 2 RETURN OF SERVICE Service of the Summons and Complaint was made by me' DATE HAW OSSEItna ORM 1117-E Cheek one box below to indicate appropriate method of service O Served personally upon the defendant. Place where served: O Left copies thereof at the defendant's dwelling house or usual age and discretion then residing therein. Name of person with whom the summons and complaint were place of abode with a person of suitable left: O Returned unexeculed: O Other (specify): STATEMENT OF SERVICE FEES I RAVEL SERVICES TOTAL $0.00 DECLARATION OF SERVER I declare under penalty of perjury under the laws of the United States of America that the foregoing information contained in the Return of Service and Statement of Service Fees is true and correct. Executed on Dale Sweatt of Savet Maass of sewer (I1 As 10 who may servo a summons POt Rule nfaro Federal Ruin of Crvil Procedure EFTA00207440 .."35 14 (Pease 1:10-cv-21586-ASG DocuDRUID CO BEIFLSD Docket 05/17/2010 Page 1 of 2 ThelS 44 civil cover sheet and the information contaLvod herein neitherrsalace nor suppkrismt Me filing and service of pIcadinp or other papers as required by law. except asprovided by local rule. of court. This am , aPPrrned by the JudicialConference of the VMS Slates in Scoicintair 1074,,k runt lordly um of ilw C of Coun for the pylon..< of initiating avil docket sheet 1541 INST RIK I IONS on TIM *LW %sr or 711E FORM) gertICERMAWIlla" -Aitttelt lerk atcmesatkeiC I. (a) PLAINTIFFS PODIIUR ST ORSECK. (b) County of Reddenee of Pam Listed Phintiff Miami-Dade (Min IF U.S ra.AncrWr CASES) (e) Attorney's alum Name. Address. mt4ITtlepboat Swain) Peter Prieto, Esq. Podhurst °meek, P.A. 25 W. Flagler Street, Suite 800, Miami, Florida 33130 (305)358-21300 DEFENDANTS JEFFREY EPSTEIN County of Residenceof First Listed Defaidaut Palm Beach (IN US PLAINTIFF CASES ONLY) NOTE: IN LAND CONDEMNATION CASES-USE THE LOCATION OF THE TRACT LAND INVOLVED Attorney% or Knows) ON fl ied Where Action Anise; 0 MIAMI. DAM 0 MONROE fl PROW *RD CI PALM BRACH CI MARTIN 0 ST. UMW O INDIAN RIVER 0 OKEECHOBEE 1110 FILANDS II. BASIS OF JURISDICTION aurora - re wows.. owri 0 1 US. G•venotent ledoo•Klugaion Matadi Govetomatt Net n Petty I 2 U.g Coves tent A 4 Diversity Datoodom (Indicant C'omenshia nr Prue 1,C10 - III. CITIZENSHIP OF PRINCIPAL PARTIESimwe en • X- to cue tuts rsi Planing (Fos DIvenIty Cam Onlyl and One Ron for DeNotlastl PTV Ott PIP DIP Chins mina Seam If I 0 I Iscorposated on, Pnnapol Place CI 4 O4 et Huslans In Thu State C kites of AnotherState t ; e• 2 locomsated wad Pnacepel Place 0 S of Nolan. In Ardetor State Colvin e4 %object of • CI 1 tonic. Nacre 7titFtt.'. elq"' • el e k COMFRA01 Wit is FOR) L I II IC t P1, 5. ALP( RANI:It/PICT unifier sr•soscs 0 Cl 0 CI C1 0 Cl 0 O di Cl Cl no 'entree.. ISO Maria MO Mar An MO Nepoonble Inurement ISO Reco.ely of Oneineymeza * Lniarcesota of Julgreara 151 Metileite Ant 152 Recovery of Defanaed Suodest Load (too VotalaIl 353 PcsovcryefElverpoymcm of Vmanal Hamm. 140 Siockholden Son MO Other Congeal Its Conran Product Fulani, OM Provhise PERSONAL INJURY 0 110 Aisplinc 41515 Airplane Product Lodbtlay 0 120 Asssoh. LAO A Sadder Cl 110 Federal Employen' lastality Cl 140 Marine 0 14‘ M.nno Ptadwoi ILAndity Cl 00 Mena Veodule Cl 355 Moan Vaack PmaInct tumid, Cl 104 Other ?mortal !may PI ICI:u%A I. INJUI41 0 762 Naomi' kjety - Med Milpinalco Cl )65 Prison/al ',Jury - Poodau LobilIO 0 368 Aebeit04 Pennant lojwy Pnyhti Luhlely PERSONAL PROPERTY n 310 pear Erma 0 271 Trah in Lendins el )40 Omer Penena I Pruncrty Damafe 1 )ES Properly Domani Praanct Lutillity PRISONER PREMISS% 0 61 ti Ant.c..t.re Cl 620 Other F.od & Drop 0 625 Dail' Orland Miner 63 Ptoperty 21 USC MI Cl NO tomot Len 0 640 P.0...I TON 0 630 A klitu Rap. Cl t60 Oa opaline.' SofarlImIth PI mai other 0422 Aanesi:. US( Ilk 0421 Withdramot 2) UM' Iv/ n 0 0 0 0 0 II 0 Cl 0 r3 0 0 0 0 Cl 0 Cl 0 a 00 Stew Iteuppeeounme41 .410 Aolitrou 450 Hants and Nankai 430Coymoorm 44.0 DopoDation 470 Packager lotfascn«d and Corrupt Dec434436004 440 Connate Credit 490 Ceble/Sal TV Ill0 Solacing StriHr IISCISeconvei)Caantadkaa EtcAnApt P75 Cannata tinalknne 12114-3415 SYOUtlict Nate lacy Aare K9) Agrieoltitml Act{ 149:1mavate Sub4oanten no 103 £nvimnmewt Mean> 1194 Envy" Anne. An 895 Foralom of Infoonmom Act 900 Appestor en Dteefillanoliee Under Ecoal Access to 14.4tiet OSO Cu bie•mookaity of Slaw Statutes PROPERTI RICIll - 3 X2b ( opyaylits 0 410 Patent el •41)Temleasit L ARON 4045441' 4ECOR1TY CI 7111f Pair Lobar Standor4t. Aa Cl 720 Latter/Mani Reim tan Cl 73U LibooMonaltepunrog A Disclaim* Act 0 740 Roil-my LON Ati et 790 000 Labor Linn*. n 701 V mpl. to. loc. A•n•rl” Act I-1 1161 HIA it ,511O n 462 Black Lang (923, Ct 463 DIWC.THIWNV 9105(1)) Cl 464 SSW 144. N VI 1 865 PSI (405(411 t •IPAC.01kOOMPIP VIYIkiRIGRYIE:: ' EVAISSULDA X SUITS .' n n 3 1 I 1 ;In Land Condemn/nine. 00 Pena long 2)0 Rent Leese 5. Ejectment 249 ante In Laced 245 Ton Pludat LtalMo5 200 All Dan Reel P.09eny Cl 141 Vollog Cl 442 1 loplonsint 0 44) Hassinge Accomandaibm r1 444 Welton 441 Alter. •:Dhalinllales 0 ' Employinesi 446 Amer wiDiatbditien O sa. ' •,....1 0 440 Oilier Cinl FOOD Cl 510 Pt oci6nn to Vetere someone Robots Carnes: 1 530 Gretna Cl IS) Death Pesalty 0 540 II .0090000 A Oat, Apian°. D 110 Civil Rights .1 553 ,mm Cooties 0 870 Taxes N.S. Malin' of Doltedant) 0 871 IRS TINM Pally 26 USC 7609 I ", . . .. tl 462 Notaronoalion n 403 Habeas Corpos-Alien Depict 0 465 Oittor IR migration Ackxs, I . ORIGIN (Plana "X- In Doe non Only) Trans erred from ,P I Orlantal O 2 R moved from iD 3 be-,led- O 4 Reinlited 1:3 5 wroth r district ID 6 Ml!hidisclict Proceeding Spite Court (See VI below) Reopened (IPeeifY) Litigation Appeal to Di:Had n 7 Judge from Magisuaie Rids:men( VI. RELATED/RE-FILED CASE(S). sea ham... iambs mu): tt) Re-filed Case O YES (D NO JUDGE Kenneth A. Marra b) Related Cases 0 YES ID NO DOCKET NUMBER See attached list of cases VII. CAUSE OF ACTION Cite Me U.S. Civil Susute muter which you air Blum and Write a Bnef Statement or cause (Do not cite Jurisdictional staintes unless diversityk Breach of Contract to Recover Attorney's Fees and Costs. 28U.S.C.§ 132(aX1) and 1331. LENGTH OF TRIAL via days estimated (fix both sides to try entire case) VIII. REQUESTED IN O CHECK IF THIS IS A CLASS ACTION DEMANDS CHECK YES only if demasded in complaint: COMPLAINT: UNDER ER.C.P. 23 JURY DEMAND: CI Ymi / No ABOVE INFORMATION IS TRUE & CORRECT TO SIONATURB OP ATTORNEY or RECORD DATE TUE BEST OP MY KNOWLEDGE s/Peter Prieto May 17, 2010 FOR OFFICE USE ONLY AMOUNT RECEIPT 0 IF, EFTA00207441 Document 1-1 Entered on FLSD Docket 05/17/2010 Page 2 of 2 INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44 Authority For Civil Cover Sheet The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as acquired by law, except as provided by local rules of court. This form. approved by the Judicial Conference of the United States in September 1974, is required for the use of theClerk of Court for the purpose of initiating the anvil docket sheet. Consequently,a civil cover sheet is submitted to the Clot of Court la each civil complaint filed. The attorney filing a case should complete the form as follows: 1. (a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency. identify first the agency and then the official, giving both name and title. (b)County of Residence. For each civil case filed, except U.S. plaintiff macs, enter the name of the county where the first listed plaintiff resides at the time of filing. In U.S. plaintiff cases. enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved.) (c) Attorneys. Enter the firm name address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting in this section "(see attachment)". (d) Choose one County where Action Arose. II. Jurisdiction. The basis ofjunsdiction is set forth wider Rule Iffa),FILC.P., which requires that jurisdictions be shown in pleadinga. Piece an "X" in one °film boxes. If there is more than one basis of jurisdiction. precedence is given in the order shown below. United States plaintiff. (1) Jurisdiction based OR 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here. United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box. Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States. an onendment to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box I or 2 should be marked. Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of differetu states. When Box 4 is checked, the citizenship of the different pasties must be checked. (See Section III below; federal question actions take precedence over diversity cases.) Ill. EksIdence (citizenship) of Principal Parties. This section of the JS 44 is to be completed ildiventity ofeitirenship was indicated above. Mark this section for each principal party. IV. Nature of Suit. Place an"X" in the appropriate box. If the nature of suit cannot be determined, be sum the cause of action. in Section VI below, is sufficient to enable the deputy clerk or the statistical clerks in the Administrative Office to determine the nature of suit. If the cause fits more than one nature of suit. select the most definitive. Origin. Place an "X" in one of the seven boxes. Original Proceedings. (I) Cases which originate in the United States District Courts. Removed from State Court (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petition for removal is granted, check this box. R011013) Attach copy of <brier for Dismissal of Previous fine. Also complete VI. Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district coati. Use the reopening date as the filing date. Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistriet litigation transfers. Multidistrict Litigation. (6) Check this box when a multidistrict ease is transferred into the district under authority of Title 28 U.S.C. Section 1407. When this box is checked do not check (5) above. Appeal to District Judge from Magistrate Judgment. (7) Cheek this box for an appeal nom a magistrate judge's decision. VI. Related/Rented Casa. Thismeths; ofthe JS 44 is used to referencerelated peodingases or re-filed cases hrssxtthedocket number,. and the corresponding judges name for such cases. VII. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service ViII. Requested In Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the dollar amount (in thousands of dollars) bang demanded or indicate other demand such as a preliminary injunction. Jury Demand. Chock the appropriate box to indicate whether or not a jury is being demanded. Date and Attorney Signature. Date and sip the civil cover sheet. EFTA00207442