EFTA00233878

iv(2_40- 7 d crro),A RI,- #0 _,,,,v1),0 EFTA00233878 U.S. Department of Justice United States Attorney Southern District of Florida 99 N.E. e Street Miami, Fl 33132 Telephone: (305) 961-9299 Facsimile: (305) 530-6444 October 25, 2007 DELIVERY BY FACSIMILE The Hon. Edward B. Davis (Ret.) Akerman 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 Master 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 performing 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, the U.S. Attorney's Office and Mr. Epstein entered into a Non-Prosecution Agreement and an Addendum that contains, inter alia, the following terms: 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. EFTA00233879 The HON. EDWARD B. DAVIS (Rer.) OCTOBER 25, 2007 PAGE 2 OF 4 7B. The parties 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 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. 8.If any of the individuals referred to [in the paragraphs above] 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 an amount agreed to between Epstein and the identified individual, 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, with respect 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 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. 10.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 EFTA00233880 THE How. EDWARD B. DAVIS (RET.) Ocronsa 25, 2007 PAGE 3 OF 4 signature on this agreement, nor its terms, nor any resulting waivers or settlements by Epstein are 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 suffers 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 prostitution with minors. The United States has identified 34 victims as defined by 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 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 ' An earlier version of this statute deems that any person described in the preceding sentence shall have sustained damages of no less than $50,000 in value. EFTA00233881 TIlE HON. EDWARD B. DAVIS (RET.) OCTOBER 25,2007 PAGE 4 OF 4 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. 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 responsibility for consulting with and selecting the attorney representative for the individuals. The United States and Epstein retain the right to make good faith objections to the attorney representative you select prior to the final designation of the attorney representative. In that regard, after you have reached a decision regarding the attorney representative, please provide me with his or her name and contact information. If I can provide you with any further information, please do not hesitate to contact me and/or the U.S. Attorney and/or Jay Lefkowitz, Esq. on behalf of Epstein. Mr. Lefkowitz can be reached at I - Kirkland & Ellis LLP, Citigroup Center, 153 East 53rd Street, New York, New York 10022-4611. Thank you again for your assistance with this matter. Sincerely, R. Alexander Acosta United States 9.ttorney By: First Assistant United States Attorney cc: EFTA00233882 Nots1PAtt A4RAW 4i AttlfNtitAtA EFTA00233883 IN RE: INVESTIGATION OF JEFFREY EPSTEIN NON-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorney's Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted an investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictment 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 background and any offenses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: 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; (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(t), with minor females, in violation of Title 18, United States Code, Section 2423(6); 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 Code, Sections 2422(b) and 2; (4) traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(1), with minor females; in violation Page 1 of 7 EFTA00233884 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(c)(1); in violation of Title 18, United States Code, Sections 1591(a)(1) and 2; and 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, he agrees to comply with its terms, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epstein's background by both State and Federal law enforcement agencies, and after due 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 procedure; THEREFORE, 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, during the period of the Agreement, Epstein willfully 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 he 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. After 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 investigation by the Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand Jury investigation will be instituted in this District, and the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00233885 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-009495AXXXMB) charging one (1) count of solicitation of prostitution, in violation of El. 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 a sex offender, that is, the solicitation of minors to engage in prostitution, in violation of Florida Statutes Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as follows: (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 EFTA00233886 proposed agreements with the State Attorney'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 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 an amount 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 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. 10. Except as to those individuals who elect to proceed 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 are 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. 11. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00233887 sentenced not later than October 26, 2007. The United States 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 and 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. If the United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agreement, it will provide notice to Epstein before making that disclosure. Epstein understands 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 manner 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 a amst an otential co-cons irators of E stein including but not limited r her, upon execution or t s agreement an a p ea agreement 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 term 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, specifically evidence requested by or directly 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 successful completion of the terms of this agreement, all outstanding grand jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00233888 By signing this agreement, Epstein asserts 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 prosecute 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 further 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 Southern District of Florida 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 Amendment to the Constitution of the 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. /// /// /// Page 6 of 7 EFTA00233889 the above bas been read By signing this agreement, Epstein asserts and certifies that stands the conditions of this Non- and explained to him. Epstein hereby states that he under Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: va, ASSISTANT U.S. ATTORNEY Dated: Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN It Page 7 of 7 EFTA00233890 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: JEFFREY EPSTEIN Dated: 7 / 9" / 0.7 RAT.. EFCOUR ESQ. C3 4 ." COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233891 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 UNTIED STATES ATTORNEY Dated: By: ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated:q -"A 14— OR^ LILLY , ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233892 IN RE: INVESTIGATION OF JEFFREY EPSTEIN ADDENDUM TO THE 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 7"), that agreement is modified as fol lows: 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. 713. The parties 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. s 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 s 2255 to bear the costs of the attorney representative, shall cease. EFTA00233893 read and rts and certifies that the above has been By signing this Addendum, Epstein asse clari ficat ions to the Non- s that he understands the explained to him. Epstein hereby, state with than. ply Prosecution Agreement and agrees to com R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: ASSISTANT U.S. ATTORNEY Dated: PA' Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233894 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: ERALD LEFCOr RT ESQ. COUNSEL TO JEFFR Y EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233895 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: ASSISTANT U.S. Al fORNE Dated: JEFFREY EPSTEIN Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: 0-014 LILLY A ANCHEZ, ES ATTORNEY FOR JEFFREY EPSTEIN EFTA00233896 a EFTA00233897 From: Ocariz, Humberto H. (SHB Sent: Thursrlav centemher 27 2007 4:59 PM To: Subject: RE: Conference call needs to be rescheduled Ok. You must think I am and idiot. I just realized that I think I have put' I'm truly sorry. The MI is leftover on my brain from a prior life.... s instead of n my emails to you. Bert Ocariz From: Sent: Thursday, September 27, 2007 3:22 PM To: Ocariz, Humberto H. (SHB) Subject Conference call needs to be rescheduled Hi Bert — Jay Leflcowitz isn't available this afternoon. He is wondering if we can do the call at noon tomorrow. I have made the following suggestions for how best to proceed. Maybe you can consider them, too, for our discussion tomorrow. Thanks. 1. Mr. Epstein signs a standard fee agreement, where one of his attorneys or accountants who is not working on the damages litigation receives a monthly bill with attorney's fees charged at an hourly rate and costs billed monthly. The bills will have any privileged information redacted. If there is a dispute about a bill that cannot be resolved. it will be submitted to a mediator for resolution. 2. If that is too open-ended for Mr. Epstein, do the hourly/monthly billing until Bert has had a chance to confer with all of the girls to determine how many want him to represent them. Once it is known how many girls will be represented by Bert, and maybe who those girls are, there can be a more educated discussion about estimated fees and costs. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Mail Gate made the following annotations on Thu Sep 27 2007 16:00:20 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized EFTA00233898 review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 2 EFTA00233899 From: Ocariz, Humberto H. (SHB) Sent: Thursday, September 27, 2007 4:58 PM To: Cc: Cueto, Lizette Z. (SHB) Subject: RE: Conference call needs to be rescheduled Thanks And, I apologize for dragging you through this but I think a little work upfront is going to save everyone a lot of headaches later. I will be in an out tomorrow, but try my cell Or, call my office and have my assistant Lizette patch me into the call. Given the potential for issues, I think I am favoring your option #2. Bert Ocariz From Sent: Thursday, September 27, 2007 3:22 PM To: Ocariz, Humberto H. (SHB) Subject: Conference call needs to be rescheduled Hi Bert — Jay Lefkowitz isn't available this afternoon. He is wondering if we can do the call at noon tomorrow. I have made the following suggestions for how best to proceed. Maybe you can consider them, too, for our discussion tomorrow. Thanks. I. Mr. Epstein signs a standard fee agreement, where one of his attorneys or accountants who is not working on the damages litigation receives a monthly bill with attorney's fees charged at an hourly rate and costs billed monthly. The bills will have any privileged information redacted. If there is a dispute about a bill that cannot be resolved, it will be submitted to a mediator for resolution. 2. If that is too open-ended for Mr. Epstein, do the hourly/monthly billing until Bert has had a chance to confer with all of the girls to determine how many want him to represent them. Once it is known how many girls will be represented by Bert, and maybe who those girls arc, there can be a more educated discussion about estimated fees and costs. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 3 EFTA00233900 Mail Gate made the following annotations on Thu Sep 27 2007 15:58:36 CONFIDENTIALITY NOTICE: This c-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you arc not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 4 EFTA00233901 From: Ocariz, Humberto H. (SHB) Sent: Thursday. Seotember 27. 2007 10:23 AM To: Subject: RE: Contact Information for the agents Thanks for the update and the info. In going through the process of getting final approval for this matter, I received a few follow-up questions from the powers that be at my firm: 1. Can we get a copy of the indictment (or can you tell me the nature of the crimes against the girls)? 2. When will it be possible to see the plea agreement so that we understand exactly what Epstein concedes to in the civil case? 3. Is there any cap or other limitation on attorney's fees that the defendant will pay in the civil case? 4. What is the conteplated procedure for, and timing of, the payment of attorney's fees and costs? 5. Depending on the nature of the crime/injury, the expectation from this end is that there will be a battle regarding the damages, including punitive damages, that will be demanded and that defense counsel will try to leverage payment of fees against a smaller demand from the girls or even seek a "haircut" on fees, effectively putting the firm in a position where it must chose whether to "contribute" to a settlement in order to resolve the case. Given any of the possible scenarios regarding the payment of fees that the defendant could create (particularly given the strength and creativity of his legal team), my firm could be put in a position which arguably creates a conflict of interest with the clients. Is there a way to structure a payment by the defendant of a lump sum for costsand then my firm would simply handle the case on a contingency? And, this should also make it easier for us to comply with issues under the Bar's rules governing aggregate settlements with multiple clients. If the case is that strong, this may be the best solution to avoid any conflict of issue and/or independence arguments that could be raised by defendants while litigating the case. Thanks, Bert From: Sent: Wednesday, September 26, 2007 12:47 PM To: Ocariz, Humberto H. (SHB) Subject: Contact Information for the agents I-li Bert — As per my voicemail, here is the contact info for the agents in the case. Their names are she is female). Both are Special Agents with the FBI and can be reached a The fax number i They will be sending you the list of all the girls with their contact info in the next few days (probably by Monday). Mr. Epstein and his attorneys arc barred from learning their names until after he enters his guilty plea on October 29th, so you will have a month to talk to them before you have to deal with defense counsel. As I mentioned in my voicemail, if you have a retainer agreement covering a situation where a client's representation is paid for by someone else, I would appreciate if you could send it to me. I will get Mr. Epstein or his lawyers to sign it so you know you will be paid. Having worked at a big firm I know that this is a 5 EFTA00233902 difficult request but, because of the sensitive nature of the case, and the high profile nature of the defendant and his lawyers, I would appreciate it if you could select one very hard-nosed associate to stay with the case. Thank you. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Mail Gate made the following annotations on Thu Sep 27 2007 09:23:52 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 6 EFTA00233903 From: Ocariz, Humberto H. (SHB: Sent: Monday, September 24, 20071:06 PM To: Vilafana. Mn Marie C. (USAFLS) Subject: RE: Conflict Check $450 per hour. Preliminary conflict check looks fine. While I know you don't represent the 40 young gins, do you know if they would prefer a different arrangement such as contingency or reduced hourly rate with a success fee? I have some flexibility if there is an issue. Bert Ocariz From Sent: Monday, September 24, 2007 1:01 PM To: Ocariz, Humberto H. (SHB) Subject: RE: Conflict Check Hi Bert — I think we may get a signed agreement within an hour or two. I must confer with defense counsel before selecting the representative. Can you tell me what your billing rate is? Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Phi Pal From: Sent: Monday, September 24, 2007 10:56 AM To: 'Ocariz, Humberto H. (SHB)' Subject: RE: Conf ict Check Bert, Please keep this confidential because these are minor victims. This is a preliminary list: 7 EFTA00233904 I Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West 401 Phon Fax From: Ocariz, Humberto H. (SHBI Se t Monday. September 24, 2007 10:27 AM To Subject: RE: Conflict Check Thanks. I am also going to need the list of the 40 girls who will be my clients. Can you send these as well? Thanks, Bert Ocariz From: Sent: To: Ocariz, Humberto H. (SHB) Subject: Conflict Check EFTA00233905 Hi Bert — Here is the list of names for a conflict check Jeffrey Epstein J. Epstein Virgin Islands Foundation, Inc. J.Epstein & Company, Inc. Epstein Interests Financial Trust company, Inc. NES, LLC New York Strategy Group, Inc. JEGE, Inc. Hyperion Air, Inc. Jeffrey Epstein would be the defendant in any lawsuit, but the other individuals are persons involved in the criminal activity. All of the corporations are essentially alter-egos of Epstein. Thank you so much. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Mail Gate made the following annotations on Mon Sep 24 2007 09:27:21 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 9 EFTA00233906 Mail Gate made the following annotations on Mon Sep 24 2007 12:07:14 person CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the ed or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthoriz please contact the review, use, disclosure or distribution is prohibited. If you are not the intended recipient, sender by reply c-mail and destroy all copies of the original message. Thank you. 10 EFTA00233907 From: Jay Lefkowitz Sent: Thursday, September 27, 2007 10:57 AM To: Subject: Re: Conference Call with Bert Ocariz I am available around 4 pm today. Not precisely sure of the time yet. I will speak with my client in the interim. Original Message Frown . L Sent: 09/27/2007 10:51 AM AST 'ro: Jay Lefkowitz Subject: Conference Call with Bert Ocariz Hi Jay — Bert's firm has raised a number of good questions about how they are going to get paid and setting up a procedure that avoids any conflict of interest with their clients. Are you around today to do a conference call? Let me know what times work for you because Bert wants to get their conflicts counsel on the call with us. These are some of the questions he sent to me. I told Bert that as part of our agreement we (the federal government) are not going to indict Mr. Epstein, but gave him an idea of the charges that we had planned to bring as related to 18 USC 2255. With respect to question 2, do I have your permission to send Bert just that section of the plea agreement that applies to the damages claims (1 would recommend sending paragraphs 7 through 10, or at least 7 and 8)? Can you talk with your client about items 3 and 4? I envisioned Shook Hardy sending regular bills to you, with any privileged information redacted, and being paid like every other client pays the bills. 1. Can we get a copy of the indictment (or can you tell me the nature of the crimes against the girls)? 2. When will it be possible to see the plea agreement so that we understand exactly what Epstein concedes to in the civil case? 3. Is there any cap or other limitation on attorneys fees that the defendant will pay in the civil case? 4. What is the contemplated procedure for, and timing of, the payment of attomey's fees and costs? Assistant U.S. Attorney 1 EFTA00233908 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Photo Fax ***** * ************ *********** ************ ****************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Kirkland & Ellis LLP or Kirkland & Ellis International LLP. Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to postmaster@kirkland.com, and destroy this communication and all copies thereof, including all attachments. ****************** ******** ********************************* EFTA00233909 From: Ocariz, Humberto H. (SHB Sent: Thursday, September 27, To: Subject: Kt: contact Information tor the agents Thanks for the update and the info. In going through the process of getting final approval for this matter, I received a few follow-up questions from the powers that be at my firm: 1. Can we get a copy of the indictment (or can you tell me the nature of the crimes against the girls)? 2. When will it be possible to see the plea agreement so that we understand exactly what Epstein concedes to in the civil case? 3. Is there any cap or other limitation on attorney's fees that the defendant will pay in the civil case? 4. What is the conteplated procedure for, and timing of, the payment of attorney's fees and costs? 5. Depending on the nature of the crime/injury, the expectation from this end is that there will be a battle regarding the damages, including punitive damages, that will be demanded and that defense counsel will try to leverage payment of fees against a smaller demand from the girls or even seek a "haircut" on fees, effectively putting the firm in a position where it must chose whether to "contribute" to a settlement in order to resolve the case. Given any of the possible scenarios regarding the payment of fees that the defendant could create (particularly given the strength and creativity of his legal team), my firm could be put in a position which arguably creates a conflict of interest with the clients. Is there a way to structure a payment by the defendant of a lump sum for costsand then my firm would simply handle the case on a contingency? And, this should also make it easier for us to comply with issues under the Bar's rules governing aggregate settlements with multiple clients. If the case is that strong, this may be the best solution to avoid any conflict of issue and/or independence arguments that could be raised by defendants while litigating the case. Thanks, Bert Fro Sent: Wednesday, September 26, 2007 12:47 PM To: Ocariz, Humberto H. (SHB) Subject: Contact Information for the agents Hi Bert — As r m voi gents in the case. Their names ar linimand and she is female). Both are Spec wit. F'BI an can • reached at The fax number ism They will be sending you the list of all the girls with their contact info in the next few days (probably by Monday). Mr. Epstein and his attorneys are barred from learning their names until after he enters his guilty plea on October 29'h, so you will have a month to talk to them before you have to deal with defense counsel. As i mentioned in my voicemail, if you have a retainer agreement covering a situation where a client's representation is paid for by someone else, i would appreciate if you could send it to me. I will get Mr. Epstein or his lawyers to sign it so you know you will be paid. Having worked at a big firm I know that this is a EFTA00233910 difficult request but, because of the sensitive nature of the case, and the high profile nature of the defendant and his lawyers, I would appreciate it if you could select one very hard-nosed associate to stay with the case. Thank you. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 Wes 33401 Pho Fax Mail Gate made the following annotations on Thu Sep 27 2007 09:23:52 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 2 EFTA00233911 From: Sent: Monday, September 24, 2007 2:58 PM To: 'Ocariz, Humberto H. (SHB)' Subject: RE: Conflict Check I have provided your name and your rate to the main attorney that I have been dealing with, Jay L,efkowitz from Kirkland & Ellis in New York. He may call. The other attorneys for Epstein, in addition to Guy and Mike, are Gerald Lefcourt of New York, Ken Stan• from California, Alan Dershowitz from Harvard, Lilly Ann Sanchez from Miami, Roy Black from Miami, Jack Goldberger from West Palm Beach, and Guy Fronstin from West Palm Beach. Thanks. assistant AUO111 y 500 S. Australian Ave, Suite 400 Wes 1.33401 Pho Fax From: Ocariz, Humberto H. (SHB) Sent: Monday. September 24, 200 1.32 Pm To: Subject: RE: Conflict Check Thanks. I wish they were all like this. Is there anything you can do to keep me busy on cases where only damages are at issue! :) Bert Ocariz From Sent: Monday, September 24, 2007 1:31PM To: Ocariz, Humberto H. (SHB) Subject RE: Conflict Check Thank you, Bert. The statute (18 USC 2255) provides that the defendant will pay attorney's fees, and the defendant has agreed not to contest liability under the statute (the fight will be limited to the amount of damages to be paid). I plan to propose that you use your regular billing practices, and hopefully the defense will be in agreement. See, you've won your case already and it hasn't even started! Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 1 EFTA00233912 Hi Bert — Here is the list of names for a conflict check Jeffrey Epstein J. Epstein Virgin Islands Foundation, Inc. J.Epstein & Company, Inc. Epstein Interests Financial Trust company, Inc. NES, LLC New York Strategy Group, Inc. JEGE, Inc. Hyperion Air, Inc. Jeffrey Epstein would be the defendant in any lawsuit, but the other individuals arc persons involved in the criminal activity. All of the corporations are essentially alter-egos of Epstein. Thank you so much. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Pho Fax Mail Gate made the following annotations on Mon Sep 24 2007 09:27:21 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 4 EFTA00233913 Mail Gate made the following annotations on Mon Sep 24 2007 12:07:14 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. My unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. Mail Gate made the following annotations on Mon Sep 24 2007 12:32:40 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 5 EFTA00233914 West Palm Beach, FL 33401 Phon Fax From: Ocariz, Humberto H. (SHE Sent: Monday, September 24, 2007 1:06 PM To: \I Subject: RE: Conflict Check $450 per hour. Preliminary conflict check looks fine. While I know you don't represent the 40 young girls, do you know If they would prefer a different arrangement such as contingency or reduced hourly rate with a success fee? I have some flexibility if there is an issue. Bert Ocariz From: Sent: Monday, September 24, 2007 1:01 PM To: Ocariz, Humberto H. (SHB) Subject: RE: Conflict Check Hi Bert • I think we may get a signed agreement within an hour or two. I must confer with defense counsel before selecting the representative. Can you tell me what your billing rate is? Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 Wes , 33401 Pho Fax Sent: Monday, September 24, 2007 10:56 AM To: 1Ocariz, Humberto H. (SHB)' Subject: RE: Confict Check Bert, Please keep this confidential because these arc minor victims. This is a preliminary list: 2 EFTA00233915 Assistant U.S. Attorney 500 S. Australian Ave, Suite 4O0 West Palm Beach, FL 33401 Rho! Fax From: Ocariz, Humberto H. (SHB) Sent: Monday, September 24, 2007 10:21 AM Subject: RE: Conflict Check Maria, Thanks. I am also going to need the list of the 40 girls who will be my clients. Can you send those as well? Thanks, Bert Ocariz Fro Sent: Monday, September 24, 2307 10:25 AM To: Ocariz, Humberto H. (SHB) Subject: Conflict Check EFTA00233916 From: Sent: Monday, September 24,2007 10:56 AM To: 'Ocariz, Humberto H. (SHB)' Subject: RE: Conflict Check Bert, Please keep this confidential because these are minor victims. This is a preliminary list: EFTA00233917 Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Phon Fax 5 From: Ocariz, Humberto H. (SHB) sent Mnnelav Sentemher 74 701 To Subject: RE: Conflict Check Maria. Thanks. I am also going to need the list of the 40 girls who will be my clients. Can you send those as well? Thanks. Bert Ocariz From Sent: Monday, September 24, 2007 10:25 AM To: Ocariz, Humberto H. (SHB) Subject: Conflict Check Hi Bert — Here is the list of names for a conflict check Jeffrey Epstein J. Epstein Virgin Islands Foundation, Inc. J.Epstein & Company, Inc. Epstein Interests Financial Trust company, Inc. NES, LLC New York Strategy Group, Inc. JEGE, Inc. EFTA00233918 Hyperion Air, Inc. Jeffrey Epstein would be the defendant in any lawsuit, but the other individuals are persons involved in the criminal activity. All of the corporations are essentially alter-egos of Epstein. Thank you so much. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Pho Fax Mail Gate made the following annotations on Mon Sep 24 2007 09:27:21 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you arc not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 3 EFTA00233919 • EFTA00233920 2 i i ,:s t r EFTA00233921 EFTA00233922 U.S. Department of Justice United States Attorney Southern District of Florida 500 Australian Avenue. Suite 400 West Palm Beach, Florida 33401 Official Business Penalty for Private Use $300 °RIG (MAL A6ge-er MEMT IN RE: INVESTIGATION OF JEFFREY EPSTEIN NON-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorney's Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted an investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictment 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 background and any offenses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: (1) 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; (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 Tide 18, United States Code, Sections 2422(b) 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 Page I of 7 EFTA00233923 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(a)(1) and 2; and 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, he agrees to comply with its terms, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epstein's background by both State and Federal law enforcement agencies, and after due 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 procedure; THEREFORE, 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, during the period of the Agreement, Epstein willfully 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 he 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. After 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 investigation by the Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand Jury investigation will be instituted in this District, and the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00233924 Terms of the Agreement: 1. Epstein shall plead guilty (not nob contendere) to the Indictment as currently pending against him in the 15th Judicial Circuit in and for Palm Beach County (Case No. 2006-cf-009495AX3OCIAB) 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 a sex offender, that is, the solicitation of minors to engage in prostitution, in violation of Florida Statutes Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as follows: (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 EFTA00233925 proposed agreements with the State Attorney'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 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 an amount 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 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. 10. Except as to those individuals who elect to proceed 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 are 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. 11. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00233926 sentenced not later than October 26, 2007. The United States 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 and 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. If the United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agreement, it will provide notice to Epstein before making that disclosure. Epstein understands 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 manner 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 char es against anypootential co-conspirators of Epstein, including but not limited to Further, upon execution of is agreement and a plea agreement with 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 term 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, specifically evidence requested by or directly 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 successful completion of the terms of this agreement, all outstanding grand jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00233927 By signing this agreement, Epstein asserts 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 prosecute 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 further 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 Southern District of Florida 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 Amendment to the Constitution of the 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. Ill /I/ Ill Page 6 of 7 EFTA00233928 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: 74/9' Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233929 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:61/ 2 -7/6 7 By ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: p-tti o 7 RAL EFCOUR ESQ. OUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233930 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: ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated:qA 09 LILLY ANN , ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233931 IN RE: INVESTIGATION OF JEFFREY EPSTEIN NON-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorney's Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted an investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictment 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 background and any offenses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: (1) 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; (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(6); 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 Code, Sections 2422(b) 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 Page 1 of 7 EFTA00233932 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(c)(1); in violation of Title 18, United States Code, Sections 1591(a)(1) and 2; and 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, he agrees to comply with its terms, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epstein's background by both State and Federal law enforcement agencies, and after due 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 procedure; THEREFORE, 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, during the period of the Agreement, Epstein willfully 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 he 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. After 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 investigation by the Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand Jury investigation will be instituted in this District, and the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00233933 Terms of the Agreement: 1. Epstein shall plead guilty (not nob contendere) to the Indictment as currently pending against him in the 15th Judicial Circuit in and for Palm Beach County (Case No. 2006-cf-009495AXXXMB) 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 a sex offender, that is, the solicitation of minors to engage in prostitution, in violation of Florida Statutes Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as follows: (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 EFTA00233934 proposed agreements with the State Attorney'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 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 an amount 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 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. 10. Except as to those individuals who elect to proceed 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 are 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. 11. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00233935 sentenced not later than October 26, 2007. The United States 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 tune, 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 and 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. If the United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agreement, it will provide notice to Epstein before making that disclosure. Epstein understands 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 manner 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 char CS anainet *nu nntantini rn-ennqnirsitnrc of Fnstein imitating but not limited to Further, upon execution of this agreement and a plea agreement with 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 term 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, specifically evidence requested by or directly 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 successful completion of the terms of this agreement, all outstanding grand jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00233936 . By signing this agreement, Epstein asserts 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 prosecute 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 further 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 Southern District of Florida 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 Amendment to the Constitution of the 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. Page 6 of 7 EFTA00233937 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; ASSISTANT U.S. ATTORNEY Dated: 77a9 -- Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233938 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: 41 /2-747 By ASSISTANT U.S. ATTORNEY Dated: Dated: ? / 9"it (1 0 7 Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233939 By signing this agreemcnt, 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: JEFFREY EPSTEIN Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated:q—A/4--0? ILLY ANN SAN R Z, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233940 IN RE: INVESTIGATION OF JEFFREY EPSTEIN T ADDENDUM TO TIFF. NON-PROSECUTION AGREEMEN provisions of page 4, paragraph 7 IT APPEARING that the parties seek to clarify certain raph 7"), that agreement is modified as of the Non-Prosecution Agreement (hereinafter "parag follows: independent third-party the responsibility 7A. The United States has the right to assign to an al of Epstein's counsel, selecting for consulting with and, subject to the good faith approv ied under the Agreement. If the the attorney representative for the individuals identif to an indepe ndent third-party, both the United States elects to assign this responsibility to make good faith objecti ons to the attorney United States and Epstein retain the right prior to the final designation of representative suggested by the independent third-party the attorney representative. sion to the independent third-party 713. The parties will jointly prepare a short written submis ing Epstein's Agreement to regarding the role of the attorney representative and regard ary hourly rate for representing pay such attorney representative his or her regular custom infra. such victims subject to the provisions of paragraph C, pay the fees of the attorney 7C. Pursuant to additional paragraph 7A, Epstein has agreed to provision, however, shall not representative selected by the independent third party. This litigation filed against him. Thus, obligate Epstein to pay the fees and costs of contested representative elects to file a if after consideration of potential settlements, an attorney or elects to pursue any other contested contested lawsuit pursuant to 18 U.S.C. s 2255 the Agreem ent to pay the costs of the attorney remedy, the paragraph 7 obligation of any statuto ry or other obligat ions to pay reasonable representative, as opposed to to bear the costs of the attorney attorneys fees and costs such as those contained in s 2255 representative, shall cease. EFTA00233941 By signing this Addendum, Epstein asserts and certifies that the above has been read and Non- explained to him. Epstein hereby, states that he understands the clarifications to the ProsecutionAgreeMent and agrees to comply with them. R. ALEXANDER. ACOSTA UNITED STATES ATTORNEY Dated: /0/3 0 47 A al 1AN 1 U.J. A r t LJKINZ I Dated: Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233942 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. It ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: /D40/07 By: Dated: JEFFREY EPSTEIN Dated: ERALD LEFCO RT ESQ: COUNSEL TO JEFFREY EPSTEIN Dated: LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233943 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: /D/ 3 Ohl EI ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: ifricalfa' LILLY ANNSANCHEZ, ATTORNEY FOR JEFFREY EPSTEIN EFTA00233944 EFTA00233945 egeARCH tit6 Soehtm. cAse [ TIMOTHY M. BURGESS United States Attorney Assistant orn Federal Building & U.S. Courthouse 222 West Seventh Avenue, Room 253, #9 Anchors e, Alaska 99513-7567 Trial Attorney, Criminal Division Child Exploitation and Obscenity Section United States Department of Justice 1400 New York Ave, NW, Sixth Floor Washington, D.C. 20005 Attorneys for Plaintiff IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA UNITED STATES OF AMERICA, ) No. A04-003-01 CR (JWS) ) Plaintiff, ) ) NOTICE TO COURT OF vs. ) RESTITUTION PLAN AND ) APPROVAL OF TRUST JOSEF F. BOEHM, ) DOCUMENT a/k/a "Joe Millionaire", ) ) Defendant. ) EFTA00233946 counsel, and COMES NOW the United States of America, by and through above hereby provides the Court with notice of the restitution plan in the Trust document for captioned case. In addition, attached hereto as Exhibit 1 is the the Court's review and approval.' violence and Title 18, U.S.C. §§ 3663A, mandates restitution for crimes of includes, in relevant cases in which there are identifiable victims. Such restitution part: m— (2) in the case of an offense resulting in bodily injury to a victi (A) pay an amount equal to the cost of necessary medical and related professional services and devices relating to physical, psychiatric, and psychological care, including nonmedical care and treatment rendered in accordance with a method of healing recognized by the law of the place of treatment; (B) pay an amount equal to the cost of necessary physical and occupational therapy and rehabilitation; and t (C) reimburse the victim for income lost by such victim as a resul of such offense; (4) in any case, reimburse the victim for lost income and necessary child ion care, transportation, and other expenses incurred during participat in the investigation or prosecution of the offense or attendance at proceedings related to the offense. approval from the The document is marked "draft" because we are awaiting final April 27, 2005. Trustee, which is expected before the sentencing hearing on 2 EFTA00233947 18 U.S.C. § 3663A(b). Such restitution must be paid to the victims or their guardians. 18 U.S.C. § 3663A(a)(2). of restitution. Title 18, U.S.C. § 3664 sets forth the procedure for issuance to the probation Generally, such information pertaining to restitution is provided (d). However, in officer and included in the presentence report. 18 U.S.C. § 3664 by the date of a case where the victims losses are not readily ascertainable the cour t, and the court sentencing, the attorney for the Government shall inform s not to exceed 90 shall set a date for the final determination of the victims losse States submits that days from sentencing. 18 U.S.C. § 3664(d)(5). The United ble based on the this is such a case where victims losses are not readily ascertaina nature of the conduct at issue. d that any Within the plea agreement in the instant case, the parties agree us of the trust fund restitution should be paid out from the $1.2 million dollar corp 10. Accordingly, the defendant has agreed to establish. See Plea Agreement, p. dollars into an the United States has arranged for the payment of $1.2 million agent. The United escrow account with First National Bank Alaska as the escrow instruct the United States proposes, in the order attached hereto, that the Court ability to seek States to provide notice to all victims and their guardians of their 3 EFTA00233948 e. Within 30 days of the restitution for any injury they sustained , as set forth abov it such requests for entry of judgment in this case, the United States will subm supporting restitution to the Court in a motion under seal, along with the escrow agent to documentation for approval, with a proposed order directing fall within the restitution pay such expenses if the Court finds that such expenses d $1.2 million, statute. Because any restitution is deducted from the agree notice of such motion, Boehm, through his attorney Kevin Fitzgerald, has waived r 30 days from which may be filed with the Court ex pane under seal. Afte trust fund, which judgment, the money from the escrow will be transferred to the will then become operational. educational The Trust Fund provides for future counseling, treatment, and nts. The Trust and professional expenses for the victims in pro rata amou Taylor, of the law Document was drafted under the supervision of attorney Greg law firm donated their firm of Jermain, Dunnagan & Owens. Mr. Taylor and his Trustee will be First time in view of the charitable nature of the Trust Fund. The corpus of the trust National Bank Alaska, which will be compensated out of the Trust Document as for its services under its current fee schedule, attached to the e certain closing costs Exhibit F. First National Bank Alaska has agreed to waiv 4 EFTA00233949 charitable nature of associated with the establishment of the trust, in light of the the trust. Three "Trust Protectors" have agreed to assist the Trustee with ng as an appeal board. administration of the trust by providing guidance and servi orage Police These Trust Protectors are Detective Steven Boltz, of the Anch ce, and Susan Brown, Department, Susan Sullivan, the director of Victims for Justi ation Board. These the Executive Director of the Alaska Violent Crimes Compens the charitable nature individuals have also agreed to donate their time in view of of the Trust. ms (whose Generally, the Trust Fund allows for disbursements to 12 victi victims attain the names will be filed under seal), for qualified purposes, until the of the victims' age of 26 years old. After such time, the remaining pro rata share Trust Protectors, and allotment will be donated to a charity chosen by a majority of Agreement (drug approved by the Court as consistent with the intent of the Plea treatment for children in Alaska). I/ 5 EFTA00233950 the proposed Accordingly, the United States asks that the Court approve order annexed hereto. restitution plan and anticipated trust document, in the RESPECTFULLY SUBMITTED this 22m day of April, 2005 , in Anchorage, Alaska. TIMOTHY M. BURGESS United States Attorney Assistant U.S. Attorney CERTIFICATE OF SERVICE I declare under penalty of perjury that a true and correct copy of the foregoing was sent to the following counsel of record on, September 18, 2007, via: (X) Fax Philip Paul Weidner 330 L Street, Suite 200 Anchors e, Alaska 99501 Kevin T. Fitzgerald Ingaldson, Maassen & Fitzgerald, PC 813 West 3rd Ave. Anchors e, AK 99501 Rex Lamont Butler Law Offices of Rex Lamont Butler 745 W. 4th Ave., Suite 300 Anchorage, AK 99501 SIM Executed at Anchorage, Alaska, on September IS, 2007 Office of the U.S. Attorney EFTA00233951 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA UNITED STATES OF AMERICA, ) No. A04-003-01 CR (JWS) ) Plaintiff, ) ) vs. ) ORDER ) JOSEF. F. BOEHM, ) ) Defendant. ) ) the Having duly considered the government's motion setting forth y APPROVES such restitution plan in the above captioned case, the COURT hereb plan. diligent IT IS ORDERED that the United States Attorney's Office make tioned case, by efforts to provide notice to all known victims in the above-cap e, the United States certified mail, Federal Express, or hand delivery. In such notic dians to seek shall provide notice of the ability of such victims or their guar t. The United restitution, as well as include a copy of the final Trust Agreemen 18 U.S.C. § 3663A, States shall submit any restitution requests that fall within parte motion filed together with supporting documentation, to the Court in an ex days, the United States under seal. Following the last such submission, or after 30 EFTA00233952 w account into the shall notify the escrow agent to transfer the funds in the escro of the Trust Fund Trust Fund, and the United States shall notify the beneficiaries of their ability to seek disbursements. It is further approved that the TRUSTEE is entitled to reasonable , as set forth in its compensation for its services in administering the Trust Fund current fee schedule. IT IS SO ORDERED. Dated: UNITED STATES DISTRICT JUDGE 2 EFTA00233953 TIMOTHY M. BURGESS United States Attorney Assistant U.S. Attorneys Federal Building & U.S. Courthouse 222 West Seventh Avenue, Room 253, #9 Anchorage, Alaska 99513-7567 SHERRI A. STEPHAN Trial Attorney, Criminal Division Child Exploitation and Obscenity Section United States Department of Justice 1400 New York Ave, NW, Sixth Floor Washin ton, D.C. 20005 Attorneys for Plaintiff IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA UNITED STATES OF AMERICA, ) No. A04-003-01 CR (JWS) ) Plaintiff, ) ) NOTICE OF vs. ) BENEFICIARIES ) JOSEF F. BOEHM, ) Filed Ex Parte and Under Seal a/k/a "Joe Millionaire", ) ) Defendant ) EFTA00233954 through counsel, and COMES NOW the United States of America, by and of the trust fund hereby provides the Court with a list of the beneficiaries hed hereto as Exhibit A. established in the above-captioned case, which is attac agreement, waived any This filing is made ex parte because Boehm, in his plea and the disbursement of rights he had pertaining to the selection of beneficiaries seal because Exhibit A funds to such beneficiaries. This filing is made under ile crime victims. Exhibit contains the names and identifying information of juven three trust protectors: A will be provided to First National Bank Alaska and the from the Alaska Violent Susan Sullivan, of Victims for Justice; Susan Brown, , from the Anchorage Crimes Compensation Board, and Detective Steven Boltz Police Department. , in Anchorage, RESPECTFULLY SUBMITTED this 14th day of June, 2005 Alaska. TIMOTHY M. BURGESS United States Attorney Assistant U.S. Attorney 2 EFTA00233955 JOSEF FRANZ BOEHM IRREVOCABLE TRUST FUND Introduction This TRUST AGREEMENT is made and entered into effective this day of , 2005, at Anchorage, Alaska, between Josef Franz Boehm (hereinafter "BOEHM" or "TRUSTOR") and the First National Bank Alaska, ("TRUSTEE"). This Trust Agreement is established to satisfy the terms of the Plea Agreement and Judgment entered in the United States District Court for the District of Alaska under Case No. A04-003-01 CR (JWS) (a copy of the Plea Agreement is attached hereto as Exhibit A and incorporated by reference herein; the Judgment will be filed as a matter of public record in Case No. A04-003-01 CR (JWS) and is incorporated by reference herein); that is, as restitution to the victims of BOEHM and his co-defendants' criminal conduct as charged in the Fourth Superseding Indictment (a copy of which are attached hereto as Exhibit B and incorporated by reference herein). This Trust Agreement shall be construed in a manner consistent with the terms and purposes of the Plea Agreement and Judgment, and pursuant to Alaska Statutes Sections 13.126.125 - 13.126.310. The TRUSTEE shall receive, hold, administer, invest, reinvest and distribute, in accordance with the provisions of this Trust Agreement, all funds paid to the EFTA00233956 s (hereafter the TRUSTEE by TRUSTOR and all income earned on said fund ement. "Trust Fund") as provided by the terms of this Trust Agre The Trust Protectors TORS") shall Three (3) Trust Protectors (hereinafter the "TRUST PROTEC District of Alaska, the be designated by the United States Attorney's Office for the Court for the District names of which will be filed with the United States District ST PROTECTORS shall of Alaska in Case Number A04-003 CR (JWS). The TRU elines for have responsibility for: (1) clarifying general policy and guid t and this Trust distributions consistent with the purposes of the Plea Agreemen STEE; and (3) acting Agreement; (2) advising and providing guidance for the TRU decisions of the as an Appellate Board to hear appeals by beneficiaries regarding ferable to, or TRUSTEE. Such responsibilities are not delegable to, trans inted to replace exercisable by any other officials, other than successors appo rney's Office, designated TRUST PROTECTORS by the United States Atto District of Alaska. 2 EFTA00233957 ARTICLE I APPLICATION OF FUND CORPUS AND INCOME AND POWER OF APPOINTMENT A. Distribution of the Trust Fund. income of the The TRUSTEE may distribute all or part of the principal or on behalf of the twelve Trust Fund only for a qualified purpose, as set forth below, g information will (12) beneficiaries of the Trust Fund, whose names and identifyin to the be filed under seal in Case No. A04-003 CR (JWS), and provided such beneficiary TRUSTEE and TRUST PROTECTORS. To the extent that any dian of such has not attained the age of 18, information pertaining to the guar n, the beneficiary is provided therewith. To the extent necessary herei sponding number beneficiaries of the Trust Fund will be identified by their corre A04-003 CR (JWS) listed in the identifying document filed under seal in Case No. pursuant to this Trust Agreement. of all Trust The TRUSTEE has an irrevocable power to direct distributions d in this Trust Fund Principal and Income, pursuant to the guidelines establishe United States, or as Agreement and the Plea Agreement between BOEHM and the Trust, as set forth directed by the TRUST PROTECTORS. The purposes of this 3 EFTA00233958 provide the in the Plea Agreement and as expanded upon below, are to following: beneficiaries numbered one (1) through eleven (11) with the 1. Drug treatment through a licensed / certified / accredited facility or practitioner; or 2. Counseling through a licensed / certified / accredited facility practitioner; / 3. Treatment for physical injury through a licensed / certified ries' accredited facility or practitioner arising from the beneficia involvement in the activity outlined in the Fourth Superseding Indictment. de Alaska, Payment for drug treatment or counseling that takes place outsi tion expenses for but within the United States, may include reasonable transporta the age of 18 years. the beneficiary and one guardian if the beneficiary is under ssional In addition, this Trust provides for future educational or profe for beneficiary expenses for beneficiaries one (1) through eleven (11) and a recognized / twelve (12). Such expenses include education or training from h is to lead to a trade or licensed / certified / accredited institution, the goal of whic for room and employment in a recognized profession. In addition, expenses 4 EFTA00233959 ided that: a reasonable living expenses are included in such expenses prov t, or C average) in a beneficiary is maintaining a passing grade (a 2.0 grade poin s per week, course of study or training requiring at least twelve (12) hour ing or class. What calculated based on the number of in-class hours spent in train expenses shall be constitutes other appropriate future educational or professional d by the TRUST in the discretion of the TRUSTEE, under the guidance establishe below. Such other PROTECTORS, and subject to the appeal procedures outlined de books, course appropriate future educational or professional expenses may inclu expenses shall not or training materials, and reasonable transportation costs. Such portation include the purchase of assets (such as motor vehicles) used for trans purposes. her or The Trustee shall also make any other distribution to any party, whet United States not a beneficiary of the Trust Fund, specifically ordered by the 01 CR (JWS) for District Court for the District of Alaska under Case No. A04-003- CR (JWS). Any the purposes of providing restitution in Case No. A04-003-01 be deducted in such distribution ordered by the United States District Court shall ry then eligible to equal amounts from the proportional shares of every beneficia receive distributions from the Trust Fund. 5 EFTA00233960 B. Apportionment of Trust Estate. or apply for The TRUSTEE shall hold the trust estate undivided and pay to e or principal of the the benefit of the beneficiaries all or so much of the net incom PROTECTORS' trust estate as the TRUSTEE, in the TRUSTEE's and TRUST n. To the extent discretion, deems advisable for the purposes set forth herei amongst the possible, the TRUSTEE shall apportion the funds equally of one twelfth of the beneficiaries. Each beneficiary is limited to an equal share determined at the Trust Fund and any subsequent income, with such shares to be ible, the TRUSTEE time the Trust Fund is funded. Additionally, to the extent poss (health providers, should pay any distributions directly to the provider of services r than directly to the educational providers, or professional service providers) rathe ficiaries cannot beneficiaries. Other than such providers of services, the bene parties. assign or make available disbursements from the Trust to other third C. Expenses Incurred Prior to the Creation of the Trust Fund. the date of Expenses incurred by the beneficiaries or their guardians prior to eligible for this agreement are "qualified purposes", as set forth above, and ents set forth in reimbursement provided that such expenses meet the requirem beneficiary's Article 1, Section A, points 1 - 3 above, and occurred after the 6 EFTA00233961 Indictment. The involvement in the crimes charged in the Fourth Superseding in the separate earliest date of each beneficiary's involvement is set forth ficiaries, filed under document containing identification information of the bene able to the TRUSTEE and seal in Case No. A04-003 CR (JWS), and are made avail to the date of this TRUST PROTECTORS. All such expenses that incurred prior unt prior to the Agreement shall be deducted from the invested escrow acco nal share of each establishment of the Trust corpus, and before the proportio g expenses must be beneficiary is determined. Accordingly, claims for pre-existin ment as entered in submitted to the Court thirty (30) days from the date the Judg r Case No. A04- the United States District Court for the District of Alaska unde shall be paid by the 003-01 CR (JWS) against Josef Franz Boehm. Such expenses any restitution invested escrow agent pursuant to court order. Furthermore, of this Agreement, payable to any person or entity, whether or not a beneficiary of Alaska as part of the ordered by the United States District Court for the District U.S.C. §§ 1593, Judgment in Case No. A04-003-01 CR (JWS) pursuant to 18 or Title 21, shall also be 3556, 3663, and 3663A, or any other provision of Title 18 ted escrow agent deducted from the invested escrow account and paid the inves d. pursuant to court order before the trust corpus is establishe 7 EFTA00233962 003-01 CR Following thirty (30) days from Judgment in Case No. A04- escrow account shall (JWS) against Josef Franz Boehm the funds in the invested the United States be transferred to the Trust Fund upon written direction from Franz Boehm as Attorney's Office, District of Alaska and an attorney for Josef hereto as Exhibit D. contemplated by the invested escrow instructions, attached at such time such The Trust Fund and provisions herein shall become operable transfer is made. D. Power to Direct Distributions Not Delegable. TRUSTEE and The power to direct distributions provided herein to the or exercisable by, any TRUST PROTECTORS is not delegable to, transferable to, designated other officials, other than successors appointed to replace the Trust, other than to TRUSTEE. Thus, the only distributions authorized under this set forth below, shall the TRUSTEE for fees, costs, expenses and taxes, if any, as fy the purposes of the be pursuant to the terms of this Trust Agreement and to satis Plea Agreement. E. Documentation Required for Distributions. duty and The TRUSTEE and/or the TRUST PROTECTORS have a ested distributions authority to inquire into or about the uses or purposes for requ 8 EFTA00233963 . The TRUSTEE of the Trust Fund by the beneficiaries and/or their guardians from each and/or the TRUST PROTECTORS shall request documentation t Fund to ensure beneficiary or guardian requesting a distribution from the Trus of this Trust that such distribution is made in accordance with the purposes include, but is not Agreement and the Plea Agreement. Such documentation shall limited to, the following: (1) The name, date of birth, and social security number of the Victim seeking the distribution; (2) Government issued picture identification documents establishing the Victim's identity; (3) Documentation that bears a date by month, day, and year that such expense was or will be incurred; (4) The purpose of the expenditure; ht (5) Specifies in words and/or numeral the amount of money soug to be disbursed; (6) A supporting statement of expenses from the entity to be paid (i.e., the doctor, counselor, treatment center, hospital, trade 9 EFTA00233964 school, college, university, or other provider) approved by the TRUSTEE or TRUST PROTECTORS; Such documentation required herein shall be addressed to the TRUSTEE at the following address: First National Bank Alaska Trust Department P.O. Box 100720 Anchorage, AK 99510 My documentation so submitted must reference the "JOSEF FRANZ BOEHM IRREVOCABLE TRUST FUND". Upon receipt of such a request from a beneficiary or the guardian of a beneficary, the TRUSTEE and/or TRUST PROTECTORS, in their sole discretion, may request additional documentation to justify the distribution. The TRUSTEE has sole discretion, subject to the appeal rights discussed below, to approve, deny, or modify the request for the distribution so that it is consistent with the purpose of this Trust Agreement and the Plea Agreement. The TRUSTEE may consult with a member or members of the TRUST PROTECTORS before making any such determination. The TRUSTEE may make a prepayment of qualified 10 EFTA00233965 ficiary or guardian, expenses (as set forth in Article 1(A)), upon request of a bene upon the provider's statement of need. F. Appeal of Denied Distributions. l of a request to the In the event that a beneficiary is dissatisfied by the denia ry, the beneficiary TRUSTEE for payment of services requested by the beneficia appeal shall be in may appeal, within thirty (30) days of the denial. Any such belief that the writing and shall set forth specific reasons for beneficiary's terms of this Trust requested payment should be allowed in accordance with the address set forth Fund. The appeal shall be addressed to the TRUSTEE at the Box 100720 / above (First National Bank Alaska / Trust Department / P.O. NZ BOEHM Anchorage, AK 99510) and must reference the "JOSEF FRA w the appeal and IRREVOCABLE TRUST FUND". The TRUSTEE shall revie majority vote, shall forward the appeal to the TRUST PROTECTORS, who, by instruction to the determine all such appeal requests and provide direction and al. Should the TRUSTEE within a reasonable time after receiving any such appe should be paid, the TRUST PROTECTORS decide that the requested distribution tantially in the TRUST PROTECTORS shall complete a document that is subs by a majority of the form of Exhibit C, annexed hereto, which must be signed 11 EFTA00233966 requested distribution TRUST PROTECTORS. The TRUSTEE will then pay the as directed by the TRUST PROTECTORS. rity. G. Age Limits and Donations of Trust Fund Assets to Cha ons pursuant Amounts of the Trust Fund remaining following any distributi E and applied and to written directions shall continue to be held by the TRUSTE ry may seek distributed pursuant to future written directions. A beneficia until such distribution from the Trust Fund for qualified expenses incurred ficiary attains the age beneficiary attains the age of 26 years old. After such bene expenses. Thirty (30) of 26 years, any expenses incurred will cease to be qualified beneficiary's days after such beneficiary attains the age of 26 years, such be held in a separate proportional remaining available share and distribution shall t Fund. At such time, holding account until the end of the fiscal year of the Trus opriate charity the TRUST PROTECTORS shall donate such funds to an appr and approved by the chosen by a majority vote of the TRUST PROTECTORS r Case No. A04-003-01 United States District Court for the District of Alaska unde ement. Upon the CR (JWS) for any uses or purposes consistent with the Plea Agre age of 26 years, such death of any beneficiary before such beneficiary attains the ted to an beneficiary's proportional share of the Trust Fund shall be dona 12 EFTA00233967 2029, the Trust Fund has appropriate charity as set forth above. If, by February 1, events), the not been fully distributed, (regardless of the reason for such principal and income TRUSTEE shall terminate the entire Trust Fund and both trust to an appropriate shall be distributed and shall be paid outright and free of the District of Alaska charity approved by the United States District Court for oses consistent with under Case No. A04-003-01 CR (JWS) for any uses or purp ST PROTECTORS. the original purposes of this Trust, as approved by the TRU Trust Fund and H. TRUSTOR Retains No Authority Whatsoever and Trust Agreement irrevocable. autho rity to TRUSTOR, his assignees, designees, or heirs shall have no the use and distribution select a TRUSTEE or TRUST PROTECTOR or supervise to challenge the exercise of of the Trust Fund. Nor shall TRUSTOR have the right ibutions of Trust Fund any power to direct distributions defined herein or distr assets by the TRUSTEE pursuant to such power. assignees, This Trust Agreement is irrevocable and TRUSTOR, his d, revoke, or terminate designees, or heirs retain no right whatsoever to alter, amen sole right and this Trust Agreement, in whole or in part. TRUSTOR's this Trust Agreement and responsibility is to create the Trust Fund by entering into 13 EFTA00233968 and created funding the Trust Fund through the invested escrow account hed hereto as separately. The invested escrow account instructions are attac Exhibit D. unities on the I. No Fiduciary Obligations or Alteration of Sovereign Imm of the United Part of the United States and Officers and Employees' States. the part of the This trust document does not create fiduciary obligations on s. This Trust United States or any employees or officers of the United State immuniti es which Agreement does not purport to alter in any way the sovereign of the United States such governmental officials and bodies and employees possess. ARTICLE II ADMINISTRATION OF THE TRUST FUND A. Powers and Duties of the TRUSTEE. ed by law In addition to the duties, powers, and rights imposed and grant STEE, the upon trustees, and all other powers herein granted to the TRU s in the exercise of TRUSTEE shall have the following duties, powers and right sole and absolute discretion: 14 EFTA00233969 nally a (I) To purchase or otherwise acquire, and to retain, whether origi on part of the trust estate or subsequently acquired, any and all comm ty of or preferred stocks, bonds, notes or other securities, or any varie States, real or personal property, whether within or without the United including, but without limitation, foreign real estate or foreign is a securities, securities of a corporation in which the TRUSTEE STEE director, officer or shareholder, securities of any corporate TRU ess or any successor or affiliate corporation, interests in any busin of venture (incorporated or unincorporated), any assets formerly part a the trust estate of another trust of which the TRUSTEE is also trustee, and interests in entities formed principally for the s commingling of assets for investment, such as common trust fund d by (including, but without limitation, common trust funds maintaine on), any corporate TRUSTEE or by any successor or affiliate corporati e investment companies, investment trusts, mutual funds, real estat ed and other investment trusts, and interests in any partnership, limit ts be liability company or other entity, whether or not such investmen make or of the character permissible for investments by fiduciaries; to 15 EFTA00233970 such retain any such investment without regard to the proportion any e, investment or similar investment may bear to the entire trust estat to without regard to degree of diversification and without regard to whether such investment is unproductive or underproductive; invest in interest bearing deposit accounts, or hold funds in non- rsement interest bearing deposit accounts pending investment or disbu STEE thereof, in any bank, including any bank that is acting as a TRU hereunder or any bank affiliated with the TRUSTEE; to invest in an registered mutual funds for which the TRUSTEE hereunder, or dial or affiliate of the TRUSTEE, provides investment advisory, custo and to other services for compensation paid form such mutual funds; to the execute trades of securities by, purchase from or sell securities dealer position of any affiliate of the TRUSTEE; any (2) To vote in person or by general or limited proxy with respect to or shares of stock or other security; directly or through a committee tion, other agent, to oppose or consent to the reorganization, consolida merger, dissolution or liquidation of any corporation, or to the sale, lease, pledge or mortgage of any property by or to any such 16 EFTA00233971 proper to corporation; and to make any payments and take any steps obtain the benefits of any such transaction; tment (3) To take part in the management of any business in which inves respect to is retained or made hereunder and to delegate duties with , such management, with the requisite powers, to any employee for manager, partner or associate of such business, without liability change such delegation; to reduce, expand, limit or otherwise fix and respect to the operation or policy of any such business and to act with ct to any other matter in connection with any such business; to subje for the risks of any such business, any part or all of any trust estate, and such term or period as the TRUSTEE, in the exercise of sole absolute discretion, may determine; to advance money or other or property to any such business; to make loans, subordinated ntee otherwise, of cash or securities to any such business and to guara y for the loans of others make to any such business; to borrow mone any such business, either alone or with other persons interested of therein, and to secure such loan or loans by a pledge or mortgage partners, any part of any trust estate; to select and vote for directors, 17 EFTA00233972 tors, associates and officers of any such business; to act as direc general or limited partners, associates and officers of any such ers if the business either individually or though an officer or offic from such TRUSTEE is a corporation, and to receive compensation s with business for so acting; to enter into stockholders' agreement with the corporations in which any trust estate has an interest and/or or jointly stockholders of such corporations; to liquidate, either alone business; with others, any such business or any interest in any such STEE may and generally to exercise any and all powers as the TRU nt, sale or deem necessary with respect to the continuance, manageme liquidation of any such business; (4) To form or cause to be formed, alone or with others, such ity corporations, partnerships, limited partnerships, limited liabil organ ized companies, business trusts and other business organizations convey to under the laws of any state or country and to transfer and or such business organizations all or any part of the assets, real bonds, notes, personal, of any trust estate in exchange for such stocks, as the other securities or interests of such business organizations 18 EFTA00233973 may deem TRUSTEE, in the exercise of sole and absolute discretion advisable; of their (5) To keep assets held hereunder or the physical evidence to time ownership in any state or country whatsoever, and from time to move the same to any other state or country; part of (6) To employ a qualified third party as custodian for all or any such the securities at any time held by any trust and to register addition of securities in the name of a nominee with or without the city, or words indicating that such security is held in a fiduciary capa ; and to use to hold securities in bearer form, or in uncertificated form m, such as a central depository, clearing agency or book-entry syste Reserve The Depository Trust Company, Euroclear or the Federal Bank; trust (7) To manage any trust in a consolidated manner with any other person created hereunder or with any other trust created by any other which has similar terms, conditions and beneficiaries; charity (8) With respect to a trust, if any, of which both individuals and qualified are beneficiaries, to create or make an addition to a so-called 19 EFTA00233974 one charitable lead trust with remainder to or in further trust for any or more of the beneficiaries of the trust, or a qualified charitable the remainder trust initially for the benefit of any one or more of and beneficiaries of the trust, as the TRUSTEE, in the exercise of sole table absolute discretion, may determine; to select the qualified chari trust; to organizations receiving a benefit from any such split-interest e-only determine whether the trust is of the annuity, unitrust or incom the unitrust variety, the annual payout percentage or amount, and length of the Trust; created (9) To divide any trust created hereunder or augment any trust hereunder into two or more fractional shares to be held as separate or trusts hereunder, or to divide any trust created hereunder into one ficiaries more separate trusts for the benefit of one or more of the bene ed, as (to the exclusion of the other beneficiaries) of the trust so divid , may the TRUSTEE, in the exercise of sole and absolute discretion the determine and to allocate to such divided trust some or all of ed to, assets of the trust estate for any reason including, but not limit 20 EFTA00233975 shareholder enabling any such trust or trusts to qualify as an eligible of an S corporation; ined into a (10) If two trusts created hereunder are directed to be comb to be added single trust (for example, because property of one trust is ratios to the other), whether or not the trusts have different inclusion ferors in with respect to any common transferor or have different trans in the whole or in part for generation-skipping transfer tax purposes, the exercise of sole and absolute discretion, instead of combining identical trusts, to hold and administer them as separate trusts with governed the terms in accordance with the provisions that would have combined trusts; property to a (11) If anyone adds or is deemed to add by gift or bequest trust created hereunder, in the exercise of sole and absolute s discretion, to hold the added property as a separate trust with term identical to the trust to which it would have been added; on to be (12) To make distributions in kind and to cause any distributi in property composed of cash, property or undivided fractional shares to the different in kind from any other distribution without regard 21 EFTA00233976 ficiary or any income tax basis of the property distributed to any bene trust; princ ipal as (13) To allocate receipts and expenses between income and , may the TRUSTEE, in the exercise of sole and absolute discretion determine; STE E, in the (14) To make such elections under the tax laws as the TRU exercise of sole and absolute discretion, may determine to be in any appropriate, regardless of the effect thereof on any interests or not trust created under this Agreement, and to determine whether any such any adjustment of such interests shall be made by reason of election; bene fit of any (15) To make any application of principal or income for the g, but beneficiary by payment to such person or persons (includin utions) without limitation, other trusts, estates, individuals and instit etion, as the TRUSTEE, in the exercise of sole and absolute discr h any determine (including, but without limitation, a trust of whic her such TRUSTEE hereunder is also acting as TRUSTEE, and whet trust was created pursuant to authority granted to the TRUSTEE 22 EFTA00233977 hereunder or otherwise); provided, however, that no such payment or application may be made to or for the benefit of the TRUSTOR regardless of the capacity in which the TRUSTOR may be acting; the written receipt of the person or persons so paid shall be a full discharge to the TRUSTEE from all liability with respect thereto, and any such payment or application may be made without bond, without intervention of any guardian, conservator or committee, and without the order of any court; (16) To make or terminate elections with respect to S corporation stock, and to make such adjustments between income and principal to compensate for the consequences of the trust's ownership of S corporation stock as the TRUSTEE may deem just and equitable; provided, however, that if the trust holds S corporation stock, the TRUSTEE shall not make adjustments that would have the effect of denying to the income beneficiary the income of the trust to which the beneficiary must be entitled in order for the trust to qualify as a Qualified Subchapter S Trust; and provided further, that if a trust holds S corporation stock no TRUSTEE shall exercise any power 23 EFTA00233978 conferred under this Agreement that would have the effect of denying to the income beneficiary the income of the trust to which the beneficiary must be entitled in order for the trust to qualify as a Qualified Subchapter S Trust; and provided further, during the term of any trust created hereunder, (i) if the TRUSTEE sells any interest in a corporation or if the assets of any entity constituting a corporation in which the trust has an ownership interest are sold, and (ii) if that corporation has made an election to be taxed under Subchapter S of the Code, then in the TRUSTEE's sole and absolute discretion, the TRUSTEE may distribute to the income beneficiary such amounts of principal as shall be necessary to pay any income tax caused by that sale, if the income or gain attributable to that sale is taxed directly to the income beneficiary under applicable Federal tax law; (17) To appoint, employ and remove, at any time and from time to time, any investment counsel, accountants, depositories, custodians, brokers, consultants, attorneys, expert advisers, agents, clerks and employees, irrespective of whether any person, firm or corporation so 24 EFTA00233979 orate ' employed shall be the TRUSTEE hereunder or shall be a corp her any affiliate of the TRUSTEE hereunder and irrespective of whet TRUSTEE firm or corporation so employed shall be one in which the hereunder shall be a partner, stockholder, officer, director or l corporate affiliate or shall have any interest; and to pay the usua as the compensation for such services out of principal or income be paid TRUSTEE may deem advisable; and such compensation may issions without diminution of or charging the same against the comm STEE or compensation of the TRUSTEE hereunder, and any TRU who shall be a partner, stockholder, officer, director or corporate led affiliate in any such firm or corporation shall nonetheless be entit ate to as partner, stockholder, officer, director or corporate affili firm receive such TRUSTEE's share of the compensation paid to such or corporation; wise, to a co- (18) To delegate any duties or powers discretionary or other and TRUSTEE or any other person or institution for such periods upon such terms and conditions as may be designted in an TEE, acknowledged written instrument delivered to such co-TRUS 25 EFTA00233980 other person or institution; and if such duties or powers are delegated to a co-TRUSTEE, the TRUSTEE so delegating any duties or powers hereunder shall have no further responsibility with respect to the exercise of such duties or powers so long as such delegation shall remain in effect; and any such delegation shall be revocable by a similar instrument so delivered at any time; provided, however, that no duties or powers may be delegated to a beneficiary or a person under a duty to support a beneficiary; (19) To execute and deliver any and all instruments to carry out any of the foregoing powers, no party to any such instrument being required to inquire into its validity or to see to the application of any more or other property paid or delivered pursuant to the terms of any such instrument; and (20) Except for a loss resulting from negligence or willful misconduct, the TRUSTEE shall not be liable for loss caused by or resulting from an error of judgment with respect to any action taken or omitted requiring the exercise of discretion in good faith. 26 EFTA00233981 B. Authorization to Divide Trust Assets. The TRUSTEE, in the exercise of sole and absolute discretion, is authorized to divide any trust or any property used or to be used to fund or augment any trust created hereunder into two or more fractional shares. The shares shall be held and administered by the TRUSTEE as separate trusts but may be managed and invested in solido. The TRUSTEE is authorized, in the exercise of the sole and absolute discretion, to combine any one or more trusts with identical terms for an identical beneficiary or beneficiaries created under this Trust Agreement as a single trust. The TRUSTEE is also authorized, in the exercise of the sole and absolute discretion, late to divide such trust as provided above in this paragraph. C. Exercise of the TRUSTEE's Powers, The powers granted to the TRUSTEE hereunder in and by this Trust Agreement may be exercised in whole or in part and from time to time, and without court authorization, and shall be deemed to be supplemental and not exclusive, and the TRUSTEE hereunder shall have all the general powers of fiduciaries as well as all of the special powers herein expressly granted, and all 27 EFTA00233982 powers incidental to, reasonably to be implied from or necessary to the proper exercise of the powers herein granted. Subject to the provisions of the Trust Agreement, every act done, power exercised or obligation assumed by the TRUSTEE pursuant to the provisions of this Trust Agreement shall be held to be done, exercised or assumed, as the case may be, by the TRUSTEE acting in a fiduciary capacity and not otherwise, and every person, firm corporation or other entity contracting or otherwise dealing with the TRUSTEE shall look only to the funds property of the trust estate for payment under such contract or payment of any money that may become due or payable under any obligation arising under this Trust Agreement, in whole or in part, and the TRUSTEE shall not be individually liable therefor even through the TRUSTEE did exempt himself, herself, or itself from individual liability when entering into any contract, obligation or transaction in connection with or growing out of the trust estate. The TRUSTEE shall be fully indemnified by the trust estate against any claim or demand by an trust beneficiary or trust creditor, except for any claim or demand based on such TRUSTEE's own willful misconduct, willful default or gross negligence proved by clear and convincing evidence. 28 EFTA00233983 D. Exercise of the TRUST PROTECTORS' Powers. Some persons may be hesitant to serve as TRUST PROTECTORS hereunder because of a concern about potential liability. Therefore, (A) the TRUST PROTECTORS shall not incur any liability by any reason of any error of judgment, mistake of law, or action of any kind taken or omitted to be taken in connection with the administration of the Trust Fund if in good faith reasonably believed by such TRUST PROTECTOR to be in accordance with the provisions and intent hereof, except for any matter involving such TRUST PROCTETOR's own willful misconduct or gross negligence proved by clear and convincing evidence, (B) the TRUST PROTECTOR shall not have any fiduciary responsibility to observe, monitor or evaluate the actions of the TRUSTEE and shall not be liable to any party for the failure to seek to remedy a breach of trust, or in a recurring situation to request instructions from a court having jurisdiction over the trust, even if a TRUSTEE may be guilty of a gross violation of fiduciary duties hereunder, and (C) the TRUST PROTECTORS shall be fully indemnified by the trust estate against any claim or demand by any trust beneficiary or trust creditor, except for any claim or demand based on such TRUST PROTECTORS' willful misconduct or gross negligence proved by clear and convincing evidence. In no 29 EFTA00233984 event shall any TRUST PROTECTOR hereunder be liable for any matter with respect to which he, she or it is not authorized to participate hereunder (including the duty to review or monitor trust investments). E. Identity of TRUSTEE. First National Bank Alaska is hereby designated and appointed as the TRUSTEE. F. Appointment of Successor TRUSTEE. If there is no TRUSTEE acting as to a trust hereunder, the successor TRUSTEE, as the case may be, shall be such individual or individuals (other than the TRUSTOR or any other person who has contributed property to the trust) or such bank or trust company as shall be appointed by the TRUST PROTECTORS in the same manner as provided in Section II(A) for the removal and replacement of a TRUSTEE; provided, however, that unless the TRUST PROTECTORS determined to change the situs of the trust from Alaska, the successor TRUSTEE so appointed must be an individual or a bank or trust company domiciled in Alaska and provided further, that in the case of any appointment of a successor TRUSTEE, no successor TRUSTEE of any trust hereunder shall be any individual or bank or trust company that is related or subordinate to the TRUSTOR. 30 EFTA00233985 C. Identity of TRUST PROTECTO S. The individuals named in Exhibit E attached hereto are hereby appointed as the members of the Trust Protector Committee. The TRUST PROTECTORS are authorized, in the exercise of sole and absolute discretion, to remove any TRUSTEE acting hereunder and, if the TRUST PROTECTORS consider it appropriate, to designate a successor TRUSTEE in its place; provided, however, that no TRUST PROTECTOR, may appoint as TRUSTEE himself or herself, or any person who is married to a TRUST PROTECTOR, or any descendent of a TRUST PROTECTOR, or any person who is a partner or fellow shareholder of a TRUST PROTECTOR in any entity in a TRUST PROTECTOR has a 10% or greater interest or to which a TRUST PROTECTOR devotes on an average more than ten hours a week. Each TRUST PROTECTOR also is authorized, in the exercise of sole and absolute discretion, to designate by a written, acknowledged instrument delivered to the other TRUST PROTECTORS, a successor member to act in the event of his or her incapacity, resignation or death and to revoke such designation before it becomes effective; provided, however, that neither the Spouse, any descendant of the TRUSTOR, any person under a duty to support a descendant of the TRUSTOR, nor any person acting as a guardian or committee or 31 EFTA00233986 inted as a TRUST conservator of a descendant of the TRUSTOR, can be appo have all the powers of PROTECTOR. Any successor TRUST PROTECTOR shall S shall not have any an initial TRUST PROTECTOR. TRUST PROTECTOR STEE. The TRUST fiduciary responsibilities to monitor the acts of any TRU any TRUSTEE even if PROTECTORS shall not be liable for a failure to remove iary duties hereunder. such TRUSTEE may be guilty of gross violation of fiduc H. Appointment of Successor TRUST PROTECTORS, otherwise fulfilled In the event of any vacancy a TRUST PROTECTOR not shall be appointed as by specific appointment pursuant to this Article, there the TRUSTOR, the successor TRUST PROTECTOR such individual (other than property to the trust, TRUSTOR's spouse, any other person who has contributed endant of the any descendant of the TRUSTOR or any spouse of any desc s Attorney's Office, TRUSTOR) as designated in writing by the United State District of Alaska. 1. Resignation of TRUSTEE. court at any time Any TRUSTEE may resign from office without leave of ument in writing, duly and for any reason. Such resignation shall be made by instr to the TRUST acknowledged, and delivered in person or by registered mail 32 EFTA00233987 PROTECTORS,or, if there are no TRUST PROTECTORS then in office, in the manner provided in Paragraph J of this Article. J. Manner of Notice, Any notice directed to be given in the manner provided in this Paragraph shall be by an acknowledged instrument in writing delivered to the TRUST PROTECTORS or the United States Attorney's Office, District of Alaska. Any notice hereunder must be actual notice. K. Term of TRUSTEE's and TRUST PROTECTOR ' Duties. The title, powers, duties, immunities and discretions herein conferred upon the TRUSTEE and TRUST PROTECTORS shall continue after the termination of each trust hereby created until final distribution of the particular trust estate. L. Accounting. The TRUSTEE shall keep true and accurate records of the administration of the Trust Fund which shall be available at reasonable times for inspection by the TRUST PROTECTORS and their designated agents or the United States Attorney's Office, District of Alaska, and shall render an annual written accounting to the TRUST PROTECTORS with a copy to the United States Attorney, District of Alaska. Such copy of the annual written accounting may be 33 EFTA00233988 sent to the United States Attorney, 222 W. 7th Avenue, Room 253, Anchorage, AK 99513. Such account shall, as to all matters show therein or thereby, be final and binding upon all parties unless written objection to such accounting is made within ninety (90) days after such accounting has been rendered. No TRUSTEE shall be required to file or render periodic accounts in or to any court. No TRUSTEE shall be required to give any bond. M. TRUSTEE's Compensation. By executing this Agreement, First National Bank Alaska agrees to act as TRUSTEE hereunder and First National Bank Alaska shall be entitled to receive commissions or other compensations for its services as TRUSTEE in accordance with the schedule of rates, including applicable minimum fees and adjustments to conform to statutory rate changes, which First National Bank Alaska publishes and which shall be in effect from time to time or such other compensation as is agreed upon from time to time in writing. A copy of First National Bank Alaska's statement of commissions and compensations as of the date this Trust Agreement is attached as Exhibit F hereto. N. Spendthrift Provision. 34 EFTA00233989 No beneficial interest in any trust created under this Trust Fund and this Trust Agreement, whether in income or in principal, shall be subject to anticipation, assignment, pledge, sale or transfer in any manner, and no beneficiary of any such trust or other person interested therein shall have the power to anticipate, encumber or charge his, her or its interest therein, and no trust estate created hereunder shall be liable for or subject to the debts, contracts, obligations, liabilities, and/or torts of any beneficiary of any such trust or other person interested therein. 0. Construction of this Agreement. This Trust Agreement shall be construed under the laws then in effect in the State of Alaska at time of dispute resolution. Headings or captions used in this Trust Agreement are inserted for reference purposes only and shall not be deemed to limit or affect in any way the meaning or interpretation of any of the terms hereof. In the event of any dispute as to the meaning or interpretation of any terms hereof, or the administration of the Trust Fund, or if any controversy arises between the parties hereto or with any third person, the TRUSTEE shall not be required to determine the same or to take any action in the premises, but the TRUSTEE in its discretion may institute such court proceedings in connection 35 EFTA00233990 therewith as the TRUSTEE may deem proper. Enforcement and construction of this Agreement shall be by the United States Magistrate for the District of Alaska, if that Court has jurisdiction, upon motion in A04-003-01 CR (JWS), with notice to the United States Attorney's Office, District of Alaska. If any provision of this TRUST AGREEMENT is deemed unenforceable, the remaining provisions shall nevertheless be carried into effect. Any disputes not involving enforcement or construction of this Trust Agreement, but rather merely of a contractual or other nature between the TRUSTEE and third parties, may be resolved in any appropriate forum. The TRUSTEE shall give notice of such actions to the TRUST PROTECTORS and the United States Attorney's Office, District of Alaska, by copy of pleadings served upon the TRUSTEE through the United States Attorney at 222 W. 7" ' Avenue, Room 253, Anchorage, AK 99513. The beneficiaries, by virtue of their benefitted status under this Trust Agreement, and the TRUST PROTECTORS, are intended to have such standing or interest in such disputes as is provided under the law of the State of Alaska for trust beneficiaries. P. Execution of Trust Agreement. IN WITNESS WHEREOF, Josef Franz Boehm, acting by and through the undersigned, and the First National Bank Alaska, as TRUSTEE, acting by and 36 EFTA00233991 through its undersigned duly appointed officer, have executed this Trust Agreement effective on the day and year first above written. TRUSTOR: By: JOSEF FRANZ BOEHM ATTORNEY FOR JOSEF FRANZ BOEHM: By: Attorney for Josef Franz Boehm TRUSTEE: First National Bank Alaska By: Senior Trust Officer UNITED STATES ATTORNEY'S OFFICE DISTRICT OF ALASKA: By: TIMOTHY M. BURGESS United States Attorney 37 EFTA00233992 By: , Assistant United States Attorney By: Assistant United States Attorney 38 EFTA00233993 Exhibit C Month day, year Dear Trustee: By this document we appoint from the subject trust the sum of dollars and cents to be paid to : Name Address City, State, zipcode on behalf of Beneficiary Name]. You are directed to pay said amount to the above appointee at the address written above. Sincerely, Trust Protector Trust Protector Trust Protector EFTA00233994 Exhibit E Trust Protectors do Alaska Violent Crimes Compensation Board 450 Whittier St # 101 Juneau, AK 99801 do Victims For Justice 1057 W Fireweed Ln # 101 Anchorage, AK 99503 cio Anchorage Ponce Department 4501 S Bragaw Anchorage, AK 99507 EFTA00233995 IN THE DISTRICT COURT OF APPEAL FOURTH DISTRICT OF FLORIDA CASE NO. 4D09-2554 JEFFREY EPSTEIN, Petitioner, VS. STATE OF FLORIDA, PALM BEACH NEWSPAPERS, INC., E.W., and B.B., Respondents. Pending in the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Case Nos. 2006 CF 9454AMB, 2008 CF 9381 AMB PALM BEACH NEWSPAPERS, INC. d/b/a THE PALM BEACH POST'S RESPONSE TO EMERGENCY PETITION FOR WRIT OF CERTIORARI THOMAS, LoCICERO & BRALOW PL Deanna K. Shullman James B. Lake 101 N.E. 3rd Avenue, Suite 1500 Ft. Lauderdale, Florida 33301 EFTA00233996 TABLE OF CONTENTS ii TABLE OF AUTHORITIES INTRODUCTION 1 JURISDICTION 2 NATURE OF THE RELIEF SOUGHT 2 STATEMENT OF THE CASE AND FACTS 3 SUMMARY OF THE ARGUMENT 7 ARGUMENT 8 STANDARD OF REVIEW. 8 I. II. THE TRIAL COURT CORRECTLY UNSEALED THE NPA. 8 A. The NPA was not Properly Sealed in the First Instance. 8 1. Closure of the Non-Prosecution Agreement Improperly Occurred without a Motion, Notice, Hearing, or a Proper Order. 11 2. Closure of the Addendum Improperly Occurred without any Procedures to Protect the Right of Access at all. 12 B. No Basis Exists for Current Closure of the Non-prosecution Agreement or Its Addendum. 13 1. Petitioner Cannot Identify a Rule 2.420(c)(9) Interest that Warrants Closure. 16 2. The Federal Court's Decisions in Case No. 08-80736 (S.D. Fla. 2008) Did Not Preclude the Lower Court's Orders Unsealing the NPA. 19 3. Federal Rule of Criminal Procedure 6 Did Not Preclude the Lower Court's Orders Unsealing the NPA 21 CONCLUSION 25 CERTIFICATE OF SERVICE 26 EFTA00233997