THE PALM BEACH POST

THE PALM BEACH POST • THURSDAY, OCTOBER 18, 2007 Milian sues billionaire investor, /says they had sex when she was 16 The Associated hers NEW YORK — A billionaire investor, already facing jail in Palm Beach County on charges of soliciting under- age prostitutes, is being sued by a young woman who says he had sex with her when she was 16 and had sought his help becoming a model. The lawsuit, fled late Thesday in Manhattan% state Supreme Court, says finan- cier Jeffrey Epstein had the teen perform a sex act when she brought photographs of herself for him to review in his Upper East Side mansion sometime in 2000. Epstein, 54, a money manager, told the teen he managed finances for Victoria's Secret and "could get you into the catalog" if she were "nice" to him, court papers say. The papers say being "nice" included massages and other favors. When the girl told Epstein, "I am 16 years old and just want to model," he replied, "Don't worry I won't tell any- body," court papers say. Epstein, _said by London% Epstein Mail on Sunday to be a dose friend of England% Prince Andrew, has been indicted in Palm Beach on charges of so- liciting underage prostitutes. That case is pending. The girl visited Epstein "several times over the sev- eral months and engaged in bizarre and unnatural sex acts" while she was a minor, the lawsuit says. Epstein "repeatedly re- quested that (the girl) return with her 14-, 15-, and 16- year-old girlfriends, stating, tome by with your friends your next time. Don't bring (a mutual friend in er . I love girls your age." The young woman, now 23, kept returning to Epstein because she has "mental issues," said her lawyer, Wil- liam J. Unroch. He refused to elaborate, but court papers say she was "disabled at a re- sult of severe mental disease and defect." Epstein's lawyer in New York, Gerald Lefcourt, said, "The girl has admitted she is insane, but she can read a newspaper and recognize the word 'rich.'" Lefcourt also said the statute of limitations has expired for the woman% case criminally and civilly, and will almost certainly be dismissed. He refused to comment on Epstein% Florida charges. Meanwhile, Unroch, 57, also acknowledged that his client was living with him and was at the center of a $10 million lawsuit he filed last year against a neighbor who said he was having sex with underage girls. That case is pending. ' "What she was doing at 22 is irrelevant to what hap- pened to her when she was 16," Unroch said Wednesday He went on the say he hoped Epstein would agree to "do right" by his client and re- solve the case out of court. EFTA00188312 `Post' Grabs a Towel in Preparation for Epstein Trial - New York Magazine's Daily lntell... Page 1 of 1 New York Magazine News & Features II/ 2/07 in Other News `Post' Grabs a Towel in Preparation for Epstein Trial t s a . 'Pent Nixes Dal [MITI Earlier: Intel's coverage o(Jeffrey Epstein 11:00 am Jeffrey Epstein, the billionaire and friend of Clinton who ImiCharged IBM year with paying teenage girls to massage him while he jerked off into a towel at his pink Palm Beach mansion, has decided not to plead guilty, the Post reports today; hell take his chances with a jury. Reporting this must have been bittersweet for the l'ost, because they've been insisting for months that Epstein had taken or was litenaRy an she verge of any minute taking a plea deal. But then we expect they are wailing with baited breath for all the lurid details the trial to come out. As are wet In fact, with the expectation that all the stories we've heard in the months since the allegations first came to light are going to be rehashed in the trial, which the Past says is scheduled forJanuary, were going to repeat one of our favorite bits from the recent lawsuit filed by lawyer extraordinaire William Unmet, on behalf Of his es-lover, transgender kinda.mode [Epstein] suddenly went into the bathroom and came eat severalminuteslater wearing red lipstick and wearing a matted red wig. Ile said to plaintiff 'Call me Janice' snare e3d 0: 10. a sy4 Ems OA ura FQ, mint YOU WILL BE FROM ITIM TO REGISTER OR LOGIN WHEN POSTING. MEW CONNIE/1Y 0 GI 350 words anon° MOIL and URLs prohibited Uwe Guideams PREVIEW POET CON PIEHT Corgi& C 2006. New Vogl AlegarewHoldato LW All MOH Named httn://nvmaa.com/dailv/intel/2007/11/Dost izrabs a towel in preparat.html 12/4/2007 EFTA00188313 EFTA00188314 ME PALM BEACH POST • WEDNESDAY, FEBRUARY 27, 2008 Girl drops lawsuit against Palm Beach man By LARRY KELLER Palm Beath Post Sfre Writer A girl who says that wealthy money manager and part-time Palm Beach resident Jeffrey Epdtein engaged in • sexual activity with her when she was 14, has dropped her lawsuit against him because her divorced parents are squabbling over the litigation. "It has to do with the fact that the parents aren't on the same page right • now," said Jeffrey Herman, the attorney for the girl, identified in court papers only as Jane Doe "It's like a sideshow" The girl turns 18 in May and can sue • again at that time without her parents' involvement, Herman said. Herman sued Epstein last month on • behalf of the girl, her father and her stepmother. Her birth mother, who lives near Atlanta, then asked to intervene on her daughter's behalf and asked that Epstein Accused of sexuality assaulting then- 14-year-old gift the litigation be halted until her daughter turns 18. • The mother com- plained that Jane Doe's father did not consult with her or their daughter before suing Epstein for $50mil- lion. The lawsuit al- leges sexual assault, intentional infliction of emotional distress and loss ' of parental consortium. Herman also represents a Jane Doe No. 2 who, like Jane Doe, claims Epstein summoned her to his home for a massage when She was a minor and sexually touched her ,Epstein, 55; induced several un r- age girls to give him sexual ma es at his Intracoastal home, a Palm Beach Police Department investigation con- cluded. He was indicted in July 2006 on a single count of felony solicitation of prostitution. The case is pending. Jane Doe's parents separated two months after she was born at Good Sa- maritan Medical Center, according to court records. The couplek subsequent divorce has been contentious. Each has had primary custody of the girl at various times. The father pleaded guilty to fed- eral fraud charges in 2001 and was sen- tenced to 21 months in federal prison, plus three years' probation. The US. attorney overseeing his prosecution was Guy Lewis. Now in private practice, Lewis was hired by Epstein to defend him against the father's lawsuit filed on behalf of Jane Doe. • lany_kelet@pbpostcom • EFTA00188315 ft. guilty in underage escort case -- South Florida Sun-Sentinel.com Page 1 of 2 sun-sentinel.coin/news/local/southflorida/sfl-flbverdict0320pnmar20,0,5695099.story South Florida Sun-Sentinel.com Man guilty in underage escort case West Palm resident faces mandatory sentence of at least 10 years in prison BY VANESSA BLUM South Florida Sun-Sentinel March 20, 2008 Rejecting defense claims of entrapment, a federal jury convicted a West Palm Beach man on Wednesday for arranging to have sex with a teen prostitute in Costa Rica through a bogus travel agency secretly run by the FBI. Jorge Muentes, 48, cried as federal marshals led him from his family after the guilty verdict was read in the Foil Lauderdale courtroom of U.S. District Judge James Cohn. "I love you, baby," his wife of 17 years called after him. "I love you." Muentes, who worked as a butler, contacted the FBI's fake agency, Latin American Pleasure Tours, in September after seeing an ad in an adult magazine. In conversations with an undercover detective posing as the agency's owner, Muentes requested a 14- to 16-year-old prostitute. He was arrested at Miami I cil ia_ jalionalAirmyt Nov. 15 as he attempted to board a flight to San Jose. David 0. Markus, the attorney representing Muentes, said he would appeal the verdict. Markus had argued his client was entrapped by the detective who Markus said called Muentes repeatedly and steered him toward an underage prostitute. CI) Holy Cross p Hos ital 2" Year in a row <J4, ‘s, AMERICAS 50 BEST HOSPITALS But prosecutors insisted Muentes made the choice to request a teenager without encouragement and took concrete steps toward acting on his desires by paying for the trip and attempting to travel. After a two-day trial and one day of deliberations, the jury of seven men and five women found Muentes guilty of two counts for soliciting the services of an underage prostitute and for attempting to travel overseas for sex with a minor. Muentes, who has no criminal record or history of child abuse, faces a mandatory sentence of at least 10 years. A nearly identical case against a New York Vietnam War veteran is set for trial Monday before U.S. District Judge Jose Gonzalez in Fort Lauderdale. hertvawinv crin-sentinel.com/news/local/southflorida/sfl-flbverdict0320pnmar20,0,204460... 3/20/2008 EFTA00188316 , guilty in underage escort case -- South Florida Sun-Sentinel.com Pagc 2 of 2 The two cases are part of a government crackdown on so-called sex tourists who travel overseas to molest children. The initiative has led to more than 70 arrests since 2003, including those of 15 people snared in the sting operation. The Web site for Latin American Pleasure Tours offers to fulfill travelers' desires with "clean, fun- loving companions of varying ages." All calls to the agency were directed to the Miami FBI headquarters and answered by Richard Love, a retired Fort Lauderdale police detective who posed as the agency's owner. Love testified at trial that Muentes needed no prodding to request a "very young" escort. In their first conversation, Love offered Muentes two types of escorts — for sightseeing or sex. After Muentes indicated his interest in a prostitute, Love asked him to choose from a range of 14 to 27 years old. "Let's go young ... very young," Muentes said. Love suggested a 14- to 16-year-old and Muentes agreed. When Muentes asked about the legality of sex with a minor, Love said it was all illegal. According to testimony at trial, adult prostitution is legal in Costa Rica, but transactions cannot involve a third party, such as an agency or pimp. Markus said Muentes changed his mind and requested a 21- to 24-year-old escort, but was never given a chance to back out. Sentencing is set for May 29. Vanessa Blum can be reached at vbblum®sun-sentinelstom or 954-356-4605. Copyright C 2008, utl ao_j_Floida_S_un-Seritinel htto://www.sun-sentinel.com/news/locaYsouthflorida/sfl-flbverdict0320pnmar20,0,204460... 3/20/2008 EFTA00188317 THE PALM BEACH POST • FRIDAY. APRIL 18, 2008 WEST PALM BEACH - Part-time Palm Beach resident Jeffrey Epstein has been sued in federal court by two more women this week who say he had sexual contact with them when they gave him mas- sages at his waterfront mansion when they were minors. They are the fourth and fifth women to sue Epstein. Both women are seeking more than $50 million. Jane Doe No. 4 says she was 15 years old when she had several encounters with Epstein in 2002 or 2003. Jane Doe No. 5 says she was 15 or 16 years old when she was with him. Epstein was indicted by a county grand jury in July 2006 on a single felony count of solicitation of prostitution. That case is still active. EFTA00188318 THE [vim REACH POST • TUESDAY, MARCH 18,2008 Girl sues Epstein, two others she says conspired in massages Jane Doe,' 17, sues in state court after dropping a federal suit. By LARRY KELLER Palm Beath Post SteWriter WEST PALM BEACH - A former Palm Beach Community College student who police say procured underage girls to give Jeffrey Epstein sexualroassages at his Palm Beach mansion,. and Epsteia personal assis- tant have been sued along with Epstein over their alleged conduct: The girl behind the lawsuit was 14 years old when she contends he engaged in sexual conduct with her after she went,to his water- front home in 2005 to give him a massage. Her lawsuit, filed under the name Jane Doe, seeks unspecified damages from Epstein for sexual assault and intentional infliction of emotional distress. Loxahatchee and She also sued ' of ork City on grounds of conspiracy and civil rack- eteering "We just want a full measure of justice for th' 'd her attorney Ted Leopold. ho attended Palm Beach Com- munity Col ege, was paid by Epstein to bring girls to his mansion for massages and more, according to Palm Beach police "I'm like a Heidi Fleiss," they said she told them. Her attorney could not be reached immediately fours an Epstein personal assistant who arranged the encounters, even escort- ing the girls to his massage room, police alleged. Epstein "These two conspired with him to help with the criminal enterprise," Leopold said. Jane Doe, through her father and stepmother, filed a federal lawsuit against Epstein in January. She dis- missed it after her mother said she wasn't consulted about the litigation and sought to intervene. The mother is acting on her daughter's behalf in the latest lawsuit. Epstein's lawyer has denied the girN al- legations and said her family is simply at- tempting to get money from a very rich man. Epstein, 55, is a Manhattan money manager who has homes there, in New Mexico and the Virgin Islands, in addition to his $8.5 million Palm Beach mansion. Two other Jane Does have sued Epstein in federal court this year, making similar al- legations to those of the first Jane Doe. Those cases remain active. Also pending against Epstein in state court is a felony charge of solicitation of prostitu- tion arising from the same alleged incidents with several girls. That case is set for trial'in July, two years after he was indicted. Jane Doe's new lawsuit, filed in Palm Beach County Circuit Court, is the most explicit in detailing Epstein all • d the only suit to include ad as defendants, and the on make con- spiracy and racketeering allegations. Jane Doe will turn 18 in May. She lives with other family members in Palm Beach County, is nearing graduation from high school and is working part time, Leopold said. lany_kellertipbpost.com EFTA00188319 Epstein WE PAUA BEACH POST • SUNDAY, APRIL 6, 2008 A DEADLINE FOR EPSTEIN The day of reckoning for Palm Beach billionaire finan- cier and alleged sex offender Jeffrey Epstein is coming. Really! State Attorney Barry Krischer has put his foot down after nearly two years of wrangling with Epsteink team of high•priced attor- neys. By July 8, Krischerb spokesman said, there will either be a trial or a plea agree- ment The reclusive 55-year-old Wall Street prodigy allegedly had a college student steer underage suburban girls to his beach- front mansion for sex and weird massages in 2005. "lib simply time," said Krischer'S spokes- man, Mike Edmondson. In November Epsteink local attorney, Jack Goldberger, told Page Two the case would be resolved with a guilty plea by late January. But things have been stalled as Epstein uses a dream team of lawyers that also includes Harvard professor Alan Dershowitz and for- mer Whitewater prosecutor Ken Starr. Now, a trial has been set for July, just in case. "Things have been delayed," Goldberger said. The problem? Sources close to the case say Epstein doesn't mind so much the 18 months in jail if he pleads guilty but he can't stand the thought of being branded a Florida sex offender for life. "Ha been treated more harshly because he a wealthy man," Goldberger said. "He I jose lantbiet@pbpost.com EFTA00188320 Lawsuit: Epstein assistants helped procure underage girl for sex Page 1 of 2 PalrnBeachPostcom Ea PRINTTHIS Lawsuit: Epstein assistants helped procure underage girl for sex By MARYIUMCE Palm Beach Post Staff Writer Monday, March 17, 2008 WEST PALM BEACH - A former Palm Beach Community College student who allegedy procured underage girls to give Jeffrey Epstein sexual massages at his Palm Beach mansion, and Epstein's personal assistant have been sued along with Epstein over their conduct. Browse Specials & Deals From Local Dealerships Autos PalmBeachPosicom The girl, identified only as Jane Doe, was 14 years old when she contends he engaged in sexual conduct with her after she went to his waterfront home in 2005 to give him a massage. Her lawsuit seeks unspecified damages for sexual assault and intentional infliction of emotional distress against Epstein. More local news She also sued • te WItbr ing.news, photos and all of today's Post stories. Loxahatchee and f New York City on grounds of conspiracy and Share This Story civil racketeeting. "We just want a full measure of justice for this girl," said her attorney, Ted Leopold. gr 'ho attended Palm Beach Community College, was paid by Epstein to bring girls to his mansion for massages and more, according to Palm Beach police. "I'm like a Heidi Fleiss," they said she told them. Her attorney could not be reached immediately for comment. was an Epstein personal assistant who arranged the encounters, even escorting the girls to his massage room, police alleged. "These two conspired with him to help with the criminal enterprise," Leopold said. Jane Doe, through her father and stepmother, filed a federal lawsuit against Epstein in January. She dismissed it after her mother said she wasn't consulted about the litigation and sought to intervene. The mother is acting on her daughter's behalf in the latest lawsuit. 1•44n • ihvalmhaarhnnet nrinfthig r.lickabilitv.eotnint/cot?actionntectitle=Lawsuit%3A+Epst... 3/18/2008 EFTA00188321 Lawsuit: Epstein assistants helped procure underage girl for sex Page 2 of 2 Epstein's lawyer has denied the girl's allegations and said her family is simply attempting to get money from a very rich man. Epstein, 55, is a Manhattan money manager who has homes there, in New Mexico and the Virgin Islands in addition to his $8.5 million Palm Beach mansion. Two other Jane Does have sued Epstein in federal court this year, making similar allegations to those of the first Jane Doe. Those cases remain active. Also pending against Epstein in state court is a felony charge of solcitiation of prostitution arising from the same alleged incidents with several girls. That case is now scheduled for trial in July, two years after he was indicted. Jane Doe's new lawsuit, filed in Palm Beach Circu't Codige most explicit in detailing Epstein's alleged misconduct. It is the first to includ as defendants, and the first to make conspiracy and racketeering allegations. Jane Doe will turn 18 in May. She lives with other family members in Palm Beach County, is nearing graduation from high school and is working part time, Leopold said. Find this article at: http://www.palinbeachpost.corn/localnews/content/local_news/epaper/2008/03/17/0317epstein.html F Check the box to include the list of links referenced In the article. lirrn•//nutmhenrlinnsf tirintthiS.CiiCkabilitv.com/pt/cpt?action=cpactitle=Lawsuit%3A+Epst... 3/18/2008 EFTA00188322 Above the Law: Billionaires in the Bedroom Page 1 of 2 NEWS Above the Law: Billionaires in the Bedroom Mogul Reportedly Built $30 Million Sex Grotto to Indulge His Desires By MARCUS BARAM July 20, 2007 — When it comes to sexual deviancy, the rich really are different from the rest of us. Instead of hiring cheap hookers for an hour in a motel, they fly in high-end prostitutes for the weekend to frolic in their underground grotto. Rather than buying sex toys to liven things up, they'll build a sex vault complete with bondage and S&M gear. The latest in a long line of lurid Lotharios is said to be computer chip mogul Henry T. Nicholas III, who allegedly built a $30 million underground grotto, complete with hidden doors and secret levers, at his equestrian estate in Laguna Hills, Calif. According to court documents unearthed by the Los Angeles Times, Nicholas is said to have planned a "secret and convenient lair" where he could indulge his "manic obsession with prostitutes" and "addiction to cocaine and Ecstasy." The 47-year-old billionaire, who co-founded Broadcom Corp in 1991, had his private jet ferry prostitutes from New Orleans, Chicago and Las Vegas to his lair, nicknamed the Pond, where he provided his rock-star guests with drugs, including mushrooms and nitrous oxide, according to the draft complaint. In addition, the complaint dug up by the Times alleges that Nicholas used the lair as his "personal brothel" until his wife caught him in the act with a prostitute, according to the paper. His wife, Stacy Nicholas, has since filed for divorce. Nicholas' attorney Steven A. Silverstein told the Times that "all of the allegations are denied." In 2000, Nicholas told the paper that the underground facility was a "pump house" to handle runoff from his horse trails. The allegations seem to echo other well-publicized cases. Publishing heir Richard Quadracci reportedly ran a gay sex club, complete with a 1,000-square-foot playroom equipped with a cross, bondage boards, harness power hoists and other X-rated paraphernalia, out of his penthouse apartment in Manhattan. Quadracci claims that he only ran a Web site describing a bondage-themed bed and breakfast that he planned to open one day. Eventually, his condominium board sued him and the case was settled in early 2005. Other notorious cases include Jeffrey Epstein, the billionaire financier who was charged with felony solicitation of a prostitute for hiring underage girls to give him massages at his Palm Beach mansion. In that case, some of Epstein's lawyers including famed barrister Alan Dershowitz, reportedly embarrassed the girls by unearthing their MySpace pages on which they recounted their drug use. 8/31/2007 EFTA00188323 Above the Law: Billionaires in the Bedroom Page 2 of 2 The Palm Beach Police requested an investigation by the FBI after the state's attorney reduced the charges in that case. Currently, prosecutors are expecting the case to go to trial and a case disposition hearing is scheduled for Nov. 16. The types of sex and erotic indulgences may vary in each case but they're all made possible by having money. "The rich aren't more prone to extreme sex but they are more likely to have the resources to spend on it," said Manhattan-based therapist Ian Kerner. "There are the $2 toothless hookers and the $20,000 call girl virgins but there's still work for all of them." Kemer believes that extreme sexual appetites have less to do with money than with core desires and instincts shaped by genetics and your upbringing. But being wealthy and powerful allows you to indulge those cravings -- sometimes with unexpected results. "I've had cases working with Wall Street bankers who always have to be about testosterone and they never get to explore their feminine side or their vulnerable side and these guys often go to dominatrixes and explore being whipped and spanked," said Kemer. They also may feel that their wealth is undeserved and that they need to be humiliated. "The investment banker who's mastered the universe just wants to chill out and be dominated." Wealthy men and women who are in the public eye may already feel above the law but they seek the thrill of putting themselves in high-risk situations. "These are people who feel they can do what they want all the time," said Gini Graham Scott, the author of "Homicide by the Rich and Famous." "The money lets them indulge every whim and eccentricity and they have the freedom to experiment," she explained. "But once they achieve a certain thrill, they need to expand that. After a while, it gets boring and they keep pushing the envelope on extreme behavior." That certainly seemed to be the case with Fiat heir Lapo Elkann, who was hospitalized in 2005 after overdosing at the apartment of a 53-year-old transvestite named Patrizia. After a stint in rehab in Arizona, Elkann moved to Manhattan, launched a new line of sunglasses and started indulging new passions: speeding in his family's racecars. Bravo! Copyright O 2007 ABC News Internet Ventures ant-mann. i.e. new., Invint9iii-TAQQ9Rq 8/31/2007 EFTA00188324 Describe your relationship with Mr. Epstein. How long have you known Mr. Epstein? How did you meet? What was your role at the New York Academy of the Arts? What was Epstein's involvement with the NYAA? Did Epstein express any interest in one particular style of artwork or interest in a specific artist attending NYAA? Did any NYAA students work for Mr. Epstein or yourself? Were there ever any complaints filed against Mr. Epstein by young female students while he was active with the NYAA? Did Mr. Epstein ever show any noticeable attention or exhibit any questionable or inappropriate behavior towards young females while he was involved with the NYAA? (Believed to have brought a young female as his date to a formal function sponsored by NYAA) Did Mr. Epstein leave the NYAA on good terms? Did any of the students paint portraits of any of your family members during this time period?(=ainted portraits onhen? Where? What did the art depict? When was your last contact with Mr. Epstein? What was it in reference too? EFTA00188325 Page 1 of 1 BLAME GAME rake mychic. reel deteclivc: June 21, 2007 -- DID legal eagle Alan Dershowitz and alleged pervy billionaire Jeffrey Epstein use their clout to get a speech canceled at Harvard? That's the belief of Rutgers University biologist Robert Trivers, whose talk at Harvard's Program for Evolutionary Dynamics (PED) was axed after he called Dershowitz a "Nazi-like apologist" for his "rationalization of Israeli attacks on Lebanese civilians." Trivers told the Harvard Crimson a PED official said he was "sworn to secrecy" about who pulled the plug. But Trivers blames Dershowitz, who sits as a faculty affiliate on PED, or Epstein, who donated $6.5 million to create PED and has retained Dershowitz as a defense lawyer against his 2006 indictment for soliciting underage prostitutes. Epstein's lawyer, Gerald Lefcourt, had no comment. Dershowitz told us Trivers "has a reputation as a barroom brawler and has threatened to beat me up"- but he insisted he had nothing to do with the cancellation. Click Here For Great CffilebRics W:V/`;,-M.CV:::.:1A1f TONIGHT 10/9C boys are brick! over lo gel psyched! Hate NEW YORK POST Is a registered trademark of NYP Holdings, Inc. NYPOST.COM, NYPOSTONLINE.COM, and NEWYORKPOST.COM we trademarks of NYP HoldIngS, Copyright 2007 NYP Holdings, Inc. All rights reserved. . at: nlm9Tirttlittn•//unutv nvnnct rnmkeven/0671 9n 7/11/2(107 EFTA00188326 .e Bad News for Jeff Epstein? - Mergers, Acquisitions, Venture Capital, Hedge Funds ... Page 1 of 3 HOME PAGE 1 MY TIMES TODAY'S PAPER gbexclu ork (ilAnt Friday, July is, 2007 VIDEO MOST POPULAR 1 TIMES TOPICS 1 Tralol Business 1 WORLD U.S. N.Y./REGION BUSINESS TECHNOLOGY SCIENCE I lEALTH SPORTS OPINION ARTS AUTOS MEDIA & ADVERTISING WORLD BUSINESS SMALL BUSINESS YOUR MONEY DEALBOOK MARKETS RESEARC DeaRlook Edited by Andrew Ross Sorkin DEALBOOK I MERGERS & mammon HOME ' ACQUISMONS RANKING JOBS LP.O. / r PRIVATE OFFERINGS I EQUITY More Bad News for Jeff Epstein? July U, 2007,12:26 Pm Link to This TOPICS Investment Banking E-mall This INDUSTRIES HEDGE FUNDS It was just about a year ago that Jeffrey Epstein, the reclusive financier, was being charged with soliciting prostitutes in Palm Beach, Fla. He may now have another image problem on his hands. BusinessWeek reports that Mr. Epstein's Virgin Islands-based money-management firm, Financial Trust Company, is listed in a filing with the Securities and Exchange Commission as a stakeholder in Bear Stearns's High-Grade Structured Credit Strategies Enhanced Leverage Fund, which became much easier to refer to in recent weeks as "Bear Stearns' collapsing hedge fund." SEARCH D PEN CAP LATEST It is a tantalizing nugget of information about someone who rarely discloses anything MERGER about his business or his billionaire clients. Despite his penchant for privacy, Mr. Epstein Mark runs in prominent circles: he once flew former President Bill Clinton on his 727. the Cul Playtex Regulatory filings show that Mr. Epstein's firm had voting power over 10 percent of the Deal to equity in the Bear Stearns fund, which, aided by loans from some of Wall Street's biggest Dutch. LaSalle banks, bet heavily on the securities linked to the market for subprime mortgages, or those INVESTM to homeowners with weak credit histories. Banks Role in As the subprime mortgage market has been rocked by a rise in defaults, many of those bets Deutse Bank C have gone bad. As of the end of April, the Bear fund was down 23 percent for the year. ti,1".1t.nnl, hInne rewi ;111PC rni-n/7007/07/11/more-bad-news-for-ieff-enstein/ 7/13/2007 EFTA00188327 , More Bad News for Jeff Epstein? - Mergers, Acquisitions, Venture Capital, Hedge Funds ... Page 2 of 3 Mr. Epstein did not respond to BusinessWeek's calls, and his lawyer had no comment. Of course, Mr. Epstein is not alone in his exposure to the fund. A fund-of-funds managed by Paris-based BNP Paribas is listed in the S.E.0 filing as well. That fund was also heavily invested in Wood River Partners, a $127 million fund that imploded in 2005. Bear Stearns says it will reveal the details of the fund's losses next week. Another Bear Stearns fund that got into trouble recently (with the same ridiculously long name as the other fund, except without the words "enhanced leverage") is being propped up by loans from the firm. It was down about to percent as of April. The younger, "enhanced" fund is more heavily leveraged, and Bear Stearns has said it won't provide any financing for it. Go to Article from Busintss ek* Go to Earlier DealBook Rein Add your comments... Name E-mail Comment Required Required (will not be published) Submit Comment Comments are moderated and will be posted if they are on-topic and not abusive. They may be edited for length and clarity. For more information see our Member Agreement. Massa( Investi. Investr I.P.OJOR Tax Lo Deal to Indian' $1.1 Bil Permir Share I PRIVATE More S Buyout Coldm. China] Fund Ex-Sea Buyout DEALER Airlines Autos Basic Industrii Consun Goods Get Dc How Also if 4 Ho + Tip kils.imanthnnfr Mane mitimes r.nrri/2007/07/1 Umore-bad-news-for-ieff-enstein/ 7/13/2007 EFTA00188328 Bear Steams' Collateral Damage Page 1 of 3 h it How BlackBerry Curve"' only hum AT&T, the world's leading provider of IllackRunry" service, ailiNaCkeettyCLIVe• f Rot I RF In by Thea$46K5v-H fICenicaNis BusinessWeek Register Sign In TOP NEWS July 11, 2007, 12:01AM EST Bear Stearns' Collateral Damage Money manager Jeffrey Epstein, BNP Paribas, and other investors are mired in Bear's troubled hedge fund that bet big on subprime mortgages by Matthew Goldstein The implosion of a hedge fund often sheds some unwanted attention on the wealthy investors who those to sink money into the venture. That's certainly the case with an 11-month-old Bear Stearns hedge fund that bet heavily on risky bonds backed by subprime mortgages and is teetering on the verge of collapse (see BusinessWeek.com, 7/9/07, "Mutually As_sured Mayhem.). One of the bigger investors in the troubled Bear Steams fund is Jeffrey Epstein, a former Bear Stearns trader turned money manager for the super-rich, according to regulatory filings. Over the past year, Epstein has garnered his fair share of notoriety and sensational headlines. Last July, prosecutors in Florida charged the onetime math teacher with soliciting sex from prostitutes at his Palm Beach (Fla.) mansion. Palm Beach police also alleged that the 53-year-old Epstein paid teenage girls to give him nude massages, but prosecutors did not charge him with that offense. "MONEY MAN OF MYSTERY" The racy allegations involving Epstein—once labeled New York's most eligible bachelor by the New York Post— have been good fodder for the New York tabloids and gossipy Wall Street Web sites such as Dealbreaker.com. Now it appears Epstein may have another public relations headache on his hands over an ill-fated big bet on a hedge fund set up by Bear Steams (BSC) last summer—right around the time he was getting into trouble with the law. Epstein's Virgin Islands-based money-management firm, Financial Trust Company, is listed in the SEC filing as a "beneficial owner" of the Bear Steams High-Grade Structured Credit Strategies Enhanced Leverage fund. A January filing with the Securities and Exchange Commission describes Epstein's firm as having "the power to vote or dispose of" 10% or more of the equity of the hedge fund, which raised $642 million from investors last summer. But the hedge fund's purchasing power was much bigger, given its ability to borrow billions of dollars from banks such as Barclays (BCS), Goldman Sachs (GS), Deutsche Bank (DB), Citigroup (C), and Bank of America (BAC). Epstein, who splits his time between Manhattan, Palm Beach, and St. Thomas, didn't return several phone calls. Gerald Lefcourt, one of the criminal defense lawyers helping Epstein fend off the solicitation charge, had no n"rrartrindiviwinilv/rinfinchirnnfent/inI2007/clh20070710 434383... 7/13/2007 EFTA00188329 Bear Steams' Collateral Damage Page 2 of 3 comment. Epstein, once described by New York magazine as an "international money man of mystery," reportedly won't take on any clients who aren't billionaires. One of Epstein's longtime clients is Leslie Wexner, the billionaire founder and CEO of the Limited Brands (LTD) retail chain. BIG LOSERS Even beyond his money-management business, Epstein has cut a high-profile figure. Over the years, he has befriended powerful politicians, celebrities, and academics, including former President Bill Clinton, Donald Trump, and law professor Alan Dershowitz. Epstein isn't the only supposedly savvy money manager to the super-rich to throw money into the Bear Stearns funds. A so-called hedge fund-of-funds managed by Paris-based BNP Paribas (BNPQY) also is listed on an SEC filing as a beneficial owner of the same beleaguered Bear Stearns fund in which Epstein invested. A BNP spokeswoman declined to comment. A person familiar with BNP's Ozcar Multi-Strategy fund, which invests in a variety of different hedge funds, says the problems at Bear Stearns should have minimal impact on Ozcar's performance. Still, this isn't the first time the BNP fund has made a disastrous bet on a hedge fund. The Ozcar fund, and other affiliated BNP funds, invested about $49 million in Wood River Partners, a onetime $127 million hedge fund that went bust in October, 2005, amid allegations of fraudulent trading. On May 30, John Whittier, the former manager of the hedge fund, pleaded guilty in federal court in Manhattan to charges of carrying out a scheme to defraud investors in the fund. The Ozcar fund, of which little is publicly known, is looking at having invested in two big losers in its brief four-year existence. TAINTED REPUTATION? The hedge fund that Epstein and BNP invested in is barely holding on after using billions in borrowed money to buy risky bonds backed by ailing subprime mortgages. The fund was down 23% for the year as of the end of April. Bear Stearns says it will provide a full accounting for the funds' losses sometime next week. In June, Bear Stearns suspended investor redemptions. Some frustrated Investors are offering to sell their shares in the beleaguered hedge fund for as little as 10 cents on the dollar in the secondary market. Other investors are contemplating litigation. The Securities and Exchange Commission, meanwhile, has launched a preliminary investigation into the events leading up to the collapse of the fund (see BusinessWeek.com, 6/25/07, "Bear's Big Loss Attracts SEC Attention"). A sister fund also run by Bear Stearns is faring a bit better, but that's only because the big Wall Street firm has opted to prop up that entity with $1.6 billion in loans (see BusinessWeek.com, 6/22/07, "Bear Stearns to the Rescue—Sort Of"). The four-year-old Bear Stearns High-Grade Structured Credit Strategies Leverage fund was down about 10% as of the end of April. Bear Stearns has suspended investor redemptions in that fund, too. The Wall Street firm, however, has decided not to provide any financing to the younger fund, which was more heavily leveraged and indebted. The near-collapse of the two Bear Stearns funds has sparked widespread concern on Wall Street because both hedge funds used billions in borrowed money to buy sophisticated securities called collateralized debt obligations. Popularly known as CDOs, these bond-like securities are hard-to-value investments that rarely trade. There is fear that the mass liquidation of the CDOs still held by the two hedge funds could cause a widespread devaluation in CDO prices. The trouble with the two hedge funds has already forced a management shakeup at Bear Stearns' asset management division and ultimately may end up sullying its reputation. einni/nriritIlltztrkiluhinflaCivienntentlit112007/clh20070710 434383 7/13/2007 EFTA00188330 20A THE PALM BEACH POST • WEDNESDAY, FEBRUARY 13, 2O08 W S C The Palm Beach Post TOM GIUFFRIDA Rublisiter JOHN BARTOSEK. Editor CHARLES GERARD!, General Manager Blli. ROSE, Managing Editor RANDY SCHUI.17., Editor of the Editorial Page JAN TUCKWOOD, Associate Editor BARRY BERG, PP Cimdation LARRY SIEDLIK. VP& Treasurer JOHN KELLY, VP Advertising GALEHOWDEN, VP Community Relations turd Mathetiotg LINDA MURPHY, VP Human Resources BOB BALER, VP Operations LAURA DECK CUNNINGHAM, Director, Marketing Services DAN SHORTER. General Manager, PalmBeadtPostrom Spare us the outrage An 11-month police investigation led to an indictment on one felony charge of solicitation of prostitution. That was in July 2006, and part-time Palm Beacher Jeffrey Epstein still has faced no repercussions for al- legedly preying on underage girls. So maybe Mr. Epstein is satisfied that he's getting his money worth from his large legal team, which includes Harvard Law School Pro- fessor Alan Dershowitz (remember • OJ. Simpson?) and Kenneth Starr (remember Monica Lewinsky?). Jack Goldberger of West Palm Beach, who also on the team, told Post columnist Jose Lambiet in November: "This case is absolutely • going to end without a trial within the next two months." He was wrong, but Mr. Gold- berger remains on Mr. Epsteink • payroll, feigning moral outrage at two lawsuits filed this year against • the- Manhattan money manager. The lawsuits allege sexual exploita- tion of teenaged girls, one of them as young as 14. Said Mr. Goldberger ifter the first lawsuit, seeking more Lawyers for accused sex predator sound foolish. than $50 million, was filed on Jan. 24: "We think this shows what this case is all about: money." Yes, it is — Mr. Epstein's effort to buy his way out of prosecution. According to the lawyer of a 17- year-old whose parents are suing him, Mr. Epstein masturbated in front of her (she was 14 at the time) and used a vibrator on her at his home in February 2005. Another Epstein attorney, Lilly Ann Sanchez dismissed it: "Jeffrey Epstein did not have sex with this woman." For those girls who claim that he did, Mr. Epsteint.lawyers maintain that he did not know their ages, de- spite a police search of his home and garbage that found phone messages about the girls' school schedules and even a high school transcript. For all of his money, Mn Epstein's best defense remains "I didn't know 'that I was a criminal pervert'? • EFTA00188331 THE PALM BEACH POS1 • TUFSOAY, FEBRUARY 12.2008 Girl in sex-abuse suit alleges harassment The defendant .the accuses is a part-time Palm Beach resident. By LARRY KELLER Palm froth Post Staff Writer SWEET PALM BEACH — A lawyer representing one of two girls who recently sued part-time Palm Beach resi- dent Jeffrey Epstein in fed- eral court, claiming sexual assault, has asked a judge to stop Epstein and his attor- neys from "continuous and systematic harassment" The girl, identified in court documents as "Jane . Doe," 1Z says a process server showed up at her place of employment on Feb. 1 to serve a subpoena for her deposition, originally scheduled for Feb. 6, even though her attorney had told Epstein attorney twice that he would accept the sub- poena on her behalf. Also, Jane Does attorney said he and Epstein% lawyer already had agreed to reschedule the deposition for another date. The girl's mother, who lives near Atlanta, also was served. About the same time, another man came to Jane Does workplace and said he was a lawyer who needed to contact her, the motion filed by West Palm Beach lawyer Ted Leopold alleges. "It can only be concluded that Epstein and/or his coun- sel are purposefully attempt- ing to harass Jane Doe and her mother," Leopold said in his motion. Epstein attorney Jack Goldberger filed a writ- ten response saying there was no harassment, only a simple, routine serving of a subpoena. Its not the first time one of Jane DoeS parents has complained of harassment by the Epstein. camp: Her father said in 2006 that private investigators ag- gressively followed his car, photographed his home and chased off visitors after his daughter accused Epstein. Jane Doe contends that when she was 14, she was recruited to go to Epstein mansion to give him a mas- sage. She says he engaged in sexual conduct with her at that time. Epstein is a wealthy Manhattan money manager who was indicted by a Palm Beach County grand jury in July 2006 on a single count of felony solicitation of prostitu- tion. Police investigated him for 11 months, concluding that he engaged in sexual activity with several under- age girls whom he paid to give him massages at his wa- . terfront home. Epstein .has maintained he did not know the girls were minors. 0 larry_keueripbposttorn EFTA00188332 to be choosy neighborhood. Conditi prompted a tornado , Storms could he on the MAO Poo!ovaphn, moon county. Another suit alleges sex during massage By LARRY KELLER Palm Beach That Staff Writer WEST PALM BEACH - Another woman filed a federal lawsuit against Jef- frey Epstein on Wednesday, alleging that he turned a massage she gave him at his Palm Beach mansion into a sexual episode when she was 16 years old. Identified as "Jane Doe No. 3," she is seeking more than $50 million, the same as two other lane Does" who filed similar lawsuits in the past six weeks. All three suits were filed by Miami lawyer Jeffrey Herman. Herman subsequently withdrew the first Jane Does lawsuit because of squabbling by her patents over the litiga- tion. The girl may refile the suit after she turns 18 in May and can make her own deci- sions, Herman said. Other alleged victims also have contartpd him, Herman said. "I do anticipate more cases," he said. In the latest litigation, Jane Doe No. 3 alleges that she was recruited lege student, to give Epste money at his waterfront home late in 2004 or early in 2005. The lawsuit alleges that, while on the massage table, Epstein sexually touched Jane Doe No. 3, then mas- turbated. She is suing on grounds of sexual assault and intentional infliction of emo- tional distress. • "She felt intimidated. She felt scared," Herman said. Jane Doe No. 3 made only the one visit to Epsteinb home, he said. "It's just another copycat lawsuit filed by the same lawyer who appears less interested in the truth than in grandstanding with these press conferences," said Jack Goldberger, one of Epsteinb attorneys. "We now have sworn testimony that girls lied about their age to Jeffrey Epstein, and they were care- ful in being convincing that they were over the ag Herman said instructed Jane Doe '140. , "When he asks how old you are, tell him 18 or 19 years old." But he said it doesn't matter. "They were underage girls," Herman said. "They were sexually assaulted." In addition to the civil law- suits, Epstein was indicted on a single count of felony solicitation of prostitution in July 2006 after a lengthy Palm Beach Police Depart- ment investigation into his activities with underage girls at his home. A resolution has been delayed continually. The case is on Monday's court docket but is expected to be rescheduled once again. "One of the reasons (Jane Doe It. 3) came forward is she is tired of waiting for jus- tice," Herman said. elany kelleattpbpost.com It Anti-Semitic incidents drop for second year part of our society." It marked the second straight year Florida's num- bers have declined and the third consecutive decline na- tionally. Florida ranks fourth in anti-Semitic incidents, behind New York, New Jersey and California. But an audit shows a worrisome continued use of swastikas. By KEVIN DEUTSCH Palm Roark Pm/ Rtaff EFTA00188333 Daily News Photo byJeffrry Langlois edge to be able to see traffic on South County Road on Wednesday afternoon. if greenery has to go ILLIAM KELLY News Staff Writer r not to bring out those heavy- ;commendations of the town ionsultant, the Planning and voted 5.2 Tuesday to reject tandards for intersections. would force owners of corner s and other structures and cut taller than 30 inches within to drivers would have a better ing commissioners said they of the new rules would start a to have a huge uproar," einnts' iy Dowell said. He added then en" with existing intersection ;ht rules. dsion is a recommendation to owners make improvements equal to at least 25 accessory Percent of the value of their homes, ac buildings or structures within the new sight tri- angle measurements. Commissioner Gene said that would result in a dramatic loss of greenery at many intersections along North Lake Way. "Landscaping is extremely town," he said. important to this Brian Mirson, a traffic engineer and urban planner with American Consulting Engineers, said the new standards would reduce the town's legal exposure if Poor intersection sight distance is found e relevant to a crash. Tor a car to be required to pull 8 feet out in the road to have safe space to make a turn — we don't think it's defensible" in court, Mirson said. The consultant's review of town intersections showed that trees, shrubs hedges, walls and oth- er obstacles to night could cause or contribute to a vehicle crash at 235 of the town's 278 intersec- tions. The new Sight +.1..-.-1-- ----14 r-..-- sl--- -- nother suit filed against Epstein Lawsuit seeks $50 million, alleges billionaire touched girl, then 16, inappropriately during a massage at his PB home. By WILLIAM KELLY Daily News Staff Writer Another young woman is seeking more than $50 million in damages from part-time Palm Beach billionaire Jeffrey Epstein, alleging he sexually assault- ed her at his Palm Beach home when she was 16 years old. The federal law- suit, filed Wednes- day, claims the 55-year-old Man- hattan money man- ager touched the girl inappropriately while she gave him a massage on one occasion in 2004 or 2005.The girl's attor- ney, Jeffrey M. Herman of Miami, an- nounced the suit Wednesday at a news conference at Peruvian Park. It is the third lawsuit Herman has filed on behalf of young women who al- lege Epstein sexually assaulted them while they were underage and while they performed massages on him at his El Brillo Way home. One of the earlier suits was dropped last week because the 17- year-old girl's divorced parents couldn't agree on how to pursue the case, Her- man said. None of the alleged victims have been publicly identified. The young woman on whose behalf Wednesday's suit was filed is called Jane Doe No. 3. She is now 19, Herman said. Epstein's attorney, Guy Lewis of Mi- Epstein Miami attorney files third lawsuit against the part-time Palm Beacher. EFTA00188334 Daily News Photo by Jeffrey Langlois edge to be able to see traffic on South County Road on Wednesday afternoon. if greenery has to go .LIAM KELLY lews staff Writer not to bring out those heavy- onunendations of the town nsultant, the Planning and voted 5-2 Tuesday to reject indards for intersections. ould force owners of corner and other structures and cut alter than 30 inches within drivers would have a better g commissioners said they the new rules would start a have a huge uproar," Corn- Dowell said. He added that " with existing intersection t rules. ion is a recommendation to vhich has the final say. :ommended enforcement of whenever affected property owners make improvements equal to at least 25 percent of the value of their homes, accessory buildings or structures within the new sight tri- angle measurements. Commissioner Gene said that would result in a dramatic oss of greenery at many intersections along North Lake Way. "Landscaping is extremely important to this town," he said. Brian Mirson, a traffic engineer and urban planner with American Consulting Engineers, said the new standards would reduce the town's legal exposure if poor intersection sight distance is found relevant to a crash. "Thar a car to be required to pull B feet out in the road to have safe space to make a turn — we don't think it's defensible" in court, Mirson said. The consultant's review of town intersections showed that trees, shrubs, hedges, walls and oth- er obstacles to sight could cause or contribute to a vehicle crash at 235 of the town's 278 intersec- tions. The new sight triangles would force the re- moval of vegetation from 284 private proper- Please see RULES, Page Al2 4StiOliet eges billionaire toiichedgirl, then 16, inappropriately during a massage at his PB home. 13y WILLIAN1 KELLY Daily Nem Scoff W,iirr Another young woman is seeking more than $50 million in damages from part-time Palm Beach billionaire Jeffrey Epstein, alleging he sexually assault- ed her at his Palm Beach home when she was 16 years old. The federal law- suit, filed Wednes- day, claims the 55-year-old Man- hattan money man- ager touched the girl inappropriately while she gave him a massage on one occasion in 2004 or 2005. The girl's attor- ney, Jeffrey M. Herman of Miami, an- nounced the suit Wednesday at a news conference at Peruvian Park. It is the third lawsuit Herman has filed on behalf of young women who al- lege Epstein sexually assaulted them while they were underage and while they performed massages on him at his El Brillo Way home. One of the earlier suits was dropped last week because the 17- year-old girl's divorced parents couldn't agree on how to pursue the case, Her- man said. None of the alleged victims have been publicly identified. The young woman on whose behalf Wednesday's suit was filed is called Jane Doe No. 3. She is now 19, Herman said. Epstein's attorney, Guy Lewis of Mi- ami, issued a statement dismisshig the Epstein Miami attorney files third lawsuit against the part-time Palm Reacher. Please see EPSTEIN, Page Al2 PERSPECTIVES to PONDER Winslow Homer's etchings, illustrations a contrast to blurry, large-scale photos by Seton Smith, both on view at Eaton. By IAN siOSTIteNt — nyhibitions }Lal,?. Art have little EFTA00188335 EPSTEIN His attorney says lawsuit is `wholly without merit' From Page Al latest allegations as "another copycat law- suit." "This one repeats the identical allega- tions of the first three lawsuits, including the absurd demand for $50 million," Lewis said. "These women, who are not 'victims' by any stretch of the imagination, have all confessed to lying about their ages. The latest lawsuit, like the three before it, is wholly without mer- it. We will vigorously fight these allegations in court." The suit says Epstein engaged in a scheme to get access to minor girls at his home, sexu- ally assaulted them, then gad A young woman named crusted Jane Doe No. 3 and o er no to give Epstein the massages, Herman said. Jane Doe No. 3 told Epstein that she was 18 years old or older after being advised to do so before giving him the massage, Herman said. Jane Doe No. 3 was alone in a room with a massage table when Epstein arrived wearing only a towel to cover himself, the suit says. He told her to partially undress, then touched her inappropriately during the massage, the suit says. The girl then accepted a payment of $200 to $300 and left, Herman said. "She was sort of in a state of shock," Her- man said. "She felt intimidated. She felt vul- nerable." She never returned and did not tell her par- ents about the incident until a criminal inves- tigation began, he said. The girl decided to sue Epstein because she wants justice, he said. "For victims, it's very empowering to hold someone accountable," said Herman, who spe- cializes in sex abuse cases. Herman said "a number of other young girls" have contacted him with similar allega- tions against Epstein. An investigation by Palm Beach Police al- leged that Epstein induced several underage girls to give him massages at his home. He was indicted in July 2000 on one felony charge of solicitation of prostitution. The charge is pending. — wkelly@pbclaibmews.com UNION CUSP sends e-mail urging residents to show police support From Page Al when buying a house or a car. "It's good job security," he said. "It's overdue." • The residents' groups also sent out e-mail messages to 800 residents, asking them to contact police directly by call- ing 838.6460, by mail at Palm Beach Police Department, • P.O. Box 2029, Palm Beach, FL 33480 or by e-mail at chief® palmbeachpolice.com. Sgt. Fred Hess said he re- • ceived a copy of Tuesday's let- ter from the two groups in his , department mall slot. "Unions may have their „place in some situations," he kaid. "I don't think it Is right for Palm Beach." Citizens United for Sen- sible Planning, a loosely knit group of primarily North End and Midtown bloggers, sent an e-mail message to about 250 recipients Monday ask- ing them to support the Police Department. The message says a union would create distance be- tween the police and the residents. It urges town residents to "speak out directly to the po- lice officers." "... the message they need to get loud and clear in the next few. days is that we are beldlid them ... ," the CUSP e-mail says. Co-chairwoman Jere Ze. nko said unions "don't sit well with a lot of people." "We come from northern communities where unions are anathema," she said. For either union to be se- lected in next week's ballot- ing, it must receive a majority vote. Tho department's chief, majors, captains and a ser- geant who serves in the pro- fessional standards unit are excluded from the union vote, as are non-sworn department employees. — mkacoha @pbdailynews. coon "NANTUCKI "Sunshine Cot ShinSks,Old a Sea-Side Cow 1Gtchen Anita N. Gabkr Reakor/Associas Cell: (561) 676- email: anitaCitn Visit [a 225 Per . . • . AM, 1110a7 .it uana 'esneoaq os ssai knOlls ....... inveln mint, EFTA00188336 20A THE PALM BEACH POST • FRIDAY, NOVEMBER 16, 2007 The Palm Beach Post Tom GIUFFRIDA, Publisher JOHN BARTO$EK, Editor. CHARLES GERARLM, General Manager Ma ROSE, Managing Editor RANDY SCHULTZ, Editor of the Editorial Page JAN TUCKWOOD, Associate Editor BARRY BERG, VP Civets:anon LARRY SIEDLIK, VP & Thentuvr JOHN BELLY, VPAdoertisited GALE }LOWDEN, VPCommunity Relations and Marketing LINDA MURPHY, VP Human Resources BOB HALVE, VP Operations LAURA DECK CUNNINGHAM, Hinder, Marketing Strokes DAN SHORTER, &trend Manager, Palmated:Postcam How will system judge Palm Beach predator? We soon will find out whether big money can buy from the crimi- nal justice system what everyone assumes that big money can buy. The penalty news reports say part-time Palm Beach resident Jeffrey Epstein is expected to face suggests that he will plead guilty to something more than one felony count for solicitation of proititution. A Palm Beach County grand jury indicted the Manhattan money manager on that charge in July 2006. But a guilty plea that does not recognize the age of the girls whom police say the billionaire paid for sex would be a disservice to the girls, an insult to the investigators who pressed the case and, for good measure, a general outrage. • Palm Beach police have said that Jeffrey Epstein, 54, paid underage girls, one as young as 14, to come to his 7,200-square-foot waterfront home .for "massage" sessions. Police said interviews with five alleged victims and 17 witnesses under oath, phone messages, a high school transcript and other items they found in Mr. Epstein's trash and home show that he knew how young the girls were. But after Mr. Epsteink attorneys told prosecutors about the girls' MySpace pages, which mentioned marijuana and alcohol use, State Attorney Barry Krischer sent the case to a grand jury, instead of filing charges himself. Blaming these victims, however, stow not make them any more de- of what happened. And Mr. unnecessary handoff to a after an 11-month police n reinforced Jeffrey Epstein case comes to turning point. the public understanding that the more money the accused has, the bigger the break he gets. Mr. Epsteith legal team includes West Palm Beach defense attorney Jack Goldberger, Harvard Law School Professor Alan Dershowitz, who worked on the OJ. Simpson murder case, and Kenneth Starr, who once pursued a president based on his lies about sex with young women. Federal authorities also stepped in, which stalled the state's case for another year. On Nov. 9, citing an unnamed source close to Jeffrey Epstein, Jose Lambiet of The Post wrote that the federal investigation is over, and Mr. Epstein is expected to serve up to 18 months and could be labeled a sex offender in crimi- nal records. The charge the grand jury returned more than a year ago carries a maximum five-year prison term and no "sea offender label. 'his case," Mr. Goldberger told Lambiet, "is absolutely going to end without atrial within the next two months." State attorney spokes- man Michael Edmondson would not confirm any plea deal. But, he noted: "The state attorney's hands are not tied by there being a single grand jury tharge. That does not preclude additional charges." Jeffrey Epstein, like too many mentilorida, preyed on teenaged girls. The system should not let him buy his way out of that reality. This time "With so much corruf around us, we are grateful to Palm Beach Post for reporting helped remove County Com sioners 'Ibny Masilotti and Wa Newell and City Commissio Ray Liberti and Jim aline," gie Williams wrote to The Fos( month. "... Now we want mor tention paid to stopping gangs gun-related lence." • "You see, w not elected vials. We are b newspaper us as a 'mug she a brief. We an MAMAS, Mo Against Munk sociation. As r ers of children who have been 1 by guns, we all wonder. Whet the guns coming from and w benefiting? We know we aren1 "We are single mothers at work. Most of us work two job are the nurses you see in the EFTA00188337 2itter- edly cheated on her, police said. Norman lege-.iffy enlisted the help of McGee, a crack Caine dealer, police also contend. 111 the August 2006 attack, llicicaberry killed and Elijah's throat was slashed. fin 'Packaberry discovered them after ar- • jog home from a date. Prosecutors are seeking the death pen- ty for Norman and McGee, said attorney ren Lerman, who represents Norman. erry's relatives filled the courtroom onday for the brief hearing, he said. A trial to for the pair may be set at their next urt appearance scheduled for May. Norman, who had no criminal history, et McGee at a gas station. When McGee offered to sell Norman drugs, she declined, "i amt anawcs um - he said. McGee also denied stabbing or slashing Elijah, who survived. "Don't do nothing to a little kid, man." He said that he entered the Tackaberry home to rob it to buy more crack. "A robbery that went bad," McGee said. Norman gave a much longer and detailed statement. She said McGee slashed Elijah's throat, then eventually admitted she cut the boy across the chest The wound was a stab, not a cut, an officer told her. "I didn't think I jugged him that hard," Norman said. "I didn't want him to die. I did it to spite John." Osusan_spencer_wendeltipttpostcom Girl in sex: abuse suit alleges harassment The defendant she . accuses is a part-time Palm Beach resident. poena on her behalf. Also, by the Epstein camp. Her Jane Doe% attorney said he father said in 2006 that and Epstein lawyer already private investigators ag- had agreed to reschedule the photographed followed his car, deposition for another date. photographed his home and The girrs mother, who chased off visitors after his lives near Atlanta, also was daughter accused Epstein. served. About the same Jane Doe contends that time, another man came to when she was 14, she was WEST PALM BEACH — A Jane Does workplace and recruited to go to Epstein% lawyer representing one of said he was a lawyer who mansion to give him a mas- two girls who recently sued needed to contact her, the saga She says he engaged part-time Palm Beach resi- motion filed by West Palm in sexual conduct with her dent Jeffrey Epstein in fed- Beach lawyer Thd Leopold at that time. eral court, claiming sexual alleges. Epstein is a wealthy assault, has asked a judge "It can only' be concluded Manhattan money manager to stop Epstein and his attor- that Epstein and/or his coun- who was indicted by a Palm neys from 'continuous and' set arepurposefully attempt- Beach County grand jury in systematic harassment. ing to Jane Doe and July 2006 on a single count of The girl, identified in her mother," Leopold said in felony solicitationof rbstitu- court documents as "Jane his Motion. . lion. Police investigated him Doe," 1Z says a process Epstein attorney Jack for 11 months, concluding server showed up at her Goldberger filed a writ- that he engaged in sexual place of employment on Feb. ten response saying there activity with several under- 1 to serve a subpoena for was no harassment, only a age girls whom he paid to her deposition, originally simple; routine serving of a give him massages at his wa- scheduled for Feb. 6, even subpoena. terfront home. Epstein has though her attorney had It's not the first.time one maintained he did not know told Epstein attorney twice of Jane Doe's parents has the girls were minors. that he would accept the sub- complained of harassment 0 larry_kellerepbpostcom B LARRY KELLER Palm Beach Post Staff Writer tort. Stnnif Wednesday InriantiII Attl Riart,nedmield.HFriiday. Young & P lion om Stuart. Visit Wednesday t and Thur ; daykr;efuitznie Mass sta Thursday Beach, sr Mary, of Jens tin led Thum,' nerai H . M tort', Stuart. ome rem St. Lucie County Luceinealid.st, Anne, 88, of Port S Funerlalad Thursday. Yat Home and Crem tort', Port St. Lucie. Galln M S ineral ra e, died Friday, Tillman Is, Scott 1., 40, of Po .1 Home, West Palm Beach. Funeral today. Okeechobee County n:Tufts, Ernest Woodrow, 90, of v8r;dtrionee, died Saturday. Mineral Home and Crematory Okeechobee. ICES DOLORES H. ROSS 75, manor, avid golfer, bridge enthusiast Mrs. Ddcees H. (nee Heinizelman) Ross died peacefully Sunday afternoon. February 10 2000 surrounded by her family al her home In the Hawk Pointe community of Washington Town. shin, NJ. Sho was 75. •Born In Sunbury. PA., Mrs. Roes was raised in Groton, CT, and had lived in Conyngharn. PA, Flourlown, PA, and Ponta Wedge Beach, FL before manna to Chatham Tovmshlp where she had lived for 30 years before recently moving to Washington Township. She and her husband Bob Ross also maintained a home at the PGA NatIonal in PaM Beach Gardens, FL for many years (Mrs. Ross had wooed as ere& estate broker .4i nP ai sFare mmolit recently, `Ir;c:jairel.crhaV ass bridge enlhuslast and and goiter G Club at Palm eeach EFTA00188338 signs all of thicityla checks and has the right to inspect all documents through- out the city. He suggested the original framers of the charter put the measure in place to provide some "checks and balances? within city government. Elected in March 200Z Masters has not suspended anyone. "Ira one thing to amend the char- ter," Masters said. "But it's another thing to change the original intent of the charter." The city charter hasn't been amended since 1973. The council created a charter re- view advisory board to comb the docu- ment, which produced the 21 proposed amendments. The proposals include See RIVIERA, 5B 00 PALM BEACH GARDENS - Jill Coulter of Palm Bea, Ash Wednesday at St. Ignatius Loyola Cathedral. ( for Christians, the faithful turned out at churches ti Gerald Barbarito, head of the Diocese of Palm Beac Part-time Palm Beacher faces another sex suit WEST' PALM BEACH, — For the second time in two weeks, part-time Palm Beach resident Jeffrey Epstein has been sued for more than $50 million by a woman who contends that he engaged in sexual activity with her when she was a minor after enticing her to give him a massage at his home. More lawsuits may follow, Miami lawyer Jef- frey Herman said. "I'm aware of oth- er he said. "I have been victims con- . lacted:' -1mrman filed a similar suit against Epstein on 2 en behalf of a girl ldcntilicd as "Jane Doe," her lather ant ateptnother The i, csi now 17, says she 11 when :he gay: Epstein a . In a Epstein sexually tinged massage at his home. The latest alleged victim is identified as "Jane Doe No. 2." She went to Epsteinh Palm Beach mansion in 2004 or 2005 when she was 16, the lawsuit alleges. She says another girl recruited her to go there to give Epstein a massage. Once there, she alleges, she was led to an upstairs room with a maggsge table. Epstein came in wearing only a towel around his waist and told her to remove her clothes. She did, except for her bra and panties, accord- ing to the lawsuit. Epstein removed his towel, rolled onto his back, mastur- bated and touched Jane Doe' No. 2 sexually, according to the lawsuit filed in federal court in West Palm Beach on Wednesday. Jane Doe No. 2 was paid $200 afterward, and the girl 'who recruited her was given See EPSTEIN, 5B O. Emily Minor's column will return. Col EFTA00188339 i s parents at odds over suit ► EPStEIN from 18 $100, according to the lawsuit. The two attended. the same Palm Beach County high school Jane Doe No. 2 is now 19 and living itrVirginia, Her man said: Both lawsuits contend that Epstein, 55, targeted "economically disadvantaged ghis from western Palm Beach County" who were perceived as less likely to complain to authorities, or whose credibility would be questioned if they did. "Both complaints are full of lies," said Guy Lewis, former US. attorney in Miami and one of Epstein many attor- neys. Jane Doe No. 2k lawsuit "is an outrageous, defamatory copycat of the first." There has been a twist in the first Jane Doe lawsuit Her mother in .Georgia contends that her former hushand. — Jane Doek father — con- sulted with neither of them before filing the lawsuit She is asking a judge to halt the litigation until her daughter turns 18 in May and can make her own decisions. . The mother asked in court filings to be added to the law- . suit, saying she "has suffered and will continue to suffer severe mental anguish and pain" as a result of Epstein% "reckless conduct" Jane Doe just didn't want the lawsuit going forward wjth the father's involve- ment," said 'led Leopold, the Mother's attorney. 'She wanted to pursue it on her own. :The father essentially did this on his own." Jane Doe has been es- tranged from her father since Thanksgiving, Leopold said. "That's why itS even stranger what he did," he said. The girl's mother is asking a judge in their divorce case to find the father in contempt of court for violating their divorce decree by not con- ferring with her on a matter involving their daughter. "The father has sole custo- dy and has the right to make decisions• on his daughter's rights," Herman-'said. Epstein is a wealthy New York money manager who has counted Bill Clinton, Donald 'Blimp and Britaink Prince Andrew among his friends. He was the target of a lengthy investigation into his activities with girls by the Palm Beach Police Depart- ment that resulted in his in- dictment in July 2006 on one 'count of felony solicitation of prostitution. That case is pending. Epstein has been sued in New York by a woman who says he had sex with her when she was 16. Herman Said he has received calls from others snaking the same assertions in that state. Herman convened a news conference Wednesday .on the middle bridge connecting West Palm Beach and Palm Beach. "This is the bridge... these girls were recruited to come over and give a massage," he said. "When they crossed this bridge, they had no idea what was an store for them. This is a bridge of tears." Herman has described both Jane Does as typical teenage girls Epstein robbed of their innocence. But Harvard University la* Professor Alan Dershowitz, another Epstein attorney, pro- vided the state attorney's of- fice with information gleaned from the myspace.com Web site two years ago showing that some of Epsteink alleged victims boasted of their alco- hol and marijuana use. Herman said the girls backgrounds aren't relevant to Epsteint purported be- havior. "They don't have the mental capacity to consent to something like this with a grown man," he said. kuly_keternatpotttom 1 - • ir-n• me% +c T Tft t erg WEEKEND FUN Emmy Friday TGIF HELPS REMO Er OK Oust, Sedt ^ Mold Spores Patten • Bacteria Oust Mlles Mildew • • Animal Dander UE <Whole House Air Dud Cleaning rI,he Palm Beach Post 0TO A NAME YOU SiDecioneare & hnonce options coailob;0 Ihiough BMW finonciul SemC gavERTIBLES AND 3-SERIES 2006 BMW 325i ..................... $24,975 White/Beige leather, A 1806465 2004 BMW 3251 ..................... $25,975 Steel Blueiffolge Leather, 20K ages, 01.134106 2005 BMW 32$Ci ................. ... $28,900 Si&erlslack leather, 26,000 miles tri06616 MAVaggai ES 2005 BMW 5251 leather, 16,000 2004 BMW OW Sedn. 610e/Cccam. SW. NW, 34 2006 BMW 5251 BRAWN.," Mathrn. 9.00 0 2006 MAWS 5301 EFTA00188340 Epstein's Palm Beach mansion at 358 El Brillo Way. Jeffrey Epstein craved big homes, elite friends and, investigators say, underage girls By ANDREW MARRA, Palm Beach Post Staff Writer WINGED GARGOYLES guarded the gate at Jeffrey Epstein's Palm Beach mansion. Inside, hidden cameras trolled two rooms, while the girls came and went. For the police detectives who sifted through the gar- bage outside and kept records of visitors, it was the lair of a troubling target. Epstein, one of the most mysterious of the country's mega-rich, was known as much for his secrecy as for his love of fine things: mag- nificent homes, private, jets, beautiful women, friendships else: the regular arrival of teenage girls he hired to give him massages and, police say, perform sexual favors. Epstein was different from most sexual abuse sus- pects; he was far more pow- erful. He counted among his friends former President Bill Clinton, Donald Trump and Prince Andrew, along with some of the most prominent legal. scientific and business EFTA00188341 Epstein's Palm Beach mansion at 358 El Brillo Way. Jeffrey Epstein craved big homes, elite friends and, investigators say, underage girls By ANDREW MARRA, Palm Beach Post Staff Writer WINGED GARGOYLES guarded the gate at Jeffrey Epstein's Palm Beach mansion. Inside, hidden cameras trolled two rooms, while the girls came and went. For the police detectives who sifted through the gar- bage outside and kept records of visitors, it was the lair of a troubling target. Epstein, one of the most mysterious of the country's mega-rich, was known as much for his secrecy as for his love of fine things: mag- nificent homes, private jets, beautiful women, friendships with the world's elite. But at Palm Beach police headquarters, he was be- coming known for something else: the regular arrival of teenage girls he hired to give him massages and, police say, perform sexual favors. Epstein was different from most sexual abuse sus- pects; he was far more pow- erful. He counted among his friends former President Bill Clinton, Donald Trump and Prince Andrew, along with some of the most prominent legal, scientific and business minds in the country. When detectives started See EPSTEIN, 6A ► Epstein's mysterious lifestyle began to unravel after claims of sexual activity with minors. ■ Epstein's lawyers take on Palm Beach police chief. Local, 1B State suspends Boynton doctor, says he violated previous order By STACEY SINGER Paint Beath Post Staff Writer Mondays are supposed to be scalpel days for Boynton Beach plastic surgeon Mark D. Schreiber. But not today. The Florida Department of Health issued an emergency suspension order against the doctor late Friday, saying it believed that the last time the state suspended Schreiber's license, he continued to oper- C Hostilities escalat Lebanon's Cabinet seems torn over Hezboi By HENRY CHU and BORZOU DARAGAHI Los Angeles Tinto BEIRUT- By air and on land, Is- raeli forces and Hezboliah. fighters battled fiercely to maximize their positions Sunday in a last-minute surge of bloodletting before an 01E. anese goven of the U.N.-b day, after sh Cabinet fonr ed Nations . cease-fire. Through, EFTA00188342 THE PALM BEACH POST • MONDAY, AUGUST 14, 2006 Jeffrey Epstein has donated more than $1009000 to Democratic candidates' campaigns, including John Kerry's presider the reelection campaign of New Mexico Gov. Bill Richardson and the SE of Joe Lieberman, Hillary Clinton, Christopher Dodd and Charles Set Powerful legal team stymie EPSTEIN from 1,4 king questions and teenage girls tried talking, a wave of legal sistance followed. If Palm Beach police didn't know ite who Jeffrey Epstein was, they md out soon enough. Epstein, now 53, was a quintes- ntial man of mystery. He amassed 3 fortune and friends quietly, ways in. the background as he vigated New York high society. When he first attracted notice in e early 1990s, it was on account of e woman he was dating: Ghislaine axwell, daughter of the late British edia tycoon Robert Maxwell. In a lengthy article, headlined he Mystery of Ghislaine Max- ill's Secret Love," the British Mail Sunday tabloid laid out specula- •e stories that the socialite's beau is a CIA spook, a math teacher, .a ncert pianist or a corporate head- inter. "But what is the truth about rn?" the newspaper wondered. ike Maxwell, Epstein is both anboyant and intensely private." The media frenzy did not begin full until a decade later. In Sep- mber 2002, Epstein was flung into e limelight when he flew Clinton id actors Kevin Spacey and Chris mker to Africa on his private jet. Suddenly everyone wanted, to tow who Epstein was. New York agazine and Vanity Fair published ngthy profiles. The New York Post ted him as one of the city's most igible bachelors and began !scribing him in its gossip columns ith adjectives such as "mysterious" id "reclusive." Although Epstein gave no inter- ews, the broad strokes of his past arced to come into focus. ailding a fife of extravakance A life of luxury and secrecy TINA FINIBIRG/Tho At33clated Pins Jeffrey Epstein's Manhattan townhousellominates a block on the Upper East Side. Thought to be the largest private residence in Manhattan, it is reported fuel extraordinary de In March 2005, a v contacted Palm Bea said another parent h conversation betwe' dren. Now the mother 14-year-old daught molested by a man o The phone call extensive investigal would lead detective: leave them frustrate( Palm Beach poll( attorney's office ha discuss the case. Bu police report detailit probe offers a wine detectives faced as close in on Epstein. Detectives intery who told them a frk her to a rich man's hi a massage. She said her to say she was 18 house, she said she after stripping to h massaging the man turbated. Police Interview 5 a The investigatioi after the girl identifi photo as the man wt Police arranged for to set aside Epstein't could sift through it video camera to fee( and goings at his ho itored an airport han his private jet's arri tures. They quickly le woman who took the to Epstein's house son, a Palm Beach ( lege student from Le sworn su it a quarters„ th she had en a eas EFTA00188343 Lein has donated more than $100,000 s' campaigns, including John Kerry's presidential bid, I New Mexico Gov. Bill Richardson and the Senate bids ry Clinton, Christopher Dodd and Charles Schumer. 1 al team stymies detectives 'TINA fir4113FRG/Itie ASSOSICd PIOSI ittan townhouse dominatoc a block nn the UDDer East fuel extraordinary desires. . • In March 2005, a worried mother contacted Palm Beach police. She said another parent had overheard a conversation between their chil- dren. Now the mother was afraid her 14year-old daughter had been molested by a man on the island. The phone call triggered an extensive investigation, one that would lead detectives to Epstein but leave them frustrated. Palm Beach police and the state szp attorney's office have declined to discuss the case. But a Palm Beach zp police report .detailing the criminal probe offers a window into what detectives faced as they sought to close in on Epstein. Detectives interviewed the girl, who told them a friend had invited her to a rich man's house to perform a massage. She said the friend told her to say she was 18 if asked. At the house, she said she was paid $300 after stripping to her panties and massaging the man while he mas- turbated. Police Interview 5 alleged victims ' The iniestigation began in full after the. girl identified Epstein in a photo as the man who had paid her. Police arranged for garbage trucks to set aside Epstein's trash so police could sift through it. They set up a video camera to record the comings and goings at his home. They mon- itored an airport hangar for signs of his private jets arrivals and depar- tures. They quickly learned that the wonian who took the 14- d girl to Epstein's house minor a Palm Beach Co Col- lege student from Loxahatchee. In a sworn statement at police head- rtn.rfaro Rnhcan then 1R admit/PA enough dirt on the girls to make prosecutors skeptical. Not only did some of the girls have issues with drugs or alcohol hit also some had criminal records and other troubles, Epstebts legal team claimed. And at least one of them, they said, lied when she told police she was younger than 18 when she started performing massages for Epstein. After the meeting, prosecutors postponed their decision to take the case to a grand jury. In the following Weeks, police received complaintt that two of the victims or their families had been harassed or threatened. Epstein's legal team maintains that its private investigators did nothing illegal or unethical during their research. By then, relations between police and prosecutors were fraying. At a. key meeting with prosecutors and the defense, Detective Joseph . Recarey, the lead investigator, was a no-show, according to Epstein's attorney. 'The embarrassment on the prosecutor's face was evident when the police officer never showed up for the meeting," attorney Jack Goldberger said. Later in April, Recarey walked into a prosecutor's office at the state attorney's office. and learned the case was taking in Unexpected turn. The prosecutor, ,• Leanne Belohlavek, told Recarey: the state attorney's office had offered Epstein a plea deal that, woidd- not require him to serve jail time or receive a felony conviction. • Recarey told her he disapproved of the plea offer." • The 'deal 'wirer came to pass, however. Mum unclear after charge EFTA00188344 TINA FINEKRG/Ibe Associated Ness ninon townhouse dominates a block on the Upper East le largest private reSidehce In Manhattan, it is reported television and a heated sidewalk to melt fallen snow. in his i flaxwoll, a lite parties msely ghter of a on, dated he 1990s. PaIrritieachPost.corn avious stories on the Epstein investigation. is I never met :k Dunne, the f the trials and -y rich. "I wasn't 7 except for a hip with Clinton ist attention. ton as early as I tend of thou- join him at an g dinner in Palm M arances, to close friends Ithe Oval Office rated more than' ratic candidates' John Keny's the reelection A former friend claimed Epstein backed, out of a promise to reim- burse him hundreds of thousands of dollars after their failed investment in Texas oil wells. A judge decided Epstein owed him nothing. It's a bad memory: I would rather not have ever met Jeffrey Epstein," said Michael Stroll, the retired former president of WMiams Electronics and Seg. a Corp. "Suffice it to say I have nothing good to say about him." Among the characteristics most attributed to Epstein is a penchant for women. • He has been linked to Maxwell, a fixture on the high-society party circuits in both New York and Lon- don. Previous girlfriends are said to Police interview 5 alleged victims The investigation began in full after the.girl identified Epstein in a photo as the man who had paid her. Police arranged for garbage trucks to set aside Epstein's trash so police could sift through it. They set up a video camera to record the comings and goings at his home. They mon- itored an airport hangar for signs of his private jet's arrivals and depar- tures. They quickly learned that the wonian who took the 14-y d girl 's house was Palm Beach lege Col- student from Loxahatchee. in a sworn t quarters, en 18, admitted ic police head- she had six girls to visit Epstein, all between the ages of 14 and 16. Epstein paid her for each visit, she said. house, id detectives, 'Tin like a drive j back to her . 'Police interviewed five alleged victims and 17 witnesses. Their report shows some of the girls said they had been instructed to have sex with another woman in front of Epstein, and one said she had direct intercourse with him. In October, police searched the Palm Beach mansion. They discov- ered photos of naked, young-looking females, just as several of the girls had described in interviews. Hidden cameras were found in the garage area and inside a clock on Epstein'S desk, alongside a girl's high school transcript. • Two of Epstein's former employees told investigators that young-looking girls showed up to perform massages two or three times a day when Epstein was in town. They said the girls were permit- ted many indulgences. A. chef cooked for them. Workers gave them rides and handed out hun- dreds of dollars at a time. One employee told detectives he was told to send a dozen roses to one teenage girl after a high school drama. performance. Others were given rental cars. One, according to police, received a $200 Christmas bonus. The cops moved to cement their case. But as they tried to tighten the noose, they encountered other forces at work. In Orlando they interviewed a possible victim who told them noth- mg inappropriate had happened between her and Epstein. They asked her whether she had spoken to amone else. She said yes; a pri- vate investigator had asked her the am. im• • a neanna lilt fralla". e jiaa Goldberger said. Later in April, Recarey walked into a prosecutor's office at the state attorney's office and learned the case was taking an unexpected turn. The prosecutor, Lanna Belohlavek, told Recarey' the state attorney's office had offered Epstein a plea deal that. would -not require him to serve jail time or receive a felony conviction. Recarey told her he disapproved of the plea offer.'. The 'deal never came to pass, however. Future unclear after charge On May 1, the department asked prosecutors to approve warrants to arrest Epstein on four counts of unlawful sexual activity with a minor and to his personal assistant, now 27, for her alleged role the visits. Police officials also wanted to charge Rob- son, the selkescribed Heidi Fleiss, with lewd and lascivious acts:. By then, the departmetit was frustrated with the way the state attorney's office had handled the case. On the same day the warrants were requested, Palm Beach Police Chief Michael Reiter wrote a letter to State Attorney Barry Krischer suggesting he disqualify himself from the case if he would not'act. Two weeks 'later, Recarey was told that proseCtitarS had decided once again to take the case ..to the grand jury. It is not known how many of the girls testified before the grand jury. But Epstein's defense team said one girl who was subpoenaed — the one who said she had sexual intercourse with Epstein —never showed tip.' The grand jury's indictment was handed down in July. It was not the one the police department had wanted. • • Instead of being. slapped with a charge of unlawful sexual activity with a minor, Epstein was charged with one count of felony solicitation of prostitution, which carries • a maximum penalty of five years in prison. He was booked into the Palms Beach County Jail early July 23 and released hours -later. Epstein's legal team "doesn't dispute that he had girls over for massages," Goldberger said. But he said their claims that they had sex- ual encounters with him lack credi- bility. • 'They are incapable of being believed," he said. "They had crimi- nal records. They had accusations of thee nmAn no?Inat H,nm Iw thear. EFTA00188345 ung into e flew Clinton d actors Kevin Spaoey and Chris Tucker to Africa on his private jet. Sudd everyone wanted, to enlyEr know who tein was. New York magazine an Vattity Fair published - lengthy profiles. The New York Post listed him as one of the city's most eligible bachelors and began describing him in its gossip columns with adjectives such as "mysterious" and "reclusive." Although Epstein gave no inter- views, the broad strokes of his past started to come into focus. Building a life of extravagance He was born blue-collar in 1953, the son of a New York City parks department employee, and raised in Brooklyn's Coney Island neighbor- hood. He left college without a bachelor's degree but became a math teacher at the prestigious Dalton School in Manhattan. The story goes that the father of one of Epstein's students was so impressed with the man that he put him in touch with a senior partner at Bear Stearns, the global investment bank and securities firm. In 1976, Epstein left Dalton for a job at Bear arris. By the early 1980s, he had started J. Epstein and Co. That is when he began making his millions in earnest Little is known or said about Epstein's business except this: He manages money for the extremely wealthy. He is said to handle accounts only of $1 billion or great- er. • It has been estimated he has roughly 15 clients, but their identi- ties are the subject of only specula- tion. All except for one: Leslie Wex- ner, founder of The Limited retail chain and a former Palm Beacher who is said to have been a mentor to Epstein. Wexner sold Epstein one of his most lavish residences: a massive townhouse that dominates a block on Manhattan's Upper East Side. It is reported to have, among its finer features, closed-circuit television and a heated sidewalk to melt away fallen snow. That townhouse, thought to be the largest' private residenee in Manhattan, is only a piece of the extravagant world Epstein built over time. • In New Maim, he constructed 27,000-square-foot hilltop mansion on a 10,0007acre ranch outside Santa • Fe. Many believed it to be the largest home in the state. In Palm Beach, he bought a TINA FINELIEAG/The Astodatea Pou Jeffrey Epstein's Manhattan townhouse dominates a block on the Upper Eas Side. Thought to be the largest private residehce in Manhattan, It is reported to have closed-circuit television and a heated sidewalk to melt fallen snow. Women in his ilf Ghistaine Maxwell, a fixture at elite parties and the intensely private daughter of a media tycoon, dated Epstein in the 1990s. 'he odd thing is I never met him," said Dominick Dunne, the famous chronicler of the trials and tribulations of the very rich. "I wasn't even aware of him," except for a Vanity Fair article. Epstein's friendship with Clinton has attracted the most attention. Epstein met Clinton. as early as 1995, when he paid tent of thou-. sands of dollars to join him at an intimate fund-raising dinner in Palm Beach. But from all appearances, they did not beconte cloge friends until after Clinton left the Oval Office and moved to New York.. Epstein has donated more than' $100,000 to Democratic candidates' campaigns, including John Kenya presidential bid, the • reelection campaiiin of New Mexico Gov. Bill PalmBeachPost.com Read previous stories, on the Epstein investigation. A former friend claimed Epstein backed, out of a promise ter reim- burse him hundreds of thousands of dollars after their failed investment in Texas oil wells. A judge decided Epstein owed him nothing. 'It's a bad memory. I would rather not have ever met Jeffrey Epstein," said Michael Stroll, the retired former president of Williams Electronics and Sega Corp- "Suffice it to say I have nothing good to say about him." Among the characteristics most attributed to Epstein is, a penchant for women. He has been linked to Maxwell, a fixture on the high-society party circuits in both New York and Lon- don. Previous girlfriends are said to include a former Ms. Sweden and a Ponce lei The in after the .g photo as tt Police am to set aside could sift I video cam( and going( itored an a his private tures. They q woman wit. to Epstein' son, a Pahl lege studer sworn stall quarters, R she had tak Epstein, all and 16. Ep visit., she sa During house, Rob like a Heidi Police i victims an report shoe they had be with anoth Epstein, am intercourse • In Octol Palm Beach ered photos females, jus had describe cameras we area and ins desk, along( transcript • "No o: employees young-lookii perform nu times a day town. They sal( ted many cooked for them rides dreds of doll: One tamp] was told to se teenage girl drama perfo given rental ( police, receh bonus. The cops case. But as ti noose, they forces at worl In Orland possible vitt( mg inapprof between her asked her wh to anyone els vete investi?a same questtor EFTA00188346 :rept tor a dal Clinton tention. as early as is of thou-. him at an ter in Palm pearances, ise friends Oval Office more than' :andidates' hn Kerry's reelection d Gov. Bill ate bids of • Rodham )odd and vales Be found stein's life aid he left if a federal unties and Although he was not a fre- iolation. It quenter of the Palm Beach social bank once scene, he made his presence felt. on a $20 Among his charitable donations, he gave $90,000 to the Palm Beach that one of Police Department and $100,000 to 1 previous Ballet Florida. offenb erg, hi Pan Beach, he lived in luxu- erm after ry. Three black Mercedes sat in his tore than garage, alongside a green Harley- he largest Davidson. His jet waited at a hangar can histo- at Palm Beach Internal-logeAirport At home, a private chef and a small s wealth, staff stood at the ready. From a disputes window in his mansion, he could sued the look out on the Intracoastal Water- him. his way and the West Palm Beach sky- a Beach line. He seemed to be a man who t less than had evetYlllinil- . t,. But extraordinary wealth 'tan in texas on wells. A Judge decided Epstein owed him nothing. "les a bad memory. I would rather not have ever met Jeffrey Epstein," said Michael Stroll, the . retired former president of Williams Electronics and Sega Corp. "Suffice it to say I have nothing good to say about him." Among the characteristics most attributed to Epstein is a penchant for women. ' He has been linked to Maxwell, a fixture on the high-society party circuits in both New York and Lon- don. Previous girlfriends are said to include a former Ms. Sweden and a Romanian model. • "He's a lot of fun to be with," Donald Thunp told New York maga- zine in 2002. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. , No doubt about it, Jeffrey enjoys his social life." Investigation leads to Epstein teenage girt alter a high school 'drama performance. Others were given rental cars. One, according to police, received a $200 Christmas bonus. The cops moved to cement their case. But as they tried to tighten the noose, they encountered other forces at work. In Orlando they interviewed a possible victim who told them noth- mg inappropriate had happened between her and Epstein. They asked her whether she had spoken to anyone else. She said yes; a pri- vate investigator had asked her the same questions. When they subpoenaed one of Epstein's former employees, he told them the same thing. He and a pri- vate eye had met at a restaurant days earlier to go over what the man would tell investigators. Detectives received complaints that private eyes were posing as police officers. When they told Epstein's local attorney, Guy Frons- tin, he said the investigators worked for Roy Blitck, the high-powered Miami kwyer who has defended the likes of Rush Llinbaugh and William Kennedy Smith. While the private eyes were conducting a parallel investigation, Dershowitz, the Harvard law pro- fessor, traveled to West Palm Beach with information about the girls.. From their own profiles on the pop- ular Web site MySpace.com, he obtained copies of their discussions about their use of alcohol and mari- juana. He took his research to a meet- ing with prosecutors in early 2006, where he sought to cast doubt on the teens' reliability. The private eyes had dug up 11101AA 3q noA ane wats a minor, cpstem was cnarged with one count of felony solicitation of prostitution, which carries a maximum penalty of five years in prison. He was booked into the Palm Beach County Jail early July 23 and released hours later. Epstein's legal team "doesn't dispute that he had girls over for massages," Goldberger said. But he said their claims that they had sex- ual encounters with him lack credi- bility. 'They are incapable of behag believed," he said. 'hey had crimi- nal records. They had accusations of theft made against them by their. employers. There was evidence of drug use by some of them." What remains for Epstein is yet to be seen. The Palm Beach Police Depart- ment has asked the FBI to investi- gate the case. It also has returned the $90,000 Epstein donated in 2004. In New York, candidates for governor and state attorney general have vowed to return a total of at least $60,000 in campaign contribu- tions from Epstein. Meanwhile, Epstein's powerful friends have remained silent as tabloids and Internet blogs feast on the public details of the police'investigation. Goldberger maintains Epstein's innocence but says the legal team has not ruled out a future plea deal. He insists Epstein will emerge in the end with his reputation untarnished. "He will recover from this," he said. Staff writer Larry Keller and staff researchers Bridget Bulger, Angelica Cortez, Amy Hanaway and Melanie Mena contributed to this story. 0 andrew marrapbpostcom ue imam Sup au -1103 a2ppq am Mall storied pasearaut sett pren9 aseo3 'SU aft — tiallal a$ppq unAtiowg ABU do pedderi sit/Med 'Flannaol gellana lilt* Luanne Builltqn sganel -tem amp snail awea ii • uentai, tit luapteaA cum IOW ttsnlitrala rallnillEnos ucti am paianpuou easily& aim UttlISAtall sgo „Tuna-PEW all Pat llnIWEI amyl pueq agt aas ara 'to -snea 1001 alp JOJ manias am q •sallpaqe of Butpuodsar toast at leg; aas pecampeurmi III9041 am EFTA00188347 Via Manhattan Atpper East Side. It is reported to have, among its finer features, closed-circuit television and a heated sidewalk to melt away fallen snow. That townhouse, thought to be the largest private residence in Manhattan, is only a piece of the extravagant wind Epstein built over time. In New Mexico, he constructed a 27,000-square-foot hilltop mansion on a 10,0004cre ranch outside Santa • Fe. Many believed it to be the largest home in the state. In Palm Beach, he bought a waterfront home on El Brillo Way. And he owns a 100-acre private island in the Virgin Islands. Perhaps as remarkable as his lavish homes is his extensive net . work of friends and associates at the highest echelons of power. This includes not only socialites but also business tycoons, media moguls, politicians, royalty and Nobel Prize- winning scientists whose research he often.funds. "Just like other people collect art, he collects scientists," said Martin Nowak, who directs the Program for Evolutionary Dynamics at Harvard University and was reportedly the recipient of a $30 million research donation from Epstein. Epstein is said to have befriended former Harvard Presi- dent Larry Stinuners, prominent law Professor Alan Dershowitz, Donald Trump and New York Daily News Publisher Mort Zuckerman. And yet he managed for decades to maintain a low profile. He avoids eating out and was rarely photo- ' graphed. a Vanity Fair article. Epstein's friendship with Clinton has attracted the most attention. Epstein met Clinton as early as 1995, when he paid tens of thou- sands of dollars to join him at an intimate fund-raising dinner in Palm Beach. But from. all appearances, they did not become close friends until after Clinton left the Oval Office and moved to New York. Epstein has donated more than' $100,000 to Democratic candidates' campaigns, including John Kerry's presidential bid, the reelection campaign of New Mexico Got. Bill Richardson and the Senate bids of Joe Lieberman, Hillary Rodham Clinton, Christopher Dodd and Charles Schumer. PoWeiful friends and enemies A Vanity Fair profile found cracks in the veneer of Epstein's life • story. The 2003 article said he left Bear Stearns in the wake of a federal probe and a possible Securities and Exchange Commission violation. It' also pointed out that Citibank once sued him for defaulti