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iv(2_40-7 d crro),A RI,- #0 _,,,,v1),0 EFTA00233878 U.S. Department of Justice United States Attorney Southern District of Florida 99 N.E. e Street Miami, Fl 33132 Telephone: (305) 961-9299 Facsimile: (305) 530-6444 October 25, 2007 DELIVERY BY FACSIMILE The Hon. Edward B. Davis (Ret.) Akerman Senterfitt One Southeast Third Avenue, 25th Floor Miami, Florida 33131 Re: Service as a Special Master Dear Judge Davis: Thank you for agreeing to serve as a Special Master and for assisting the United States Attorney's Office in the selection of an attorney representative to represent a group of identified victims. This letter is meant to assist you in performing your duties by providing you with background information regarding the agreement between the United States and Jeffrey Epstein and the duties that the attorney representative will have to perform. The Federal Bureau of Investigation and the U.S. Attorney's Office conducted an investigation of Mr. Epstein. As a result of that investigation, the U.S. Attorney's Office and Mr. Epstein entered into a Non-Prosecution Agreement and an Addendum that contains, inter alia, the following terms: 7A. The United States has the right to assign to an independent third-party the responsibility for consulting with and, subject to the good faith approval of Epstein's counsel, selecting the attorney representative for the individuals identified under the Agreement. If the United States elects to assign this responsibility to an independent third-party, both the United States and Epstein retain the right to make good faith objections to the attorney representative suggested by the independent third-party prior to the final designation of the attorney representative. EFTA00233879 The HON. EDWARD B. DAVIS (Rer.) OCTOBER 25, 2007 PAGE 2 OF 4 7B. The parties will jointly prepare a short written submission to the independent third-party regarding the role of the attorney representative and regarding Epstein's Agreement to pay such attorney representative his or her regular customary hourly rate for representing such victims subject to the provisions of paragraph 7C, infra. 7C. Pursuant to additional paragraph 7A, Epstein has agreed to pay the fees of the attorney representative selected by the independent third party. This provision, however, shall not obligate Epstein to pay the fees and costs of contested litigation filed against him. Thus, if after consideration of potential settlements, an attorney representative elects to file a contested lawsuit pursuant to 18 U.S.C. § 2255 or elects to pursue any other contested remedy, the paragraph 7 obligation of the Agreement to pay the costs of the attorney representative, as opposed to any statutory or other obligations to pay reasonable attorneys fees and costs such as those contained in § 2255 to bear the costs of the attorney representative, shall cease. 8.If any of the individuals referred to [in the paragraphs above] elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over his person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount agreed to between Epstein and the identified individual, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, with respect to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 9.Epstein's signature on this agreement also is not to be construed admission of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person whose name does not appear on the list provided by the United States. 10.Except as to those individuals who elect to proceed exclusively under 18 U.S.C. § 2255, as set forth in [the above paragraphs], neither Epstein's EFTA00233880 THE How. EDWARD B. DAVIS (RET.) Ocronsa 25, 2007 PAGE 3 OF 4 signature on this agreement, nor its terms, nor any resulting waivers or settlements by Epstein are to be construed as admissions or evidence of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person, whether or not her name appears on the list provided by the United States. The most recent version of the statute referenced above, 18 U.S.C. § 2255, provides that: Any person who, while a minor, was a victim of a violation of section ... 2422 or 2423 of this title and who suffers personal injury as a result of such violation, regardless of whether the injury occurred while such person was a minor, may sue in any appropriate United States District Court and shall recover the actual damages such person sustains and the cost of the suit, including a reasonable attorney's fee. Any person as described in the preceding sentence shall be deemed to have sustained damages of no less than $150,000 in value.' Section 2422 prohibits the use of a facility of interstate commerce to induce minors to engage in sexual activity and prostitution, and section 2423 prohibits interstate travel for the purpose of engaging in sexual activity or prostitution with minors. The United States has identified 34 victims as defined by this statute. The United States takes no position as to the validity of any such claim under this statute. Due to the circumstances of the case and the number and caliber of the attorneys who represent Mr. Epstein, in selecting the victims' attorney representative, the United States suggests that you consider the following criteria: 1. Experience doing both plaintiffs' and defense litigation. 2. Experience with state and federal statutory and common law tort claims. 3. The ability to communicate effectively with young women. 4. Experience litigating against large law firms and high profile attorneys who ' An earlier version of this statute deems that any person described in the preceding sentence shall have sustained damages of no less than $50,000 in value. EFTA00233881 TIlE HON. EDWARD B. DAVIS (RET.) OCTOBER 25,2007 PAGE 4 OF 4 may test the veracity of the victims' claims. 5. Sensitivity to the nature of the suit and the victims' interest in maintaining their privacy. 6. Experience litigating in federal court in the Southern District of Florida. 7. The resources to hire experts and others, while working on a contingency fee basis, in order to prepare for trial, if a settlement cannot be reached (defense counsel has reserved the right to challenge such litigation). 8. The ability to negotiate effectively. Pursuant to this letter, the United States assigns to you the responsibility for consulting with and selecting the attorney representative for the individuals. The United States and Epstein retain the right to make good faith objections to the attorney representative you select prior to the final designation of the attorney representative. In that regard, after you have reached a decision regarding the attorney representative, please provide me with his or her name and contact information. If I can provide you with any further information, please do not hesitate to contact me and/or the U.S. Attorney and/or Jay Lefkowitz, Esq. on behalf of Epstein. Mr. Lefkowitz can be reached at I - Kirkland & Ellis LLP, Citigroup Center, 153 East 53rd Street, New York, New York 10022-4611. Thank you again for your assistance with this matter. Sincerely, R. Alexander Acosta United States 9.ttorney cc: By: First Assistant United States Attorney EFTA00233882 Nots1 PAtt A4RAW 4i AttlfNtitAtA EFTA00233883 IN RE: INVESTIGATION OF JEFFREY EPSTEIN NON-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorney's Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted an investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictment with solicitation of prostitution, in violation of Florida Statutes Section 796.07; IT APPEARING that the United States Attorney's Office and the Federal Bureau of Investigation have conducted their own investigation into Epstein's background and any offenses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: knowingly and willfully conspiring with others known and unknown to commit an offense against the United States, that is, to use a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution, in violation of Title 18, United States Code, Section 2422(b); all in violation of Title 18, United States Code, Section 371; (2) knowingly and willfully conspiring with others known and unknown to travel in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(t), with minor females, in violation of Title 18, United States Code, Section 2423(6); all in violation of Title 18, United States Code, Section 2423(e); (3) using a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution; in violation of Title 18, United States Code, Sections 2422(b) and 2; (4) traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(1), with minor females; in violation Page 1 of 7 EFTA00233884 of Title 18, United States Code, Section 2423(b); and (5) knowingly, in and affecting interstate and foreign commerce, recruiting, enticing, and obtaining by any means a person, knowing that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act as defined in 18 U.S.C. § 1591(c)(1); in violation of Title 18, United States Code, Sections 1591(a)(1) and 2; and IT APPEARING that Epstein seeks to resolve globally his state and federal criminal liability and Epstein understands and acknowledges that, in exchange for the benefits provided by this agreement, he agrees to comply with its terms, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epstein's background by both State and Federal law enforcement agencies, and after due consultation with the State Attorney's Office, that the interests of the United States, the State of Florida, and the Defendant will be served by the following procedure; THEREFORE, on the authority of R. Alexander Acosta, United States Attorney for the Southern District of Florida, prosecution in this District for these offenses shall be deferred in favor of prosecution by the State of Florida, provided that Epstein abides by the following conditions and the requirements of this Agreement set forth below. If the United States Attorney should determine, based on reliable evidence, that, during the period of the Agreement, Epstein willfully violated any of the conditions of this Agreement, then the United States Attorney may, within ninety (90) days following the expiration of the term of home confinement discussed below, provide Epstein with timely notice specifying the condition(s) of the Agreement that he has violated, and shall initiate its prosecution on any offense within sixty (60) days' of giving notice of the violation. Any notice provided to Epstein pursuant to this paragraph shall be provided within 60 days of the United States learning of facts which may provide a basis for a determination of a breach of the Agreement. After timely fulfilling all the terms and conditions of the Agreement, no prosecution for the offenses set out on pages 1 and 2 of this Agreement, nor any other offenses that have been the subject of the joint investigation by the Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand Jury investigation will be instituted in this District, and the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00233885 Terms of the Agreement: 1. Epstein shall plead guilty (not nolo contendere) to the Indictment as currently pending against him in the 15th Judicial Circuit in and for Palm Beach County (Case No. 2006-cf-009495AXXXMB) charging one (1) count of solicitation of prostitution, in violation of El. Stat. § 796.07. In addition, Epstein shall plead guilty to an Information filed by the State Attorney's Office charging Epstein with an offense that requires him to register as a sex offender, that is, the solicitation of minors to engage in prostitution, in violation of Florida Statutes Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as follows: (a) Epstein shall be sentenced to consecutive terms of twelve (12) months and six (6) months in county jail for all charges, without any opportunity for withholding adjudication or sentencing, and without probation or community control in lieu of imprisonment; and (b) Epstein shall be sentenced to a term of twelve (12) months of community control consecutive to his two terms in county jail as described in Term 2(a), supra. 3. This agreement is contingent upon a Judge of the 15th Judicial Circuit accepting and executing the sentence agreed upon between the State Attorney's Office and Epstein, the details of which are set forth in this agreement. 4. The terms contained in paragraphs 1 and 2, supra, do not foreclose Epstein and the State Attorney's Office from agreeing to recommend any additional charge(s) or any additional term(s) of probation and/or incarceration. 5. Epstein shall waive all challenges to the Information filed by the State Attorney's Office and shall waive the right to appeal his conviction and sentence, except a sentence that exceeds what is set forth in paragraph (2), supra. 6. Epstein shall provide to the U.S. Attorney's Office copies of all Page 3 of 7 EFTA00233886 proposed agreements with the State Attorney's Office prior to entering into those agreements. 7. The United States shall provide Epstein's attorneys with a list of individuals whom it has identified as victims, as defined in 18 U.S.C. § 2255, after Epstein has signed this agreement and been sentenced. Upon the execution of this agreement, the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein. Epstein's counsel may contact the identified individuals through that representative. 8. If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over his person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount as agreed to between the identified individual and Epstein, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 9. Epstein's signature on this agreement also is not to be construed as an admission of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person whose name does not appear on the list provided by the United States. 10. Except as to those individuals who elect to proceed exclusively under 18 U.S.C. § 2255, as set forth in paragraph (8), supra, neither Epstein's signature on this agreement, nor its terms, nor any resulting waivers or settlements by Epstein are to be construed as admissions or evidence of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person, whether or not her name appears on the list provided by the United States. 11. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00233887 sentenced not later than October 26, 2007. The United States has no objection to Epstein self-reporting to begin serving his sentence not later than January 4, 2008. 12. Epstein agrees that he will not be afforded any benefits with respect to gain time, other than the rights, opportunities, and benefits as any other inmate, including but not limited to, eligibility for gain time credit based on standard rules and regulations that apply in the State of Florida. At the United States' request, Epstein agrees to provide an accounting of the gain time he earned during his period of incarceration. 13. The parties anticipate that this agreement will not be made part of any public record. If the United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agreement, it will provide notice to Epstein before making that disclosure. Epstein understands that the United States Attorney has no authority to require the State Attorney's Office to abide by any terms of this agreement. Epstein understands that it is his obligation to undertake discussions with the State Attorney's Office and to use his best efforts to ensure compliance with these procedures, which compliance will be necessary to satisfy the United States' interest. Epstein also understands that it is his obligation to use his best efforts to convince the Judge of the 15th Judicial Circuit to accept Epstein's binding recommendation regarding the sentence to be imposed, and understands that the failure to do so will be a breach of the agreement. In consideration of Epstein's agreement to plead guilty and to provide compensation in the manner described above, if Epstein successfully fulfills all of the terms and conditions of this agreement, the United States also agrees that it will not institute any a amst an otential co-cons irators of E stein including but not limited r her, upon execution or t s agreement an a p ea agreement Office, the federal Grand Jury investigation will be suspended, and all pending federal Grand Jury subpoenas will be held in abeyance unless and until the defendant violates any term of this agreement. The defendant likewise agrees to withdraw his pending motion to intervene and to quash certain grand jury subpoenas. Both parties agree to maintain their evidence, specifically evidence requested by or directly related to the grand jury subpoenas that have been issued, and including certain computer equipment, inviolate until all of the terms of this agreement have been satisfied. Upon the successful completion of the terms of this agreement, all outstanding grand jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00233888 By signing this agreement, Epstein asserts and certifies that each of these terms is material to this agreement and is supported by independent consideration and that a breach of any one of these conditions allows the United States to elect to terminate the agreement and to investigate and prosecute Epstein and any other individual or entity for any and all federal offenses. By signing this agreement, Epstein asserts and certifies that he is aware of the fact that the Sixth Amendment to the Constitution of the United States provides that in all criminal prosecutions the accused shall enjoy the right to a speedy and public trial. Epstein further is aware that Rule 48(b) of the Federal Rules of Criminal Procedure provides that the Court may dismiss an indictment, information, or complaint for unnecessary delay in presenting a charge to the Grand Jury, filing an information, or in bringing a defendant to trial. Epstein hereby requests that the United States Attorney for the Southern District of Florida defer such prosecution. Epstein agrees and consents that any delay from the date of this Agreement to the date of initiation of prosecution, as provided for in the terms expressed herein, shall be deemed to be a necessary delay at his own request, and he hereby waives any defense to such prosecution on the ground that such delay operated to deny him rights under Rule 48(b) of the Federal Rules of Criminal Procedure and the Sixth Amendment to the Constitution of the United States to a speedy trial or to bar the prosecution by reason of the running of the statute of limitations for a period of months equal to the period between the signing of this agreement and the breach of this agreement as to those offenses that were the subject of the grand jury's investigation. Epstein further asserts and certifies that he understands that the Fifth Amendment and Rule 7(a) of the Federal Rules of Criminal Procedure provide that all felonies must be charged in an indictment presented to a grand jury. Epstein hereby agrees and consents that, if a prosecution against him is instituted for any offense that was the subject of the grand jury's investigation, it may be by way of an Information signed and filed by the United States Attorney, and hereby waives his right to be indicted by a grand jury as to any such offense. /// /// /// Page 6 of 7 EFTA00233889 By signing this agreement, Epstein asserts and certifies that the above bas been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: va, Dated: Dated: ASSISTANT U.S. ATTORNEY GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 It EFTA00233890 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: Dated: 7 / 9" / 0.7 Dated: JEFFREY EPSTEIN C3 4 ." RAT.. EFCOUR ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233891 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNTIED STATES ATTORNEY Dated: By: Dated: Dated: Dated: q -"A 14— OR^ ASSISTANT U.S. ATTORNEY JEFFREY EPSTEIN GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY , ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233892 IN RE: INVESTIGATION OF JEFFREY EPSTEIN ADDENDUM TO THE NON-PROSECUTION AGREEMENT IT APPEARING that the parties seek to clarify certain provisions of page 4, paragraph 7 of the Non-Prosecution Agreement (hereinafter "paragraph 7"), that agreement is modified as fol lows: 7A. The United States has the right to assign to an independent third-party the responsibility for consulting with and, subject to the good faith approval of Epstein's counsel, selecting the attorney representative for the individuals identified under the Agreement. If the United States elects to assign this responsibility to an independent third-party, both the United States and Epstein retain the right to make good faith objections to the attorney representative suggested by the independent third-party prior to the final designation of the attorney representative. 713. The parties will jointly prepare a short written submission to the independent third-party regarding the role of the attorney representative and regarding Epstein's Agreement to pay such attorney representative his or her regular customary hourly rate for representing such victims subject to the provisions of paragraph C, infra. 7C. Pursuant to additional paragraph 7A, Epstein has agreed to pay the fees of the attorney representative selected by the independent third party. This provision, however, shall not obligate Epstein to pay the fees and costs of contested litigation filed against him. Thus, if after consideration of potential settlements, an attorney representative elects to file a contested lawsuit pursuant to 18 U.S.C. s 2255 or elects to pursue any other contested remedy, the paragraph 7 obligation of the Agreement to pay the costs of the attorney representative, as opposed to any statutory or other obligations to pay reasonable attorneys fees and costs such as those contained in s 2255 to bear the costs of the attorney representative, shall cease. EFTA00233893 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby, states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with than. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: Dated: PA' Dated: Dated: By: ASSISTANT U.S. ATTORNEY GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233894 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: Dated: Dated: ASSISTANT U.S. ATTORNEY JEFFREY EPSTEIN ERALD LEFCOr RT ESQ. COUNSEL TO JEFFR Y EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233895 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: Dated: Dated: 0-014 ASSISTANT U.S. Al fORNE JEFFREY EPSTEIN GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY A ANCHEZ, ES ATTORNEY FOR JEFFREY EPSTEIN EFTA00233896 a EFTA00233897 From: Sent: To: Subject: Ocariz, Humberto H. (SHB Thursrlav centemher 27 2007 4:59 PM RE: Conference call needs to be rescheduled Ok. You must think I am and idiot. I just realized that I think I have put' instead of s n my emails to you. I'm truly sorry. The MI is leftover on my brain from a prior life.... Bert Ocariz From: Sent: Thursday, September 27, 2007 3:22 PM To: Ocariz, Humberto H. (SHB) Subject Conference call needs to be rescheduled Hi Bert — Jay Leflcowitz isn't available this afternoon. He is wondering if we can do the call at noon tomorrow. I have made the following suggestions for how best to proceed. Maybe you can consider them, too, for our discussion tomorrow. Thanks. 1. Mr. Epstein signs a standard fee agreement, where one of his attorneys or accountants who is not working on the damages litigation receives a monthly bill with attorney's fees charged at an hourly rate and costs billed monthly. The bills will have any privileged information redacted. If there is a dispute about a bill that cannot be resolved. it will be submitted to a mediator for resolution. 2. If that is too open-ended for Mr. Epstein, do the hourly/monthly billing until Bert has had a chance to confer with all of the girls to determine how many want him to represent them. Once it is known how many girls will be represented by Bert, and maybe who those girls are, there can be a more educated discussion about estimated fees and costs. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Mail Gate made the following annotations on Thu Sep 27 2007 16:00:20 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized EFTA00233898 review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 2 EFTA00233899 From: Sent: To: Cc: Subject: Ocariz, Humberto H. (SHB) Thursday, September 27, 2007 4:58 PM Cueto, Lizette Z. (SHB) RE: Conference call needs to be rescheduled Thanks And, I apologize for dragging you through this but I think a little work upfront is going to save everyone a lot of headaches later. I will be in an out tomorrow, but try my cell the call. Or, call my office and have my assistant Lizette patch me into Given the potential for issues, I think I am favoring your option #2. Bert Ocariz From Sent: Thursday, September 27, 2007 3:22 PM To: Ocariz, Humberto H. (SHB) Subject: Conference call needs to be rescheduled Hi Bert — Jay Lefkowitz isn't available this afternoon. He is wondering if we can do the call at noon tomorrow. I have made the following suggestions for how best to proceed. Maybe you can consider them, too, for our discussion tomorrow. Thanks. I. Mr. Epstein signs a standard fee agreement, where one of his attorneys or accountants who is not working on the damages litigation receives a monthly bill with attorney's fees charged at an hourly rate and costs billed monthly. The bills will have any privileged information redacted. If there is a dispute about a bill that cannot be resolved, it will be submitted to a mediator for resolution. 2. If that is too open-ended for Mr. Epstein, do the hourly/monthly billing until Bert has had a chance to confer with all of the girls to determine how many want him to represent them. Once it is known how many girls will be represented by Bert, and maybe who those girls arc, there can be a more educated discussion about estimated fees and costs. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 3 EFTA00233900 Mail Gate made the following annotations on Thu Sep 27 2007 15:58:36 CONFIDENTIALITY NOTICE: This c-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you arc not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 4 EFTA00233901 From: Sent: To: Subject: Ocariz, Humberto H. (SHB) Thursday. Seotember 27. 2007 10:23 AM RE: Contact Information for the agents Thanks for the update and the info. In going through the process of getting final approval for this matter, I received a few follow-up questions from the powers that be at my firm: 1. Can we get a copy of the indictment (or can you tell me the nature of the crimes against the girls)? 2. When will it be possible to see the plea agreement so that we understand exactly what Epstein concedes to in the civil case? 3. Is there any cap or other limitation on attorney's fees that the defendant will pay in the civil case? 4. What is the conteplated procedure for, and timing of, the payment of attorney's fees and costs? 5. Depending on the nature of the crime/injury, the expectation from this end is that there will be a battle regarding the damages, including punitive damages, that will be demanded and that defense counsel will try to leverage payment of fees against a smaller demand from the girls or even seek a "haircut" on fees, effectively putting the firm in a position where it must chose whether to "contribute" to a settlement in order to resolve the case. Given any of the possible scenarios regarding the payment of fees that the defendant could create (particularly given the strength and creativity of his legal team), my firm could be put in a position which arguably creates a conflict of interest with the clients. Is there a way to structure a payment by the defendant of a lump sum for costsand then my firm would simply handle the case on a contingency? And, this should also make it easier for us to comply with issues under the Bar's rules governing aggregate settlements with multiple clients. If the case is that strong, this may be the best solution to avoid any conflict of issue and/or independence arguments that could be raised by defendants while litigating the case. Thanks, Bert From: Sent: Wednesday, September 26, 2007 12:47 PM To: Ocariz, Humberto H. (SHB) Subject: Contact Information for the agents I-li Bert — As per my voicemail, here is the contact info for the agents in the case. Their names are she is female). Both are Special Agents with the FBI and can be reached a The fax number i They will be sending you the list of all the girls with their contact info in the next few days (probably by Monday). Mr. Epstein and his attorneys arc barred from learning their names until after he enters his guilty plea on October 29th, so you will have a month to talk to them before you have to deal with defense counsel. As I mentioned in my voicemail, if you have a retainer agreement covering a situation where a client's representation is paid for by someone else, I would appreciate if you could send it to me. I will get Mr. Epstein or his lawyers to sign it so you know you will be paid. Having worked at a big firm I know that this is a 5 EFTA00233902 difficult request but, because of the sensitive nature of the case, and the high profile nature of the defendant and his lawyers, I would appreciate it if you could select one very hard-nosed associate to stay with the case. Thank you. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Mail Gate made the following annotations on Thu Sep 27 2007 09:23:52 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 6 EFTA00233903 From: Ocariz, Humberto H. (SHB: Sent: Monday, September 24, 20071:06 PM To: Vilafana. Mn Marie C. (USAFLS) Subject: RE: Conflict Check $450 per hour. Preliminary conflict check looks fine. While I know you don't represent the 40 young gins, do you know if they would prefer a different arrangement such as contingency or reduced hourly rate with a success fee? I have some flexibility if there is an issue. Bert Ocariz From Sent: Monday, September 24, 2007 1:01 PM To: Ocariz, Humberto H. (SHB) Subject: RE: Conflict Check Hi Bert — I think we may get a signed agreement within an hour or two. I must confer with defense counsel before selecting the representative. Can you tell me what your billing rate is? Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Phi Pal From: Sent: Monday, September 24, 2007 10:56 AM To: 'Ocariz, Humberto H. (SHB)' Subject: RE: Conf ict Check Bert, Please keep this confidential because these are minor victims. This is a preliminary list: 7 EFTA00233904 I Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West 401 Phon Fax From: Ocariz, Humberto H. (SHBI Se t Monday. September 24, 2007 10:27 AM To Subject: RE: Conflict Check Thanks. I am also going to need the list of the 40 girls who will be my clients. Can you send these as well? Thanks, Bert Ocariz From: Sent: To: Ocariz, Humberto H. (SHB) Subject: Conflict Check EFTA00233905 Hi Bert — Here is the list of names for a conflict check Jeffrey Epstein J. Epstein Virgin Islands Foundation, Inc. J.Epstein & Company, Inc. Epstein Interests Financial Trust company, Inc. NES, LLC New York Strategy Group, Inc. JEGE, Inc. Hyperion Air, Inc. Jeffrey Epstein would be the defendant in any lawsuit, but the other individuals are persons involved in the criminal activity. All of the corporations are essentially alter-egos of Epstein. Thank you so much. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Mail Gate made the following annotations on Mon Sep 24 2007 09:27:21 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 9 EFTA00233906 Mail Gate made the following annotations on Mon Sep 24 2007 12:07:14 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply c-mail and destroy all copies of the original message. Thank you. 10 EFTA00233907 From: Sent: To: Subject: Jay Lefkowitz Thursday, September 27, 2007 10:57 AM Re: Conference Call with Bert Ocariz I am available around 4 pm today. Not precisely sure of the time yet. I will speak with my client in the interim. Original Message Frown . L Sent: 09/27/2007 10:51 AM AST 'ro: Jay Lefkowitz Subject: Conference Call with Bert Ocariz Hi Jay — Bert's firm has raised a number of good questions about how they are going to get paid and setting up a procedure that avoids any conflict of interest with their clients. Are you around today to do a conference call? Let me know what times work for you because Bert wants to get their conflicts counsel on the call with us. These are some of the questions he sent to me. I told Bert that as part of our agreement we (the federal government) are not going to indict Mr. Epstein, but gave him an idea of the charges that we had planned to bring as related to 18 USC 2255. With respect to question 2, do I have your permission to send Bert just that section of the plea agreement that applies to the damages claims (1 would recommend sending paragraphs 7 through 10, or at least 7 and 8)? Can you talk with your client about items 3 and 4? I envisioned Shook Hardy sending regular bills to you, with any privileged information redacted, and being paid like every other client pays the bills. 1. Can we get a copy of the indictment (or can you tell me the nature of the crimes against the girls)? 2. When will it be possible to see the plea agreement so that we understand exactly what Epstein concedes to in the civil case? 3. Is there any cap or other limitation on attorneys fees that the defendant will pay in the civil case? 4. What is the contemplated procedure for, and timing of, the payment of attomey's fees and costs? Assistant U.S. Attorney 1 EFTA00233908 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Photo Fax ***** * ************ *********** ************ ****************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Kirkland & Ellis LLP or Kirkland & Ellis International LLP. Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to postmaster@kirkland.com, and destroy this communication and all copies thereof, including all attachments. ****************** ******** ********************************* EFTA00233909 From: Sent: To: Subject: Ocariz, Humberto H. (SHB Thursday, September 27, Kt: contact Information tor the agents Thanks for the update and the info. In going through the process of getting final approval for this matter, I received a few follow-up questions from the powers that be at my firm: 1. Can we get a copy of the indictment (or can you tell me the nature of the crimes against the girls)? 2. When will it be possible to see the plea agreement so that we understand exactly what Epstein concedes to in the civil case? 3. Is there any cap or other limitation on attorney's fees that the defendant will pay in the civil case? 4. What is the conteplated procedure for, and timing of, the payment of attorney's fees and costs? 5. Depending on the nature of the crime/injury, the expectation from this end is that there will be a battle regarding the damages, including punitive damages, that will be demanded and that defense counsel will try to leverage payment of fees against a smaller demand from the girls or even seek a "haircut" on fees, effectively putting the firm in a position where it must chose whether to "contribute" to a settlement in order to resolve the case. Given any of the possible scenarios regarding the payment of fees that the defendant could create (particularly given the strength and creativity of his legal team), my firm could be put in a position which arguably creates a conflict of interest with the clients. Is there a way to structure a payment by the defendant of a lump sum for costsand then my firm would simply handle the case on a contingency? And, this should also make it easier for us to comply with issues under the Bar's rules governing aggregate settlements with multiple clients. If the case is that strong, this may be the best solution to avoid any conflict of issue and/or independence arguments that could be raised by defendants while litigating the case. Thanks, Bert Fro Sent: Wednesday, September 26, 2007 12:47 PM To: Ocariz, Humberto H. (SHB) Subject: Contact Information for the agents Hi Bert — As r m voi gents in the case. Their names ar linimand and she is female). Both are Spec wit. F'BI an can • reached at The fax number ism They will be sending you the list of all the girls with their contact info in the next few days (probably by Monday). Mr. Epstein and his attorneys are barred from learning their names until after he enters his guilty plea on October 29'h, so you will have a month to talk to them before you have to deal with defense counsel. As i mentioned in my voicemail, if you have a retainer agreement covering a situation where a client's representation is paid for by someone else, i would appreciate if you could send it to me. I will get Mr. Epstein or his lawyers to sign it so you know you will be paid. Having worked at a big firm I know that this is a EFTA00233910 difficult request but, because of the sensitive nature of the case, and the high profile nature of the defendant and his lawyers, I would appreciate it if you could select one very hard-nosed associate to stay with the case. Thank you. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 Wes 33401 Pho Fax Mail Gate made the following annotations on Thu Sep 27 2007 09:23:52 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 2 EFTA00233911 From: Sent: Monday, September 24, 2007 2:58 PM To: 'Ocariz, Humberto H. (SHB)' Subject: RE: Conflict Check I have provided your name and your rate to the main attorney that I have been dealing with, Jay L,efkowitz from Kirkland & Ellis in New York. He may call. The other attorneys for Epstein, in addition to Guy and Mike, are Gerald Lefcourt of New York, Ken Stan• from California, Alan Dershowitz from Harvard, Lilly Ann Sanchez from Miami, Roy Black from Miami, Jack Goldberger from West Palm Beach, and Guy Fronstin from West Palm Beach. Thanks. assistant AUO111 y 500 S. Australian Ave, Suite 400 Wes 1.33401 Pho Fax From: Ocariz, Humberto H. (SHB) Sent: Monday. September 24, 200 1.32 Pm To: Subject: RE: Conflict Check Thanks. I wish they were all like this. Is there anything you can do to keep me busy on cases where only damages are at issue! :) Bert Ocariz From Sent: Monday, September 24, 2007 1:31 PM To: Ocariz, Humberto H. (SHB) Subject RE: Conflict Check Thank you, Bert. The statute (18 USC 2255) provides that the defendant will pay attorney's fees, and the defendant has agreed not to contest liability under the statute (the fight will be limited to the amount of damages to be paid). I plan to propose that you use your regular billing practices, and hopefully the defense will be in agreement. See, you've won your case already and it hasn't even started! Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 1 EFTA00233912 Hi Bert — Here is the list of names for a conflict check Jeffrey Epstein J. Epstein Virgin Islands Foundation, Inc. J.Epstein & Company, Inc. Epstein Interests Financial Trust company, Inc. NES, LLC New York Strategy Group, Inc. JEGE, Inc. Hyperion Air, Inc. Jeffrey Epstein would be the defendant in any lawsuit, but the other individuals arc persons involved in the criminal activity. All of the corporations are essentially alter-egos of Epstein. Thank you so much. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Pho Fax Mail Gate made the following annotations on Mon Sep 24 2007 09:27:21 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 4 EFTA00233913 Mail Gate made the following annotations on Mon Sep 24 2007 12:07:14 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. My unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. Mail Gate made the following annotations on Mon Sep 24 2007 12:32:40 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 5 EFTA00233914 West Palm Beach, FL 33401 Phon Fax From: Ocariz, Humberto H. (SHE Sent: Monday, September 24, 2007 1:06 PM To: \I Subject: RE: Conflict Check $450 per hour. Preliminary conflict check looks fine. While I know you don't represent the 40 young girls, do you know If they would prefer a different arrangement such as contingency or reduced hourly rate with a success fee? I have some flexibility if there is an issue. Bert Ocariz From: Sent: Monday, September 24, 2007 1:01 PM To: Ocariz, Humberto H. (SHB) Subject: RE: Conflict Check Hi Bert • I think we may get a signed agreement within an hour or two. I must confer with defense counsel before selecting the representative. Can you tell me what your billing rate is? Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 Wes , 33401 Pho Fax Sent: Monday, September 24, 2007 10:56 AM To: 1Ocariz, Humberto H. (SHB)' Subject: RE: Confict Check Bert, Please keep this confidential because these arc minor victims. This is a preliminary list: 2 EFTA00233915 Assistant U.S. Attorney 500 S. Australian Ave, Suite 4O0 West Palm Beach, FL 33401 Rho! Fax From: Ocariz, Humberto H. (SHB) Sent: Monday, September 24, 2007 10:21 AM Subject: RE: Conflict Check Maria, Thanks. I am also going to need the list of the 40 girls who will be my clients. Can you send those as well? Thanks, Bert Ocariz Fro Sent: Monday, September 24, 2307 10:25 AM To: Ocariz, Humberto H. (SHB) Subject: Conflict Check EFTA00233916 From: Sent: Monday, September 24,2007 10:56 AM To: 'Ocariz, Humberto H. (SHB)' Subject: RE: Conflict Check Bert, Please keep this confidential because these are minor victims. This is a preliminary list: EFTA00233917 Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Phon Fax 5 From: Ocariz, Humberto H. (SHB) sent Mnnelav Sentemher 74 701 To Subject: RE: Conflict Check Maria. Thanks. I am also going to need the list of the 40 girls who will be my clients. Can you send those as well? Thanks. Bert Ocariz From Sent: Monday, September 24, 2007 10:25 AM To: Ocariz, Humberto H. (SHB) Subject: Conflict Check Hi Bert — Here is the list of names for a conflict check Jeffrey Epstein J. Epstein Virgin Islands Foundation, Inc. J.Epstein & Company, Inc. Epstein Interests Financial Trust company, Inc. NES, LLC New York Strategy Group, Inc. JEGE, Inc. EFTA00233918 Hyperion Air, Inc. Jeffrey Epstein would be the defendant in any lawsuit, but the other individuals are persons involved in the criminal activity. All of the corporations are essentially alter-egos of Epstein. Thank you so much. Assistant U.S. Attorney 500 S. Australian Ave, Suite 400 West Palm Beach, FL 33401 Pho Fax Mail Gate made the following annotations on Mon Sep 24 2007 09:27:21 CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you arc not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Thank you. 3 EFTA00233919 • EFTA00233920 2 i i ,:s t r EFTA00233921 U.S. Department of Justice United States Attorney Southern District of Florida 500 Australian Avenue. Suite 400 West Palm Beach, Florida 33401 Official Business Penalty for Private Use $300 °RIG (MAL A6ge-er MEM T EFTA00233922 IN RE: INVESTIGATION OF JEFFREY EPSTEIN NON-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorney's Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted an investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictment with solicitation of prostitution, in violation of Florida Statutes Section 796.07; IT APPEARING that the United States Attorney's Office and the Federal Bureau of Investigation have conducted their own investigation into Epstein's background and any offenses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: (1) knowingly and willfully conspiring with others known and unknown to commit an offense against the United States, that is, to use a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution, in violation of Title 18, United States Code, Section 2422(b); all in violation of Title 18, United States Code, Section 371; (2) knowingly and willfully conspiring with others known and unknown to travel in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females, in violation of Title 18, United States Code, Section 2423(b); all in violation of Title 18, United States Code, Section 2423(e); (3) using a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution; in violation of Tide 18, United States Code, Sections 2422(b) and 2; (4) traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females; in violation Page I of 7 EFTA00233923 of Title 18, United States Code, Section 2423(b); and (5) knowingly, in and affecting interstate and foreign commerce, recruiting, enticing, and obtaining by any means a person, knowing that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act as defined in 18 U.S.C. § 1591(cX1); in violation of Title 18, United States Code, Sections 1591(a)(1) and 2; and IT APPEARING that Epstein seeks to resolve globally his state and federal criminal liability and Epstein understands and acknowledges that, in exchange for the benefits provided by this agreement, he agrees to comply with its terms, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epstein's background by both State and Federal law enforcement agencies, and after due consultation with the State Attorney's Office, that the interests of the United States, the State of Florida, and the Defendant will be served by the following procedure; THEREFORE, on the authority of R. Alexander Acosta, United States Attorney for the Southern District of Florida, prosecution in this District for these offenses shall be deferred in favor of prosecution by the State of Florida, provided that Epstein abides by the following conditions and the requirements of this Agreement set forth below. If the United States Attorney should determine, based on reliable evidence, that, during the period of the Agreement, Epstein willfully violated any of the conditions of this Agreement, then the United States Attorney may, within ninety (90) days following the expiration of the term of home confinement discussed below, provide Epstein with timely notice specifying the condition(s) of the Agreement that he has violated, and shall initiate its prosecution on any offense within sixty (60) days' of giving notice of the violation. Any notice provided to Epstein pursuant to this paragraph shall be provided within 60 days of the United States learning of facts which may provide a basis for a determination of a breach of the Agreement. After timely fulfilling all the terms and conditions of the Agreement, no prosecution for the offenses set out on pages 1 and 2 of this Agreement, nor any other offenses that have been the subject of the joint investigation by the Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand Jury investigation will be instituted in this District, and the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00233924 Terms of the Agreement: 1. Epstein shall plead guilty (not nob contendere) to the Indictment as currently pending against him in the 15th Judicial Circuit in and for Palm Beach County (Case No. 2006-cf-009495AX3OCIAB) charging one (1) count of solicitation of prostitution, in violation of Fl. Stat. § 796.07. In addition, Epstein shall plead guilty to an Information filed by the State Attorney's Office charging Epstein with an offense that requires him to register as a sex offender, that is, the solicitation of minors to engage in prostitution, in violation of Florida Statutes Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as follows: (a) (b) Epstein shall be sentenced to consecutive terms of twelve (12) months and six (6) months in county jail for all charges, without any opportunity for withholding adjudication or sentencing, and without probation or community control in lieu of imprisonment; and Epstein shall be sentenced to a term of twelve (12) months of community control consecutive to his two terms in county jail as described in Term 2(a), supra. 3. This agreement is contingent upon a Judge of the 15th Judicial Circuit accepting and executing the sentence agreed upon between the State Attorney's Office and Epstein, the details of which are set forth in this agreement. 4. The terms contained in paragraphs 1 and 2, supra, do not foreclose Epstein and the State Attorney's Office from agreeing to recommend any additional charge(s) or any additional term(s) of probation and/or incarceration. 5. Epstein shall waive all challenges to the Information filed by the State Attorney's Office and shall waive the right to appeal his conviction and sentence, except a sentence that exceeds what is set forth in paragraph (2), supra. 6. Epstein shall provide to the U.S. Attorney's Office copies of all Page 3 of 7 EFTA00233925 proposed agreements with the State Attorney's Office prior to entering into those agreements. 7. The United States shall provide Epstein's attorneys with a list of individuals whom it has identified as victims, as defined in 18 U.S.C. § 2255, after Epstein has signed this agreement and been sentenced. Upon the execution of this agreement, the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein. Epstein's counsel may contact the identified individuals through that representative. 8. If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over his person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount as agreed to between the identified individual and Epstein, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 9. Epstein's signature on this agreement also is not to be construed as an admission of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person whose name does not appear on the list provided by the United States. 10. Except as to those individuals who elect to proceed exclusively under 18 U.S.C. § 2255, as set forth in paragraph (8), supra, neither Epstein's signature on this agreement, nor its terms, nor any resulting waivers or settlements by Epstein are to be construed as admissions or evidence of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person, whether or not her name appears on the list provided by the United States. 11. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00233926 sentenced not later than October 26, 2007. The United States has no objection to Epstein self-reporting to begin serving his sentence not later than January 4, 2008. 12. Epstein agrees that he will not be afforded any benefits with respect to gain time, other than the rights, opportunities, and benefits as any other inmate, including but not limited to, eligibility for gain time credit based on standard rules and regulations that apply in the State of Florida. At the United States' request, Epstein agrees to provide an accounting of the gain time he earned during his period of incarceration. 13. The parties anticipate that this agreement will not be made part of any public record. If the United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agreement, it will provide notice to Epstein before making that disclosure. Epstein understands that the United States Attorney has no authority to require the State Attorney's Office to abide by any terms of this agreement. Epstein understands that it is his obligation to undertake discussions with the State Attorney's Office and to use his best efforts to ensure compliance with these procedures, which compliance will be necessary to satisfy the United States' interest. Epstein also understands that it is his obligation to use his best efforts to convince the Judge of the 15th Judicial Circuit to accept Epstein's binding recommendation regarding the sentence to be imposed, and understands that the failure to do so will be a breach of the agreement. In consideration of Epstein's agreement to plead guilty and to provide compensation in the manner described above, if Epstein successfully fulfills all of the terms and conditions of this agreement, the United States also agrees that it will not institute any criminal char es against anypootential co-conspirators of Epstein, including but not limited to Further, upon execution of is agreement and a plea agreement with the State Attorney's Office, the federal Grand Jury investigation will be suspended, and all pending federal Grand Jury subpoenas will be held in abeyance unless and until the defendant violates any term of this agreement. The defendant likewise agrees to withdraw his pending motion to intervene and to quash certain grand jury subpoenas. Both parties agree to maintain their evidence, specifically evidence requested by or directly related to the grand jury subpoenas that have been issued, and including certain computer equipment, inviolate until all of the terms of this agreement have been satisfied. Upon the successful completion of the terms of this agreement, all outstanding grand jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00233927 By signing this agreement, Epstein asserts and certifies that each of these terms is material to this agreement and is supported by independent consideration and that a breach of any one of these conditions allows the United States to elect to terminate the agreement and to investigate and prosecute Epstein and any other individual or entity for any and all federal offenses. By signing this agreement, Epstein asserts and certifies that he is aware of the fact that the Sixth Amendment to the Constitution of the United States provides that in all criminal prosecutions the accused shall enjoy the right to a speedy and public trial. Epstein further is aware that Rule 48(b) of the Federal Rules of Criminal Procedure provides that the Court may dismiss an indictment, information, or complaint for unnecessary delay in presenting a charge to the Grand Jury, filing an information, or in bringing a defendant to trial. Epstein hereby requests that the United States Attorney for the Southern District of Florida defer such prosecution. Epstein agrees and consents that any delay from the date of this Agreement to the date of initiation of prosecution, as provided for in the terms expressed herein, shall be deemed to be a necessary delay at his own request, and he hereby waives any defense to such prosecution on the ground that such delay operated to deny him rights under Rule 48(b) of the Federal Rules of Criminal Procedure and the Sixth Amendment to the Constitution of the United States to a speedy trial or to bar the prosecution by reason of the running of the statute of limitations for a period of months equal to the period between the signing of this agreement and the breach of this agreement as to those offenses that were the subject of the grand jury's investigation. Epstein further asserts and certifies that he understands that the Fifth Amendment and Rule 7(a) of the Federal Rules of Criminal Procedure provide that all felonies must be charged in an indictment presented to a grand jury. Epstein hereby agrees and consents that, if a prosecution against him is instituted for any offense that was the subject of the grand jury's investigation, it may be by way of an Information signed and filed by the United States Attorney, and hereby waives his right to be indicted by a grand jury as to any such offense. Ill /I/ Ill Page 6 of 7 EFTA00233928 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: . . Dated: 74/9' Dated: Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233929 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated:61/ 2 -7/6 7 By ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: p-tti o 7 Dated: RAL EFCOUR ESQ. OUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233930 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: Dated: Dated: qA 09 ASSISTANT U.S. ATTORNEY JEFFREY EPSTEIN GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN , ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233931 IN RE: INVESTIGATION OF JEFFREY EPSTEIN NON-PROSECUTION AGREEMENT IT APPEARING that the City of Palm Beach Police Department and the State Attorney's Office for the 15th Judicial Circuit in and for Palm Beach County (hereinafter, the "State Attorney's Office") have conducted an investigation into the conduct of Jeffrey Epstein (hereinafter "Epstein"); IT APPEARING that the State Attorney's Office has charged Epstein by indictment with solicitation of prostitution, in violation of Florida Statutes Section 796.07; IT APPEARING that the United States Attorney's Office and the Federal Bureau of Investigation have conducted their own investigation into Epstein's background and any offenses that may have been committed by Epstein against the United States from in or around 2001 through in or around September 2007, including: (1) knowingly and willfully conspiring with others known and unknown to commit an offense against the United States, that is, to use a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution, in violation of Title 18, United States Code, Section 2422(b); all in violation of Title 18, United States Code, Section 371; (2) knowingly and willfully conspiring with others known and unknown to travel in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females, in violation of Title 18, United States Code, Section 2423(6); all in violation of Title 18, United States Code, Section 2423(e); (3) using a facility or means of interstate or foreign commerce to knowingly persuade, induce, or entice minor females to engage in prostitution; in violation of Title 18, United States Code, Sections 2422(b) and 2; (4) traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, as defined in 18 U.S.C. § 2423(f), with minor females; in violation Page 1 of 7 EFTA00233932 of Title 18, United States Code, Section 2423(b); and (5) knowingly, in and affecting interstate and foreign commerce, recruiting, enticing, and obtaining by any means a person, knowing that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act as defined in 18 U.S.C. § 1591(c)(1); in violation of Title 18, United States Code, Sections 1591(a)(1) and 2; and IT APPEARING that Epstein seeks to resolve globally his state and federal criminal liability and Epstein understands and acknowledges that, in exchange for the benefits provided by this agreement, he agrees to comply with its terms, including undertaking certain actions with the State Attorney's Office; IT APPEARING, after an investigation of the offenses and Epstein's background by both State and Federal law enforcement agencies, and after due consultation with the State Attorney's Office, that the interests of the United States, the State of Florida, and the Defendant will be served by the following procedure; THEREFORE, on the authority of R. Alexander Acosta, United States Attorney for the Southern District of Florida, prosecution in this District for these offenses shall be deferred in favor of prosecution by the State of Florida, provided that Epstein abides by the following conditions and the requirements of this Agreement set forth below. If the United States Attorney should determine, based on reliable evidence, that, during the period of the Agreement, Epstein willfully violated any of the conditions of this Agreement, then the United States Attorney may, within ninety (90) days following the expiration of the term of home confinement discussed below, provide Epstein with timely notice specifying the condition(s) of the Agreement that he has violated, and shall initiate its prosecution on any offense within sixty (60) days' of giving notice of the violation. Any notice provided to Epstein pursuant to this paragraph shall be provided within 60 days of the United States learning of facts which may provide a basis for a determination of a breach of the Agreement. After timely fulfilling all the terms and conditions of the Agreement, no prosecution for the offenses set out on pages 1 and 2 of this Agreement, nor any other offenses that have been the subject of the joint investigation by the Federal Bureau of Investigation and the United States Attorney's Office, nor any offenses that arose from the Federal Grand Jury investigation will be instituted in this District, and the charges against Epstein if any, will be dismissed. Page 2 of 7 EFTA00233933 Terms of the Agreement: 1. Epstein shall plead guilty (not nob contendere) to the Indictment as currently pending against him in the 15th Judicial Circuit in and for Palm Beach County (Case No. 2006-cf-009495AXXXMB) charging one (1) count of solicitation of prostitution, in violation of Fl. Stat. § 796.07. In addition, Epstein shall plead guilty to an Information filed by the State Attorney's Office charging Epstein with an offense that requires him to register as a sex offender, that is, the solicitation of minors to engage in prostitution, in violation of Florida Statutes Section 796.03; 2. Epstein shall make a binding recommendation that the Court impose a thirty (30) month sentence to be divided as follows: (a) Epstein shall be sentenced to consecutive terms of twelve (12) months and six (6) months in county jail for all charges, without any opportunity for withholding adjudication or sentencing, and without probation or community control in lieu of imprisonment; and (b) Epstein shall be sentenced to a term of twelve (12) months of community control consecutive to his two terms in county jail as described in Term 2(a), supra. 3. This agreement is contingent upon a Judge of the 15th Judicial Circuit accepting and executing the sentence agreed upon between the State Attorney's Office and Epstein, the details of which are set forth in this agreement. 4. The terms contained in paragraphs 1 and 2, supra, do not foreclose Epstein and the State Attorney's Office from agreeing to recommend any additional charge(s) or any additional term(s) of probation and/or incarceration. 5. Epstein shall waive all challenges to the Information filed by the State Attorney's Office and shall waive the right to appeal his conviction and sentence, except a sentence that exceeds what is set forth in paragraph (2), supra. 6. Epstein shall provide to the U.S. Attorney's Office copies of all Page 3 of 7 EFTA00233934 proposed agreements with the State Attorney's Office prior to entering into those agreements. 7. The United States shall provide Epstein's attorneys with a list of individuals whom it has identified as victims, as defined in 18 U.S.C. § 2255, after Epstein has signed this agreement and been sentenced. Upon the execution of this agreement, the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein. Epstein's counsel may contact the identified individuals through that representative. 8. If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over his person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount as agreed to between the identified individual and Epstein, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. 9. Epstein's signature on this agreement also is not to be construed as an admission of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person whose name does not appear on the list provided by the United States. 10. Except as to those individuals who elect to proceed exclusively under 18 U.S.C. § 2255, as set forth in paragraph (8), supra, neither Epstein's signature on this agreement, nor its terms, nor any resulting waivers or settlements by Epstein are to be construed as admissions or evidence of civil or criminal liability or a waiver of any jurisdictional or other defense as to any person, whether or not her name appears on the list provided by the United States. 11. Epstein shall use his best efforts to enter his guilty plea and be Page 4 of 7 EFTA00233935 sentenced not later than October 26, 2007. The United States has no objection to Epstein self-reporting to begin serving his sentence not later than January 4, 2008. 12. Epstein agrees that he will not be afforded any benefits with respect to gain tune, other than the rights, opportunities, and benefits as any other inmate, including but not limited to, eligibility for gain time credit based on standard rules and regulations that apply in the State of Florida. At the United States' request, Epstein agrees to provide an accounting of the gain time he earned during his period of incarceration. 13. The parties anticipate that this agreement will not be made part of any public record. If the United States receives a Freedom of Information Act request or any compulsory process commanding the disclosure of the agreement, it will provide notice to Epstein before making that disclosure. Epstein understands that the United States Attorney has no authority to require the State Attorney's Office to abide by any terms of this agreement. Epstein understands that it is his obligation to undertake discussions with the State Attorney's Office and to use his best efforts to ensure compliance with these procedures, which compliance will be necessary to satisfy the United States' interest. Epstein also understands that it is his obligation to use his best efforts to convince the Judge of the 15th Judicial Circuit to accept Epstein's binding recommendation regarding the sentence to be imposed, and understands that the failure to do so will be a breach of the agreement. In consideration of Epstein's agreement to plead guilty and to provide compensation in the manner described above, if Epstein successfully fulfills all of the terms and conditions of this agreement, the United States also agrees that it will not institute any criminal char CS anainet *nu nntantini rn-ennqnirsitnrc of Fnstein imitating but not limited to Further, upon execution of this agreement and a plea agreement with the State Attorney's Office, the federal Grand Jury investigation will be suspended, and all pending federal Grand Jury subpoenas will be held in abeyance unless and until the defendant violates any term of this agreement. The defendant likewise agrees to withdraw his pending motion to intervene and to quash certain grand jury subpoenas. Both parties agree to maintain their evidence, specifically evidence requested by or directly related to the grand jury subpoenas that have been issued, and including certain computer equipment, inviolate until all of the terms of this agreement have been satisfied. Upon the successful completion of the terms of this agreement, all outstanding grand jury subpoenas shall be deemed withdrawn. Page 5 of 7 EFTA00233936 . By signing this agreement, Epstein asserts and certifies that each of these terms is material to this agreement and is supported by independent consideration and that a breach of any one of these conditions allows the United States to elect to terminate the agreement and to investigate and prosecute Epstein and any other individual or entity for any and all federal offenses. By signing this agreement, Epstein asserts and certifies that he is aware of the fact that the Sixth Amendment to the Constitution of the United States provides that in all criminal prosecutions the accused shall enjoy the right to a speedy and public trial. Epstein further is aware that Rule 48(b) of the Federal Rules of Criminal Procedure provides that the Court may dismiss an indictment, information, or complaint for unnecessary delay in presenting a charge to the Grand Jury, filing an information, or in bringing a defendant to trial. Epstein hereby requests that the United States Attorney for the Southern District of Florida defer such prosecution. Epstein agrees and consents that any delay from the date of this Agreement to the date of initiation of prosecution, as provided for in the terms expressed herein, shall be deemed to be a necessary delay at his own request, and he hereby waives any defense to such prosecution on the ground that such delay operated to deny him rights under Rule 48(b) of the Federal Rules of Criminal Procedure and the Sixth Amendment to the Constitution of the United States to a speedy trial or to bar the prosecution by reason of the running of the statute of limitations for a period of months equal to the period between the signing of this agreement and the breach of this agreement as to those offenses that were the subject of the grand jury's investigation. Epstein further asserts and certifies that he understands that the Fifth Amendment and Rule 7(a) of the Federal Rules of Criminal Procedure provide that all felonies must be charged in an indictment presented to a grand jury. Epstein hereby agrees and consents that, if a prosecution against him is instituted for any offense that was the subject of the grand jury's investigation, it may be by way of an Information signed and filed by the United States Attorney, and hereby waives his right to be indicted by a grand jury as to any such offense. Page 6 of 7 EFTA00233937 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By; Dated: 77a9 -- Dated: Dated: ASSISTANT U.S. ATTORNEY GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233938 By signing this agreement, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: 41 /2-74 7 By Dated: Dated: ? / 9"it (1 0 7 Dated: ASSISTANT U.S. ATTORNEY LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233939 By signing this agreemcnt, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the conditions of this Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: By: Dated: JEFFREY EPSTEIN Dated: Dated:q—A/4--0? GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN ILLY ANN SAN R Z, ESQ. ATTORNEY FOR JEFFREY EPSTEIN Page 7 of 7 EFTA00233940 IN RE: INVESTIGATION OF JEFFREY EPSTEIN ADDENDUM TO TIFF. NON-PROSECUTION AGREEMENT IT APPEARING that the parties seek to clarify certain provisions of page 4, paragraph 7 of the Non-Prosecution Agreement (hereinafter "paragraph 7"), that agreement is modified as follows: 7A. The United States has the right to assign to an independent third-party the responsibility for consulting with and, subject to the good faith approval of Epstein's counsel, selecting the attorney representative for the individuals identified under the Agreement. If the United States elects to assign this responsibility to an independent third-party, both the United States and Epstein retain the right to make good faith objections to the attorney representative suggested by the independent third-party prior to the final designation of the attorney representative. 713. The parties will jointly prepare a short written submission to the independent third-party regarding the role of the attorney representative and regarding Epstein's Agreement to pay such attorney representative his or her regular customary hourly rate for representing such victims subject to the provisions of paragraph C, infra. 7C. Pursuant to additional paragraph 7A, Epstein has agreed to pay the fees of the attorney representative selected by the independent third party. This provision, however, shall not obligate Epstein to pay the fees and costs of contested litigation filed against him. Thus, if after consideration of potential settlements, an attorney representative elects to file a contested lawsuit pursuant to 18 U.S.C. s 2255 or elects to pursue any other contested remedy, the paragraph 7 obligation of the Agreement to pay the costs of the attorney representative, as opposed to any statutory or other obligations to pay reasonable attorneys fees and costs such as those contained in s 2255 to bear the costs of the attorney representative, shall cease. EFTA00233941 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby, states that he understands the clarifications to the Non- ProsecutionAgreeMent and agrees to comply with them. R. ALEXANDER. ACOSTA UNITED STATES ATTORNEY Dated: /0/3 0 47 Dated: Dated: Dated: A al 1 AN 1 U.J. A r t LJKINZ I GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233942 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. It ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: /D40/07 By: Dated: Dated: Dated: JEFFREY EPSTEIN ERALD LEFCO RT ESQ: COUNSEL TO JEFFREY EPSTEIN LILLY ANN SANCHEZ, ESQ. ATTORNEY FOR JEFFREY EPSTEIN EFTA00233943 By signing this Addendum, Epstein asserts and certifies that the above has been read and explained to him. Epstein hereby states that he understands the clarifications to the Non- Prosecution Agreement and agrees to comply with them. R. ALEXANDER ACOSTA UNITED STATES ATTORNEY Dated: /D/3 Ohl EI ASSISTANT U.S. ATTORNEY Dated: JEFFREY EPSTEIN Dated: GERALD LEFCOURT, ESQ. COUNSEL TO JEFFREY EPSTEIN Dated: ifricalfa' LILLY ANNSANCHEZ, ATTORNEY FOR JEFFREY EPSTEIN EFTA00233944 egeARCH tit6 Soehtm. cAse [ EFTA00233945 TIMOTHY M. BURGESS United States Attorney Assistant orn Federal Building & U.S. Courthouse 222 West Seventh Avenue, Room 253, #9 Anchors e, Alaska 99513-7567 Trial Attorney, Criminal Division Child Exploitation and Obscenity Section United States Department of Justice 1400 New York Ave, NW, Sixth Floor Washington, D.C. 20005 Attorneys for Plaintiff IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA UNITED STATES OF AMERICA, ) No. A04-003-01 CR (JWS) ) Plaintiff, ) ) NOTICE TO COURT OF vs. ) RESTITUTION PLAN AND ) APPROVAL OF TRUST JOSEF F. BOEHM, ) DOCUMENT a/k/a "Joe Millionaire", ) ) Defendant. ) EFTA00233946 COMES NOW the United States of America, by and through counsel, and hereby provides the Court with notice of the restitution plan in the above captioned case. In addition, attached hereto as Exhibit 1 is the Trust document for the Court's review and approval.' Title 18, U.S.C. §§ 3663A, mandates restitution for crimes of violence and cases in which there are identifiable victims. Such restitution includes, in relevant part: (2) in the case of an offense resulting in bodily injury to a victim— (A) pay an amount equal to the cost of necessary medical and related professional services and devices relating to physical, psychiatric, and psychological care, including nonmedical care and treatment rendered in accordance with a method of healing recognized by the law of the place of treatment; (B) pay an amount equal to the cost of necessary physical and occupational therapy and rehabilitation; and (C) reimburse the victim for income lost by such victim as a result of such offense; (4) in any case, reimburse the victim for lost income and necessary child care, transportation, and other expenses incurred during participation in the investigation or prosecution of the offense or attendance at proceedings related to the offense. The document is marked "draft" because we are awaiting final approval from the Trustee, which is expected before the sentencing hearing on April 27, 2005. 2 EFTA00233947 18 U.S.C. § 3663A(b). Such restitution must be paid to the victims or their guardians. 18 U.S.C. § 3663A(a)(2). Title 18, U.S.C. § 3664 sets forth the procedure for issuance of restitution. Generally, such information pertaining to restitution is provided to the probation officer and included in the presentence report. 18 U.S.C. § 3664(d). However, in a case where the victims losses are not readily ascertainable by the date of sentencing, the attorney for the Government shall inform the court, and the court shall set a date for the final determination of the victims losses not to exceed 90 days from sentencing. 18 U.S.C. § 3664(d)(5). The United States submits that this is such a case where victims losses are not readily ascertainable based on the nature of the conduct at issue. Within the plea agreement in the instant case, the parties agreed that any restitution should be paid out from the $1.2 million dollar corpus of the trust fund the defendant has agreed to establish. See Plea Agreement, p. 10. Accordingly, the United States has arranged for the payment of $1.2 million dollars into an escrow account with First National Bank Alaska as the escrow agent. The United States proposes, in the order attached hereto, that the Court instruct the United States to provide notice to all victims and their guardians of their ability to seek 3 EFTA00233948 restitution for any injury they sustained , as set forth above. Within 30 days of the entry of judgment in this case, the United States will submit such requests for restitution to the Court in a motion under seal, along with supporting documentation for approval, with a proposed order directing the escrow agent to pay such expenses if the Court finds that such expenses fall within the restitution statute. Because any restitution is deducted from the agreed $1.2 million, Boehm, through his attorney Kevin Fitzgerald, has waived notice of such motion, which may be filed with the Court ex pane under seal. After 30 days from judgment, the money from the escrow will be transferred to the trust fund, which will then become operational. The Trust Fund provides for future counseling, treatment, and educational and professional expenses for the victims in pro rata amounts. The Trust Document was drafted under the supervision of attorney Greg Taylor, of the law firm of Jermain, Dunnagan & Owens. Mr. Taylor and his law firm donated their time in view of the charitable nature of the Trust Fund. The Trustee will be First National Bank Alaska, which will be compensated out of the corpus of the trust for its services under its current fee schedule, attached to the Trust Document as Exhibit F. First National Bank Alaska has agreed to waive certain closing costs 4 EFTA00233949 associated with the establishment of the trust, in light of the charitable nature of the trust. Three "Trust Protectors" have agreed to assist the Trustee with administration of the trust by providing guidance and serving as an appeal board. These Trust Protectors are Detective Steven Boltz, of the Anchorage Police Department, Susan Sullivan, the director of Victims for Justice, and Susan Brown, the Executive Director of the Alaska Violent Crimes Compensation Board. These individuals have also agreed to donate their time in view of the charitable nature of the Trust. Generally, the Trust Fund allows for disbursements to 12 victims (whose names will be filed under seal), for qualified purposes, until the victims attain the age of 26 years old. After such time, the remaining pro rata share of the victims' allotment will be donated to a charity chosen by a majority of Trust Protectors, and approved by the Court as consistent with the intent of the Plea Agreement (drug treatment for children in Alaska). I/ 5 EFTA00233950 Accordingly, the United States asks that the Court approve the proposed restitution plan and anticipated trust document, in the order annexed hereto. RESPECTFULLY SUBMITTED this 22m day of April, 2005, in Anchorage, Alaska. TIMOTHY M. BURGESS United States Attorney Assistant U.S. Attorney CERTIFICATE OF SERVICE I declare under penalty of perjury that a true and correct copy of the foregoing was sent to the following counsel of record on, September 18, 2007, via: (X) Fax Philip Paul Weidner 330 L Street, Suite 200 Anchors e, Alaska 99501 Kevin T. Fitzgerald Ingaldson, Maassen & Fitzgerald, PC 813 West 3rd Ave. Anchors e, AK 99501 Rex Lamont Butler Law Offices of Rex Lamont Butler 745 W. 4th Ave., Suite 300 Anchorage, AK 99501 SIM Executed at Anchorage, Alaska, on September IS, 2007 Office of the U.S. Attorney EFTA00233951 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA UNITED STATES OF AMERICA, ) No. A04-003-01 CR (JWS) ) Plaintiff, ) ) vs. ) ORDER ) JOSEF. F. BOEHM, ) ) Defendant. ) ) Having duly considered the government's motion setting forth the restitution plan in the above captioned case, the COURT hereby APPROVES such plan. IT IS ORDERED that the United States Attorney's Office make diligent efforts to provide notice to all known victims in the above-captioned case, by certified mail, Federal Express, or hand delivery. In such notice, the United States shall provide notice of the ability of such victims or their guardians to seek restitution, as well as include a copy of the final Trust Agreement. The United States shall submit any restitution requests that fall within 18 U.S.C. § 3663A, together with supporting documentation, to the Court in an ex parte motion filed under seal. Following the last such submission, or after 30 days, the United States EFTA00233952 shall notify the escrow agent to transfer the funds in the escrow account into the Trust Fund, and the United States shall notify the beneficiaries of the Trust Fund of their ability to seek disbursements. It is further approved that the TRUSTEE is entitled to reasonable compensation for its services in administering the Trust Fund, as set forth in its current fee schedule. IT IS SO ORDERED. Dated: UNITED STATES DISTRICT JUDGE 2 EFTA00233953 TIMOTHY M. BURGESS United States Attorney Assistant U.S. Attorneys Federal Building & U.S. Courthouse 222 West Seventh Avenue, Room 253, #9 Anchorage, Alaska 99513-7567 SHERRI A. STEPHAN Trial Attorney, Criminal Division Child Exploitation and Obscenity Section United States Department of Justice 1400 New York Ave, NW, Sixth Floor Washin ton, D.C. 20005 Attorneys for Plaintiff IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA UNITED STATES OF AMERICA, ) No. A04-003-01 CR (JWS) ) Plaintiff, ) ) NOTICE OF vs. ) BENEFICIARIES ) JOSEF F. BOEHM, ) Filed Ex Parte and Under Seal a/k/a "Joe Millionaire", ) ) Defendant ) EFTA00233954 COMES NOW the United States of America, by and through counsel, and hereby provides the Court with a list of the beneficiaries of the trust fund established in the above-captioned case, which is attached hereto as Exhibit A. This filing is made ex parte because Boehm, in his plea agreement, waived any rights he had pertaining to the selection of beneficiaries and the disbursement of funds to such beneficiaries. This filing is made under seal because Exhibit A contains the names and identifying information of juvenile crime victims. Exhibit A will be provided to First National Bank Alaska and the three trust protectors: Susan Sullivan, of Victims for Justice; Susan Brown, from the Alaska Violent Crimes Compensation Board, and Detective Steven Boltz, from the Anchorage Police Department. RESPECTFULLY SUBMITTED this 14th day of June, 2005, in Anchorage, Alaska. TIMOTHY M. BURGESS United States Attorney Assistant U.S. Attorney 2 EFTA00233955 JOSEF FRANZ BOEHM IRREVOCABLE TRUST FUND Introduction This TRUST AGREEMENT is made and entered into effective this day of , 2005, at Anchorage, Alaska, between Josef Franz Boehm (hereinafter "BOEHM" or "TRUSTOR") and the First National Bank Alaska, ("TRUSTEE"). This Trust Agreement is established to satisfy the terms of the Plea Agreement and Judgment entered in the United States District Court for the District of Alaska under Case No. A04-003-01 CR (JWS) (a copy of the Plea Agreement is attached hereto as Exhibit A and incorporated by reference herein; the Judgment will be filed as a matter of public record in Case No. A04-003-01 CR (JWS) and is incorporated by reference herein); that is, as restitution to the victims of BOEHM and his co-defendants' criminal conduct as charged in the Fourth Superseding Indictment (a copy of which are attached hereto as Exhibit B and incorporated by reference herein). This Trust Agreement shall be construed in a manner consistent with the terms and purposes of the Plea Agreement and Judgment, and pursuant to Alaska Statutes Sections 13.126.125 - 13.126.310. The TRUSTEE shall receive, hold, administer, invest, reinvest and distribute, in accordance with the provisions of this Trust Agreement, all funds paid to the EFTA00233956 TRUSTEE by TRUSTOR and all income earned on said funds (hereafter the "Trust Fund") as provided by the terms of this Trust Agreement. The Trust Protectors Three (3) Trust Protectors (hereinafter the "TRUST PROTECTORS") shall be designated by the United States Attorney's Office for the District of Alaska, the names of which will be filed with the United States District Court for the District of Alaska in Case Number A04-003 CR (JWS). The TRUST PROTECTORS shall have responsibility for: (1) clarifying general policy and guidelines for distributions consistent with the purposes of the Plea Agreement and this Trust Agreement; (2) advising and providing guidance for the TRUSTEE; and (3) acting as an Appellate Board to hear appeals by beneficiaries regarding decisions of the TRUSTEE. Such responsibilities are not delegable to, transferable to, or exercisable by any other officials, other than successors appointed to replace designated TRUST PROTECTORS by the United States Attorney's Office, District of Alaska. 2 EFTA00233957 ARTICLE I APPLICATION OF FUND CORPUS AND INCOME AND POWER OF APPOINTMENT A. Distribution of the Trust Fund. The TRUSTEE may distribute all or part of the principal or income of the Trust Fund only for a qualified purpose, as set forth below, on behalf of the twelve (12) beneficiaries of the Trust Fund, whose names and identifying information will be filed under seal in Case No. A04-003 CR (JWS), and provided to the TRUSTEE and TRUST PROTECTORS. To the extent that any such beneficiary has not attained the age of 18, information pertaining to the guardian of such beneficiary is provided therewith. To the extent necessary herein, the beneficiaries of the Trust Fund will be identified by their corresponding number listed in the identifying document filed under seal in Case No. A04-003 CR (JWS) pursuant to this Trust Agreement. The TRUSTEE has an irrevocable power to direct distributions of all Trust Fund Principal and Income, pursuant to the guidelines established in this Trust Agreement and the Plea Agreement between BOEHM and the United States, or as directed by the TRUST PROTECTORS. The purposes of this Trust, as set forth 3 EFTA00233958 in