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U.S. Department of Justice
United States Attorney
Southern District of Florida
99 N.E. 44 Street
hatIM4 Ft 33132
Telephone: (305) 9614299
Facsimile: (305) 530-6444
October 25, 2007
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:
7k The United States has the right to assign to an independent third-party the
responsibility for consulting with and, subject to the good faith approval of
Epstein's counsel, selecting the attorney 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.
EFTA00730209
THE HON. EDWARD B. DAVIS (Rn.)
OCT0B13R 25, 2007
PAGE 2 of 4
7B. The parties will jointly, prepare a short written submission., to the
independent third-partY regaidine the role pf_the artornextenresentatiye and
regarding Epstein's Agreement to pay such attorney representative his or her
regular customary hourly rate for representing such victims subject to tile
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 ulbritlieci individu pl, 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
EFTA00730210
OCTOBER 25,2607
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 bythis 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.
EFTA00730211
THE HON. BowARD 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. an behalf of Epstein. Mr. Lefkowitz can
be reached aa
Kirkland & Ellis LLP, Citigroup Center, 153 East 53'd Street,
New York, New York 10022-4611. Thank you again for your assistance with this matter.
Sincerely,
IL Alexander Acosta
United States ttorne
By:
CC:
EFTA00730212
ERQMALEQRTESICEEDThtanliCZATTQBNEy •
IS SELECTED
1.
Provide selected attorney with:
a.
a copy of the relevant portion of the Non-Prosecution Agreement;
b.
the names and contact information for the identified victims; and
c.
a retainer agreement.
i.
The retainer agreement will provide for the monthly billing of
fees at an hourly rate and monthly expenses.
ii.
The billing statements will be sent to and paid by an attorney or
accountant not involved in the damages litigation, and will not
be made available to any person or firm involved in the damages
litigation.
iii.
Billing statements will have privileged and work product information
redacted.
iv.
Disputes regarding fees will be referred to a Special Master (perhaps
the Special Master who selected the attorney).
2.
The agents and I will contact the girls individually to inform them of the
resolution of the case, including the selection of an attorney to represent them,
if they so choose. I will provide them with the name and telephone number of
the attorney and also let them know that the attorney will be contacting them.
3.
The selected attorney will contact each victim and review with her the facts of
her case and the options that she has, namely:
a.
selecting another attorney and handling everything through that
attorney;
b.
attempting to reach an agreement with Mr. Epstein for an amount of
damages pursuant to 18 U.S.C. § 2255;
c.
filing suit seeking other state and/or federal damages or restitution; and
d.
not seeking any money damages from Mr. Epstein.
EFTA00730213
4.
If the specific victim selects option (3)(b), the selected attorney will contact
counsel for Mr. Epstein to negotiate a settlement amount and the terms of that
settlement.
5.
If the specific victim selects option (3Xb) and the parties are unable to reach
an agreement regarding a settlement amount, then the victim can:
a.
ask the selected attorney to file suit in the U.S. District Court for the
Southern District of Florida, pursuant to 18 U.S.C. § 2255; or
b.
file suit in state or federal court pursuing damages under any state or
federal remedy.
6.
If the specific victim selects option (5Xa), the representation of the victim by
the selected attorney will continue using the same monthly billing and payment
system contained in the retainer agreement.
7.
If the specified victim selects option (5)(b), Mr. Epstein will have no further
obligation to pay the attorney, except as ordered by the Court hearing the suit.
EFTA00730214