DS9 Document EFTA01126074

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT, IN AND FOR PALM BEACH COUNTY, FLORIDA JEFFREY EPSTEIN, Plaintiff, vs. Case No. 502009CA040800XXXXMBAG SCOTT ROTHSTEIN, individually, BRADLEY J. EDWARDS, individually, and L.M., individually, Defendants. CERTIFIED COPY EXCERPT TRANSCRIPT OF PROCEEDINGS DATE TAKEN: Thursday, October 25th, 2012 TIME: 1:30 p.m.- 2:23 p.m. PLACE 205 N. Dixie Highway, Room 9C West Palm Beach, Florida BEFORE: David Crow, Presiding Judge This cause came on to be heard at the time and place aforesaid, when and where the following proceedings were reported by: Sonja D. Hall Florida Professional Reporter Palm Beach Reporting Service, Inc. 1665 Palm Beach Lakes Boulevard, Suite 1001 West Palm Beach, FL 33401 (561) 471-2995 PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126074 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 APPEARANCES: For Bradley Edwards: SEARCY, DENNEY, SCAROLA, BARNHART & SHIPLEY, P.A. 2139 Palm Beach Lakes Blvd. West Palm Beach, FL 33409 By DARRYL L. LEWIS, ESQUIRE Pro Se: FARMER, JAFFE, WEISSING, EDWARDS, FISTOS & LEHRMAN, P.L. 425 North Andrews Avenue #2 Fort Lauderdale, FL 33301 By BRADLEY J. EDWARDS For Jeffrey Epstein: FRED HADDAD, P.A. One Financial Plaza, Suite 2612 Fort Lauderdale, FL 33394 By FRED HADDAD, ESQUIRE For Jeffrey Epstein: TONJA HADDAD COLEMAN, P.A. 524 S Andrews Avenue Fort Lauderdale, FL 33301 By TONJA HADDAD COLEMAN, ESQUIRE For Jeffrey Epstein: ATTERBURY, GOLDBERGER & WEISS, P.A. 250 Australian Ave. South, Suite 1400 West Palm Beach, FL 33401 By JACK A. GOLDBERGER, ESQUIRE PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126075 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 DIRECT EXAMINATION SY MR. LEWIS: Q What is your profession? A Attorney. Q At some point in time were you employed by the law firm of RRA, the way it's been called in this case? A Yes, from approximately April of 2009 until what Mr. Haddad described as implosion around, I believe, November 1st, 2009, but possibly the day before. Q And in what capacity were you employed by that firm? A I was an attorney. I was an employee there. Q And when you came to the firm, did you bring some cases with you where you were prosecuting some cases on behalf of some minor children against Mr. Epstein for him molesting them? A Yes. There were two different classifications of cases all revolving around the same issue. I filed them all around the same time in 2008. One, I represented -- ultimately I represented, I believe, 10 to 12 victims of Jeffrey Epstein. But while I was at RRA, I represented at least three files that were being litigated. I had filed those in 2008. PALM BEACH REPORTING SERVICE, INC. (561)471-299S EFTA01126076 1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In addition to those files, I was litigating, and still currently litigating, another case on behalf of all of Jeffrey Epstein's minor victims against the United States Attorney's Office wherein the allegations are that the U.S. Attorney's Office improperly gave Jeffrey Epstein immunity from prosecution of the crimes against these victims in violation of the Crime Victims Rights Act. That case is currently pending in front of Judge Marra. Jeffrey Epstein has intervened in that case and certainly is interested in knowing the information that we have regarding those allegations. And if -- one of the things that we are asking for in that case is to overturn the immunity agreement which would open him back up to prosecution. Those causes were all being litigated while I was at RRA, and the Crime Victims Rights Act case is still active today. Q Now, who was your supervisor at RRA, your direct supervisor? A Russell Adler was the head of the personal injury tort division. He was in charge of the division, and that's the division that I was in. Q And did you have communications from time to time with Mr. Adler regarding these cases against PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126077 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Mr. Epstein? A It was more than just from time to time. Russell Adler knew what was going on with the cases, we had Epstein meetings where myself, former Judge Bill Berger, Russ Adler, other members of the firm would talk about Epstein, talk strategy about Epstein. Our mental impressions were out on the table, so to speak; discovery, strategy was discussed. Not only that, the intimate details of our clients was discussed. Things that all fall into the parameter of work product privilege and attorney-client privilege, and that's just in-person communication. Q In addition to in-person communications with Mr. Adler on a regular basis regarding these cases, was there also a computer program at the firm called Q Task? A Yes. Q Can you explain to Judge Crow what Q Task is? A Yes. THE COURT: Say that again. MR. LEWIS: Q Task, T-A-S-K, Judge. Q Can you explain what that is, please? A Russell Adler describes that program much better than I do. He was one of the creators of the PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126078 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14. 15 16 17 18 19 20 21 22 23 24 25 program, and it was a very good program. I only used it during the time at RRA. I think Russ Adler has described himself as an evangelist for the program. But it is basically a virtual boardroom for attorneys to communicate specifically back and forth, have meetings in a virtual manner so that you can discuss cases, details of cases, strategy on cases. And one of the projects -- actually, every case, I think, had a project within Q Task. Certain people who would give impact or input on cases were invited to the project. Both myself and Russ Adler were on those projects, which means everything that I posted or Bill Berger, for instance, posted, or Russ Adler posted -- I believe those were the main participants in that project -- would have access to literally everything that was in that communication device. Q Let's be very specific for Judge Crow. Did the Epstein project have a Q Task project associated with that case? A There was an Epstein project. Q Was Mr. Adler also on the Q Task list for that project? A Yes. Meaning he had access to literally all of the privileged communications and privileged information, work product, attorney-client and PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126079 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 otherwise, all of it that I had access to, Mr. Adler also had access to. Q And can you explain to the Judge what it was for? A It was so that we could brainstorm, share ideas, discuss strategy, discuss discovery, discuss what was going on in the case, and we would not have to call formal meetings. We would communicate in a private manner about details involving any case going to that project. Q Let's be specific about the Epstein case, which is why we are here to show that they have an unfair advantage by Mr. Haddad representing both Mr. Epstein and -- go ahead. Just keep it to the Epstein -- A The Epstein case was one project that I communicated ideas in, Russ Adler communicated ideas in. I was handling the case; I was the primary attorney. Any idea that I had to bounce off of any other attorney that was in this project, the other attorneys invited to that private project also had access to. So Russ Adler had access to literally all of my mental impressions going on that were in this private site. It is designed -- basically designed PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126080 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and utilized solely for the purpose of sharing privileged information amongst lawyers in the law firm. Q Can you please share with the court whether or not you considered all of those communications with Mr. Adler and the other lawyers who were on that Q Task project privileged? A Of course, so did Russ Adler, and, I believe, Mr. Haddad definitely won't dispute that. Q Now, from your perspective, are you concerned with respect to all of the communications, personal communications that you had with Mr. Adler in person where you were talking about the Epstein case, all the communications that you had on Q Task that you considered privileged, that with Mr. Haddad representing Mr. Adler how that can give him a tactical advantage in his representation now of Mr. Epstein? Can you explain that to Judge Crow, please? A I am concerned because Russ Adler had access to all of the information I knew. Mr. Haddad representing Jeffrey Epstein would be no different at this point than Russ Adler representing Jeffrey Epstein. Jeffrey Epstein's lawsuit against me was PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126081 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 based exclusively on things that I did while at RRA. The allegations against Russ Adler had been made similar allegations, but made by Scott Rothstein against Russ Adler. Mr. Haddad has the task of defending Russ Adler in those allegations. I am assuming any information that would help to acquit or defend Russ Adler, that Mr. Haddad could ask his clients about those things. And if it would assist in that defense then he certainly would. And certainly, all of this information that is privileged that Russ Adler has, he would have the ability to share with his attorney -- probably should share with his attorney so that his attorney can effectively represent him. And I have a problem understanding how Mr. Haddad could represent Russ Adler in the exact accusations related to his actions at the time that he was at RRA when Scott Rothstein is alleging that he was, in Scott Rothstein's words, deeply involved in the Ponzi scheme and a co-conspirator, that Russ Adler is saying are false; and how Mr. Haddad can represent Russ Adler against those accusations and divorce himself from the knowledge that he learned from Russ Adler so that he can represent Jeffrey PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126082 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Epstein in this action without utilizing information he learned or could learn from his client. THE COURT: Let me -- I want to -- I'm confused. What lawsuit or claim is Mr. Haddad representing Mr. Adler in regards to allegations that he is involved in the Ponzi scheme? THE WITNESS: I believe that from the very -- Mr. Adler has not been charged. THE COURT: I am asking is there any pending either criminal or civil matter against Mr. Adler based upon allegations that he was involved in some way in this youmkeep saying that he is defending him against these allegations. I want to know what case -- THE WITNESS: I am sure that Mr. Haddad would be better able to explain this. But Mr. Adler was from the very beginning a target of a criminal investigation. He has not been cleared as of yet to the extent that I know. THE COURT: I understand that, sir. What I am asking you is -- I may have misunderstood. But I got the impression PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126083 11 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 here there is an active, pending litigation or criminal proceeding. And maybe there isn't. What you're talking about is the potential for some claim down the road or some possible criminal action or some sort of possible civil action, but anything pending right now, to your knowledge? THE WITNESS: I don't know. There was also an adversary proceeding, which I believe also settled where -- THE COURT: The clawback -- TEE WITNESS: Right. But other than that, I don't really know. MR. LEWIS: Thank you very much, Your Honor. Just a few more questions. BY MR. LEWIS: Q To put everything in context, you heard. Mr. Haddad in his opening statement in response to a statement I made to the court in our opening statement how is he going to cross-examine Mr. Adler about information that may be adverse to Mr. Epstein and Adler in this case. And you heard him say that, well, I probably wouldn't cross-examine Mr. Adler, Mr. Goldberger would do that. You heard him say that, right? PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126084 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes. Q Now, practically, if he's a co-counsel, I guess he's also representing Mr. Epstein, too? A Yes. Q And Mr. Haddad is representing Mr. Epstein, too? A Right. Q Do you have a concern at all that all Mr. Haddad has got to do is say Mr. Goldberger, why don't you ask him this, don't ask this, that they can communicate things that you have asserted as privileged in our case that he knows from MR. GOLDBERGER: Judge -- THE COURT: This is not closing argument, counsel. Just ask the question. MR. LEWIS: I apologize, Judge. I want to get to the issue. THE COURT: Ask your question. BY MR. LEWIS: Q Are you concerned about that? And can you please explain to the court what your concern is? A My concern is that any privileged information that Mr. Haddad wants, if we invoke a privilege all he has to do is ask Russ Adler. That's my concern. That's it. (561)471-2995 PALM BEACH REPORTING SERVICE, INC. EFTA01126085 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. LEWIS: Thank you, Judge. I don't have any other questions for Mr. Edwards right now. THE COURT: Cross-examination, sir? MR. HADDAD: Yes, sir. CROSS-EXAMINATION BY MR. HADDAD: Q Mr. Adler is a very close friend of yours, correct? A That's true. Q And Mr. Adler is the one who brought you into RRA, correct? A That's true. Q And as a matter of fact, if Mr. Adler were to testify for you, he would be a character witness, would he not? A I would think so. Q He considers you one of the finest lawyers around, does he not? A I believe so. Q He's expressed that to a number of people? A I believe so. Q Do you think that Mr. Adler is going to be a witness adverse to you? A I think that -- PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126086 14 1 2 3 4 5 6 7 • 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Answer the question please, sir. THE COURT: Excuse me, sir. If you can answer the question, answer, but you can explain your answer if you can. A I don't know what that question means. Q Mr. Edwards, you will concede that Mr. Epstein dropped his lawsuit against you, correct? A Yes. Q And the only thing pending now is your lawsuit against Mr. Epstein, correct? A Right. Q Would you concede that Mr. -- that RRA fell apart and the Feds came in from October to November of 2009? A I believe so. Q Would you agree that the files that were RRA files regarding Epstein were taken at that time? A Right, Russ Adler no longer had access. Q He had no access to Q Task or anything, correct? A I don't know that. Q Now, that was before I began to represent him, correct? A I guess so. Q Well, you would agree November 2nd was when PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126087 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you guys were told this is it? A That's right. I just don't know when you started representing him. Q On November 2nd you sent an email, as a matter of fact, to Mr. -- I can't say his name. Epstein's lawyer at that time, Cuman (phonetic) or something like that? A Okay. Q And you asked him in an email if he would agree to reset the deposition because you had no access to files, your office or anything else, correct? A That's true. Q And you sent an email saying you were very surprised that he said no, correct? A I don't remember which lawyer this is because it is a whole team of them. I don't doubt that this happened. Q Well, I think you filed a joint motion to continue on the 14th of November, 2009 setting forth that you had no office, no files, no ability to do anything, and therefore you would request that it be continued? A I don't remember doing that, but I don't quarrel with any of that because it is all true. PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126088 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. HADDAD: May I show him a certified copy of the motion? A I am not disputing it. I haven't seen a copy in years. Q That looks like it? A Filed by Bob Crichton as a joint motion, yep. Q Now, did you today get to review a copy of an affidavit by Russell Adler that I filed this morning by email? A I saw it. Q And, of course, you are aware of your answer to Interrogatory 32 of the second set of interrogatories -- the third set of interrogatories to you, correct? A Am I aware of my answer to question Number 32? Q Yeah, where I put out there that you said in your answer to interrogatory that -- let me read it: Identify all attorneys who worked on the client cases against plaintiff-counter defendant Jeffrey Epstein, including, but not limited to the attorneys formerly at RRA, abbreviated, the attorneys of the former Jaffe -- that's your firm, correct? A Correct. Q -- and outside attorneys and referring PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126089 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 attorneys. And your answer was: Brad Edwards, Paul Cassel (phonetic) -- that's the lawyer in -- A Correct. Q Matt Weissing, Steve Jaffe and Bill Berger rendered substantive services in the prosecution of the plaintiff Jeffrey Epstein. Russell Adler was in attendance, you said, at multiple depositions, but was not an active participant, correct? A All true. Q Russell Adler did not actively participate in your case at all, correct? A Other than what you just described. Q Now, is it not correct that none of the Epstein cases settled during the period of time that you were at RRA? A That is true. Q And you are aware, of course, that Mr. Rothstein said in his deposition that you attended with Mr. Scarola, that in fact you settled one of them that was part of the Ponzi scheme, correct? A I don't remember that at all. Q There's no question one of the cases settled? A No question about it. PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126090 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q And you were there for a grand total of six months? A At the most. Q Six months at the most. You brought your files with you, you left with your files? A True. Q And you settled them later, correct? A Over a year later. Q Now, whatever work product -- and I don't know what work product you have or what you are talking about, you did have interviews with the Daily News, correct; for the reporter for the Daily News, regarding Jeffrey Epstein? A Over the last few years. Q Even at that time, yeah? A I believe so. Q You had an interview with a gentleman named Rush, George Rush? A I think Epstein had an interview with George Rush. Q Yeah, and then you called the guy back after that and you had a conversation with him, which you filed an affidavit on, right? A Right. Q And you used that affidavit and other PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126091 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 affidavits to make a determination of why you found it necessary to depose Bill Clinton, Donald Trump, Prince Albert -- was it Prince Albert? One of those guys, and all of those individuals, correct? A I didn't -- THE COURT: Where are you going with this? MR. HADDAD: To show that every single thing that he claimed would have been privileged, he put out in affidavits and interviews that he gave to the press. THE COURT: That's going to be a neat trick if you don't know what he spoke to the press about. MR. HADDAD: I'm sorry? THE COURT: Go ahead. MR. HADDAD: Well, Russ Adler is going to testify and I think that will clear that up. THE COURT: Mr. Adler is not going to talk about attorney-client privilege communication he had with him, is he? MR. HADDAD: He's got an affidavit I can show the court. THE COURT: I have seen the affidavit. PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126092 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I didn't see the emails. I'm not on your email list. MR. LEWIS: We did object -- TEE COURT: Just ask the question, okay. I was wondering where you were headed. MR. HADDAD: I'm sorry, yes, sir. BY MR. HADDAD: Q You never had a conversation with Mr. Adler regarding Epstein until you got to RRA, correct? A Correct. Q And then when you were at RRA you advised him of these cases that you had, correct? A What I advised him of, I believe, would be product privilege, which is the problem here. Q I am talking about the existence of the case which is public record, not any inner workings, all right? A Okay. Q Did you not make the statement that Russ Adler learned about the case from the newspapers in your deposition? A I might have. Q You won't dispute that, correct? A No. PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126093 23. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Sir? A I wouldn't dispute it. Q Now, you have read Mr. Adler's deposition, correct, in this matter? A At some point in time I did. Q You have read my response in opposition to the motion to disqualify me, correct? A Yes. Q And do you disagree with Mr. Adler's assertions that he had nothing to do with the file and has no privileged information? A Which question are you asking, that he had nothing to do with the file? Q Do you agree with his assertions in his deposition that he had no privileged information or anything that was privileged regarding that case? A I don't think he said that, so that's the problem. He invoked the privilege at the deposition where you represented him. Q I understand that. He invoked every privilege he could in that deposition? A Right, implying that -- Q My question to you is -- sir? A -- implying that he had privileged information, and that's all I'm -- PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126094 EFTA01126095 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q I will let it go at that point. Do you have any -- you wouldn't, but okay. The claim that now exists is your claim for damages against Mr. Epstein, correct? A Yes. Q And that claim for damages is for abuse of process, correct? A That's one of the counts, correct. Q And the other is what, defamation? A Malicious prosecution. Q Malicious prosecution. Those are separate and apart from the claims that you have with the United States of America, correct? A Separate claims from that claim? Q Yes. A Yes, they are separate claims. Q And you filed -- excuse me, Mr. Epstein's attorneys filed a lawsuit against you while you were actively prosecuting claims for the victims that you cited were of what occurred, correct? A That's true. Q And that is where your inner workings were, involving the plaintiffs who have already settled, correct? They have all settled? PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126096 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A They have settled. The case against Epstein has settled. Q That's what I'm saying. The case against Epstein has settled, the case against you by Epstein has settled? The case against you by Epstein has settled by his dismissal of the claims against you? A He dismissed the claim, right. Q So the only thing remaining is the claim that you have against him? A That's correct. Q For malicious prosecution and for abuse of process? A As well as the Crime Victims Rights Act. That's still ongoing. Q Okay, now, you made mention to the Judge of Mr. Adler's defense. Are you aware of anything that Mr. Adler has outstanding where I represent him? A By outstanding -- Q Well, other than -- let me put the caveat. I am sure you've read -- he may have an appeal of a 30-day suspension by Judge Brown for a failure to sign an affidavit and a fraudulent mortgage application. But other than that, are you aware of anything against Mr. Adler with whom you are very PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126097 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 friendly? A I talk to Russ Adler frequently. I know generally what he believes is going on with respect to Scott Rothstein's accusations. And I don't know exactly formally where that prosecution or potential prosecution is or if it will ever be. But that is the only thing that I know is ongoing that you have any role in representing him in. Q Let me ask you this. Based upon your long-term knowledge and friendship with Mr. Adler, is there any doubt in your mind he would never breach a confidence and share anything with me? A ' If he's -- MR. LEWIS: Your Honor, how -- THE COURT: Excuse me. Please stop. I think you are asking for credibility. This is character reference. I don't think that's -- BY MR. HADDAD: Q Okay, I will rephrase it. Do you have any information to remotely suggest that Russell Adler has passed one bit of information to me? A I would believe that Russ Adler will tell you all of the information that would assist you in representing him. And if the allegations against him PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126098 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 are that he was involved in a Ponzi scheme and emails would help to refute that, then I would hope that he would pass that on to you. But I don't know what he's given you, because I'm not involved in your attorney-client relationship. Q Do you have any information that Russell Adler would in any way share any information with me -- share any information that's privileged with me, if there is any, regarding Jeffrey Epstein and this case? A He shares a privilege with you. So if it helped in his defense, he would and he could and he should. Q I am talking about the instant case. A It's all related to the same subject matter. Q Do you have any information, even remotely, that Mr. Adler was involved in a Ponzi scheme? A No. Q Did you ever hear any -- Mr. Adler has denied from the first day that he had any knowledge of the Ponzi scheme, correct? A He has. Q And he said the only way he found out about the Ponzi scheme was the same way you did, in the newspaper? PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126099 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Correct. I have read that. I believe that. else. MR. HADDAD: I don't have anything THE COURT: Any redirect? MR. LEWIS: Just real brief, Judge. REDIRECT EXAMINATION BY MR. LEWIS: Q Were you deposed in the case that's pending before Judge Crow? A For hours. Eight hours, sure. Q And during the time that you were deposed, did you have occasion to assert work product privilege to questions that Mr. Epstein's lawyers were asking you? A Yes. Q And those questions that you were asserting privilege to, would Mr. Adler have access to that information that you were asserting privilege to? A I don't remember the specific questions, but he had access to all information that I had access to at RRA. He had access to the information. He wasn't the active attorney prosecuting the file, but through Q Task he had access to all privileged information, yes. MR. LEWIS: May I approach, Your Honor, PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126100 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and show the witness one document? BY MR. LEWIS: Q Mr. Edwards, I am going to hand you a document, it's two pages. And first of all, can you tell the court what it is? A A string of emails that four emails that began October 13th, 2010 from one of Russell Adler's other attorneys. By other, I mean other than Fred Haddad, and it is initially directed to Russ Adler and Fred Haddad. And it is asking: Russell, any idea what this is all about? It was in response to pleadings filed by Jeffrey Epstein's attorneys at the time in the bankruptcy case wherein they were attempting to gain access to privileged information, including emails at RRA, Q Task information. It was a list. The court is familiar with that subpoena. Mr. Haddad apparently responds: Russ, I thought Sheer (sic), referring to Bill Sheerer, I presume -- Q Explain to the court who Mr. Sheerer was. A Mr. Sheerer was representing some creditors in the bankruptcy proceeding, who were apparently a part of the purchase of fraudulent settlements that Scott Rothstein had made up out of thin air related to Jeffrey Epstein. PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126101 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q And so Mr. Haddad is cc'd or whatever on this string. And what does Mr. Haddad do with respect to Mr. Adler after receiving this? A He forwards to Russ Adler an email that says: Russ, I thought Sheer filed for that discovery of Stettins stuff from RRA. You better reread in case you have to assert privilege. Your name was mentioned. This says to me Mr. Haddad is telling Russell to protect the privilege of the victims of the Epstein girls if need be, discussing privilege. Russell Adler responds back to Mr. Haddad with the message: Pedophile Jeffrey Epstein is trying to capitalize on the Rothstein situation by filing lawsuits and making baseless claims in the bankruptcy case that the lawsuits filed against him by Brad Edwards on behalf of the young girls Epstein molested were cooked up and fabricated as part of Rothstein's Ponzi scheme. This claim is ridiculous and Epstein has settled most of the molestation cases with Brad Edwards. Most of what Epstein and others are asking for is privileged, and Brad and Seth Lehrman, my current partner, are already fighting the disclosure of the materials sought in the notice. The only reason that I have this PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126102 29 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 information is because Russ forwarded it to me saying do I need to was mentioned? And protecting privileged the same assert a privilege since my name we told him back, no, we are information. You are protecting information relating to the girls, we are already protecting privileged information related to our communications and the girls, you don't have to additionally protect that same privileged information. So we took care of it, so that's the only reason I even have this email. I don't know what other emails exist. Q Exactly. And the import of that is that privilege that he's asserting and Mr. Haddad asked him to assert, are these consistent with the privileges you have asserted in this case with respect to specific questions that Mr. Epstein's lawyer has asked you? A Like I said, if my privilege is asserted here, the only thing that Mr. Haddad would have to do is ask his client, Russell Adler, who would be able to tell him all of the privileged communications, so long as Russell remembers those things. Q Would that give Mr. Epstein a tactical advantage in his defense of the case that you have brought against him for abuse of process and PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126103 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 malicious prosecution? MR. GOLDBERGER: Argumentative, Your Honor. THE COURT: It is argumentative, Counselor. MR. LEWIS: Your Honor, may I go ahead and mark this, please? THE COURT: Exhibit Number 1. Any objection, Counsel? MR. HADDAD: If I can cross-examine on it. THE COURT: I will allow that. (Plaintiff's Exhibit Number 1 was marked for identification.) THE COURT: Are you finished, Counsel? BY MR. LEWIS: Q Sir, Mr. Adler was also deposed in this case pending before the court, correct? A That's correct. Q Did Mr. Adler on many occasions in that deposition invoke a work product privilege? A His deposition has been filed. And basically, at the beginning of the deposition he said I am going to invoke privilege on all communications and everything else. So it was basically a standing PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126104 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 objection, and additionally, throughout the deposition he invoked privilege. MR. LEWIS: Thank you very much, Judge. THE COURT: Mr. Haddad, limited to the document. MR. HADDAD: Yes, sir, limited to the document. May I approach the witness? RE-CROSS EXAMINATION BY MR. HADDAD: Q This email has a string of emails that begins with from Russell Adler to Katie Adler; Slatkin, who is the bankruptcy lawyer, Fred Haddad? A Okay. Q "What is this?" Dated October 13th, 2010 -- A Correct. Q -- at 10:46, correct? A Yeah. Q And that's the whole pedophile stuff, Epstein? A Right. Q Most of what Epstein is asking for is privileged. Brad and Seth Lehrman -- Brad, that's you -- are fighting the disclosures of the materials PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126105 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sought, right? A Right. Q The sentence you left off is Russ Adler saying I am not involved in that battle? A He wasn't. Q Okay, you didn't tell that to the Judge. A I think there's even a back page, if you wanted to read the last one. Q There is a response, as opposed to being in that, is from me on October 14th, the next day. So the sequence you have is in error, correct? A Okay. Q Correct? A Yes. Q And my response was: Russ, I thought Sheer filed for the discovery of Stettins stuff from RRA. You better receive (sic) that in case you have to assert a privilege, correct? A That appears to be correct. Q You don't know whether I was discussing with him the Fifth Amendment privilege or attorney-client privilege? A I have no idea what your discussions would be. Q What kind of law do I practice? PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126106 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A What kind of law are we practicing in this case? Q It's pretty close to criminal. You know that -- THE COURT: We are in civil court, right? MR. HADDAD: I am trying to be, Judge. THE WITNESS: He forgot for a second. BY MR. HADDAD: Q You don't know what privilege I was talking about, correct, Mr. Edwards? A No, I have no idea. Q And there was another response to that later that day. Brad said do I need to assert privilege since my name was mentioned? His response was: I don't think so, since my only communications were within the firm. He puts work product, and all of that was already being asserted by you guys? A Correct. Q I have never had any communication with any Epstein clients? A That's true. Q Now -- MR. HADDAD: Okay, I will let it go, Judge. I said I would only go that far, PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126107 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 sorry. THE COURT: You can step down, sir. Thank you for your time. (The requested portion of proceedings were concluded at 2:23 p.m.) PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126108 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COURT CERTIFICATE STATE OF FLORIDA : SS COUNTY OF PALM BEACH ) I, SONJA D. HALL, certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true record of my stenographic notes. Dated this 29th day of October, 2012. SONji((ellf PALM BEACH REPORTING SERVICE, INC. (561)471-2995 EFTA01126109