THE PALM BEACH POST • THURSDAY, OCTOBER 18, 2007

THE PALM BEACH POST • THURSDAY, OCTOBER 18, 2007 Milian sues billionaire investor, /says they had sex when she was 16 The Associated hers NEW YORK — A billionaire investor, already facing jail in Palm Beach County on charges of soliciting under- age prostitutes, is being sued by a young woman who says he had sex with her when she was 16 and had sought his help becoming a model. The lawsuit, fled late Thesday in Manhattan% state Supreme Court, says finan- cier Jeffrey Epstein had the teen perform a sex act when she brought photographs of herself for him to review in his Upper East Side mansion sometime in 2000. Epstein, 54, a money manager, told the teen he managed finances for Victoria's Secret and "could get you into the catalog" if she were "nice" to him, court papers say. The papers say being "nice" included massages and other favors. When the girl told Epstein, "I am 16 years old and just want to model," he replied, "Don't worry I won't tell any- body," court papers say. Epstein, _said by London% Epstein Mail on Sunday to be a dose friend of England% Prince Andrew, has been indicted in Palm Beach on charges of so- liciting underage prostitutes. That case is pending. The girl visited Epstein "several times over the sev- eral months and engaged in bizarre and unnatural sex acts" while she was a minor, the lawsuit says. Epstein "repeatedly re- quested that (the girl) return with her 14-, 15-, and 16- year-old girlfriends, stating, tome by with your friends your next time. Don't bring (a mutual friend in er . I love girls your age." The young woman, now 23, kept returning to Epstein because she has "mental issues," said her lawyer, Wil- liam J. Unroch. He refused to elaborate, but court papers say she was "disabled at a re- sult of severe mental disease and defect." Epstein's lawyer in New York, Gerald Lefcourt, said, "The girl has admitted she is insane, but she can read a newspaper and recognize the word 'rich.'" Lefcourt also said the statute of limitations has expired for the woman% case criminally and civilly, and will almost certainly be dismissed. He refused to comment on Epstein% Florida charges. Meanwhile, Unroch, 57, also acknowledged that his client was living with him and was at the center of a $10 million lawsuit he filed last year against a neighbor who said he was having sex with underage girls. That case is pending. ' "What she was doing at 22 is irrelevant to what hap- pened to her when she was 16," Unroch said Wednesday He went on the say he hoped Epstein would agree to "do right" by his client and re- solve the case out of court. EFTA00188312 `Post' Grabs a Towel in Preparation for Epstein Trial - New York Magazine's Daily lntell... Page 1 of 1 New York Magazine News & Features II/ 2/07 in Other News `Post' Grabs a Towel in Preparation for Epstein Trial t s a . 'Pent Nixes Dal [MITI Earlier: Intel's coverage o(Jeffrey Epstein 11:00 am Jeffrey Epstein, the billionaire and friend of Clinton who ImiCharged IBM year with paying teenage girls to massage him while he jerked off into a towel at his pink Palm Beach mansion, has decided not to plead guilty, the Post reports today; hell take his chances with a jury. Reporting this must have been bittersweet for the l'ost, because they've been insisting for months that Epstein had taken or was litenaRy an she verge of any minute taking a plea deal. But then we expect they are wailing with baited breath for all the lurid details the trial to come out. As are wet In fact, with the expectation that all the stories we've heard in the months since the allegations first came to light are going to be rehashed in the trial, which the Past says is scheduled forJanuary, were going to repeat one of our favorite bits from the recent lawsuit filed by lawyer extraordinaire William Unmet, on behalf Of his es-lover, transgender kinda.mode [Epstein] suddenly went into the bathroom and came eat severalminuteslater wearing red lipstick and wearing a matted red wig. Ile said to plaintiff 'Call me Janice' snare e3d 0:10. a sy4 Ems OA ura FQ, mint YOU WILL BE FROM ITIM TO REGISTER OR LOGIN WHEN POSTING. MEW CONNIE/1Y 0 GI 350 words anon° MOIL and URLs prohibited Uwe Guideams PREVIEW POET CON PIEHT Corgi& C 2006. New Vogl AlegarewHoldato LW All MOH Named httn://nvmaa.com/dailv/intel/2007/11/Dost izrabs a towel in preparat.html 12/4/2007 EFTA00188313 EFTA00188314 ME PALM BEACH POST • WEDNESDAY, FEBRUARY 27, 2008 Girl drops lawsuit against Palm Beach man By LARRY KELLER Palm Beath Post Sfre Writer A girl who says that wealthy money manager and part-time Palm Beach resident Jeffrey Epdtein engaged in • sexual activity with her when she was 14, has dropped her lawsuit against him because her divorced parents are squabbling over the litigation. "It has to do with the fact that the parents aren't on the same page right • now," said Jeffrey Herman, the attorney for the girl, identified in court papers only as Jane Doe "It's like a sideshow" The girl turns 18 in May and can sue • again at that time without her parents' involvement, Herman said. Herman sued Epstein last month on • behalf of the girl, her father and her stepmother. Her birth mother, who lives near Atlanta, then asked to intervene on her daughter's behalf and asked that Epstein Accused of sexuality assaulting then- 14-year-old gift the litigation be halted until her daughter turns 18. • The mother com- plained that Jane Doe's father did not consult with her or their daughter before suing Epstein for $50mil- lion. The lawsuit al- leges sexual assault, intentional infliction of emotional distress and loss ' of parental consortium. Herman also represents a Jane Doe No. 2 who, like Jane Doe, claims Epstein summoned her to his home for a massage when She was a minor and sexually touched her ,Epstein, 55; induced several un r- age girls to give him sexual ma es at his Intracoastal home, a Palm Beach Police Department investigation con- cluded. He was indicted in July 2006 on a single count of felony solicitation of prostitution. The case is pending. Jane Doe's parents separated two months after she was born at Good Sa- maritan Medical Center, according to court records. The couplek subsequent divorce has been contentious. Each has had primary custody of the girl at various times. The father pleaded guilty to fed- eral fraud charges in 2001 and was sen- tenced to 21 months in federal prison, plus three years' probation. The US. attorney overseeing his prosecution was Guy Lewis. Now in private practice, Lewis was hired by Epstein to defend him against the father's lawsuit filed on behalf of Jane Doe. • lany_kelet@pbpostcom • EFTA00188315 ft. guilty in underage escort case -- South Florida Sun-Sentinel.com Page 1 of 2 sun-sentinel.coin/news/local/southflorida/sfl-flbverdict0320pnmar20,0,5695099.story South Florida Sun-Sentinel.com Man guilty in underage escort case West Palm resident faces mandatory sentence of at least 10 years in prison BY VANESSA BLUM South Florida Sun-Sentinel March 20, 2008 Rejecting defense claims of entrapment, a federal jury convicted a West Palm Beach man on Wednesday for arranging to have sex with a teen prostitute in Costa Rica through a bogus travel agency secretly run by the FBI. Jorge Muentes, 48, cried as federal marshals led him from his family after the guilty verdict was read in the Foil Lauderdale courtroom of U.S. District Judge James Cohn. "I love you, baby," his wife of 17 years called after him. "I love you." Muentes, who worked as a butler, contacted the FBI's fake agency, Latin American Pleasure Tours, in September after seeing an ad in an adult magazine. In conversations with an undercover detective posing as the agency's owner, Muentes requested a 14- to 16-year-old prostitute. He was arrested at Miami I cilia_ jalionalAirmyt Nov. 15 as he attempted to board a flight to San Jose. David 0. Markus, the attorney representing Muentes, said he would appeal the verdict. Markus had argued his client was entrapped by the detective who Markus said called Muentes repeatedly and steered him toward an underage prostitute. CI) Holy CrosspHosital 2" Year in a row <J4, ‘s, AMERICAS 50 BEST HOSPITALS But prosecutors insisted Muentes made the choice to request a teenager without encouragement and took concrete steps toward acting on his desires by paying for the trip and attempting to travel. After a two-day trial and one day of deliberations, the jury of seven men and five women found Muentes guilty of two counts for soliciting the services of an underage prostitute and for attempting to travel overseas for sex with a minor. Muentes, who has no criminal record or history of child abuse, faces a mandatory sentence of at least 10 years. A nearly identical case against a New York Vietnam War veteran is set for trial Monday before U.S. District Judge Jose Gonzalez in Fort Lauderdale. hertvawinv crin-sentinel.com/news/local/southflorida/sfl-flbverdict0320pnmar20,0,204460... 3/20/2008 EFTA00188316 , guilty in underage escort case -- South Florida Sun-Sentinel.com Pagc 2 of 2 The two cases are part of a government crackdown on so-called sex tourists who travel overseas to molest children. The initiative has led to more than 70 arrests since 2003, including those of 15 people snared in the sting operation. The Web site for Latin American Pleasure Tours offers to fulfill travelers' desires with "clean, fun- loving companions of varying ages." All calls to the agency were directed to the Miami FBI headquarters and answered by Richard Love, a retired Fort Lauderdale police detective who posed as the agency's owner. Love testified at trial that Muentes needed no prodding to request a "very young" escort. In their first conversation, Love offered Muentes two types of escorts — for sightseeing or sex. After Muentes indicated his interest in a prostitute, Love asked him to choose from a range of 14 to 27 years old. "Let's go young ... very young," Muentes said. Love suggested a 14- to 16-year-old and Muentes agreed. When Muentes asked about the legality of sex with a minor, Love said it was all illegal. According to testimony at trial, adult prostitution is legal in Costa Rica, but transactions cannot involve a third party, such as an agency or pimp. Markus said Muentes changed his mind and requested a 21- to 24-year-old escort, but was never given a chance to back out. Sentencing is set for May 29. Vanessa Blum can be reached at vbblum®sun-sentinels tom or 954-356-4605. Copyright C 2008, utlao_j_Floida_S_un-Seritinel htto://www.sun-sentinel.com/news/locaYsouthflorida/sfl-flbverdict0320pnmar20,0,204460... 3/20/2008 EFTA00188317 THE PALM BEACH POST • FRIDAY. APRIL 18, 2008 WEST PALM BEACH - Part-time Palm Beach resident Jeffrey Epstein has been sued in federal court by two more women this week who say he had sexual contact with them when they gave him mas- sages at his waterfront mansion when they were minors. They are the fourth and fifth women to sue Epstein. Both women are seeking more than $50 million. Jane Doe No. 4 says she was 15 years old when she had several encounters with Epstein in 2002 or 2003. Jane Doe No. 5 says she was 15 or 16 years old when she was with him. Epstein was indicted by a county grand jury in July 2006 on a single felony count of solicitation of prostitution. That case is still active. EFTA00188318 THE [vim REACH POST • TUESDAY, MARCH 18,2008 Girl sues Epstein, two others she says conspired in massages Jane Doe,' 17, sues in state court after dropping a federal suit. By LARRY KELLER Palm Beath Post SteWriter WEST PALM BEACH - A former Palm Beach Community College student who police say procured underage girls to give Jeffrey Epstein sexualroassages at his Palm Beach mansion,. and Epsteia personal assis- tant have been sued along with Epstein over their alleged conduct: The girl behind the lawsuit was 14 years old when she contends he engaged in sexual conduct with her after she went,to his water- front home in 2005 to give him a massage. Her lawsuit, filed under the name Jane Doe, seeks unspecified damages from Epstein for sexual assault and intentional infliction of emotional distress. Loxahatchee and She also sued ' of ork City on grounds of conspiracy and civil rack- eteering "We just want a full measure of justice for th' 'd her attorney Ted Leopold. ho attended Palm Beach Com- munity Col ege, was paid by Epstein to bring girls to his mansion for massages and more, according to Palm Beach police "I'm like a Heidi Fleiss," they said she told them. Her attorney could not be reached immediately foursan Epstein personal assistant who arranged the encounters, even escort- ing the girls to his massage room, police alleged. Epstein "These two conspired with him to help with the criminal enterprise," Leopold said. Jane Doe, through her father and stepmother, filed a federal lawsuit against Epstein in January. She dis- missed it after her mother said she wasn't consulted about the litigation and sought to intervene. The mother is acting on her daughter's behalf in the latest lawsuit. Epstein's lawyer has denied the girN al- legations and said her family is simply at- tempting to get money from a very rich man. Epstein, 55, is a Manhattan money manager who has homes there, in New Mexico and the Virgin Islands, in addition to his $8.5 million Palm Beach mansion. Two other Jane Does have sued Epstein in federal court this year, making similar al- legations to those of the first Jane Doe. Those cases remain active. Also pending against Epstein in state court is a felony charge of solicitation of prostitu- tion arising from the same alleged incidents with several girls. That case is set for trial'in July, two years after he was indicted. Jane Doe's new lawsuit, filed in Palm Beach County Circuit Court, is the most explicit in detailing Epstein all • d the only suit to include ad as defendants, and the on make con- spiracy and racketeering allegations. Jane Doe will turn 18 in May. She lives with other family members in Palm Beach County, is nearing graduation from high school and is working part time, Leopold said. lany_kellertipbpost.com EFTA00188319 Epstein WE PAUA BEACH POST • SUNDAY, APRIL 6, 2008 A DEADLINE FOR EPSTEIN The day of reckoning for Palm Beach billionaire finan-cier and alleged sex offender Jeffrey Epstein is coming. Really! State Attorney Barry Krischer has put his foot down after nearly two years of wrangling with Epsteink team of high•priced attor- neys. By July 8, Krischerb spokesman said, there will either be a trial or a plea agree-ment The reclusive 55-year-old Wall Street prodigy allegedly had a college student steer underage suburban girls to his beach-front mansion for sex and weird massages in 2005. "lib simply time," said Krischer'S spokes-man, Mike Edmondson. In November Epsteink local attorney, Jack Goldberger, told Page Two the case would be resolved with a guilty plea by late January. But things have been stalled as Epstein uses a dream team of lawyers that also includes Harvard professor Alan Dershowitz and for-mer Whitewater prosecutor Ken Starr. Now, a trial has been set for July, just in case. "Things have been delayed," Goldberger said. The problem? Sources close to the case say Epstein doesn't mind so much the 18 months in jail if he pleads guilty but he can't stand the thought of being branded a Florida sex offender for life. "Ha been treated more harshly because he a wealthy man," Goldberger said. "He I jose [email protected] EFTA00188320 Lawsuit: Epstein assistants helped procure underage girl for sex Page 1 of 2 PalrnBeachPostcom Ea PRINTTHIS Lawsuit: Epstein assistants helped procure underage girl for sex By MARYIUMCE Palm Beach Post Staff Writer Monday, March 17, 2008 WEST PALM BEACH - A former Palm Beach Community College student who allegedy procured underage girls to give Jeffrey Epstein sexual massages at his Palm Beach mansion, and Epstein's personal assistant have been sued along with Epstein over their conduct. Browse Specials & Deals From Local Dealerships Autos PalmBeachPosicom The girl, identified only as Jane Doe, was 14 years old when she contends he engaged in sexual conduct with her after she went to his waterfront home in 2005 to give him a massage. Her lawsuit seeks unspecified damages for sexual assault and intentional infliction of emotional distress against Epstein. More local news She also sued • teWItbr ing.news, photos and all of today's Post stories.Loxahatchee and f New York City on grounds of conspiracy and Share This Story civil racketeeting. "We just want a full measure of justice for this girl," said her attorney, Ted Leopold. gr 'ho attended Palm Beach Community College, was paid by Epstein to bring girls to his mansion for massages and more, according to Palm Beach police. "I'm like a Heidi Fleiss," they said she told them. Her attorney could not be reached immediately for comment. was an Epstein personal assistant who arranged the encounters, even escorting the girls to his massage room, police alleged. "These two conspired with him to help with the criminal enterprise," Leopold said. Jane Doe, through her father and stepmother, filed a federal lawsuit against Epstein in January. She dismissed it after her mother said she wasn't consulted about the litigation and sought to intervene. The mother is acting on her daughter's behalf in the latest lawsuit. 1•44n • ihvalmhaarhnnet nrinfthig r.lickabilitv.eotnint/cot?actionntectitle=Lawsuit%3A+Epst... 3/18/2008 EFTA00188321 Lawsuit: Epstein assistants helped procure underage girl for sex Page 2 of 2 Epstein's lawyer has denied the girl's allegations and said her family is simply attempting to get money from a very rich man. Epstein, 55, is a Manhattan money manager who has homes there, in New Mexico and the Virgin Islands in addition to his $8.5 million Palm Beach mansion. Two other Jane Does have sued Epstein in federal court this year, making similar allegations to those of the first Jane Doe. Those cases remain active. Also pending against Epstein in state court is a felony charge of solcitiation of prostitution arising from the same alleged incidents with several girls. That case is now scheduled for trial in July, two years after he was indicted. Jane Doe's new lawsuit, filed in Palm Beach Circu't Codige most explicit in detailing Epstein's alleged misconduct. It is the first to includ as defendants, and the first to make conspiracy and racketeering allegations. Jane Doe will turn 18 in May. She lives with other family members in Palm Beach County, is nearing graduation from high school and is working part time, Leopold said. Find this article at: http://www.palinbeachpost.corn/localnews/content/local_news/epaper/2008/03/17/0317epstein.html F Check the box to include the list of links referenced In the article. lirrn•//nutmhenrlinnsf tirintthiS.CiiCkabilitv.com/pt/cpt?action=cpactitle=Lawsuit%3A+Epst... 3/18/2008 EFTA00188322 Above the Law: Billionaires in the Bedroom Page 1 of 2 NEWS Above the Law: Billionaires in the Bedroom Mogul Reportedly Built $30 Million Sex Grotto to Indulge His Desires By MARCUS BARAM July 20, 2007 — When it comes to sexual deviancy, the rich really are different from the rest of us. Instead of hiring cheap hookers for an hour in a motel, they fly in high-end prostitutes for the weekend to frolic in their underground grotto. Rather than buying sex toys to liven things up, they'll build a sex vault complete with bondage and S&M gear. The latest in a long line of lurid Lotharios is said to be computer chip mogul Henry T. Nicholas III, who allegedly built a $30 million underground grotto, complete with hidden doors and secret levers, at his equestrian estate in Laguna Hills, Calif. According to court documents unearthed by the Los Angeles Times, Nicholas is said to have planned a "secret and convenient lair" where he could indulge his "manic obsession with prostitutes" and "addiction to cocaine and Ecstasy." The 47-year-old billionaire, who co-founded Broadcom Corp in 1991, had his private jet ferry prostitutes from New Orleans, Chicago and Las Vegas to his lair, nicknamed the Pond, where he provided his rock-star guests with drugs, including mushrooms and nitrous oxide, according to the draft complaint. In addition, the complaint dug up by the Times alleges that Nicholas used the lair as his "personal brothel" until his wife caught him in the act with a prostitute, according to the paper. His wife, Stacy Nicholas, has since filed for divorce. Nicholas' attorney Steven A. Silverstein told the Times that "all of the allegations are denied." In 2000, Nicholas told the paper that the underground facility was a "pump house" to handle runoff from his horse trails. The allegations seem to echo other well-publicized cases. Publishing heir Richard Quadracci reportedly ran a gay sex club, complete with a 1,000-square-foot playroom equipped with a cross, bondage boards, harness power hoists and other X-rated paraphernalia, out of his penthouse apartment in Manhattan. Quadracci claims that he only ran a Web site describing a bondage-themed bed and breakfast that he planned to open one day. Eventually, his condominium board sued him and the case was settled in early 2005. Other notorious cases include Jeffrey Epstein, the billionaire financier who was charged with felony solicitation of a prostitute for hiring underage girls to give him massages at his Palm Beach mansion. In that case, some of Epstein's lawyers including famed barrister Alan Dershowitz, reportedly embarrassed the girls by unearthing their MySpace pages on which they recounted their drug use. 8/31/2007 EFTA00188323 Above the Law: Billionaires in the Bedroom Page 2 of 2 The Palm Beach Police requested an investigation by the FBI after the state's attorney reduced the charges in that case. Currently, prosecutors are expecting the case to go to trial and a case disposition hearing is scheduled for Nov. 16. The types of sex and erotic indulgences may vary in each case but they're all made possible by having money. "The rich aren't more prone to extreme sex but they are more likely to have the resources to spend on it," said Manhattan -based therapist Ian Kerner. "There are the $2 toothless hookers and the $20,000 call girl virgins but there's still work for all of them." Kemer believes that extreme sexual appetites have less to do with money than with core desires and instincts shaped by genetics and your upbringing. But being wealthy and powerful allows you to indulge those cravings -- sometimes with unexpected results. "I've had cases working with Wall Street bankers who always have to be about testosterone and they never get to explore their feminine side or their vulnerable side and these guys often go to dominatrixes and explore being whipped and spanked," said Kemer. They also may feel that their wealth is undeserved and that they need to be humiliated. "The investment banker who's mastered the universe just wants to chill out and be dominated." Wealthy men and women who are in the public eye may already feel above the law but they seek the thrill of putting themselves in high-risk situations. "These are people who feel they can do what they want all the time," said Gini Graham Scott, the author of "Homicide by the Rich and Famous." "The money lets them indulge every whim and eccentricity and they have the freedom to experiment," she explained. "But once they achieve a certain thrill, they need to expand that. After a while, it gets boring and they keep pushing the envelope on extreme behavior." That certainly seemed to be the case with Fiat heir Lapo Elkann, who was hospitalized in 2005 after overdosing at the apartment of a 53-year-old transvestite named Patrizia. After a stint in rehab in Arizona, Elkann moved to Manhattan, launched a new line of sunglasses and started indulging new passions: speeding in his family's racecars. Bravo! Copyright O 2007 ABC News Internet Ventures ant-mann. i.e. new., Invint9iii-TAQQ9Rq 8/31/2007 EFTA00188324 Describe your relationship with Mr. Epstein. How long have you known Mr. Epstein? How did you meet? What was your role at the New York Academy of the Arts? What was Epstein's involvement with the NYAA? Did Epstein express any interest in one particular style of artwork or interest in a specific artist attending NYAA? Did any NYAA students work for Mr. Epstein or yourself? Were there ever any complaints filed against Mr. Epstein by young female students while he was active with the NYAA? Did Mr. Epstein ever show any noticeable attention or exhibit any questionable or inappropriate behavior towards young females while he was involved with the NYAA? (Believed to have brought a young female as his date to a formal function sponsored by NYAA) Did Mr. Epstein leave the NYAA on good terms? Did any of the students paint portraits of any of your family members during this time period?(=ainted portraits onhen? Where? What did the art depict? When was your last contact with Mr. Epstein? What was it in reference too? EFTA00188325 Page 1 of 1 BLAME GAME rake mychic. reel deteclivc: June 21, 2007 -- DID legal eagle Alan Dershowitz and alleged pervy billionaire Jeffrey Epstein use their clout to get a speech canceled at Harvard? That's the belief of Rutgers University biologist Robert Trivers, whose talk at Harvard's Program for Evolutionary Dynamics (PED) was axed after he called Dershowitz a "Nazi-like apologist" for his "rationalization of Israeli attacks on Lebanese civilians." Trivers told the Harvard Crimson a PED official said he was "sworn to secrecy" about who pulled the plug. But Trivers blames Dershowitz, who sits as a faculty affiliate on PED, or Epstein, who donated $6.5 million to create PED and has retained Dershowitz as a defense lawyer against his 2006 indictment for soliciting underage prostitutes. Epstein's lawyer, Gerald Lefcourt, had no comment. Dershowitz told us Trivers "has a reputation as a barroom brawler and has threatened to beat me up"- but he insisted he had nothing to do with the cancellation. Click Here For Great CffilebRics W:V/`;,-M.CV:::.:1A 1f TONIGHT 10/9C boys are brick! over lo gel psyched! Hate NEW YORK POST Is a registered trademark of NYP Holdings, Inc. NYPOST.COM, NYPOSTONLINE.COM, and NEWYORKPOST.COM we trademarks of NYP HoldIngS, Copyright 2007 NYP Holdings, Inc. All rights reserved. . at: nlm9Tirttlittn•//unutv nvnnct rnmkeven/0671 9n 7/11/2(107 EFTA00188326 .e Bad News for Jeff Epstein? - Mergers, Acquisitions, Venture Capital, Hedge Funds ... Page 1 of 3 HOME PAGE 1 MY TIMES TODAY'S PAPER gbexclu ork (ilAnt Friday, July is, 2007 VIDEO MOST POPULAR 1 TIMES TOPICS 1 Tralol Business 1 WORLD U.S. N.Y./REGION BUSINESS TECHNOLOGY SCIENCE I lEALTH SPORTS OPINION ARTS AUTOS MEDIA & ADVERTISING WORLD BUSINESS SMALL BUSINESS YOUR MONEY DEALBOOK MARKETS RESEARC DeaRlookEdited by Andrew Ross Sorkin DEALBOOK I MERGERS & mammon HOME ' ACQUISMONS RANKING JOBS LP.O. / r PRIVATE OFFERINGS I EQUITY More Bad News for Jeff Epstein? July U, 2007,12:26 Pm Link to This TOPICS Investment Banking E-mall This INDUSTRIES HEDGE FUNDS It was just about a year ago that Jeffrey Epstein, the reclusive financier, was being charged with soliciting prostitutes in Palm Beach, Fla. He may now have another image problem on his hands. BusinessWeek reports that Mr. Epstein's Virgin Islands-based money-management firm, Financial Trust Company, is listed in a filing with the Securities and Exchange Commission as a stakeholder in Bear Stearns's High-Grade Structured Credit Strategies Enhanced Leverage Fund, which became much easier to refer to in recent weeks as "Bear Stearns' collapsing hedge fund." SEARCH D PEN CAP LATEST It is a tantalizing nugget of information about someone who rarely discloses anything MERGER about his business or his billionaire clients. Despite his penchant for privacy, Mr. Epstein Mark runs in prominent circles: he once flew former President Bill Clinton on his 727. the Cul Playtex Regulatory filings show that Mr. Epstein's firm had voting power over 10 percent of the Deal to equity in the Bear Stearns fund, which, aided by loans from some of Wall Street's biggest Dutch. LaSalle banks, bet heavily on the securities linked to the market for subprime mortgages, or those INVESTM to homeowners with weak credit histories. Banks Role in As the subprime mortgage market has been rocked by a rise in defaults, many of those bets Deutse Bank C have gone bad. As of the end of April, the Bear fund was down 23 percent for the year. ti,1".1t.nnl, hInne rewi ;111PC rni-n/7007/07/11/more-bad-news-for-ieff-enstein/ 7/13/2007 EFTA00188327 , More Bad News for Jeff Epstein? - Mergers, Acquisitions, Venture Capital, Hedge Funds ... Page 2 of 3 Mr. Epstein did not respond to BusinessWeek's calls, and his lawyer had no comment. Of course, Mr. Epstein is not alone in his exposure to the fund. A fund-of-funds managed by Paris-based BNP Paribas is listed in the S.E.0 filing as well. That fund was also heavily invested in Wood River Partners, a $127 million fund that imploded in 2005. Bear Stearns says it will reveal the details of the fund's losses next week. Another Bear Stearns fund that got into trouble recently (with the same ridiculously long name as the other fund, except without the words "enhanced leverage") is being propped up by loans from the firm. It was down about to percent as of April. The younger, "enhanced" fund is more heavily leveraged, and Bear Stearns has said it won't provide any financing for it. Go to Article from Busintss ek* Go to Earlier DealBook Rein Add your comments... Name E-mail Comment Required Required (will not be published) Submit Comment Comments are moderated and will be posted if they are on-topic and not abusive. They may be edited for length and clarity. For more information see our Member Agreement. Massa( Investi. Investr I.P.OJOR Tax Lo Deal to Indian' $1.1 Bil Permir Share I PRIVATE More S Buyout Coldm. China] Fund Ex-Sea Buyout DEALER Airlines Autos Basic Industrii Consun Goods Get Dc How Also if 4 Ho + Tip kils.imanthnnfr Mane mitimes r.nrri/2007/07/1 Umore-bad-news-for-ieff-enstein/ 7/13/2007 EFTA00188328 Bear Steams' Collateral Damage Page 1 of 3 h it How BlackBerry Curve"' only hum AT&T, the world's leading provider of IllackRunry" service, ailiNaCkeettyCLIVe• f Rot I RF In by Thea$46K5v-H fICenicaNis BusinessWeek Register Sign In TOP NEWS July 11, 2007, 12:01AM EST Bear Stearns' Collateral Damage Money manager Jeffrey Epstein, BNP Paribas, and other investors are mired in Bear's troubled hedge fund that bet big on subprime mortgages by Matthew Goldstein The implosion of a hedge fund often sheds some unwanted attention on the wealthy investors who those to sink money into the venture. That's certainly the case with an 11-month-old Bear Stearns hedge fund that bet heavily on risky bonds backed by subprime mortgages and is teetering on the verge of collapse (see BusinessWeek.com, 7/9/07, "Mutually As_sured Mayhem.). One of the bigger investors in the troubled Bear Steams fund is Jeffrey Epstein, a former Bear Stearns trader turned money manager for the super-rich, according to regulatory filings. Over the past year, Epstein has garnered his fair share of notoriety and sensational headlines. Last July, prosecutors in Florida charged the onetime math teacher with soliciting sex from prostitutes at his Palm Beach (Fla.) mansion. Palm Beach police also alleged that the 53-year-old Epstein paid teenage girls to give him nude massages, but prosecutors did not charge him with that offense. "MONEY MAN OF MYSTERY" The racy allegations involving Epstein—once labeled New York's most eligible bachelor by the New York Post— have been good fodder for the New York tabloids and gossipy Wall Street Web sites such as Dealbreaker.com. Now it appears Epstein may have another public relations headache on his hands over an ill-fated big bet on a hedge fund set up by Bear Steams (BSC) last summer—right around the time he was getting into trouble with the law. Epstein's Virgin Islands-based money-management firm, Financial Trust Company, is listed in the SEC filing as a "beneficial owner" of the Bear Steams High-Grade Structured Credit Strategies Enhanced Leverage fund. A January filing with the Securities and Exchange Commission describes Epstein's firm as having "the power to vote or dispose of" 10% or more of the equity of the hedge fund, which raised $642 million from investors last summer. But the hedge fund's purchasing power was much bigger, given its ability to borrow billions of dollars from banks such as Barclays (BCS), Goldman Sachs (GS), Deutsche Bank (DB), Citigroup (C), and Bank of America (BAC). Epstein, who splits his time between Manhattan, Palm Beach, and St. Thomas, didn't return several phone calls. Gerald Lefcourt, one of the criminal defense lawyers helping Epstein fend off the solicitation charge, had no n"rrartrindiviwinilv/rinfinchirnnfent/inI2007/clh20070710 434383... 7/13/2007 EFTA00188329 Bear Steams' Collateral Damage Page 2 of 3 comment. Epstein, once described by New York magazine as an "international money man of mystery," reportedly won't take on any clients who aren't billionaires. One of Epstein's longtime clients is Leslie Wexner, the billionaire founder and CEO of the Limited Brands (LTD) retail chain. BIG LOSERS Even beyond his money-management business, Epstein has cut a high-profile figure. Over the years, he has befriended powerful politicians, celebrities, and academics, including former President Bill Clinton, Donald Trump, and law professor Alan Dershowitz. Epstein isn't the only supposedly savvy money manager to the super-rich to throw money into the Bear Stearns funds. A so-called hedge fund-of-funds managed by Paris-based BNP Paribas (BNPQY) also is listed on an SEC filing as a beneficial owner of the same beleaguered Bear Stearns fund in which Epstein invested. A BNP spokeswoman declined to comment. A person familiar with BNP's Ozcar Multi-Strategy fund, which invests in a variety of different hedge funds, says the problems at Bear Stearns should have minimal impact on Ozcar's performance. Still, this isn't the first time the BNP fund has made a disastrous bet on a hedge fund. The Ozcar fund, and other affiliated BNP funds, invested about $49 million in Wood River Partners, a onetime $127 million hedge fund that went bust in October, 2005, amid allegations of fraudulent trading. On May 30, John Whittier, the former manager of the hedge fund, pleaded guilty in federal court in Manhattan to charges of carrying out a scheme to defraud investors in the fund. The Ozcar fund, of which little is publicly known, is looking at having invested in two big losers in its brief four-year existence. TAINTED REPUTATION? The hedge fund that Epstein and BNP invested in is barely holding on after using billions in borrowed money to buy risky bonds backed by ailing subprime mortgages. The fund was down 23% for the year as of the end of April. Bear Stearns says it will provide a full accounting for the funds' losses sometime next week. In June, Bear Stearns suspended investor redemptions. Some frustrated Investors are offering to sell their shares in the beleaguered hedge fund for as little as 10 cents on the dollar in the secondary market. Other investors are contemplating litigation. The Securities and Exchange Commission, meanwhile, has launched a preliminary investigation into the events leading up to the collapse of the fund (see BusinessWeek.com, 6/25/07, "Bear's Big Loss Attracts SEC Attention"). A sister fund also run by Bear Stearns is faring a bit better, but that's only because the big Wall Street firm has opted to prop up that entity with $1.6 billion in loans (see BusinessWeek.com, 6/22/07, "Bear Stearns to the Rescue—Sort Of"). The four-year-old Bear Stearns High-Grade Structured Credit Strategies Leverage fund was down about 10% as of the end of April. Bear Stearns has suspended investor redemptions in that fund, too. The Wall Street firm, however, has decided not to provide any financing to the younger fund, which was more heavily leveraged and indebted. The near-collapse of the two Bear Stearns funds has sparked widespread concern on Wall Street because both hedge funds used billions in borrowed money to buy sophisticated securities called collateralized debt obligations. Popularly known as CDOs, these bond-like securities are hard-to-value investments that rarely trade. There is fear that the mass liquidation of the CDOs still held by the two hedge funds could cause a widespread devaluation in CDO prices. The trouble with the two hedge funds has already forced a management shakeup at Bear Stearns' asset management division and ultimately may end up sullying its reputation. einni/nriritIlltztrkiluhinflaCiv ienntentlit112007/clh20070710 434383 7/13/2007 EFTA00188330 20A THE PALM BEACH POST • WEDNESDAY, FEBRUARY 13, 2O08 W S C The Palm Beach Post TOM GIUFFRIDA Rublisiter JOHN BARTOSEK. Editor CHARLES GERARD!, General Manager Blli. ROSE, Managing Editor RANDY SCHUI.17., Editor of the Editorial Page JAN TUCKWOOD, Associate Editor BARRY BERG, PP Cimdation LARRY SIEDLIK. VP& Treasurer JOHN KELLY, VP Advertising GALEHOWDEN, VP Community Relations turd Mathetiotg LINDA MURPHY, VP Human Resources BOB BALER, VP Operations LAURA DECK CUNNINGHAM, Director, Marketing Services DAN SHORTER. General Manager, PalmBeadtPostrom Spare us the outrage An 11-month police investigation led to an indictment on one felony charge of solicitation of prostitution. That was in July 2006, and part-time Palm Beacher Jeffrey Epstein still has faced no repercussions for al- legedly preying on underage girls. So maybe Mr. Epstein is satisfied that he's getting his money worth from his large legal team, which includes Harvard Law School Pro- fessor Alan Dershowitz (remember • OJ. Simpson?) and Kenneth Starr (remember Monica Lewinsky?). Jack Goldberger of West Palm Beach, who also on the team, told Post columnist Jose Lambiet in November: "This case is absolutely • going to end without a trial within the next two months." He was wrong, but Mr. Gold- berger remains on Mr. Epsteink • payroll, feigning moral outrage at two lawsuits filed this year against • the- Manhattan money manager. The lawsuits allege sexual exploita- tion of teenaged girls, one of them as young as 14. Said Mr. Goldberger ifter the first lawsuit, seeking more Lawyers for accused sex predator sound foolish. than $50 million, was filed on Jan. 24: "We think this shows what this case is all about: money." Yes, it is — Mr. Epstein's effort to buy his way out of prosecution. According to the lawyer of a 17- year-old whose parents are suing him, Mr. Epstein masturbated in front of her (she was 14 at the time) and used a vibrator on her at his home in February 2005. Another Epstein attorney, Lilly Ann Sanchez dismissed it: "Jeffrey Epstein did not have sex with this woman." For those girls who claim that he did, Mr. Epsteint.lawyers maintain that he did not know their ages, de- spite a police search of his home and garbage that found phone messages about the girls' school schedules and even a high school transcript. For all of his money, Mn Epstein's best defense remains "I didn't know 'that I was a criminal pervert'? • EFTA00188331 THE PALM BEACH POS1 • TUFSOAY, FEBRUARY 12.2008 Girl in sex-abuse suit alleges harassment The defendant .the accuses is a part-time Palm Beach resident. By LARRY KELLER Palm froth Post Staff Writer SWEET PALM BEACH — A lawyer representing one of two girls who recently sued part-time Palm Beach resi- dent Jeffrey Epstein in fed- eral court, claiming sexual assault, has asked a judge to stop Epstein and his attor- neys from "continuous and systematic harassment" The girl, identified in court documents as "Jane . Doe," 1Z says a process server showed up at her place of employment on Feb. 1 to serve a subpoena for her deposition, originally scheduled for Feb. 6, even though her attorney had told Epstein attorney twice that he would accept the sub-poena on her behalf. Also, Jane Does attorney said he and Epstein% lawyer already had agreed to reschedule the deposition for another date. The girl's mother, who lives near Atlanta, also was served. About the same time, another man came to Jane Does workplace and said he was a lawyer who needed to contact her, the motion filed by West Palm Beach lawyer Ted Leopold alleges. "It can only be concluded that Epstein and/or his coun- sel are purposefully attempt- ing to harass Jane Doe and her mother," Leopold said in his motion. Epstein attorney Jack Goldberger filed a writ- ten response saying there was no harassment, only a simple, routine serving of a subpoena. Its not the first time one of Jane DoeS parents has complained of harassment by the Epstein. camp: Her father said in 2006 that private investigators ag- gressively followed his car, photographed his home and chased off visitors after his daughter accused Epstein. Jane Doe contends that when she was 14, she was recruited to go to Epstein mansion to give him a mas- sage. She says he engaged in sexual conduct with her at that time. Epstein is a wealthy Manhattan money manager who was indicted by a Palm Beach County grand jury in July 2006 on a single count of felony solicitation of prostitu- tion. Police investigated him for 11 months, concluding that he engaged in sexual activity with several under- age girls whom he paid to give him massages at his wa- . terfront home. Epstein .has maintained he did not know the girls were minors. 0 larry_keueripbposttorn EFTA00188332 to be choosy neighborhood. Conditi prompted a tornado, Storms could he on the MAO Poo!ovaphn, moon county. Another suit alleges sex during massage By LARRY KELLER Palm Beach That Staff Writer WEST PALM BEACH - Another woman filed a federal lawsuit against Jef- frey Epstein on Wednesday, alleging that he turned a massage she gave him at his Palm Beach mansion into a sexual episode when she was 16 years old. Identified as "Jane Doe No. 3," she is seeking more than $50 million, the same as two other lane Does" who filed similar lawsuits in the past six weeks. All three suits were filed by Miami lawyer Jeffrey Herman. Herman subsequently withdrew the first Jane Does lawsuit because of squabbling by her patents over the litiga- tion. The girl may refile the suit after she turns 18 in May and can make her own deci- sions, Herman said. Other alleged victims also have contartpd him, Herman said. "I do anticipate more cases," he said. In the latest litigation, Jane Doe No. 3 alleges that she was recruited lege student, to give Epste money at his waterfront home late in 2004 or early in 2005. The lawsuit alleges that, while on the massage table, Epstein sexually touched Jane Doe No. 3, then mas- turbated. She is suing on grounds of sexual assault and intentional infliction of emo-tional distress. • "She felt intimidated. She felt scared," Herman said. Jane Doe No. 3 made only the one visit to Epsteinb home, he said. "It's just another copycat lawsuit filed by the same lawyer who appears less interested in the truth than in grandstanding with these press conferences," said Jack Goldberger, one of Epsteinb attorneys. "We now have sworn testimony that girls lied about their age to Jeffrey Epstein, and they were care- ful in being convincing that they were over the ag Herman said instructed Jane Doe '140. , "When he asks how old you are, tell him 18 or 19 years old." But he said it doesn't matter. "They were underage girls," Herman said. "They were sexually assaulted." In addition to the civil law- suits, Epstein was indicted on a single count of felony solicitation of prostitution in July 2006 after a lengthy Palm Beach Police Depart- ment investigation into his activities with underage girls at his home. A resolution has been delayed continually. The case is on Monday's court docket but is expected to be rescheduled once again. "One of the reasons (Jane Doe It. 3) came forward is she is tired of waiting for jus- tice," Herman said. elany kelleattpbpost.com It Anti-Semitic incidents drop for second year part of our society." It marked the second straight year Florida's num- bers have declined and the third consecutive decline na- tionally. Florida ranks fourth in anti-Semitic incidents, behind New York, New Jersey and California. But an audit shows a worrisome continued use of swastikas. By KEVIN DEUTSCH Palm Roark Pm/ Rtaff EFTA00188333 Daily News Photo byJeffrry Langlois edge to be able to see traffic on South County Road on Wednesday afternoon. if greenery has to go ILLIAM KELLY News Staff Writer r not to bring out those heavy- ;commendations of the town ionsultant, the Planning and voted 5.2 Tuesday to reject tandards for intersections. would force owners of corner s and other structures and cut taller than 30 inches within to drivers would have a better ing commissioners said they of the new rules would start a to have a huge uproar," einnts' iy Dowell said. He added then en" with existing intersection ;ht rules. dsion is a recommendation to owners make improvements equal to at least 25 accessory Percent of the value of their homes, ac buildings or structures within the new sight tri- angle measurements. Commissioner Gene said that would result in a dramatic loss of greenery at many intersections along North Lake Way. "Landscaping is extremely town," he said. important to this Brian Mirson, a traffic engineer and urban planner with American Consulting Engineers, said the new standards would reduce the town'slegal exposure if Poor intersection sight distance is founde relevant to a crash. Tor a car to be required to pull 8 feet out in the road to havesafe space to make a turn — we don't think it's defensible" in court, Mirson said. The consultant's review of town intersections showed that trees, shrubs hedges, walls and oth-er obstacles tonight could cause or contribute to a vehicle crash at 235 of the town's 278 intersec- tions. The new Sight +.1..-.-1-- ----14 r-..-- sl--- --nother suit filed against Epstein Lawsuit seeks $50 million, alleges billionaire touched girl, then 16, inappropriately during a massage at his PB home. By WILLIAM KELLY Daily News Staff Writer Another young woman is seeking more than $50 million in damages from part-time Palm Beach billionaire Jeffrey Epstein, alleging he sexually assault- ed her at his Palm Beach home when she was 16 years old. The federal law- suit, filed Wednes- day, claims the 55-year-old Man- hattan money man- ager touched the girl inappropriately while she gave him a massage on one occasion in 2004 or 2005.The girl's attor- ney, Jeffrey M. Herman of Miami, an- nounced the suit Wednesday at a news conference at Peruvian Park. It is the third lawsuit Herman has filed on behalf of young women who al- lege Epstein sexually assaulted them while they were underage and while they performed massages on him at his El Brillo Way home. One of the earlier suits was dropped last week because the 17- year-old girl's divorced parents couldn't agree on how to pursue the case, Her- man said. None of the alleged victims have been publicly identified. The young woman on whose behalf Wednesday's suit was filed is called Jane Doe No. 3. She is now 19, Herman said. Epstein's attorney, Guy Lewis of Mi-Epstein Miami attorney files third lawsuit against the part-time Palm Beacher. EFTA00188334 Daily News Photo by Jeffrey Langlois edge to be able to see traffic on South County Road on Wednesday afternoon. if greenery has to go .LIAM KELLY lews staff Writer not to bring out those heavy- onunendations of the town nsultant, the Planning and voted 5-2 Tuesday to reject indards for intersections. ould force owners of corner and other structures and cut alter than 30 inches within drivers would have a better g commissioners said they the new rules would start a have a huge uproar," Corn- Dowell said. He added that " with existing intersection t rules. ion is a recommendation to vhich has the final say. :ommended enforcement of whenever affected property owners make improvements equal to at least 25 percent of the value of their homes, accessory buildings or structures within the new sight tri- angle measurements. Commissioner Gene said that would result in a dramatic oss of greenery at many intersections along North Lake Way. "Landscaping is extremely important to this town," he said. Brian Mirson, a traffic engineer and urban planner with American Consulting Engineers, said the new standards would reduce the town's legal exposure if poor intersection sight distance is found relevant to a crash. "Thar a car to be required to pull B feet out in the road to have safe space to make a turn — we don't think it's defensible" in court, Mirson said. The consultant's review of town intersections showed that trees, shrubs, hedges, walls and oth-er obstacles to sight could cause or contribute to a vehicle crash at 23