# Profoundd archive — Epstein Files
# Bates number: EFTA01769852
# Title:        From: David Stern
# Dataset:      10
# Pages:        7
# Images:       7 detected
# Tags:         epstein, doj, dataset-10, image-described
# Source PDF:   https://profoundd.com/epstein-docs/EFTA01769852/download
# Doc viewer:   https://profoundd.com/epstein-docs/EFTA01769852
#
# Text below is what Profoundd has extracted from the source PDF.
# 'ocr-enriched' tag means OCR was applied to scan-only pages.
# Image descriptions are AI-generated factual captions (llava:13b).
#----------------------------------------------------------------------

=== SUMMARY ===
From: David Stern Sent: Monday, April 16, 2012 4:10 PM To: Jeffrey Epstein Subject: Ferrous The =ron ore asset I sent you information about might be bought by =cahn. I still have direct access to the seller. Key para =rom article below: "Icahn is nearing agreement to buy a 14.9 =ercent stake of Ferrous Resources Ltd., a closely held Brazilian =ron-ore producer, from Harbinger for $1.50 a share, four people =amiliar with the transaction said last week. That's about =ne- third of what Harbinger pa


=== EXTRACTED TEXT ===
From: David Stern 
Sent: Monday, April 16, 2012 4:10 PM 
To: Jeffrey Epstein 
Subject: Ferrous 
The =ron ore asset I sent you information about might be bought by =cahn. 
I still have direct access to the seller. 
Key para =rom article below: 
"Icahn is nearing agreement to buy a 14.9 =ercent stake of Ferrous Resources Ltd., a closely held Brazilian =ron-ore 
producer, from Harbinger for $1.50 a share, four people =amiliar with the transaction said last week. That's about =ne-
third of what Harbinger paid when it bought part of the firm in =008." 
Back to =tory 
Falcone Waits for Icahn =oubling Down on Network 
By Katherine Burton, Max Abelson and Saijel =ishan - Apr 16, 2012 
Phil Falcone waited at the bar of the Post House =n New York with two colleagues and a $199 bottle of Tignanello. His 
=uest, Carl Icahn <http://topics.bloomberg.cornicarl-icahnk , was =ate. 
Falcone, the hedge-fund manager =ho has invested $3 billion in wireless broadband startup LightSquared =nc., said he 
hoped the vulture investor, who made billions seizing =ontrol of companies, might become a partner, according to a 
person at =he restaurant that night in March. 
It had been a difficult few =onths. On Valentine's Day, the U.S. Federal Communications Commission =aid it was 
preparing to withdraw LightSquared's permission to operate = nationwide network, citing interference with global-
positioning =evices used in navigating everything from fighter jets to minivans. The =ompany said it was cutting 45 
percent of its staff, and Chief Executive =fficer Sanjiv =huja <http://topics.bloomberg.com/sanjiv-ahuja/> resigned. 
In December, the Securities and =xchange Commission told Falcone it may sue him over a $113 million loan =e took from 
his hedge fund, Harbinger Capital Partners LLC, to pay =ersonal taxes. Then, for the second time in three years, he 
blocked =nvestors from exiting the fund. Weeks later Harbinger borrowed $190 =illion at an effective rate of 24 percent 
to repay debt. 
The three men at the bar =eassured one another that LightSquared could meet its loan payments =efore Icahn, in a red 
jacket, walked in. 
Treadmill, =irst 
Falcone is fighting to maintain =ontrol of lightSquared and reverse the biggest drop in assets in =edge-fund history --
$23 billion from withdrawals and losses. He's =oing it with the same obstinacy that led him to gamble his fund on a 
=tartup, then ignore signs that his plan to compete with entrenched -telecommunications companies was in danger. 
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When backed into a =orner, the 49-year-old former professional hockey player, whose bets =gainst subprime mortgages 
propelled his fund to a mid-2008 peak of $26 =illion, puts his head down and charges, according to interviews with 
=riends, investors and Falcone himself. 
"This is pounding every single =ay and not giving up," Falcone said last month, sitting in a Park =venue office that 
features a treadmill in a bathroom and a Damien Hirst =pin painting. "I tend to be pretty aggressive." 
Light5quared's =reditors, including Icahn, 76, have agreed to wait until the end of the =onth before deciding whether to 
put the company in technical default as = result of the FCC's announcement. If Falcone, who heads the firm's =xecutive 
committee, can't persuade them to extend the deadline, =ightSquared could file for bankruptcy and wage war against 
debt holders =ho want a rapid sale of his spectrum, he said. 
Falcone and Icahn =ouldn't comment on their discussions. 
Sagaponack =ien 
At least $850 million of Falcone's=own money was at risk in Harbinger's main fund as of Aug. 31, loan =ocuments show, 
and Falcone has written down the value of LightSquared's=spectrum by 70 percent, or about $2 billion, in the past year, 
=ccording to people familiar with the fund who asked not to be =dentified because the valuations are private. 
He has halted =onstruction on a house near the beach in Sagaponack on the eastern end =f Long Island 
chttp://topics.bloomberg.com/long-island/> , where he owes =is former contractor $1.2 million, according to a lien filed 
last month =n Suffolk County. Falcone said he dismissed the contractor because of =elays. Renovations on a 27-room 
mansion near Central Park once owned by =ormer Penthouse publisher Bob Guccione that he and his wife Lisa bought 
=n 2008 for $49 million should be completed next year, he said. 
'Not Losing =leep' 
Falcone's spectrum investment =ccounts for about 40 percent of his main hedge fund. He said he's =onsidering a legal 
campaign, hiring lawyers including former U.S. =olicitor General Theodore Olson, to make the case that the government 
=hanged the rules and undermined his business. 
"What's happening is =uite frankly outrageous, it's un- American, it's unfair," Falcone =aid during the interview. "You 
mandate me to build out a network as a =ondition to buying the company, so I go and buy the company. And now 
=ou're not letting me build out the network?" 
Falcone doesn't look =esieged. Dressed in a blue Domenico Vacca shirt and gray pinstripe =ants, he wears his collar-
length hair in the same style as when he =layed center on Harvard's hockey team in the early 1980s. He sports a =eaded 
rainbow- colored bracelet on his right wrist and purple and pink =ne on his left, gifts from his twin, 7-year-old daughters. 
"I am not losing sleep =n this -- why would I lose sleep?" he said. "I still believe that =e had a great, and we still do have a 
great vision." 
'Complete =ismanagement' 
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Some investors have lost patience =ith Falcone's vision to build a 4G network. He was sued in federal =ourt in February 
by Lili Schad, a Wallkill,New York, resident who said she invested $4 million =ith Harbinger and wasn't told how much of 
the fund's money went =nto LightSquared or that its plan faced obstacles from regulators. Lew =helps, a spokesman for 
Harbinger, said the fund will respond once an =mended complaint is filed next month. 
"This has been nothing but a =omplete mismanagement of the fund," said Peter Rup, chief investment =fficer of New 
York- based Artemis Wealth Advisors LLC, which invests =n hedge funds chttp://topics.bloomberg.com/hedge-funds/> 
for =lients and doesn't have any money in Harbinger. 'There should have =een constraints on risk and concentration of 
the investments." 
Falcone's doubling down =n LightSquared fits a pattern, said Nathan Pettit, an assistant =rofessor of management at 
New York University's Leonard N. Stern =chool of Business who has done research on how status colors judgment. 
"People of status and =ower have an illusory sense they can control more than they do," said =ettit. "That leads to 
unrealistic optimism, increased risk-taking and =ecreased inhibitions." 
Concentrated Bets 
Most hedge fund managers =ave shunned illiquid holdings since the 2008 financial crisis, when =hey were forced to 
block client redemptions to avoid a fire sale. 
Eddie Lampert, who runs =reenwich, Connecticut -based ESL Investments Inc., is one of the few =illion-dollar hedge-fund 
managers to have taken a bet as concentrated =s Falcone's. After orchestrating a 2004 merger between his two =iggest 
holdings, retail icons Kmart Holding Corp. and Sears, Roebuck =amp; Co., the combined company, Sears Holdings Corp. 
(SHLD), has tumbled 46 =ercent. 
Falcone started buying shares and =ebt of SkyTerra Communications Inc. as early as 2005 in a bid to =ontrol a swath of 
scarce radio spectrum that could be used for surfing =he Web and watching YouTube videos. In 2010, he received 
permission =rom the FCC to buy all of the company on the condition he build a =ireless network, using cell towers and 
satellites, that could serve 260 =illion Americans. 
'New Driver 
Even then, Falcone knew =here were interference issues. He said in the interview they weren't =is to solve because GPS 
users were encroaching on his spectrum. 
"People who are in =djacent bands have to understand that there is now a new driver in town =riving on that highway," 
he said. "And they can't be weaving in =nd out of that highway." 
GPS users and government officials =eren't keen on getting out of Falcone's way. They objected after he =ought a waiver 
from the FCC in November 2010 to lift a requirement that =evices using his network communicate with satellites. The 
waiver would =et phones, tablets and computers work off nearby towers rather than =istant satellites, allowing 
LightSquared to compete with AT&T Inc. (T) and Verizon Communications Inc. (VZ), the two biggest U.S. =ireless carriers. 
AT&T Objections 
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AT&T said in a letter =o the FCC on Dec. 2, 2010, that there was "increasing concern" in =he industry about LightSquared 
signals interfering with GPS devices. A =onth later, on Jan. 12, 2011, the National Telecommunications and =nformation 
Administration wrote that the plan to use airwaves reserved =ainly for satellite communications raised "significant 
interference =oncerns." Deputy Defense Secretary William Lynn, then the Pentagon's No. 2 civilian, =rote a letter the 
same day citing "critical national security" =ssues. 
The letters didn't stop the FCC =rom granting the waiver two weeks =ater. The agency required that interference 
concerns be resolved, and a =orking group was set up to study the matter while LightSquared signed =p wholesale 
customers. 
GPS users, including Deere & Co. (DE) and Delta Air Lines Inc., =ormed a lobbying group in March to oppose 
LightSquared's plan. The =rganization, Coalition to Save Our GPS, said in a press release that =onth that Falcone's 
network posed "a serious threat" to GPS and =ecommended safeguards. 
'Can't Believe =his' 
Senator Charles Grassley, a Republican from Iowa, told FCC =hairman Julius Genachowski 
<http://topics.bloomberg.com/julius-genachowski/> in =pril that the SEC's investigation of Falcone should have led the 
=gency "to proceed with caution rather than step on the gas."=AT&T, based in Dallas, and Verizon in New York are 
among Grassley's=biggest donors, according to campaign-spending tracker OpenSecrets. 
In June, the Federal Aviation =dministration said outdoor and laboratory tests showed that GPS =eceivers would be 
affected by signals from LightSquared's 40,000 base =tations. Six months later, the Defense and Transportation 
departments =ssued a statement <http://www.gps.govinews/2011/12/lightsquaredk , citing an FAA analysis, that said 
=ightSquared's signals caused "interference with a flight safety =ystem designed to warn pilots of approaching terrain." 
While he doesn't have =93direct evidence" of a conspiracy to thwart him, "common sense =ill tell me that it's a 
concerted effort on behalf of certain =ompetitors," Falcone said. "Still, to this day, I'm like, I just =an't believe this." 
Michael Balmoris, an AT&T =pokesman in Washington, said in an e-mail that his company has been =93strictly neutral" 
on the matter. Bob Varettoni, a spokesman for Verizon, declined to =omment. The Coalition to Save Our GPS said in a 
March 30 FCC filing =hat LightSquared relied on the "faulty premise" it had authority to =perate a nationwide ground-
based network. "This is simply not the =ase and continued repetition will not make it so," the group =aid. 
LightSquared =91Blindsided' 
LightSquared was "blindsided," =aid Martin Harriman, an executive vice president who left the Reston, =irginia-based 
firm this year. 
"You've bought your really =ice house in Beverly Hills, and someone comes and knocks on the door =nd says, 'I'm sorry, 
but actually I'm not sure if you can =ontinue to live here,'" said Harriman, who has been named head of =usiness 
development at Telefonica SA's 02 unit. "You say, 'Why?' =hey say, 'Well, we just don't like it
in the industry =oresaw trouble. DirecTV, the largest U.S. satellite-1V provider, looked =t LightSquared's 
spectrum in 2004, according to CEO Michael White. 
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"A young engineer we had went =nd tested it and said, 'It conflicts with GPS, it will never work.' =o we backed away 
immediately," White said in an interview. Falcone =93made a bet that the government would say, 'Sure, go ahead,' or 
=omehow make it right." 
Last-Minute Loan 
The December warning that =ightSquared signals could cause planes to crash came less than a week =fter Harbinger 
disclosed in a letter to clients the receipt of a Wells =otice from the SEC saying the agency was considering suing 
Falcone. The =etter also said New York-based Harbinger was halting withdrawals from =ts main fund. 
The disclosures led to another =risis: A deal to refinance the remaining portion of a $400 million loan =o Harbinger from 
Zurich-based UBS AG collapsed, he said. 
As a Jan. 30 deadline to =epay UBS approached, Falcone turned to investment bank Jefferies Group Inc. (JEF) for help. 
That weekend =alcone was in Wellington, Florida, his daughters riding horses while he =egotiated by phone. 
Five Harbinger lawyers worked =hrough the night in New York hammering out a deal. Six minutes before a = p.m. 
deadline, Jefferies wired money. Falcone agreed to pay an =ffective interest rate of 24 percent for $190 million, four 
times what =he riskiest corporate borrowers pay. 
"People say, 'Boy, why would =ou have done that loan? Look at the terms!" Falcone said. "There =ere things that 
happened that kind of backed me in." 
Harvard Hockey 
Falcone has had the =ighting instinct since he played hockey in Chisholm, Minnesota, where =e grew up the youngest of 
nine children living in a three-bedroom =ouse. His father, who moved out when Falcone was 9, never made more =han 
$14,000 a year as a superintendent at a local utility. 
Falcone threw himself =nto hockey. Harvard University recruited him, and after graduation he =layed for a professional 
team in Malmo, Sweden. He ended up on Wall Street in 1985 after being sidelined by a leg =njury, trading high-yield 
debt at Kidder, Peabody & Co. in New =ork. 
"He was willing to push things, =ush hard on things, and push the limit on things," said Wade Lau, a =arvard teammate 
who was also from Minnesota and is now an executive at =inneapolis-based real estate investor Founders Properties 
LLC. "Phil =ertainly had that personality as a player and, obviously, it continued =n in business." 
White-Truffle Pasta 
Falcone acknowledged his =ushiness could be a handicap. He said it was a mistake to have =old-shouldered the GPS 
industry. 
We should have "reached out and =ried to do it in a more amicable fashion, as opposed to going in and =aying they're 
wrong, it's their problem, they should spend the =oney to fix it," Falcone said. "We tried to bully, not bully, but =ush our 
way through." 
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Still, when Falcone and five =ightSquared colleagues met over a meal of white-truffle pasta and =arolo at a Washington 
restaurant in January, they failed to come up =ith anything they could have done differently, according to a person =ho 
was there who asked not to be identified because the meeting was =rivate. 
'Desperate and Naïve' 
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origin: initial; background -clip: initial; background -color: =ransparent; font-family: Georgia, 'Times New Roman', Times, 
serif; =ine-height: 1.6em; font-weight: normal; background -position: initial =nitial; background -repeat: initial initial; 
">Falcone said he's =pending a day a week in Washington and is trying to negotiate a =pectrum swap with the military or 
others that would eliminate the GPS =roblem. The Pentagon won't go along, said Walt Piecyk, an analyst at =TIG LLC in 
New York. 
"A swap of spectrum isn't a =ealistic option," Piecyk said. "First, there's nothing readily =vailable and second, if there 
was, that's spectrum that could be =uctioned off for billions in proceeds." 
Falcone said if the swap =oesn't work he'll try to negotiate with GPS manufacturers to put =ilters on their devices or to 
use the lower end of his spectrum. Or =here's the court. 
"If I have to, I'll put it =nto bankruptcy, I don't care." Falcone said. " I will maintain =ontrol." 
Falcone faces some of the toughest =reditors in the business, said Brad Baiter, head of Boston-based Baiter =apital 
Management LLC, which invests client money in hedge funds. Icahn =long with investors including David Tepper, head of 
hedge fund =ppaloosa Management LP, have bought about $300 million of LightSquared =ebt. 
'Alpha-Male Investor' 
"Icahn is a =ake-control, alpha-male investor," Baiter said. "Falcone is both =esperate and naïve if he thinks of Icahn as 
anything other than an =dversary who would wrest control of the spectrum if LightSquared went =nto bankruptcy." 
Icahn is nearing agreement to buy = 14.9 percent stake of Ferrous Resources Ltd., a closely held Brazilian =ron-ore 
producer, from Harbinger for 51.50 a share, four people =amiliar with the transaction said last week. That's about one-
third =f what Harbinger paid when it bought part of the firm in 2008. 
Falcone, who last year =rote down the value of LightSquared's spectrum by 59 percent and cut =t about 25 percent 
more in February, said the losses aren't forcing =im to change his lifestyle. He has a house on the Caribbean island of =t. 
Barts, owns a Gulfstream V jet and said he's planning to build a =orse farm on Long Island. 
Mark Baron, who has known Falcone =ince they grew up in Minnesota, said his friend always seems unfazed by 
=dversity. 
"When his father left, no one =new what was going on, and it didn't seem to affect him, though I'm =ure it did," said 
Baron, co-owner of computer -equipment provider =ompudyne in Duluth, Minnesota. 
Domenico Vacca 
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One place Falcone is =isiting less frequently is Domenico Vacca, the New York boutique where suits =etail for $3,900 and 
shirts $490, according to a person with knowledge =f his purchases. He orders every four or five months compared with 
=very two or three months between 2006 and 2009, and is spending less =oney at the Madison Avenue store, the 
person said. Falcone said his =hopping remains the same. 
While one of those shirts appeared =arker under the arms in his office last month, Falcone said he doesn't =weat and 
didn't when checking his TW Steel watch during January's =own-to-the- wire loan negotiations. 
"This is not for the faint of =eart," Falcone said. "I've never looked at it as having $4 =illion or $25 billion as defining 
Philip Falcone. But who's to say I won't get back =o $25 billion?" 
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=== IMAGE DESCRIPTIONS ===
[Image 1] The image shows a document with text, which appears to be a page from a book or a report. The text is in English and discusses topics related to the telecommunications industry, including references to companies, technologies, and events. There are no visible names, dates, places, or logos that can be confidently described. The document does not contain any images or photographs. The text is infor

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[Image 3] The image shows a document with text. The document appears to be a letter or a report, as indicated by the header and the structure of the text. The text is written in English and discusses various topics, including financial matters and investments. There are no visible names, dates, places, or logos that can be confidently described. The document does not contain any images or photographs. The t

[Image 4] The image shows a page of text, which appears to be a document or a printed article. The text is in English and discusses various topics, including a court case, a political event, and a personal anecdote. The document is structured with headings and paragraphs, and there are visible names, dates, and locations mentioned within the text. The content seems to be informative or journalistic in natur

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[Image 6] The image is a scanned document, specifically a letter. It contains text and is addressed to Jeffrey Goldstein. The letter is dated April 10, 2012, and it discusses a matter related to a patent. The text mentions a patent application number and refers to a patent infringement case. The document is formal in nature, likely related to legal or intellectual property matters.