File 012135
Kenneth Starr Letter to Deputy Attorney General John Roth Regarding Federal Prosecution of Jeffrey Epstein (File 012135)
Legal correspondence from Kenneth Starr at Kirkland & Ellis LLP to Deputy Attorney General John Roth arguing against federal prosecution of Jeffrey Epstein, citing prosecutorial misconduct and violations of a Non-Prosecution Agreement.
Summary
Kenneth Starr submits a detailed legal submission to the Deputy Attorney General challenging the basis for federal prosecution of Jeffrey Epstein. Starr argues that federal prosecution is unwarranted due to legal and evidentiary deficiencies, the existence of a state felony plea, and significant prosecutorial misconduct by the U.S. Attorney's Office in Miami. He contends that AUSA Villafana's reinitiation of a federal grand jury investigation violates the September 24, 2007 Non-Prosecution Agreement and requests an independent de novo review by the Department of Justice.
CONFIDENTIAL SUBMISSION TOTHE OFFICE OF THE DEPUTYATTORNEY GENERALRE J. EPSTEINHOUSE OVERSIGHT 012135KIRKLAND & ELLIS LLPAND AFFILIATED PARTNERSHIPSKenneth W. StarrTo Call Writer Directly: Facsimile:777 South Figueroa StreetLos Angeles, California 90017www.kirkland.comJune 19, 2008John Roth, Esq.Principal Associate Deputy Attorney GeneralOffice of the Deputy Attorney GeneralUnited States Department of Justice950 Pennsylvania Avenue, N.W., Room 4115Washington, D.C. 20530Dear Mr. Roth:Dir. Fax:I again want to thank you for this opportunity to explain why we believe that a federalprosecution of Jeffrey Epstein is unwarranted. I appreciate your having informed us that youalready have our May 19 and May 27 communications to the Deputy Attorney General, as wellas our prior written submissions to CEOS and to the Southern District of Florida.In light of the significant volume of our prior submissions and to facilitate your review,we have drafted four supplemental submissions that will provide a roadmap for yourinvestigation of this matter. Given the bulk of these documents and their appended supportingattachments, you will receive this packet by messenger tomorrow. A brief description of each ofthe four submissions follows. First, I have included a succinct summary of the facts, law andpolicy issues at hand. This document sets forth a basic overview of the issues and summarizesour principal contentions as to why federal prosecution of this matter is neither appropriate norwarranted.The three other submissions include: a summary of the irregularities and misconduct thatoccurred during the federal investigation; a letter from former CEOS attorney Stephanie Thackerthat responds to CEOS's assessment of its limited review of Mr. Epstein's case; and a point-by-point rebuttal to First Assistant United States Attorney Jeffrey Sloman's recent letter which webelieve contains factual inaccuracies typical of our correspondence from the United StatesAttorney's Office in Miami (the "USAO"). Also, for your reference, the package you receivetomorrow will contain a binder including all documentation to which we refer in oursubmissions. Finally, we will be providing a detailed checklist of each submission or substantivecommunication to the USAO. Our intention is that you have copies of each such document toenhance your review. If there are any that you have not received from the USA() or CEOS,please advise and we will fedex them to you without delay.Chicago Hong Kong London Munich New York San Francisco Washington, D.C.HOUSE OVERSIGHT 012136KIRKLAND & ELLIS LLPJohn Roth, Esq.June 19, 2008Page 2As you are likely aware, the Department's prior review of this matter was incompleteand, by its own admission, not "de novo." See Tab 38, May 15, 2008 Letter from A. Oosterbaan.Without considering the Non Prosecution Agreement that left this matter to be resolved in theState or any of the misconduct, CEOS reviewers, tasked with reviewing some of their ownpreviously expressed opinions, assessed only whether the United States Attorney would "abuse[his] discretion" if he pursued this case. While we appreciate CEOS 's willingness to examinethese limited issues, its conclusion that a prosecution would not be an "abuse of discretion" ringsparticularly hollow in light of CEOS's admirably candid concessions that we have raised"compelling" objections and that a prosecution on these facts would require "novel" applicationsof federal law. Indeed, even a brief review of CEOS's own mission statement reveals howinapposite a federal prosecution is to the facts in this case.Importantly, we note that the CEOS review was conducted prior to the Supreme Court'svery recent decisions in Santos and Cuellar, which we believe—illuminating as they do theCourt's interpretive methodology when it comes to federal criminal law—powerfullydemonstrate the substantive vulnerability of the USAO's unprecedented employment of threefederal laws. That Office's interpretation would never pass muster under the Supreme Court'srecent pronouncements and should not be countenanced. That is all the more true under thecircumstances where the duly appointed U.S. Attorney opined that, in effect, the "unitary"Executive Branch was driving this prosecution. We now know that is not so.What I respectfully request, and what I hope you will provide, is a truly "de novo"review—that is, an independent assessment of whether federal prosecution of Mr. Epstein is bothnecessary and warranted in view of the legal and evidentiary hurdles that have been identified,the existence of a State felony plea and sentence that have been advocated by the State Attorneyfor Palm Beach County, and the many issues of prosecutorial misconduct and overzealousnessthat have permeated the investigation. I also request that you provide us with the opportunityduring your review to meet with you in person to answer any questions you may have and toelucidate some of the issues in our submission.We believe that an independent review will confirm our strong belief that federalprosecutors would be required to stretch the plain meaning of each element of the enumeratedstatutes, and then to combine these distorted elements in a tenuous chain, in order to convict Mr.Epstein. Indeed, just this week (and after two years of federal involvement in this matter),Assistant United States Attorney Villafana re-initiated the federal grand jury investigation—indirect contravention of the parties' Non Prosecution Agreement—and issued yet anothersubpoena seeking evidence in this case. See Tab 19, Subpoena to In thesubpoena, AUSA Villafana directs to appear on July 1, 2008 to give testimonyand produce documents to FGJ 07-103 West Palm Beach. The attachment to the subpoena seeksdocuments such as photographs, emails, telephone billing information, and contact informationthat relate to Mr. Epstein as well as specific other people who received protection from federalHOUSE OVERSIGHT 012137KIRKLAND &ELLIS LLPJohn Roth, Esq.June 19, 2008Page 3prosecution as a result of Mr. Epstein's having entered into the September 24, 2007 NonProsecution Agreement with the USAO.Notably, the Non Prosecution Agreement contains the following agreed condition:Further, upon execution of this agreement and a plea agreement with the State Attorney's Office,the federal Grand Jury investigation will be suspended, and all pending federal Grand Jurysubpoenas will be held in abeyance unless and until the defendant violates any term of thisagreement. The defendant likewise agrees to withdraw his pending motion to intervene and toquash certain grand jury subpoenas.See Tab 21, September 24, 2007 Non Prosecution Agreement. It also guarantees that personsidentified in the Grand Jury subpoena such as , and Leslie Groffand others will not be prosecuted. The new Grand Jury subpoena clearly violates the Non-Prosecution Agreement. Although Mr. Epstein has exercised his rights to appeal to theDepartment of Justice with the full consent and knowledge of the USAO, he has not breached theAgreement. The re-commencing of the Grand Jury is in violation of the Agreement.But further, the new investigation, which features a wide-ranging, fishing-expedition typeto search in New York does nothing to satisfy the very essential elements of federal statutes thatare lacking despite the intensity of an over two-year investigation in the Palm Beach area.Absent evidence of Internet luring, inducements while using the phone, travel for the purpose,fraud or coercion, the subject of the New York investigation is as lacking in the essential basisfor converting a state case into a federal case as is the remainder of the Florida investigation.The reaching out to New York to fill the void emanating from the failures of the Floridainvestigation compellingly demonstrates the misuse of federal resources in an overzealous, over-personalized, selective and extraordinary attempt to expand federal law to where it is has nevergone. This last-ditch attempt by Ms. Villafana reinforces our belief that the USAO does not havefacts that, without distortion, would justify a prosecution of Mr. Epstein.In view of the prosecution's often-verbalized desire to punish Mr. Epstein, we believethat the prosecution summary suffers from critical inaccuracies and aggregates the expectedtestimony of witnesses so as to reach a conclusion of guilt. Our contention is reinforced by thefact that key prosecution witnesses have provided evidence and testimony that directlyundermines the prosecution's misleading and inaccurate summary of its case. Indeed, we nowhave received statements from three of the principal accusers- __________________1(through a statecriminal deposition (through a• federal FBI-USAO sworn and transcribedinterview), and (through a defense—generated sworn transcribed interview).Each of these witnesses categorically denies each essential element that the prosecution will haveto prove in order to convert this quintessential state-law case into a federal matter.HOUSE OVERSIGHT 012138KIRKLAND & ELLIS LL?John Roth, Esq.June 19, 2008Page 4It thus is especially troubling that the USAO has not provided us with the transcript ofMs. federal interview, nor the substance of the interviews with Ms. or Ms.nor any information generated by interviews with any of the approximately 40 allegedwitnesses that the prosecution claims it has identified. Because the information provided bythese women goes directly to the question of Mr. Epstein's guilt or innocence, it is classic Bradyinformation. We understand that the U.S. Attorney might not want to disclose impeachmentinformation about their witnesses prior to a charge or during plea negotiations. But we firmlybelieve that when the Government possesses information that goes directly to a target's factualguilt or innocence, the target should be informed about such heartland exculpatory evidence.Most importantly, aside from whether the Department believes Brady obligatesdisclosure to a target of a federal investigation prior to the target's formal accusation, no suchlimit should apply to a Department review. Accordingly, we request that you go beneath the faceof any summary provided to you by the USAO and instead review the actual witness transcriptsand FBI 302s, which are essential for you to be able to make a truly independent assessment ofthe strength and wisdom of any federal prosecution.After careful consideration of the record, and as much as it pains me to say this, I simplydo not believe federal prosecutors would have been involved at all in this matter if not for Mr.Epstein's personal wealth and publicly-reported ties to former President Bill Clinton. A simpleInternet search on Mr. Epstein reveals myriad articles and news stories about the formerPresident's personal relationship with Mr. Epstein, including multi-page stories in New YorkMagazine and Vanity Fair. Mr. Epstein, in fact, only came to the public's attention a few yearsago when he and the former President traveled for a week to Africa (using Mr. Epstein'sairplane)—a trip that received a great deal of press coverage. I cannot imagine that the USAOever would have contemplated a prosecution in this case if Mr. Epstein lacked this type ofnotoriety.That belief has been reinforced by the significant prosecutorial impropriety andmisconduct throughout the course of this matter. While we describe the majority of theseirregularities in another submission, two instances are particularly troubling. First, the USAOauthorized the public disclosure of specific details of the open investigation to the New YorkTimes—including descriptions of the prosecution's theory of the case and specific terms of a pleanegotiation between the parties. Second, AUSA Villafana attempted to enrich friends and closeacquaintances by bringing them business in connection with this matter. Specifically, sheattempted to appoint a close personal friend of her live-in boyfriend to serve as an attorney-representative for the women involved in this case.It also bears mentioning that actions taken by FAUSA Sloman present an appearance ofimpropriety that gives us cause for concern. Mr. Sloman's former law partner is currentlypursuing a handful of $50-million lawsuits against Mr. Epstein by some of the masseuses.HOUSE OVERSIGHT 012139KIRKLAND & ELLIS LLPJohn Roth, Esq.June 19, 2008Page 5Finally, as you know, Mr. Epstein and the USA° entered into an agreement that deferredprosecution to the State. In this regard, I simply note that the manner in which this agreementwas negotiated contrasts sharply with Mr. Sloman's current representation that "[T]he SDFLindicated a willingness to defer to the State the length of incarceration . . . " See Tab 1, May 19,2008 Letter from J. Sloman, p. 2. This statement is simply not true. Contrary to Mr. Sloman'sassertion, federal prosecutors refused to accept what the State believed to be appropriate as toMr. Epstein's sentence and instead, insisted that Mr. Epstein be required serve a two-year term ofimprisonment (which they later decreased to 18 months plus one year of house arrest). Federalprosecutors have not only involved themselves in what is quintessentially a state matter, but theiractions have caused a critical appearance of impropriety that raises doubt as to their motivationfor investigating and prosecuting Mr. Epstein in the first place.At bottom, we appreciate your willingness to review this matter with a fresh—andindependent—set of eyes. To facilitate your review, I once again request the opportunity tomake an oral presentation to supplement our written submissions, and we will promptly respondto any inquiries you may have.cc: Deputy Attorney General Mark FilipHOUSE OVERSIGHT 012140MAIN SUBMISSIONHOUSE OVERSIGHT 012141KIRKLAND & ELLIS LLPSUBMISSION TO THE OFFICE OF THE DEPUTY ATTORNEY GENERALIN THE MATTER OF JEFFREY E. EPSTEINJeffrey Epstein, a successful businessman and noted philanthropist with no prior criminalrecord, has been investigated for potential violations of 18 U.S.C. §§ 1591, 2422(b) and 2423(b).Since the limited review conducted by CEOS, two Supreme Court decisions—one authored byJustice Scalia and the other by Justice Thomas—have revitalized the bedrock principles thatfederal criminal statutes must be narrowly construed, that they may not be stretched to federalizeconduct not clearly covered by their prohibitions, and that whenever there are two plausibleconstructions of a criminal statute, the narrower construction (hich safeguards liberty) rather thanthe broader construction (which expands the federal prosecutor's arsenal) controls under thevenerable rule of lenity.Mr. Epstein's conduct—including his misconduct—falls within the heartland of historicstate police and prosecutorial powers. Absent a significant federal nexus, matters involvingprostitution have always been treated as state-law crimes even when they involve minors. Mr.Epstein's conduct lacks any of the hallmarks that would convert this quintessential state crimeinto a federal one under any of the statutes prosecutors are considering.Mr. Epstein lived in Palm Beach, and his interstate travel was merely to go home. Anysexual conduct that occurred after he arrived was incidental to the purposes for his travel. EvenCEOS admitted that applying § 2423(b) to a citizen traveling home would be "novel." In fact, itwould be both unprecedented and in conflict with Supreme Court cases that have withstood thetest of time for over 60 years.Moreover, Mr. Epstein did not use the internet (either via email or chatrooms) tocommunicate with any of the witnesses in this investigation. Indeed, he did not use any otherfacility of interstate commerce, including the phone, to knowingly persuade, entice, or induceanyone to visit his home—the "local" locus of all the incidents under investigation—much lessto persuade, entice, or induce a known minor to engage in prohibited sex acts, as § 2422(b)requires. Nor did anyone on his behalf "persuade" or "induce" or "entice" or "coerce" anyone asthese words are ordinarily understood and as the new Supreme Court decisions mandate they beapplied: narrowly, without stretching ordinary usage to conform to a prosecutor's case-specificneed for a broad (and in this case unprecedented) application. In addition, as will be shownbelow, § 2422(b) requires that the object of the communication be a state law offense that "canbe charged." Yet because the state of Florida's statute of limitations is one year for the firstprostitution offense and three years for other targeted offenses, and because all or virtually all ofthe offense conduct at issue in the federal investigation occurred prior to June 20, 2005, thoseacts can not be charged by the State, and thus cannot meet this essential element of federal law.Finally, Mr. Epstein neither coerced, nor enslaved, nor trafficked, nor derived any profitfrom his sexual conduct. He was an ordinary "John," not a pimp. But § 1591 is directed onlyagainst those who engage in force or fraud or coercion or who are in the business of commercial1HOUSE OVERSIGHT 012142KIRKLAND & ELLIS LLPsexual trafficking. The statute has never been applied to a "John," and only a highly andimpermissibly selective prosecution could stretch § 1591 to reach conduct like that at issue inthis case.In short, without "novel" interpretive expansions—a description used by CEOS itself—itcannot be shown that Mr. Epstein violated any of the three federal statutes identified byprosecutors. As the Supreme Court's recent decisions in Santos and Cuellar make clear, federallaw may not be stretched in that manner, and the current federal investigation relies, as itsfoundation, on impermissibly elastic stretches of each statute beyond any reported precedent;beyond the essential elements of each statute; well outside the ordinary construction of eachstatute's limitations; and on a selective, extraordinary, and unwarranted expansion of federal lawto cover conduct that has always been exclusively within the core of state powers.At this point in time, the need for Departmental oversight is critical. We appreciate thisopportunity to submit our assessment of the key facts in this case and review of the pertinentfederal statutes, and respectfully request that the Office of the Deputy Attorney General endfederal involvement in this matter so that the State of Florida may resolve this case appropriately.Summary of the FactsMr. Epstein has maintained a home in Palm Beach, Florida for the past 20 years. Whilethere, he routinely conducted business, received medical attention, socialized with friends, andhelped care for his elderly mother. Mr. Epstein also had various women visit his home toperform massages. He did not personally schedule the massage appointments or communicatewith the women over the phone or the Internet. Rather, Mr. Epstein's personal assistantsscheduled many types of appointments, personal trainers, chiropractors, business meetings andmassages. The phone message pad taken from his house and in the possession of thegovernment confirmed that in many cases, the women themselves contacted Mr. Epstein'sassistants to inquire about his availability—rather than vice versa.The majority of the massages were just that and nothing else. Mr. Epstein often would beon the telephone conducting business while he received his massage. At times, the masseuseswould be topless, and some sexual activity might occur—primarily self-masturbation on the partof Mr. Epstein. On other occasions, no sexual activity would occur at all. There was no patternor practice regarding which masseuse would be scheduled on a particular day—if one would bescheduled at all—or whether any sexual activity might occur. Indeed, Mr. Epstein almost neverknew which masseuse his assistants had scheduled until she arrived. See Tab 3, TollRecords.Mr. Epstein specifically requested that each masseuse be at least 18 years old. The vastmajority of the masseuses were in fact in their twenties, many accompanied to Mr. Epstein'shome by friends or even other family members. Furthermore, most of the women who havetestified that they were actually under 18 have specifically admitted to systematically lying toMr. Epstein about their age. See Tab 4 MIME Tr. at 38-39; Tab 5, =Err. at 16; Tab 6,2HOUSE OVERSIGHT 012143KIRKLAND &ELLIS LLPat 6, 8, 22, 45; Tab 7, Jr.M 13; Tab 8 Tr. at 8; Tab 9, Tr. at 5; andTab 10, Tr. at 14-15 (excerpts from these transcripts are included below). Furthermore,the women who visited Mr. Epstein's home all visited voluntarily and many willingly returnedseveral times.The State Attorney's Office (the "SAO") has vast experience prosecuting sex crimes andconducted an exhaustive, 15-month investigation of Mr. Epstein. A Grand Jury has concludedthat Mr. Epstein was merely a local "John," guilty of soliciting prostitution in violation of statelaw. Notably, Florida law distinguishes soliciting from procuring and compelling prostitution ifminors are involved. Indeed, soliciting is a misdemeanor except for the commission of a thirdsubsequent offense, turning it into a felony. The SAO, therefore, sought and obtained anindictment charging Mr. Epstein with felony solicitation of prostitution. Mr. Epstein is preparedto plead guilty and accept a sentence for that offense—a sentence that, notably, is far moresevere than that meted out to other "Johns" convicted of violating Florida's solicitation laws forcases in which sexual activity was alleged.Though CEOS points out its admirable goal of "protecting children," a moniker thatengenders high emotions, the conduct alleged here involves women over 16, which is the age ofconsent in 38 states and supplies the effective federal age of consent. The young women were byno means the target of high-school trolling; they were individuals who, with friends, visited Mr.Epstein's house—a home full of friends and staff. The civil complaints filed against Mr. Epsteinreiterate the fact that the individuals who visited Mr. Epstein would visit with their friends. AndMr. Epstein never spoke to or had any contact with these women before they arrived at hishouse. And again, the State is handling this matter appropriately.We respectfully submit that that should be the beginning and the end of this matter. Asyou know, the Department's Petite Policy precludes successive federal prosecutions after a Statehas acted: "[A] state judgment of conviction, plea agreement [here held in abeyance solely as aresult of the federal investigation], or acquittal on the merits shall be a bar to any subsequentfederal prosecution for the same act or acts." U.S.A.M. § 9-2.031A (emphasis added).Consistent with that principle, and of particular relevance to this case, the Department itself justrecently observed the following:[P]rostitution-related offenses have historically been prosecuted at the state orlocal level. This allocation between state and Federal enforcement authority doesnot imply that these crimes are less serious, but rather reflects important structuralallocations of responsibility between state and Federal governments.... [T]heDepartment is not aware of any reasons why state and local authorities are notcurrently able to pursue prostitution-related crimes such that Federal jurisdictionis necessary.See Tab 11, November 9, 2007 Letter from Justice Department Principal Deputy AssistantAttorney General Brian Benczkowski to the House Committee on the Judiciary, p. 8-9.3HOUSE OVERSIGHT 012144KIRKLAND &ELLIS LLPSummary of the LawWe have reviewed every reported case under 18 U.S.C. §§ 1591, 2422(b), and 2423(b),and cannot find a single one that resulted in a conviction on facts akin to the ones here. In somerespects, it is not surprising that no precedent supports federal prosecution of a man who engagedin consensual conduct, in his home, that amounts to solicitation under State law. After all,prostitution, even when the allegations involve minors, is fundamentally a State concern, UnitedStates v. Evans, 476 F.3d 1176, n.1 (11th Cir. 2007) (noting that federal law "does notcriminalize all acts of prostitution (a vice traditionally governed by state regulation)"), and thereis no evidence that Palm Beach County authorities and Florida prosecutors cannot effectivelyprosecute and punish the conduct. See also Batchelder v. Gonzalez, No. 4:07-cv-00330-SPM-AK, 2007 WL 5022105 (N.D. Fla. Oct. 19, 2007). In fact, the opposite is true—the state-electedofficials, cognizant of the local mores of the community, have a lauded history of just suchprosecutions.In any event, and as set forth below, none of the federal statutes in this case remotelysupports a prosecution on the facts of this case without each and every element being stretched ina novel way to encompass the behavior at issue. We begin with first principles. Courts in thiscountry have "traditionally exercised restraint in assessing the reach of federal criminal statutes,both out of deference to the prerogatives of Congress, Dowling v. United States, 473 U.S. 207(1985), and out of concern that 'a fair warning should be given to the world in language that thecommon world will understand, of what the law intends to do if a certain line is passed.' ArthurAndersen LLP v. United States, 544 U.S. 696, 703 (2005) (quoting McBoyle v. United States, 283U.S. 25, 27 (1931)) (citation omitted).Two recent Supreme Court decisions dramatically underscore these principles and help tohighlight why federal prosecution in this case would be improper as a matter of both law andpolicy. See United States v. Santos, No. 06-1005 (June 2, 2008); Cuellar v. United States, No.06-1456 (June 2, 2008). Though they both address the interpretation and application of thefederal money laundering statute, 18 U.S.C. § 1956, the principles they set forth are equallyapplicable here. In Santos, the Court held that the statutory term "proceeds" means "profits"rather than "receipts," and thus gave the statute a significantly narrower interpretation than whatthe government had urged. In his plurality opinion, Justice Scalia emphasized that where astatutory term in a criminal statute could support either a narrow or broad application, the narrowinterpretation must be adopted because "[w]e interpret ambiguous criminal statutes in favor ofdefendants, not prosecutors." Slip op. at 12. As his opinion explained, the rule of lenity "notonly vindicates the fundamental principle that no citizen should be held accountable for aviolation of a statute whose commands are uncertain, or subjected to punishment that is notclearly proscribed. It also places the weight of inertia upon the party that can best induce4HOUSE OVERSIGHT 012145KIRKLAND &ELLIS LLPCongress to speak more clearly and keeps courts from making criminal law in Congress's stead."Slip op. at 6.1In Cuellar, the Court examined the link between the money-laundering statute's mens rearequirement and the underlying elements of the offense. After a careful textual analysis of thestatute and its structure, the Court ruled that the defendant's conviction could be sustained only ifhe knew that the transportation of funds to Mexico was designed to conceal their nature,location, source, ownership or control—not merely that the defendant knew that the funds hadbeen hidden during their transportation to Mexico. Slip op. at 10-17.Both decisions relied on the ordinary meaning of the statutory terms Congress chose.And both rejected attempts to broaden those words to cover conduct not clearly targeted byCongress. Taken together, these decisions reject the notion that prosecutors can take languagefrom a narrowly drawn federal statute—especially one that itself federalizes the prosecution ofconduct traditionally within the heartland of State police powers—and convert it into a license toreach additional conduct by ignoring, rewriting or expansively interpreting the law. Both casesadditionally rejected the notion that statutes should be broadly construed in order to facilitateprosecutions or to in anyway diminish the burden on prosecutors to prove each essential elementof a federal charge in conformity with Congress's determinations as to what is within the federalcriminal law and what is not. The conflict between the Santos and Cuellar decisions andCEOS 's grant of effectively unlimited discretionary authority to the USA0 to take federal law to"novel" places where they have never reached before could not be starker.These lessons have no less force in the context of Executive Branch decision-makingthan they do in the context of Judicial interpretation. As you are aware, when federal prosecutorsexercise their discretion, they bear an independent constitutional obligation to faithfully interpretthe law as written—not to broaden its scope beyond the limits endorsed by both Congress andthe President. There is no support for CEOS's view that the courts or a jury should ultimatelydecide whether a "novel" construction of the law is correct. Instead, the Executive Branch itselfhas a non-delegable obligation not to exceed its authority; the power of other branches to checkor remedy such usurpation does not legitimize executive action that exceeds its bounds. See Tab12, November 2, 1994 Memorandum from Assistant Attorney General Walter Dellinger to theHon. Abner J. Mikva, Counsel To The President, on Presidential Authority To Decline ToExecute Unconstitutional Statutes, available at http://www.usdoj.gov/olc/nonexcut.htm.In this case, the text, structure, and history of the relevant federal statutes unambiguouslyindicate that these statutes were designed to address problems of a national and internationalJustice Stevens, in his concurring opinion, also acknowledged the rule of lenity, calling the plurality opinion'sdiscussion of that rule "surely persuasive." United States v. Santos, No. 06-1005, slip op. at 5 (June 2, 2008)(Stevens, J., concurring).5HOUSE OVERSIGHT 012146KIRKLAND &ELLIS LLPscope—not the local conduct that is alleged here—and each of these statutes requires proof ofthe defendant's actual knowledge that simply is not present in this case. Any attempt to stretchthe language of these statutes to cover this case would be a misuse of the law and contrary toexpress legislative intent. In short, the elements under each federal statute-18 U.S.C. §§ 1591,2422(b) and 2423(b)—are not satisfied here.1. 18 U.S.C. § 2422(b)18 U.S.C. § 2422(b) requires the government to prove beyond a reasonable doubt that thedefendant engaged in communications over an interstate facility (e.g., the Internet or phone) withfour concurrent intentions: (1) to knowingly (2) persuade, induce, entice or coerce, or attempt topersuade, induce, entice, or coerce (3) a minor (4) to engage in prostitution or criminal sexualactivity for which the person can be charged. Mr. Epstein's conduct does not satisfy theelements of § 2422(b). Each element must be individually stretched, and then conflated in atenuous chain to encompass the alleged conduct with any individual woman.As the statute makes clear, the essence of this crime is the communication itself—not theresulting act. The Court of Appeals for the Eleventh Circuit, in Murrell, underscores the point:The defendant in Bailey contended that attempt under § 2422(b) 'requires thespecific intent to commit illegal sexual acts rather than just the intent to persuadeor solicit the minor victim to commit sexual acts.' Id. at 638. In response, thecourt held `[w]hile it may be rare for there to be a separation between the intent topersuade and the follow-up intent to perform the act after persuasion, they are twoclearly separate and different intents and the Congress has made a clear choice tocriminalize persuasion and the attempt to persuade, not the performance of thesexual acts themselves. Hence, a conviction under the statute only requires afinding that the defendant had an intent to persuade or to attempt to persuade.'United States v. Murrell 368 F.3d 1283, 1287 (11th Cir. 2004) (citing United States v. Bailey,228 F.3d 637, 638-39 (6th Cir.2000)). Thus, the targeted criminal conduct must occur throughthe interstate facility, not thereafter, and the scienter element must be present at the time of thecall or Internet contact.In this case, however, Mr. Epstein did not use an interstate facility to communicate anyillegal intention in this case; the phone calls were made by his assistants in the course of settingup many other appointments. Neither a conspiracy charge nor a charge of aiding and abettingcan fulfill the mens rea requirement here. Indeed, neither Mr. Epstein nor his assistants knewwhether sexual activity would necessarily result from a scheduled massage. And certainly, nosuch activity was ever discussed on the phone by either Mr. Epstein or his assistants. Instead, asthe record in this case makes clear, many appointments resulted in no illegal sexual activity, andoften, as confirmed by the masseuses' own testimony, several individuals who were contacted byphone visited Mr. Epstein's house and did not perform a massage at all. Where sexual activity6HOUSE OVERSIGHT 012147KIRKLAND &ELLIS LLPdid result, it was mainly self-pleasuring masturbation and not necessarily illegal, but spontaneousand resulted from face-to-face conversations during the massage. Thus, the fact that Mr. Epsteinlater may have persuaded any particular masseuse to engage in unlawful activity during themassage does not work retroactively to render the earlier scheduling phone call an offense under§ 2422(b). Nor is there any evidence that women who returned to Mr. Epstein's home time andagain were somehow coerced or induced over a facility of interstate commerce to do so.The first essential element of § 2422(b) that "[w]hoever, using the mail or any facility ormeans of interstate or foreign commerce," by its plain language, requires that thecommunication, which is the essence of the crime and its actus reus, take place during the use ofthe facility of interstate commerce (in this case, unlike the vast majority of Internet chat roomsting operations, a telephone). The statute is not ambiguous. It requires that the criminalconduct occur while the defendant is "using" (i.e. engaged in the communication), not thereafter.Given the utter lack of direct evidence against Mr. Epstein, prosecutors have signaled thatthey intend to offer a purely circumstantial case if this matter proceeds to trial—essentiallyarguing that "routine and habit" evidence could substitute for actual proof that an interstatefacility was used to solicit sex from minors. Thus, despite the fact that the calls themselves werenot made by Mr. Epstein and did not contain the necessary explicit communication to knowinglyinduce minors to provide sexual favors for money, prosecutors are seeking to turn the phrase "areyou available"—the same phrase used with friends, chiropractors, and trainers—into a ten-yearmandatory prison sentence. In any case, the prosecution's attenuated argument regarding"routine and habit" will also not fit the facts of this case. The witness testimony at issue makesclear that there was no clear "routine or habit" with respect to the interactions at issue. And inthose unpredictable instances where sexual contact resulted, it was a product of what occurredafter the benign phone communication, not during the call itself.The prosecution's theory of liability—that a call to a person merely to schedule a visit tothe defendant's residence followed by a decision made at the residence to engage in prohibitedsexual activity is sufficient—cannot survive either a "plain language" test or the rule of lenity asthey have been authoritatively construed in the recent Santos and Cuellar cases. The statutecannot be read otherwise. As the Cuellar decision makes clear, a proper interpretation of afederal criminal statute is guided "by the words of the operative statutory provision," not byoutside objectives, such as those facilitating successful prosecution. See Cuellar, supra, Slip op.at 7. As Justice Alito stated in his concurring opinion, the government must prove not just the"effect" of the secretive transportation, but also that "petitioner knew that achieving one of theseeffects was a design (i.e. purpose) of the transportation" of currency. Cuellar v. United States,supra, 553 US., Slip op. At 1 (Auto, J. concurring). Similarly, it is not enough that one effect ofa communication scheduling a visit between Mr. Epstein and a minor was that there might besubsequent face-to-face inducement. Instead, the statute, as drafted, defines the crime as thecommunication and demands that far more be proven than that the use of an interstate facilityresulted in a later meeting where even an inducement (as opposed to a solicitation) was made.7HOUSE OVERSIGHT 012148KIRKLAND & ELLIS LLPThe prosecution has never represented to counsel that they have evidence that wouldprove that the inducement or enticement to engage in illegal sexual acts occurred over the phone(or Internet). The prosecution's references to "routine and habit" evidence that would substitutefor the explicit communications usually found in the transcripts from chat rooms or stingoperations is tenuous at best. In essence, the prosecution would be alleging communicationsunderstood, but not spoken, by two people, one of whom was usually a secretary or assistant.Separating the actus reus and the mens rea, however, and premising criminal liability onpersuasion that might occur after the communication, or on the existence of a specific intent toengage in illegal sex with a minor that arises after the communication would violate the bedrockprinciple of criminal law that predicates liability on the concurrence of the act and the criminalstate of mind. Even if, arguendo, the communication and mens rea could be separated (apremise which is at odds with the requirement of concurrence), Mr. Epstein denies that thefactual proof demonstrates such a pattern or practice. Instead, the evidence compellingly provesthat there was no regularity or predictability to the content of the communication or in whatoccurred at meetings that were telephonically scheduled (including those that are the subject ofthis investigation).A second essential element of 2422(b) requires that the defendant "knowingly" induce,persuade, entice or coerce a person believed to be a minor. " . . . [K]knowingly. . . induces. ."requires the Court to define inducement so it is consistent with its ordinary usage and so the termis not so broad that it subsumes the separate statutory terms of "entices" and "persuades."Inducement has a common legal meaning that has been endorsed by the government when itoperates to narrow the affirmative defense of entrapment. Inducement must be more than "meresolicitation;" it must be more than an offer or the providing of an opportunity to engage inprohibited conduct. See, e.g,. United States v. Sanchez-Berrios, 424 F.3d 65, 76-77 (1st Cir.2005); United States v. Brown, 43 F.3d 618, 625 (11th Cir. 1995). The government cannot fairly,or consistent with the rule of lenity, advocate a broader definition of the same term when itexpands a citizen's exposure to criminal liability than when it limits the ambit of an affirmativedefense to criminal conduct. If the term is ambiguous, absent clear Congressional intent on theissue, the Court's decision in Santos requires that the narrower rather than the broader definitionbe used.The facts simply do not prove Mr. Epstein's culpability for knowingly inducing orpersuading minors. First, in the case of masseuses who agreed or even sought to return to seeMr. Epstein on successive occasions, there is no evidence that there was any inducement,persuasion, enticement or coercion over the phone. And, for masseuses seeing Mr. Epstein forthe first time, there was generally no telephone contact with Mr. Epstein and there was noknowledge that any third party at Mr. Epstein's specific direction was inviting them to Mr.Epstein's home over the phone rather than in face-to-face meetings. The women who visited Mr.Epstein's home were all friends of friends. Contrary to the facts in this case, § 2422(b)'sknowing inducement element is essential to federal liability and, given its hefty minimummandatory punishment, it should not be interpreted as a strict liability statute.8HOUSE OVERSIGHT 012149KIRKLAND &ELLIS LLPThere is insufficient evidence that Mr. Epstein targeted minors, as required. Theevidentiary pattern does not even establish willful blindness since Mr. Epstein took steps toensure his visitors were over 18—and certainly took none to avoid knowing. But, even if thegovernment contends that it possesses evidence that could demonstrate that Mr. Epstein knew orshould have known or suspected that a small number of the masseuses were underage, that wouldstill not make this an appropriate case for federal, rather than state prosecution. The federalstatutes were not intended to supersede state prosecutions involving isolated instances ofunderage sex. Instead, the federal statutes were intended for large-scale rings or for anindividual who was engaged, while using interstate facilities such as the Internet, with the willfultargeting of minors.The government's evidence, even when stretched to the limit, will not show a pattern oftargeting underage persons for illegal sexual activity. A federal prosecution should not become acontest between the prosecution and defense over whether the defendant knew, suspected orshould have known whether a particular person was or was not over age. The history of casesbrought under this statute make crystal clear that knowledge of the defendant regarding the ageof the women is required—either by admission or by incontrovertible transcripts ofconversations (i.e. stings operations which require repeated acknowledgment of the defendant'sawareness of the victims' age). Even states with absolute liability about mistake regarding agerarely prosecute cases where definitive proof is lacking (Palm Beach County rarely does andwhen it does, it imposes house arrest sentences). This is a matter for the exercise of stateprosecutorial discretion and not federal mandatory minimum statutes that were not intended tocover such conduct.A third essential element of § 2422(b) is the requirement that the government prove thatthe defendant actually believed that the person being persuaded (coerced, etc.) was a minor at thetime of the communication. See e.g., Offense Instruction 80, Eleventh Circuit Pattern JuryInstructions-Criminal (2003) ("The defendant can be found guilty of that offense only if... thedefendant believed that such individual was less than (18) years of age..."); United States v.Murrell, 368 F.3d 1283, 1286 (11th Cir. 2004) (§ 2422(b) requires that the defendant knowinglytarget a minor). Importantly, then, all the elements must be proven with respect to a specificperson. However, we are told that the majority of proof is no more than toll records, notrecorded conversations or Internet chat transcripts, but toll records and perhaps a memory ofwhat was said years ago on a particular call for a particular request from a particular personacting at Mr. Epstein's direction.Two final points bear special emphasis here. The statute, which according to Santos andCuellar must be narrowly construed, also requires that the inducement be to engage inprostitution or sexual activity "for which [the defendant] can be charged." 18 U.S.C. § 2422(b).However, simple prostitution is not defined (or made punishable) in the U.S. Code, and state lawthus supplies the appropriate reference point. Under Florida law, "prostitution" entails the"giving or receiving of the body for sexual activity for hire," Fla. Stat. § 796.07(1)(a), and theterm "sexual activity" is limited to "oral, anal, or vaginal penetration by, or union with, the9HOUSE OVERSIGHT 012150KIRKLAND & ELLIS LLPsexual organ of another; anal or vaginal penetration of another by any other object; or thehandling or fondling of the sexual organ of another for the purpose of masturbation." Fla. Stat. §796.01(1)(d). Also, the Florida Supreme Court jury instructions define prostitution as involving"sexual intercourse." As a result, topless massages—even ones for hire that include self-masturbation—fall outside the ambit of the state-law definition of prostitution. Absent proofbeyond a reasonable doubt that, at the critical time of the communication, Mr. Epstein had aspecific intent to persuade another to engage in prostitution or "sexual activity," as defined byFlorida law, he cannot be guilty of an offense under § 2422(b).As important, the plain language of the phrase "for which any person can be charged"necessarily excludes acts as to which the state's statute of limitations has run. Under Floridalaw, prostitution and prostitution-related offenses are misdemeanors in the second degree for afirst violation.2 See Fla. Stat.. § 796.07(4)(a). The limitations period for a misdemeanor in thesecond degree is one year, and there is no tolling provision based upon the victim's age. See Fla.Stat. § 775.15(b). Even as to allegations of third degree felonies, the statute of limitations isthree years. Thus, any conduct alleged to have occurred before mid-June 2005 cannot becharged as a matter of state law and thus cannot be a predicate for a § 2422(b) offense—even ifthe federal statute of limitations has not run on any given § 2422(b) offense because of thelengthier statute codified in 18 U.S.C. § 3282. Thus, no prosecution under § 2422(b) can bebrought based upon inducement of prostitution or sexual activity for which Florida's statute oflimitation has run. Furthermore, in Florida, the statute of limitations does not simply give rise toan affirmative defense. On the contrary, statute of limitations "creates a substantive right whichprevents prosecution and conviction of an individual after the statute has run." See State v. King,282 So. 2d 162 (Fla. 1973); Tucker v. State, 417 So. 2d 1006 (Fla. 3d D.C.A. 1982) (citingcases).Given the one-year statute of limitations, any conduct that might amount to prostitutionor other chargeable sexual activity that occurred before one year from today is not conduct forwhich any person can be charged with a criminal offense. Also, given the three year statute oflimitations for third degree felonies, any allegations of illegal state criminal conduct that isclassified as a third degree felony cannot be charged in the state and, concomitantly, cannot bethe basis for a federal charge under § 2422(b), to the extent that it occurred—as did almost all ofthe pivotal allegations (e.g., the allegation which was made in March of 2005)prior to mid-June of 2005.2. 18 U.S.C. 15912 The offense is a felony of the third degree only for a third or subsequent violation. Fla. Stat. § 796.07(4)( c).10HOUSE OVERSIGHT 012151KIRKLAND & ELLIS LLP18 U.S.C. § 1591, a sex trafficking statute, provides up to 40 years' imprisonment foranyone (1) who recruits or obtains by any means a person in interstate commerce (ii) knowingthat the person is under 18 and (iii) knowing that the person will be caused to engage in acommercial sex act. The most heinous of crimes, described on the CEOS website, fall withinthis statute and include the buying and selling of children and the forced servitude of third-worldimmigrants brought to this country to be enslaved. Mr. Epstein's behavior is nowhere near theheartland of this statute. This statute has also been previously reserved for prostitution ringsinvolving violence, drugs and force. In stark contrast, there is no jurisdictional hook that bringsMr. Epstein's conduct within the ambit of the statute, and securing a prosecution on these factswould require a court to set aside both reason and precedent to convict a local 'John' with a sex-slavery crime. It can not be said that Mr. Epstein engaged in trafficking and slavery nor did heknowingly recruit or obtain underage women with knowledge that they would be caused toengage in a commercial sex act. Thus, prosecuting him under this statute would expand the lawfar beyond its scope.To the extent there are cases where prosecutors think that Mr. Epstein should have knownthat certain women were underage, there is no evidence that Mr. Epstein "caused [them] toengage in a commercial sex act." The term "cause" naturally implies the application of somesort of force, coercion, or undue pressure, but there is no evidence that Mr. Epstein's interactionswith the women were anything but consensual. Again, many of the women phoned Mr.Epstein's assistant themselves in order to determine whether he wanted a massage. Nor can thecause requirement be proved simply by the fact that Mr. Epstein compensated the women. Afterall, the statute elsewhere requires that the women "engage in a commercial sex act," which bydefinition means that they would have received something of value in exchange for sexualservices. Interpreting the statute to authorize prosecution whenever a commercial sex act resultsfrom solicitation thus would render the term "caused" superfluous, and would make every 'John'who interacts with an underage prostitute guilty of a federal crime—even where the transactionis entirely local. Read in context, then, there is no doubt that the statute targets pimps and sex-traffickers who knowingly obtain underage girls and direct them to engage in prostitution. Thereis not a shred of evidence that Mr. Epstein (or his assistants) did any such thing, and he cannot beprosecuted under this statute.The Cuellar and Santos decisions also foreclose a prosecution under § 1591. Just as thefederal money laundering statute did not come down to a proscription against transportation ofcriminal proceeds that are hidden, the sex trafficking of children statute cannot be boiled downand expanded to a federal proscription of commercial sexual activity with persons who turn outto be below the age of 18.3. 18 U.S.C. § 242311HOUSE OVERSIGHT 012152KIRKLAND & ELLIS LLP18 U.S.C. § 2423(b), a statute enacted to prevent sex tourism, provides up to 30 years ofimprisonment for anyone who travels across state lines (i) for the purpose of engaging in (ii)illicit sexual conduct with a minor. Neither of those elements is satisfied here.Mr. Epstein did not travel to Palm Beach for the purpose of engaging in sexual activitywith a minor, within the meaning of the statute. The evidence is indisputable that Palm Beachwas where Mr. Epstein spent most of his discretionary time, and that his travels to Palm Beachwere merely trips returning often to his home of twenty years—not the escapades of a sex touristoff to some destination inextricably intertwined with the required significant or dominantpurpose of that trip to be to have "illicit sexual conduct." Epstein's trips to Palm Beach weresimply those of a businessperson traveling home for weekends or stopping over on his way to orfrom New York and St. Thomas or to visit his sick and dying mother in the hospital for monthson end. He certainly did not travel to his home in Florida for the dominant purpose of engagingin sexual conduct with a person who he knew was under 18 when he did not know, at the time hedecided to travel, from whom he was to receive a massage, if he were to receive one at all.In Cuellar, the unanimous Supreme Court linked the term "design" in the money-laundering statute to the terms "purpose" and "plan," and stressed that those terms all requiredthe defendant to "formulate a plan for; devise"; "[t]o create or contrive for a particular purpose oreffect"; [carry out] "[a] plan or scheme"; or "to conceive and plan out in the mind." Slip. op. at12 (citing dictionary definitions). The same link is present here, and it simply cannot be said thatMr. Epstein's design, plan, or purpose in traveling to Palm Beach was to engage in illicit sexualconduct with minors; his design or plan or purpose was simply to return to his home.Any construction of § 2423(b)'s "for the purpose of' language to include purposesbeyond the dominant purpose of the travel would run afoul of the rule of lenity and due processprinciples discussed earlier. Any attempted prosecution of Mr. Epstein under a more expansiveconstruction of the "for the purpose of' language would also violate the separation of powersdoctrine. Congress, which selected the "for the purpose of' language signaled no clear intentionto make it a federal crime whenever an actor has engaged in illicit sexual conduct following hiscrossing of state lines as long as it might be said that sexual activity at his destination was amongthe activities he pursued there. Congress well knows how to write a statute in this field whicheliminates a purpose requirement. See 18 U.S.C. § 2423(c)("Any United States citizen or alienadmitted for permanent residence who travels in foreign commerce, and engages in any illicitsexual conduct with another person ..."). § 2423(b) is not such a statute.Federal court decisions watering down the "for the purpose of" requirement fly in theface of the two Supreme Court decisions addressing that element. See Hansen v. Huff 291 U.S.559 (1934); Mortensen v. United States, 322 U.S. 369 (1944). Santos and Cuellar speak loudlyand clearly against prosecutors seeing such elasticity in federal criminal statutes, including thoseenacted to protect important federal interests. In cases involving the federalization of activitythat is within the States' historic police power, Congress must speak with particular clarity. See,e.g., Will v. Michigan Dep't of State Police, 491 U.S. 58, 65 (1989).12HOUSE OVERSIGHT 012153IURKLAND &ELLIS LLPRelevant Past CasesWe have not been able to find a single federal prosecution based on facts like these—buthave voluminous evidence of federal prosecutors routinely declining to bring charges in cases farmore egregious than this one. To take just one obvious example, federal prosecutors have self-consciously refrained from involvement in the literally dozens of sexual cases of former priests,opting instead to allow seasoned state prosecutors (like the ones in this case) to pursue theaccused former clergymen. That is so despite (1) the large number of victims, (2) the vastgeographic diversity of the cases, and (3) the fact that some of these cases involve allegationsthat the defendant forcibly molested, abused, or raped literally dozens of children—includingsome as young as five years old—over a period of years. Nonetheless, federal prosecutors havenot hesitated to let their state counterparts pursue these cases free from federal interference—even though the sentences meted out vary greatly on account of the fact that "[c]riminal penaltiesare specific to localities or jurisdictions."3 The facts of this case, which involve the solicitationof consensual topless massages and some sexual contact, entirely in the privacy of his home andalmost entirely by women over the age of 18, pale in comparison to the outright sexual abuse anddegradation of preteen minors in many of the priest cases.Nor does this case bear any of the hallmarks that typify the cases that federal prosecutorshave pursued under the federal statutes at issue here. When asked, the closest case suggested bythe prosecutors was United States v. Boehm—and it hardly could differ more from Mr. Epstein'scase. In Boehm, the defendant was charged with conspiracy to distribute cocaine and cocainebase to minors, in violation of 21 U.S.C. §§ 846, 841(a)(1), and 859(a); being a felon inpossession of a firearm, in violation of 18 U.S.C. § 922(g)(1); and sex trafficking of children inviolation of 18 U.S.C. §§ 371 and 1591. United States v. Boehm, Case No. 3:04CR00003 (D.Alaska 2004). Boelun's actions, unlike Mr. Epstein's, also had a strong interstate nexus: Boehmpurchased and distributed large quantities of crack cocaine and cocaine that traveled in interstatecommerce, and he used his home and hotels (which were used by interstate travelers) to purchasedrugs and distribute them to minors while also arranging for these minors to have sex with himand others. Indeed, Boehm not only (1) purchased cocaine in large quantities; (2) distributed thedrugs to minors; (3) possessed illegal firearms; (4) and arranged for the minors to have sex withother members of the conspiracy in exchange for drugs; but (5) admitted to knowing the ages ofthe individuals involved.4 Here, by contrast, as previous stated, all of the conduct took place inMr. Epstein's private home in Palm Beach; there was no for-profit enterprise; no interstatecomponent; no use by Mr. Epstein of an instrumentality of interstate commerce; no violence; noforce; no alcohol; no drugs; no guns; and no child pornography.3 See http://www.bishop-accountability.org/reports/2004_02_27_JohnJay/2004_02_27 Terry Joluday_3.htm#cleric7.4In fact, Boehm and his co-defendants distributed drugs to approximately 12 persons between the ages of 13 and21. Boehm also had a prior criminal history—and one that clearly showed he was a danger to society: hepreviously had been convicted of raping both a thirteen year-old girl and a fifteen year-old girl. (Day 7 ofSentencing hearing p. 32).13HOUSE OVERSIGHT 012154KIRKLAND &ELLIS LLPTo the extent there is a similar, but more egregious, local Florida case on the books, it isthat of Barry Kutun, a former North Miami city attorney accused of having sex with underageprostitutes and videotaping the sessions. Mr. Kutun pleaded guilty on May 18, 2007 in a Miami-Dade County courtroom as part of an agreement with State prosecutors and he received fiveyears probation and a withholding of adjudication with no requirement to register as a sexoffender—all without a shred of involvement by federal prosecutors, who declined to prosecutehim. Indeed, given the wide use of the telephone in today's society, it gives a rogue prosecutorcarte blanche to turn any local crime into a federal offense. Given the federal government'sdecision to abstain from prosecuting that case, it is hard to understand how the federalprosecutors responsible for this case think that the State's treatment of Mr. Epstein somehowleaves federal interests substantially un.vindicated. There is simply no basis for the federalprosecutors' disparate treatment of Mr. Epstein.Summary of the EvidenceFinally, we wish to share new evidence—obtained through discovery in connection withthe civil lawsuits filed in this matter—which confirms that further federal involvement in thismatter would be inappropriate. This testimony taken to date categorically confirms that (i) Mr.Epstein did not target minors; (ii) women under 18 often lied to Mr. Epstein about their ages; (iii)Mr. Epstein did not travel in interstate commerce for the purpose of engaging in illegal sexualactivity; (iv) Mr. Epstein did not use the Internet, telephone or any other means of interstatecommunication to coerce or entice alleged victims; (v) Mr. Epstein did not apply force orcoercion to obtain sexual favors; and (vi) all sexual activity that occurred was unplanned andpurely consensual. The women's own statements—made under oath—demonstrate the absenceof a legitimate federal concern in this matter, and highlight the serious practical difficulties anattempted federal prosecution would face.• Mr. Epstein did not recruit or obtain these women in interstate commerce (necessaryfor a conviction under § 1591).o confirmed that she did not know Mr. Epstein and hadabsolutely no contact with him—be it through Internet, chat rooms, email,or phone—prior to their arrival at his home. See Tab 13 Tr.(deposition), p. 30.o has stated that (like many other women) she first met Mr.Epstein when her friend, introduced her to him. See Tab14, Tr. A, p. 4-5. ________________________• Mr. Epstein was told the girls were over 18.o expressly admitted to lying to Mr. Epstein about her age.See Tab 13, . (deposition), p. 37 ("Q. So you told Jeff that youwere 18 years old, correct? A. Yes.").stated that she not only always made sure she had a fake IDwith her and lied to Mr. Epstein by telling him she was 18, but that she14HOUSE OVERSIGHT 012155KIRKLAND & ELLIS LLPalso had conversations with other women in which these women hopedthat "Jeffrey didn't find out [their] age[s]." See Tab 6, Miller Tr., p. 45.o also stated that she: "would tell my girlfriends just likeapproached me. Make sure you tell him you're 18. Well, these girls that Ibrought, I know that they were 18 or 19 or 20. And the girls that I didn'tknow and I don't know if they were lying or not, I would say make surethat you tell him you're 18." See Tab 6, Ir., p. 22.o stated that old her say that she was 18 if asked. SeeTab 14, Tr. A, p. 8.stated that she "told him I was 19." See Tab 5,Tr., p. 16.• Mr. Epstein did not know these women would be caused to engage in a sex act(necessary for a conviction under § 1591) and any sexual activity that took place wasunplanned.o stated "sometimes [Mr. Epstein] likes topless massages, butyou don't have to do anything you don't want to do. He just likesmassages." See Tab 6, Tr., p. 7.o also stated "[s]ometimes [Mr. Epstein] just wanted his feetmassaged. Sometimes he just wanted a back massage." See Tab 6,Tr., p. 19.• Mr. Epstein did not use an interstate facility to communicate an illegal objective tothe alleged victims (necessary for a conviction under § 2422(b)).o confirmed that Mr. Epstein never emailed, texted, or chattedin an Internet chat room with her. See Tab 13, (deposition),p. 30.• Mr. Epstein did not target minors (necessary for a conviction under § 2422(b))o stated, "I always made sure -- I had a fake ID, anyways, sayingthat I was 18. And I (who is friend who brought her toMr. Epstein's home)] just said make sure you're 18 because Jeffreydoesn't want any underage girls." See Tab 6, Fr., p. 8.• Mr. Epstein did not use the phone or the Internet to induce proscribed sexual activity(necessary for a conviction under § 2422(b)).o stated that there was never any discussion over the phone abouther coming over to Mr. Epstein's home to engage in sexual activity: "Theonly thing that ever occurred on any of these phone calls [withor another assistant] was, 'Are you willing to come over,' or,15HOUSE OVERSIGHT 012156KIRKLAND & ELLIS LLP'Would you like to come over and give a massage." See Tab 14= Tr.A, p. 15confirmed that she was informed that she was going to Mr.Epstein's house to give him a massage and nothing else, and that no one"said anything to [her] on the telephone [or over the Internet] about sexualactivity with Mr. Epstein." See Tab 13, (deposition), p. 24-25.o also confirmed that no one associated with Mr. Epstein evertried to call her or contact her through the Internet to try to persuade,induce, entice or coerce her to engage in any sexual activity. See Tab 13,(deposition), p. 31.• Mr. Epstein did not travel to Palm Beach for the purpose of engaging in sexualactivity with a minor (necessary for a conviction under § 2423(b)).o Mr. Epstein spent at least 100 days a year in Palm Beach for familypurposes, business purposes, and social purposes, and to maintain a home.o While in Palm Beach, Mr. Epstein routinely visits family members andclose friends, has seen his primary care physician for checkups andprescribed tests in the Palm Beach area, and until her death in April of2004, regularly saw his mother who was hospitalized and thenconvalesced in south Florida.o From 2003 through 2005 there was no month when Mr. Epstein did notspend at least one weekend in Palm Beach.o The Palm Beach area is the home base for his flight operations, formaintenance of his aircraft, and for periodic FAA inspections.o Additionally, Mr. Epstein's pilots and engineers all resided in Florida.• Mr. Epstein's conduct did not involve force, coercion or violence and any sexualactivity that took place was consensual. The witness transcripts are replete withstatements such as the following:o stated that she was not persuaded, induced, enticed orcoerced by anyone to engage in any sexual activity. See Tab 13,Tr. (deposition), p. 31.o tated: "[Mr. Epstein] never tried to force me to do anything."See Tab 14,o stated, "I said, I told Jeffrey, I heard you like massages topless.And he's like, yeah, he said, but you don't have to do anything that you16HOUSE OVERSIGHT 012157KIRKLAND &ELLIS LLPdon't feel comfortable with. And I said okay, but I willingly took it off"See Tab 6,o also stated "[s]ome girls didn't want to go topless and Jeffreydidn't mind." See Tab 6,• Mr. Epstein did not engage in luring.o Mr. Epstein's message books show that several masseuses would regularlycall Mr. Epstein's assistants, without any prompting by Mr. Epstein or hisassistants, asking to visit Mr. Epstein at his home.o stated "a lot of girls begged me to bring them back [to Mr.Epstein's house]."• There was no alcohol or drugs involved, a fact that is not in dispute.• Mr. Epstein has no prior criminal history, a fact that is not in dispute.• These women do not see themselves as victims.o indicated under oath that the FBI attempted to persuade her thatshe was in fact a "victim" of federal crimes when she herself repeatedlyconfirmed that she was not. See Tab 14, , p. 9-12 and Tab 15,B, p. 7.ConclusionJeffrey Epstein, a self-made businessman with no prior criminal history, should not beprosecuted federally for conduct that amounts to, the solicitation of prostitution. A federalprosecution based on these facts would be an unprecedented exercise of federal power, a misuseof federal resources, and a prosecution that would carry with it the appearance, if not the reality,of unwarranted selectivity given the incongruity between the facts as developed in this matterand the factual paradigms for all other reported federal prosecutions under each of the threestatutes being considered. It would require the pursuit of a novel legal theory never beforesanctioned by federal law—and that indeed is inconsistent with each of the statutes prosecutorshave identified. Accordingly, we respectfully request that you direct the U.S. Attorney's Officefor the Southern District of Florida to discontinue its involvement in this matter, and returnresponsibility for this case to the State of Florida.17HOUSE OVERSIGHT 012158SUMMARY OFMISCONDUCTHOUSE OVERSIGHT 012159KIRKLAND & ELLIS LLPSUMMARY OF MISCONDUCT ISSUES IN THE MATTER OF JEFFREY E. EPSTEIN• The manner inwhich federal prosecutors have pursued the allegations against Mr. Epstein is highly irregularand warrants full review by the Depaament. While we repeatedly have raised our concernsregarding misconduct with the United States Attorney's Office in Miami (the "USAO"), not onlyhas it has remained unwilling to address these issues, but Mr. Epstein's defense counsel has beeninstructed to limit its contact to the very prosecutors who are the subject of this misconductcomplaint. For your review, this document summarizes the USAO's conduct in this case.Background1. In March 2005, the Palm Beach Police Department opened a criminal investigation ofPalm Beach resident, Jeffrey E. Epstein. The press has widely reported that Mr. Epsteinis a close friend of former President Bill Clinton.2. In July 2006, after an intensive probe, including interviews of dozens of witnesses,returns of numerous document subpoenas, multiple trash pulls and the execution of asearch warrant on his residence, Mr. Epstein was indicted by a Florida Grand Jury on onecount of felony solicitation of prostitution.3. In a publicly released letter, Palm Beach Police Chief Michael Reiter criticized the GrandJury's decision and the State Attorney's handling of the case. Shortly after the GrandJury's indictment, the Chief took the unprecedented step of releasing his Department'sraw police reports of the investigation (including Detective Recarey's unedited writtenreports of witness statements and witness identification information), that were laterproven to be highly inaccurate transcriptions of witnesses' actual statements. The Chiefalso publicly asked federal authorities to prosecute the case.Jeffrey Sloman Becomes Involved in Mr. Epstein's Case at the Earliest Stage4. In early November of 2006, Epstein's lawyers had their initial contact with the newlyassigned line federal prosecutor, A. Marie Villafana. Although it is extremely unusualfor a First Assistant United States Attorney to participate in such a communication,FAUSA Jeffrey Sloman was present on that very first phone call.5. On November 16, 2006, despite that the fact that the investigation exclusively concernedillegal sexual conduct during massage sessions, AUSA Villafana issued irrelevant officialdocument requests seeking Mr. Epstein's 2004 and 2005 personal income-tax returns,and later subpoenaed his medical records. See Tab 16, November 16, 2006 Letter fromM. Villafana.Sloman Becomes Personally Involved in a Dispute Over Another State Sex Case6. In March 2007, FAUSA Sloman reported to local police an attempted trespass by a 17-year-old male. Mr. Sloman claimed that the individual had attempted to enter Mr.Sloman's home without invitation to make contact with his 16-year-old daughter, but hespotted the young man before the perpetrator had an opportunity to enter the house. TheHOUSE OVERSIGHT 012160KIRKLAND &ELLIS LLPsame individual had previously fled the home of another neighbor after entering thathouse uninvited, when, looking for the bedroom of their 17-year-old daughter, hemistakenly entered the bedroom of their 14-year-old daughter, touched her on the leg andstartled her awake. State of Florida v. Johnathan Jeffrey Zirulnikoff, Case No. F078646(June 28, 2007).7. After a thorough review by the Miami State Attorney's Office, and sex-crimes prosecutorLaura Adams, the investigation revealed that the defendant and both the neighbor's 17-year-old daughter and Mr. Sloman's daughter were previously acquainted. Thedefendant was charged with simple trespass in connection with his unauthorized entryinto the neighbor's house. Id.8. FAUSA Sloman, however, demanded that the young man be registered as a sex offenderand objected to any sentence short of incarceration. The Assistant State Attorney incharge of the sex-crimes unit reported Mr. Sloman's conduct during the proceedings as"outrageous." The defendant's attorney described Mr. Sloman as being "out of control."Shortly after, Mr. Sloman began publicly deriding the elected State Attorney, his officeand the state process for prosecuting sex offenses, as "a joke."Unauthorized Tactics in Disregard of the United States Attorney's Manual are Used9. In June 2007, AUSA Villafana subpoenaed the investigating agent of Epstein's attorney,Roy Black, in a clear effort to invade the defense camp. The subpoena was specificallydrafted to discover the investigator's contacts, with all prospective witnesses, Mr. Epsteinand his attorneys.' Not surprisingly, Ms. Villafana issued this subpoena without therequisite prior approval by the DOJ's Office of Enforcement Operations. See UnitedStates Attorneys' Manual, § 9-13.410. When confronted, she misleadingly respondedthat she had consulted with the Department of Justice and was not required to obtain0E0 approval because her subpoena was not directed to "an office physically locatedwithin an attorney's office." See Tab 18, December 13, 2007 Letter from M. Villafana at4 n.1 . This answer clearly suggests that Ms. Villafana had intentionally misled theDepartment officials about the items that her subpoena sought.2The subpoena sought, among other things: "All documents and information related to the nature of therelationship between [the investigator and/or his firm] and Mr. Jeffrey Epstein, including but not limited to . . .records of the dates when services were performed . . . telephone logs or records of dates of communicationswith Mr. Epstein (or with a third party on Mr. Epstein's behalf); appointment calendars/datebooks and the like(whether in hard copy or electronic form) for any period when work was performed on behalf of Mr. Epstein orwhen any communication was had with Mr. Epstein (or with a third party on Mr. Epstein's behalf) . See Tab17, June 18, 2007 Subpoena to William Riley! Riley Kiraly, If 3.Indeed, we are aware of two other recent instances in which Villafana placed serious misrepresentations beforea court. On July 31, 2007, in the grand-jury litigation arising out of this case, she filed the "Declaration ofJoseph Recarey," attaching the state detective's affidavit in support of a search warrant for Epstein's house. SeeIn Re Grand Jury Subpoenas Duces Tecum OLY-63 and OLY-64, No. FGJ 07-103(WPB) (S.D. Fla. July 31,2007). At the time she filed Detective Recarey's affidavit, she knew it contained numerous materialmisrepresentations, including gross misstatements of witness statements and other evidence. Second, we(Continued...)2HOUSE OVERSIGHT 012161KIRKLAND & ELLIS LLPMr. Epstein is Required to Agree to Civil Liability In Order to Avoid a Federal Indictment10. On July 31, 2007, during negotiations over a possible federal plea agreement, FAUSASloman and AUSA Villafana demanded that Mr. Epstein agree to the imposition of civilliability under 18 U.S.C. § 2255 as a pre-condition to deferral of federal prosecution. Tothe best of our knowledge, the inclusion of such a term in a deferred prosecutionagreement of this kind is absolutely unprecedented.3 Specifically, Ms. Villafanademanded that Mr. Epstein waive the right to contest civil liability to a list of individualsshe said were "victims" of § 2255, whose names, however, she refused to disclose, andagree to pay damages of a minimum of $150,000 to each and every one of suchundisclosed individuals, and hire an attorney to represent them if they decided to suehim. See Tab 20, July 31, 2007 Draft of Deferred Prosecution Agreement.11. FAUSA Sloman and AUSA Villafana insisted that the identities of the individuals on thelist not be disclosed to Mr. Epstein or his counsel until after Mr. Epstein was alreadysentenced in the state case.(a) Over the next two months, Mr. Sloman refused to negotiate these terms. Theyultimately became incorporated into the final deferred prosecution agreement.See Tab 21, September 24, 2007 Non-Prosecution Agreement, T117-11.(b) It was not until seven months later, in February 2008, that Epstein's lawyers wereable to take their first official statement from one of the women FAUSA Slomanalleged were minor victims of federal offenses.(c) This statement, a deposition of the initial complainant in the statecase, taken in the presence of her lawyer, proved that none of the necessaryelements for any federal charge could be satisfied based on briefcontact with Mr. Epstein. The witness also admitted lying to Mr. Epstein,testifying that she told him that she was an adult and wanted him to believe thatshe was an adult. See Tab 13,_____________________(deposition), p. 35 ("Q. So youtold Jeff that you were 18 years old, correct? A. Yes."), 37 ("Q. You wanted Mr.Epstein to believe that you really were 18, right? A. Correct.").(d) Shortly after this deposition, the defense was able to obtain statements from otherwomen on Mr. Sloman's so called "list of § 2255 victims" and, so far, all suchstatements also continue to demonstrate that Mr. Sloman's repeatedrepresentations to the defense about the existence of federal jurisdiction werefalse.understand that Villafana was recently reprimanded at a special hearing convened by a United States DistrictJudge in the West Palm Beach Division of the Southern District of Florida, for making misrepresentationsduring a prior sentencing proceeding.3 In fact, Stephanie Thacker, a former deputy to CEOS Chief Drew Oosterbaan, has stated that she knew of noother case like this being prosecuted by CEOS.3HOUSE OVERSIGHT 012162KIRKLAND &ELLIS LLP12. In August 2007, in a clear attempt to coerce a state settlement, Ms. Villafana threatenedto broaden the investigation to include a money laundering violation (18 U.S.C. § 1956),though all the funds expended were simply Mr. Epstein's, and a violation for operating anunlicensed money-transmitting business (18 U.S.C. § 1960), though Mr. Epstein neverhad such a business. See Tab 22, August 31, 2007 Letter from M. Villafana to Ross(reciting, in a target letter to one of Epstein's employees, that the investigation concerns"suspected violations of federal law, including but not limited to, possible violations ofTitle 18, United States Code, Sections . . . 1591, . . . 1956, 1960 . . . .") (emphasisadded).13. On the very same day that the grand jury issued subpoenas to the records-custodian andemployees of Epstein's businesses for all financial transactions from 2003 forward, Ms.Villafana (who we were told was not authorized to act in this regard without supervisoryapproval) promised to close the money-laundering investigation "if the sex offense caseis resolved." See Tab 23, August 16, 2007 Letter from M. Villafana to G. Lefcourt ("Inother words, if the sex offense case is resolved, the Office would close its investigationinto other areas as well. The matter has not been, and it does not appear that it will be,resolved so the money laundering investigation continues, and Request Number 6[seeking records of every financial transaction conducted by Epstein and his sixbusinesses from "January 1, 2003 to the present"] will not be withdrawn.").14. Two weeks later, when Mr. Epstein continued to oppose federal prosecution duringnegotiations and Mr. Epstein's counsel sought a meeting with the United States Attorney,AUSA Villafana then classified all of Mr. Epstein's assistants as targets (sending a targetletter to one of them and promising the attorney of the other two that additional targetletters would be served on them as well), dispatched FBI agents to the homes of two ofhis secretaries, and personally telephoned Mr. Epstein's largest business client to advisehim of the nature of the investigation. See Tab 22, August 31, 2007 Letter from M.Villafana toFAUSA Sloman Forces Mr. Epstein's Lawyers to Convince the State Prosecutors ToImpose a More Severe Sentence Than They Believe Is Appropriate15. Throughout the plea negotiations with the USAO, Mr. Sloman and Ms. Villafanacontinually insisted that the only way they would agree not to bring a federal indictmentwas if Epstein's lawyers, not the state prosecutors as required under the Petite Policy,convinced the state prosecutors to impose a more severe punishment than the statebelieved was appropriate under the circumstances.16. FAUSA Sloman's version of the history with respect to the sentence he required Mr.Epstein's lawyers to seek from the State contradicts his later assertion, which is patentlyfalse—that "the SDFL indicated a willingness to defer to the State the length ofincarceration" and "considered a plea to federal charges that limited Epstein'ssentencing exposure . .. " See Tab 1, May 19, 2008 Letter from J. Sloman. In fact, by aemail dated August 3, 2007, Criminal Division Chief Matthew Menchel advised thedefense that the federal government required a minimum term of two years ofincarceration. See Tab 40, August 3, 2007 Email from M. Menchel. Subsequently, Ms.4HOUSE OVERSIGHT 012163KIRKLAND &ELLIS LLPVillafana emailed the defense stating that United States Attorney Acosta would accept noless than 18 months of incarceration, following by a one-year term of house arrest.Federal Prosecutors Misrepresented the Number of Alleged "Victims."17. In September 2007, in order to add additional pressure on Mr. Epstein to execute adeferred prosecution agreement, AUSA Villafana claimed that there were "40" minors onthe government's list of purported § 2255 victims. To compound that misleadingcharacterization, she continued to insist that a guardian-ad-litem be appointed to representthese purported "minors" in the proceedings. See Tab 24, September 19, 2007 Emailfrom M. Villafana to J. Lefkowitz.18. When challenged as to whether there was a genuine need for a guardian, given that Ms.Villafana continued to refuse to disclose the names or any other information about herputative list of "minors," she eventually conceded that only "I is definitely under 18 still,and I think there is another minor." See Tab 25, September 23, 2007 Email from M.Villafana to J. Lefkowitz (emphasis added).19. The next day, AUSA Villafana retreated from the number "40," stating that she had now"compiled a list of 34 confirmed minor victims with no definition of how they would beconsidered as such.. There are six others, whose names we already have, who need to beinterviewed by the FBI to confirm whether they were 17 or 18 at the time of their activitywith Mr. Epstein." See Tab 26, September 24, 2007 Email from M. Villafana to J.Lefkowitz (emphasis added). This statement indicated that, at least the "six others" (and,as it turns out, all those identified except two) had reached the age of majority, and, infact, no guardian was necessary to represent their interests.Defense Counsel was Falsely Advised That the Non Prosecution Agreement Would Be KeptConfidential.20. On September 24, Epstein and the USAO executed a Non Prosecution Agreement.21. His attorneys asked Ms. Villafana to "please do whatever you can to keep this frombecoming public." See Tab 27, September 24, 2007 Email from J. Lefkowitz to M.Villafana.22. Ms. Villafana replied that she had "forwarded your message only to Alex [Acosta], Andy[Lourie], and Rolando [Garcia]. I don't anticipate it going any further than that." Id.23. Ms. Villafana stated that the agreement would be "placed in the case file, which will bekept confidential since it also contains identifying information about the girls." Id.The Prosecution Immediately Notifies Three Plaintiffs That Mr. Epstein Has Executed ANon Prosecution Agreement24. In direct violation of these representations, "shortly after the signing," the governmentnotified "three victims" of the "general terms" of the Non Prosecution Agreement. See5HOUSE OVERSIGHT 012164(c)KIRKLAND &ELLIS LLPTab 18, December 13, 2007 Letter from M. Villafana (admitting that the notificationoccurred "shortly after the signing").AUSA Villafana Misleads Mr. Epstein In An Attempt To Refer Plaintiffs to HerBoyfriend's Close Friend25. On September 25, Ms. Villafana recommended a local products-liability defenseattorney, Humberto "Bert" Ocariz, Esq., for the highly lucrative post of attorneyrepresentative for the government's list of as-yet-undisclosed "victims."4(a)Ms. Villafana wrote to the defense, "I have never met Bert, but a good friend inour appellate section and one of the district judges in Miami are good friendswith him and recommended him." See Tab 28, September 25, 2007 Email fromM. Villafana to J. Lefkowitz (bottom email) (emphasis added).(b) Ms. Villafana failed to disclose that this "good friend in our appellate section"was her live-in boyfriend. See Tab 18, December 13, 2007 Letter from M.Villafana (conceding the "relationship" with "my boyfriend").Beyond her clear conflict-of-interest and affirmative effort to conceal it, it isunimaginable that AUSA Villafana would have engaged in an ex-partecommunication with a United States District Judge in the same district about thedetails of a pending grand-jury investigation without prior disclosure andsupervisory approval.(d) Later, it became clear that Ms. Villafana also had at least one other ex-partecommunication with that same United States District Judge about the grand jury'sinvestigation. See Tab 29, October 5, 2007 Email from M. Villafana to J.Lefkowitz (stating that "one of the District Judges in Miami mentioned [retiredJudge Joseph Hatchett] as a good choice" to decide any fee disputes concerningEpstein's paying for a lawyer to represent the unnamed women in claims againstEpstein).26. The next day, AUSA Villafana advised the defense that she was removing one of thealternatives to Mr. Ocariz from our consideration, on the basis that "one of his partners ismarried to an AUSA here," and explained that, because of that personal relationship,4These actions were improper. As you know, the Department prohibits employees from using any nonpublicinformation to secure private benefits of any kind: "An employee shall not ... allow the improper use ofnonpublic information to further his own private interest or that of another, whether through advice orrecommendation, or by knowing unauthorized disclosure." 5 C.F.R. § 2635.703 (emphasis added). Amongthe examples of prohibited disclosure specifically illustrated by this regulation is the disclosure of nonpublicinformation to "friends" to further their financial interests, id., at Example 1, and the disclosure of nonpublicinformation to a newspaper reporter, id., at Example 5 (see allegations below regarding the leak to the New YorkTimes). Furthermore, the Justice Department prohibits its employees from using their position to benefit friendsor relatives. See 5. C.F.R. § 2635.702; see also 5. C.F.R. § 2535.502.6HOUSE OVERSIGHT 012165IURKLAND &ELLIS LLP"[t]here is too great a chance of an appearance of impropriety." See Tab 28, September26, 2007 Email from M. Villafana to J. Lefkowitz.27. The following day, Ms. Villafana relayed that, and asked us to respond to, the very firstconcern raised Mr. Ocariz, which was "how are they going to get paid" and whether"there is any cap or other limitation on attorney's fees that [Epstein] will pay in the civilcase." See Tab 30, September 27, 2007 Email from M. Villafana to J. Lefkowitz.28. Ms. Villafana clearly contemplated that Mr. Epstein would be paying for Mr. Ocariz athis "hourly rate" to represent the alleged "victims" against Epstein even "if all [the] girlsdecide they want to sue." Id.29. When the defense complained of Ms. Villafana's undisclosed conflict-of-interest inselecting her boyfriend's friend to prosecute civil claims against Mr. Epstein on behalf ofher undisclosed list of purported "victims," Ms. Villafana later argued that Mr. Epsteinhad no right to complain because "the Non-Prosecution Agreement vested the Office withthe exclusive right to select the attorney representative." See Tab 18, December 13, 2007Letter from M. Villafana. Shortly after being notified, however, United States AttorneyAcosta removed Mr. Ocariz from consideration, and requested an amendment to the NonProsecution Agreement.30. In response to the many complaints about Ms. Villafana's misconduct and violations ofthe United States Attorney's Manual, Criminal Division Chief Matthew Menchelcharacterized her as "unsupervisable."31. Contrary to the express agreement of United States Attorney Acosta that the federalgovernment would not interfere in the administration of any state sentence, FAUSASloman continued to try to deny the right of the State to issue work release and/or gaintime by stating that Mr. Epstein must "make a binding recommendation that the Courtimpose" a sentence of 18 months of continuous confinement in the county jail. See Tab21, September 24, 2007 Non Prosecution Agreement. Shortly thereafter, Mr. Slomansent the FBI to meet with the state sex-crimes prosecutor in an attempt to secure hercommitment to oppose a work release option.FAUSA Sloman Attempts to Thwart Discovery32. On October 31, Mr. Sloman emailed Mr. Epstein's counsel, confirming that "I understandthat the plea and sentence will occur on or before the January 4th [2008] date." See Tab41, October 31, 2007 Email from J. Sloman to J. Lefkowitz (emphasis added).33. On November 5, despite Mr. Sloman's having sent that email just one week before, afterlearning that the defense had begun to question women on their "list," Mr. Sloman wroteMr. Epstein's attorneys demanding that his plea and sentencing in the State case now bemoved up to November 2007. See Tab 2, November 5, 2007 Letter from J. Sloman.34. Mr. Sloman further demanded in the letter that Mr. Epstein's attorneys "confirm thatthere will be no further efforts to contact any victims" until the victims are represented bycounsel. Id. As the women were all adults, there could be no lawful justification for Mr.7HOUSE OVERSIGHT 012166KIRKLAND & ELLIS LLPSloman's demand, other than to protect prospective plaintiffs from being interviewedprior to their retaining an attorney (including, as it turned out, Mr. Sloman's former lawpartner) to bring civil lawsuits against Epstein.35. Mr. Sloman also demanded that Epstein "begin his term of incarceration not later thanJanuary 4, 2008," id., which turned out to be just three weeks before the first civil lawsuitwould be filed against Epstein.36. Contrary to the express agreement of United States Attorney Acosta that the federalgovernment would not interfere in the administration of any state sentence, Mr. Slomantried to limit gain time and or work release by stating that Mr. Epstein must "make abinding recommendation that the Court impose a sentence of 18 months of continuousconfinement in the county jail." Id. (This followed Mr. Sloman's position that the Officewould consider a state sentence ordering probation in lieu of incarceration to be a breachof the deferred-prosecution agreement.) Shortly thereafter, Mr. Sloman sent the FBI tomeet with the state sex-crimes prosecutor in an attempt to secure her commitment tooppose work release.37. Mr. Sloman insisted that Mr. Epstein not learn the identities of the government's list ofalleged "victims" until after Epstein was sentenced and incarcerated.38. We have reason to believe that, around this same time, Mr. Sloman's former law partner,Jeffrey Herman, had met with the father of one of the prospective plaintiffs, SaigeGonzalez.5 At the same time (and until as recently as March of 2008), the OfficialFlorida Bar website continued to identify Mr. Sloman as a named partner in Mr.Herman's firm. See Tab 31, Florida Bar Website page.39. Mr. Herman, who is the named partner in the former firm of Herman, Sloman,Mermelstein, filed five lawsuits, each asking for $50 million, against Mr. Epstein. Eachlawsuit is entitled "Jane Doe # vs. Jeffrey Epstein," despite the fact that each of theplaintiffs is an adult and not entitled to plead anonymously. See Tab 32, Examples ofFederal Complaints.40. Mr. Herman convened press conferences contemporaneously with filing three of thesuits. In the most recent press conference, he admitted that all of the plaintiffs lied toEpstein about their ages. See Tab 33, Herman Public Statement. One of the supposedlytraumatized "victims" actually pled in her complaint that she returned to Epstein's house"on many occasions for approximately three years." Another of these supposedlytraumatized "victims" herself acted to introduce her friends and acquaintances to Mr.5The Justice Department rules disqualify employees from working on matters in which their former employershave an interest: "an employee shall be disqualified for two years from participating in any particular matterin which a former employer is a party or represents a party if he received an extraordinary payment fromthat person prior to entering Government service. The two-year period of disqualification begins to run on thedate that the extraordinary payment is received." 5 C.F.R. § 2635.503(a) (emphasis added).8HOUSE OVERSIGHT 012167KIRKLAND &ELLIS LLPEpstein. All of these plaintiffs are apparently on the above-described government"victim" list.FAUSA Sloman Attempts to Encourage Civil Suits and the Hiring of the Government'sChoice of Attorney41. On November 27, Mr. Sloman sent an email to Mr. Epstein's attorneys stating that "Iintend to notify the victims by letter after COB Thursday [two days later]." See Tab 34,November 27, 2007 Email from J. Sloman to J. Lefkowitz.42. The morning of November 28, attorneys for Mr. Epstein faxed a letter to AssistantAttorney General Alice Fisher, requesting a meeting with her to discuss the improprietyof the USAO's encouraging civil lawsuits against Mr. Epstein under the guise of theterms of the Non Prosecution Agreement. See Tab 35, November 28, 2007 Letter fromK. Starr to A. Fisher.43. Late in the day on November 28, Epstein's attorneys received from AUSA Villafana acopy of the USAO's proposed victim-notification letter that "Jeff [Sloman] asked that Iforward." See Tab 36, November 28, 2007 Email from M. Villafana to J. Lefkowitz.(a) The proposed victim-notification letter cited as authority the "Justice for All Actof 2004" (which U.S. Attorney Acosta later agreed had no application to thesecircumstances). It referred to the addressees as minor "victims," suggested theymake statements in state court, that they were not entitled to make, and referredincorrectly to Mr. Epstein as a "sexual predator." Id.(b) FAUSA Sloman also proposed advising recipients, in an underlined sentence that,"You have the absolute right to select your own attorney" to "assist you in making. . . a claim" for "damages from [Epstein]." But that "[i]f you do decide to use[two attorneys selected by the U.S. Attorney's "special master"] as your attorneys,Mr. Epstein will be responsible for paying attorney's fees incurred during the timespent trying to negotiate a settlement." Id.The USA() Leaks Confidential Information to the New York Times44. Perhaps most troubling of all, the USAO has repeatedly leaked information about thiscase to the media—including to Landon Thomas, the senior business correspondent forthe New York Times. We have personally reviewed Mr. Thomas's own notes, and theyare remarkably detailed about highly confidential aspects of the prosecution's theory ofthe case and the plea negotiations.45. Mr. Thomas's calls to the USAO initially were referred to Assistant United StatesAttorney David Weinstein. AUSA Weinstein informed Mr. Thomas that federalauthorities were considering charging Mr. Epstein under 18 U.S.C. §§ 1591, 2422 and2423, and told the reporter that Mr. Epstein had both lured girls over the telephone andtraveled in interstate commerce for the purpose of engaging in sex with minors. AUSAWeinstein also divulged the terms and conditions of the USAO's negotiations with Mr.Epstein—including the fact that Mr. Epstein had proposed "house arrest" with extra9HOUSE OVERSIGHT 012168KIRKLAND & ELLIS LLPstringent conditions—which Mr. Weinstein could only have learned from FAUSASloman, AUSA Villafana or United States Attorney Acosta himself.46. AUSA Weinstein then asked why Mr. Epstein should ... be treated differently thananyone else. Mr. Thomas apparently stated that he understood that there was evidencethat the women had lied about their ages. AUSA Weinstein replied that this was not adefense and that Mr. Thomas should not believe "the spin" of Mr. Epstein's "high-pricedattorneys." Indeed, Mr. Weinstein told Mr. Thomas that the USA() was very concernedabout a Palm Beach editorial that questioned whether Mr. Epstein would receive a richman's justice. AUSA Weinstein then stated that, in fact, Mr. Epstein "doesn't have adefense."47. Mr. Epstein's attorneys learned of the call and complained to the USAO. Counsel forMr. Epstein then had an in-person meeting with FAUSA Sloman and United StatesAttorney Acosta describing these leaks to the New York Times. During Mr. Thomas' nextcall to the USAO, made two weeks later, AUSA Weinstein "admonished" him (in thewords of Mr. Thomas) for disclosing the contents of their prior conversation to thedefense, and strongly "reminded" Mr. Thomas that AUSA Weinstein's prior commentsabout Mr. Epstein had only been "hypothetical" in nature. That claim is sheer nonsense:AUSA Weinstein had disclosed specific details of Mr. Epstein's case, including pleaterms proposed by the defense, as revealed based on Mr. Thomas's owncontemporaneous hand-written notes.48. Shortly thereafter, Mr. Sloman wrote to the defense that Mr. Thomas was given, pursuantto his request, non-case specific information concerning specific federal statutes." SeeTab 37, February 27, 2008 Email from J. Sloman. Again, that claim was utterly false;Mr. Thomas's contemporaneous hand-written notes, reviewed by Jay Lefkowitz, confirmthat the USAO had violated settled Department policy and ethical rules by providingcase-specific information about the Department's legal theories and plea negotiations.ConclusionWe bring these difficult and delicate matters of misconduct to your attention not torequire any disciplinary action or review by the Office of Professional Responsibility. Althoughwe have been told that some of this misconduct has been self-reported (only after we raised thesecomplaints in writing), we feel confident that not all the facts were adequately presented. Rather,we believe that they are highly relevant to your decision whether to authorize a federalprosecution in this case. This pattern of overzealous prosecutorial activity strongly suggestsimproper motives in targeting Jeffrey Epstein, not because of his actions (which are moreappropriately the subject of state prosecution), but, rather, because of who he is and who heknows. We also bring this pervasive pattern of misconduct to your attention because we believeit taints any ongoing federal prosecution. The misconduct pervades the evidence in this case.The offers of financial inducement to witnesses, improperly encouraged by the government,make their potential testimony suspect. The reliance on tainted evidence gathered by the statewill require a careful sorting out of poisonous fruits.10HOUSE OVERSIGHT 012169KIIUCLAND &ELLIS LLPMost important, however, is that the extraordinary nature of this misconduct, so unusualin ordinary federal prosecutions, raises the gravest of concerns about why prosecutors would goto such lengths in a case already being prosecuted by the State and with so little, if any, federalconcern. Accordingly, we ask you to conduct your own investigation of these matters, becausewe believe that what we have provided you may constitute only the tip of a very deep iceberg.Without the power of subpoena, which we currently lack, we are unable to dig deeper. Westrongly believe that there is far more exculpatory evidence that has not been disclosed, moreleaks that we have not yet uncovered and more questionable behavior. This is a case that criesout for a deeper investigation than we are capable of conducting, before any decision toprosecute is permitted.11HOUSE OVERSIGHT 012170RESPONSE TOFAUSASLOMAN'S LETTERHOUSE OVERSIGHT 012171KIRKLAND & ELLIS LLPResponse to Letter by FAUSA Sloman Dated May 19, 2008In a May 19, 2008 letter to Jay Lefkowitz (See Tab 1), SDFL First Assistant U.S.Attorney Jeffrey Sloman provided what purported to be a summary of the events that haveoccurred during the investigation of Mr. Epstein. Mr. Sloman's letter is fraught withinconsistencies, false and misleading characterizations and outright falsehoods. The comparisonbelow between the false assertions in Mr. Sloman's letter and what actually transpired is only thetip of the iceberg. We respectfully submit that Mr. Sloman's letter alone demonstrates thedegree to which the record of facts have been distorted and these distortions have permeated thisunprecedented investigation.1. "INDEPENDENT" AND "DE NOVO" REVIEW.Mr. Sloman's Letter:• "[W]e obliged your request for an independent de nova review of the investigation andfacilitated such review at the highest levels of the Department of Justice. " Tab 1, May19, 2008 Letter from J. Sloman, p. 5, 1 3.The Truth:• CEOS' review, concluded in May 2008, was neither independent nor de nova.o CEOS' review was not "independent:"• Drew Oosterbaan, who conducted the review on behalf of CEOS, hadalready reviewed the prosecution memo on this matter eight monthsearlier. During a meeting with defense counsel at the United StatesAttorney's Office in Miami (the "USAO") in September of 2007, heopined that he so believed in the prosecution that he "would try the casemyself."• Indeed, Mr. Sloman acknowledges that Mr. Oosterbaan had previouslyopined on this matter, stating:This particular attack on this statute [18 U.S.C. § 2242(b)]had been previously raised and thoroughly considered andrejected by . . . CEOS prior to the execution of the[Deferred Prosecution] Agreement [in September 2007].Id., p. 5 (emphasis added).• The statute Mr. Sloman referred to (§ 2422(b)) lies at the heart of theEpstein investigation. Thus, according to Mr. Sloman, Mr. Oosterbaanwas tasked with reviewing his own prior decision regarding applying thekey statute under which the SDFL proposed prosecuting Mr. Epstein.HOUSE OVERSIGHT 012172KIRKLAND & ELLIS LLP• The defense immediately raised concerns regarding the non-independenceof the review when told that it would be Mr. Oosterbaan tasked withproviding the review, but was told that when Mr. Oosterbaan rendered hisprior opinion, "he was not really up to speed on the facts"o CEOS' review was not de novo:• By letter dated May 15, 2008 (four days before Mr. Sloman's letter), Mr.Oosterbaan advised Mr. Lefkowitz that CEOS reviewed the matter onlyfor abuse of discretion:[T]he question we sought to answer was whether U.S.Attorney Acosta would abuse his discretion if heauthorized prosecution in this case.See Tab 38, May 15, 2008 Letter from D. Oosterbaan, p. 1 (emphasisadded). See also, id., p. 2 ("Mr. Acosta would not be abusing hisdiscretion if he decided to pursue such a course of action."); and p. 5("Mr. Acosta would not be abusing his prosecutorial discretion should heauthorized federal prosecution of Mr. Epstein.").• For the factual record of its "abuse of discretion" review, CEOS relied onthe very same prosecution memo that it had already reviewed in renderingits prior opinion, stating:As you know, our review of this case is limited, both factually andlegally. We have not looked at the entire universe of facts in thiscase.See Id., p. 1 (emphasis added).• Nor did CEOS review any facts related to the irregular provisions in theDeferred Prosecution Agreement or the numerous complaints ofprosecutorial misconduct, both of which are inextricably intertwined withthe impropriety of the investigation. Id. at 1.2. NOTIFICATION OF WITNESSES.Mr. Sloman's Letter:• Mr. Sloman dismissed the totality of the defense's objections to the inappropriatenotification the SDFL proposed to send to its witnesses, stating merely that:"[Y]ou objected to victims['] being notified of time and place of Epstein'sstate[-]court sentencing hearing."2HOUSE OVERSIGHT 012173KIRKLAND & ELLIS LLPSee Tab 1, May 19, 2008 Letter from J. Sloman, p. 4, 'ff 1.The Truth:• The defense engaged in days of negotiation and made 14 separate substantive objectionsto the unprecedented notification letter that Mr. Sloman threatened to send to anundisclosed list of "victims." The eventual transmission of this highly misleading letterwas only halted by an appeal to AAG Fisher. Among those substantive objections(which related to far more than the "time and place" of the state's sentencing hearing)were:o Sending the letter would contravene the government's commitment to take noposition regarding potential claims of government witnesses. See Tab 39,November 28, 2008 Email from J. Lefkowitz to J. Sloman.o The letter cited to an inapplicable statute (the Justice for All Act of 2004) as itsjustification for being sent. Id. AUSA Acosta later conceded that the citation tothis statute as a justification was wholly incorrect.o The letter wrongly advised all recipients that Mr. Epstein would be required toregister as "a sexual predator for the remainder of this life."o The letter amounted to an invitation to civil litigation against Mr. Epstein,advising recipients that they had the right to seek civil damages from Mr. Epstein,and in an underlined instruction, stated that if they chose an attorney other thanthe one chosen by the government they would be required to pay his fees, but ifthey chose the government's choice, Mr. Epstein would be required to pay thefees.3. MISCHARACTERIZATION OF OUR ARGUMENTS.Mr. Sloman's Letter:• Mr. Sloman's letter misleadingly characterizes our substantive defense of thegovernment's investigation as, "the investigation merely produced evidence of relativelyinnocuous sexual conduct with some minors who, unbeknownst to Mr. Epstein,misrepresented their ages."See Tab 1, May 19, 2008 Letter from J. Sloman, p. 2.The Truth:• We never made such a claim. To the contrary, we argued that sworn statements we havetaken of the alleged victims demonstrate that law enforcement has presented versions oftheir testimony that are necessarily sensationalized and fictionalized. We presented3HOUSE OVERSIGHT 012174KIRKLAND & ELLIS LLPevidence that Mr. Epstein routinely and daily receives massages from adults. Only asmall percentage of the masseuses turned out to be minors. The majority of those minorsinterviewed by law enforcement admitted to lying directly to Epstein about their ages(not "unbeknownst to Epstein"), and inventing further false details to substantiate theirlies. Indeed, the civil attorney for several of these women admitted at his recent pressconference that they lied to Mr. Epstein about their ages. Numerous witnesses testifiedthat Mr. Epstein asked that all masseuses be over the age of 18. Further, the evidence isundisputed that Mr. Epstein's assistants scheduled the massages and Mr. Epstein did notknow which masseuses his assistants had scheduled on a particular day, until the massagetook place. We admitted that there was sexual conduct, and argued—not that it was"innocuous" as Mr. Sloman alleges—but that it was mostly Mr. Epstein's own self-pleasuring, which did not satisfy the requisite federal element of criminal sexual conduct(which is, in turn, defined by state law). These are important distinctions and show thatMr. Sloman has misrepresented the record about the most basic part of our defense.4. SLOMAN DEMANDS AN UNREALISTIC DEADLINE TO COMPLY WITH ANAGREEMENT HE UNILATERALLY MODIFIES.Mr. Sloman's Letter:• "Unless [Mr. Epstein] complies with all of the terms and conditions of the [DeferredProsecution] Agreement, as modified by the United States Attorney's December 19,2007 letter to Ms. Sanchez by close of business on Monday, June 2, 2008, the SDFL willelect to terminate the Agreement." Id., p.1The Truth:• The Deferred Prosecution Agreement was never modified by U.S. Attorney Acosta'sDecember 19, 2007 letter. Oddly, Mr. Sloman acknowledges this on page 4 of his May19 letter, where he writes that Mr. Acosta "proposed" this modification and that "[Mr.Lefkowitz] rejected these proposals." Thus, Mr. Sloman is threatening to terminate theDeferred Prosecution Agreement, unless Mr. Epstein complies with a unilateralmodification that Mr. Sloman concedes was never agreed to by defense counsel.• Orchestrating the information, plea and sentencing requirements of the DeferredProsecution Agreement within the extremely limited two-week timeframe imposed byMr. Sloman's June 2, 2008 deadline would have been difficult enough.• More importantly, as explained below, the SDFL has refused to provide the defense withinformation it requires to enable Mr. Epstein to comply with the additional plea andsentencing requirements of the Deferred Prosecution Agreement (let alone, by the June 2deadline arbitrarily imposed by Mr. Sloman).o The Deferred Prosecution Agreement requires Mr. Epstein to plead guilty to andbe sentenced for an additional offense which requires that he be registered as asex offender. In different places in his May 19, 2008 letter, Mr. Sloman4HOUSE OVERSIGHT 012175KIRKLAND & ELLIS LLPdescribes the additional charge to which Mr. Epstein is required to plead guiltyunder the Deferred Prosecution Agreement as "procurement of minors to engagein prostitution" or "solicitation of minors to engage in prostitution." The formeris an offense for which Mr. Epstein would be required to register, but one forwhich the state has no evidence to charge Mr. Epstein and the SDFL refuses or isunable to provide evidence that it claims it has. The latter requires noregistration, but it is the offense which, over and over again, Ms. Villafanainsisted upon including in the Deferred Prosecution Agreement, and is one whichthe State believes is appropriate. The inconsistency between the description ofthe offense required by the SDFL, the elements of an offense that can be justifiedon the facts of this case and the SDFL's requirement that the offense be aregistrable one has created substantial confusion.o As a result of this confusion, in December 2007, both the defense and the staterequested that the SDFL provide the factual allegations to enable Mr. Epstein andthe State to create a truthful factual recitation of a registrable offense required bythe Deferred Prosecution Agreement, but, to date, the SDFL has failed to do sowithout any explanation.• Mr. Sloman refuses to provide the requested factual allegations, which the State cannotfurnish, and now demands a two week deadline to comply. Thus Mr. Sloman hasunreasonably imposed a deadline with which he himself has made it impossible for Mr.Epstein to comply.5. WAIVER OF APPEAL TO ASSISTANT ATTORNEY GENERAL FISHER.Mr. Sloman's Letter:• "[T]he SDFL provided you with 30 days to appeal the decision to the Assistant AttorneyGeneral of the United States Alice Fisher" and "you chose to forego an appeal to AAGFisher."Id., p. 2.The Truth:• Mr. Acosta tolled an August 17 deadline, acknowledging that there were "serious issues"about the case that needed to be discussed, and scheduled a meeting with the defense forSeptember 7, 2007. At the September 7, 2007 meeting, with Drew Oosterbaan inattendance, the government dismissed the defense's objections and set a September 21,2007 deadline to finalize a non-prosecution agreement or the defense would face analready-drafted 53-page indictment, purportedly identifying 40 minors, with a guidelinerange of 188 months.• Facing Ms. Villafana's threatened draconian indictment, without the claimed offer of theright to raise objections in an appeal to AAG Fisher, the defense chose to negotiate an5HOUSE OVERSIGHT 012176KIRKLAND &ELLIS LLPAgreement to Defer Prosecution to the State, an agreement without precedent and fraughtwith substantial practical and legal hurdles to its implementation.6. THE SDFL DID NOT DEFER TO THE STATE.Sloman's Letter:• "[T]he SDFL indicated a willingness to defer to the State the length of incarceration."Id., p. 2.The Truth:• The SDFL neither deferred to the State, nor even discussed with the State, the length ofMr. Epstein's incarceration. In a letter to the defense, Criminal Division Chief, MatthewMenchel rejected the sentence contemplated by the State's plea agreement, writing that"the federal interest will not be vindicated in the absence of a two-year term of stateimprisonment." See Tab 40, August 3, 2007 Email from M. Menchel. Of course, thisposition is contrary to Section 9-2031D of the U.S. Attorney's Manual (indicating thatthe "result" of a state prosecution is "presume[d]" to have vindicated the federal interest).It is understandable, therefore, that Mr. Sloman might want to retreat from it now.Indeed, the final Deferred Prosecution Agreement (DPA) restricts the state-court judgefrom exercising any of his rightful discretion and to specifically prohibit the judge fromoffering probation, community control or any other alternative in lieu of incarceration.DPA, 2(a).7. SUGGESTION OF ADDITIONAL STATE PLEAMr. Sloman's Letter:• The parties considered: "as suggested by [the defense], a plea to state chargesencompassing Epstein's conduct." See Tab 1, May 19, 2008 Letter from J. Sloman, p.2,I 2.The Truth:• It was the government, and not the defense, that suggested a plea to state charges toresolve the federal investigation. Andrew Lourie proposed declining prosecution in favorof the state. Although Mr. Epstein and the State Attorney's Office had already reacheda plea agreement, in August 2007, Mr. Sloman and AUSA Marie Villafana warned thatthey intended to prosecute Epstein federally unless his counsel (i.e., not the U.S.Attorney's Office) sought more stringent conditions to the State's proposed pleaagreement. These stringent conditions included, among other things, the two-year prisonterm demanded by Mr. Menchel (discussed above) and a charge requiring him to registeras a sex offender.6HOUSE OVERSIGHT 012177KIRKLAND & ELLIS LLP8. ALL IDENTIFIED VICTIMS BE PUT IN SAME POSITION AS IF EPSTEINHAD BEEN TRIED.Mr. Sloman's Letter:• "The Agreement provides for a method of compensation for the victims such that theywould be placed in the same position as if Epstein had been convicted of one of theenumerated offenses set forth in Title 18, United States Code Section, 2255."Id.The Truth:• Mr. Sloman continues to mischaracterize the highly irregular provisions of the DeferredProsecution Agreement. The SDFL did not merely attempt to preserve the compensationrights of those it identified as victims; it attempted to create compensation rights for thoseit identified, without imposing on them the burden of proving that they were in factvictims under § 2255.o In the Deferred Prosecution Agreement, the SDFL required Mr. Epstein to waivethe right to contest liability under 18 U.S.C. § 2255 as to a list of individuals thatthe SDFL would not disclose to Mr. Epstein until after he was sentenced and topay for an attorney to secure compensation under § 2255 for those undisclosedindividuals, or if they decided to sue Mr. Epstein.o § 2255 ordinarily provides individuals with a right to recover minimum guaranteeddamages of $150,000, without having to prove actual damages, only if: (1) theywere victims of an enumerated federal offense, including offenses under 18 U.S.C.§§ 2422 and 2423, (2) they were minors at the time of the offense, and mostimportantly (3) they were personally injured as a result of the offense.o The defense has confirmed examples of women who testified that they were notvictims of Mr. Epstein and suffered no personal injury. These women were,nevertheless, on the list of "victims" identified by the government.. In fact, whenconfronted with the testimony of a women who denied both being a victim andincurring personal injury, Ms. Villafana actually acknowledged such testimony.To justify inclusion of that woman on the government's list, however, Ms.Villafana then challenged her own witness's credibility.• For this reason, it is false to state that these "identified" individuals are in the sameposition that they would have been had Epstein been convicted at trial. Had there been atrial, Mr. Epstein would have had a right to confront these individuals through cross-examination. Any individual that did not establish that she was a minor victim of conductthat satisfied each element of an enumerated statute under § 2255,or that she sufferedpersonal injury, would not qualify for any treatment under § 2255. However, under theDeferred Prosecution Agreement, as an "identified individual" on the government's list,7HOUSE OVERSIGHT 012178KIRKLAND &ELLIS LLPthis same individual would nevertheless be entitled to engage an attorney paid for by Mr.Epstein to recover $150,000 of damages from Mr. Epstein under § 2255 without everalleging any injury. In fact, the defense was told that the only question Mr. Epsteinwould be permitted to ask before paying the girls is " have you ever met Epstein.". Thus,the Deferred Prosecution Agreement places identified individuals in a far better positionthan they would be in if Mr. Epstein were convicted at trial.9. ASSIGNMENT OF RIGHT TO SELECT LEGAL REPRESENTATIVE.Mr. Sloman's Letter:• "Prior to any issues arising concerning the implementation of the 2255 provision, theSDFL unilaterally agreed to assign its responsibility to select the attorney representativefor the alleged victims to an independent third-party."See Tab 1, May 19, 2008 Letter from J. Sloman, p. 4, f.3.The Truth:• That such an assignment was the SDFL's "unilateral" decision is false. Before theSDFL decided to assign selection of the "attorney representative" to an independent thirdparty, AUSA Marie Villafana had already proposed an "attorney representative." Shehad proposed local products-liability lawyer, Humberto Ocariz, and claimed he had beenrecommended by a "good friend in the Appellate Division." Ms. Villafana's account wasmisleading, as it omitted that this "good friend" was her live-in boyfriend, and that Mr.Ocariz was his former law-school roommate. When we discovered this independently,we objected. Only then did the SDFL propose assigning the selection process to anindependent special master and agree to amend the Deferred Prosecution Agreement.Thus, while it may be true that the SDFL assigned its selection responsibility to avoid theappearance of favoritism, it did not do it "unilaterally," but, rather, only after Epsteinuncovered the Office's misleading disclosure and apparent conflict-of-interest.10. TIMETABLE FOR MOVING FORWARD.Mr. Sloman's Letter:• "On February 25, 2008, I sent you an e-mail setting forth a timetable for moving forwardin the event that CEOS disagreed with your position. That time is now."Id. , p. 6.The Truth:• Mr. Sloman provides only part of the history of this case in order to justify his improperactions. He had stated he would close the investigation if CEOS told him to. However,CEOS at our very first contact said that under no circumstances did they see that as their8HOUSE OVERSIGHT 012179IURKLAND &ELLIS LLProle. They said they would only advise on an abuse of discretion standard. Making theoutcome a foregone conclusion. Furthermore, in response to the February 25 e-mail,which attempted to establish a schedule to limit the entire review process (the defense hasrepeatedly suggested that the misconduct was intertwined with the investigation andwould therefore seek higher review), Mr. Lefkowitz e-mailed Mr. Acosta directly. OnFebruary 29, 2008, Mr. Sloman responded to Mr. Lefkowitz's e-mail to Mr. Acosta,stating that Mr. Sloman was acting out of frustration, but "[p]lease be assured that it hasnot, and never has been, this Office's intent to interfere or restrict the "review process"for either Mr. Epstein or CEOS. I leave it to you and CEOS to figure out how best toproceed and will await the results of that process." As stated above, CEOS determinedthat it would not review many of the defense's objections and as to the remainder of thoseobjections, its review would be limited (contrary to Mr. Acosta's assurances), which leftthe need, supplemented by the defense's subsequent request, for a more thorough reviewof critical issues by others at the Department of Justice. Mr. Sloman's re-imposition ofthe (albeit modestly extended) timetable was an obvious attempt, in violation of hisFebruary 29 agreement, to thwart the request made by the defense to the Deputy Attorneygeneral, to complete the review process that Mr. Acosta had promised.11. "DELAY."Mr. Sloman's Letter:• In a section entitled "Delay," Mr. Sloman states that "the SDFL again agreed toaccommodate Epstein's request to appear in state court for plea and sentencing onJanuary 4, 2008."Id.,p. 3.The Truth:• Curiously, Mr. Sloman fails to mention correspondence from the U.S. Attorney statingthat delay of that date would be "inevitable" as the defense has raised "serious questions"about the propriety of the prosecution. Strikingly, in that same section, Mr. Slomanclaims that "the Agreement did not contemplate a staggered 'plea and sentencing,"despite quoting, three sentences earlier, from the Agreement's staggered requirementthat Epstein plead and be sentenced by October 26, and "begin serving his sentence notlater than January 4, 2008."We are, like most attorneys seeking Depai___Luient review, without access to the USAOprosecution summaries or other submissions to the Department. Given the substantial issues thathave been raised in this and other submissions, we request that you conduct a de novo reviewthat goes beneath the face of any conclusions being advocated by the USAO; instead, we seek areview that is based on the transcripts of witness testimony themselves so that the reviewer can9HOUSE OVERSIGHT 012180KIRKLAND &ELLIS LLPmake an independent decision not adversely affected by conclusions that over and over haveproven, witness by witness, allegation by allegation, to be inaccurate and unwarranted and not anappropriate basis for the exercise of federal prosecutorial authority.10HOUSE OVERSIGHT 012181THACKERRESPONSE TOCEOS'S LETTERHOUSE OVERSIGHT 012182GEORGE G. GUTHRIEROBERT B. ALLENREBECCA A. BETTSR. TERRANCE RODGERSDAVID B. THOMASJAMES S. ARNOLDDAVID J. HARDYWM. SCOTT WICKLINEPAMELA L. CAMPBELLPAMELA C. DEEMPHILIP J. COMBSSTEPHANIE D. THACKERBRYANT J. SPANNTERESA K. THOMPSONDEBRA C. PRICECHRISTOPHER S. ARNOLDCHRISTOPHER D. PENCEPETER G. MARKHAMZACKARY B. MAZEYOF COUNSELTHOMAS E. McHUGHLAW OFFICESALLEN GUTHRIE MCHUGH & THOMAS, PLLCP. 0. BOX 3394CHARLESTON, WEST VIRGINIA 25333-3394500 LEE STREET, EAST, SUITE 800CHARLESTON, WEST VIRGINIA 25301June 19, 2008Mr. John RothSenior Associate Deputy Attorney GeneralOffice of the Deputy Attorney GeneralUnited States Department of Justice950 Pennsylvania Avenue, N.W.Washington, D.C. 20530Dear Mr. Roth:FACSIMILEWRITERS DIRECT DIALe-mail: I 6I write to offer my reaction to the May 15, 2008 correspondence from the United StatesDepartment of Justice Child Exploitation and Obscenity Section ("CEOS") regarding the federalinvestigation of Jeffrey Epstein by the United States Attorney's Office for the Southern District ofFlorida ("USAO").1 I will refrain from recounting Mr. Epstein's arguments in detail here, but,rather, will highlight salient points responsive to the CEOS letter.In particular, I write from a background well familiar with child exploitation cases andvictim/witness issues. As the CEOS letter points out (CEOS letter at p. 3), I was a member ofCEOS. In fact, I served as a federal prosecutor for twelve years; five years as an Assistant UnitedStates Attorney for the Southern District of West Virginia, and seven years at CEOS. I beganworking as a trial attorney for CEOS in 1999, and was promoted to Deputy Chief for Litigation in2002, and ultimately to Principal Deputy Chief for the Section in 2004.As those who have worked with me know, I have a history of working diligently on behalf ofvictims of crime. While at the United States Attorney's Office for the Southern District of WestVirginia, I was a part of the prosecution team that prosecuted the first case in the country under thefederal Violence Against Women Act. United States v. Bailey, 112 F.3d 758 (4th Cir.), cert denied,522 U.S. 896 (1997). The case went to trial and the defendant was sentenced to life in prison. I alsospearheaded the domestic violence and federal criminal child support prosecution efforts for thatoffice, prosecuting some of the first cases in the country under the federal Child Support Recovery1 Citations to the May 15, 2008 correspondence will be referenced herein as "CEOS letter at p. ."HOUSE OVERSIGHT 012183ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 2Act. Later, while at the Department of Justice, I co-authored the Department's Federal ChildSupport Prosecution Handbook.My work at CEOS permitted me to continue my efforts on behalf of vulnerable victims ofcrime. While there, for example, I was part of the prosecution team in United States v. Dwight York,428 F.3d 1325 (1 1thCir. 2005), cert denied, 548 U.S. 908 (2006). York was the leader of a pseudoreligious organization, and systematically molested countless children, some as young as six yearsold. The case went to trial and York was sentenced to 135 years in prison. As part of that trial team,I was awarded the Attorney General's Award for Distinguished Service. Additionally, at CEOS Iwas one of the architects of the Innocence Lost Initiative, a nationwide initiative designed to combatchild prostitution. For this, I was awarded an Assistant Attorney General's Award for OutstandingVictim/Witness Service. Likewise, I was awarded a subsequent Assistant Attorney General's Awardfor Special Initiative in connection with a nationwide sex tourism prosecution initiative I helped todevelop.I say all this not for any boastful purpose, but, rather, to make clear that I am fully cognizantof victim issues, and that I am no pushover in terms of prosecution standards. I am also very wellaware of the good work of CEOS, and the outstanding credentials of those who toil in that office.With all due respect to CEOS, however (and recognizing that their review of this case wasquite limited), given the facts and circumstances of this investigation, a federal prosecution of Mr.Epstein simply should not be countenanced. In my view, such prosecution would be counter to theimportant mandate of the Department of Justice as emblazoned on its seal, "Qui Pro DominaJustitiaSequitur," referring to the Attorney General"who prosecutes on behalf of justice."As you well know, it is fundamental to that mandate that, as the representative of the peopleof the United States, the duty of a federal prosecutor is not simply to seek conviction as at any cost,but, rather, to seek justice. Berger v. United States, 295 U.S. 78, 88 (1935). ("The United StatesAttorney is the representative not of an ordinary party to a controversy, but of a sovereignty whoseobligation to govern impartially is as compelling as its obligation to govern at all.") While it is truethat Berger was decided at the post-trial, as opposed to the pre-indictment, stage of the case, thebedrock principle contained in the above quote should transcend the entire investigation andprosecution process. Indeed, it is arguably most imperative at the investigation stage, at which pointlaw enforcement is dealing with a presumptively innocent citizen.In summary, we understand the allegations against Mr. Epstein to be that Mr. Epstein paidindividuals to find friends and acquaintances, certain of whom were under the age of 18, to providetopless massages to him at his Palm Beach home in exchange for money. Mr. Epstein's assistantsallegedly scheduled these massages for him over the telephone at the direction of Mr. Epstein,allegedly including some scheduling calls to underage women. However, the evidence contradictsthese allegations. First, Mr. Epstein did not ask that the masseuses be under the aca To thecontrary, he specifically asked that they be 18 or older. As one witness commented, said tellHOUSE OVERSIGHT 012184ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 3them you're 18 because if you're not, he won't let you in his house." Ir. at 38-39.Second, Mr. Epstein himself did not schedule such appointments. Third, Mr. Epstein would notknow who would be providing a massage at any particular time. Fourth, and importantly, Mr.Epstein's assistants were not directed to contact underage women, and were not aware of the trueages of the women they contacted. In fact, more often than not, the masseuses themselves, or theindividuals who introduced the masseuses, made the initial contact. As a result, Mr. Epstein and hisassistants were routinely unaware of the identities of many of these young women before theyarrived.The allegations further include the assertion that Mr. Epstein engaged in unlawful sexualconduct with certain underage women who arrived at his house to provide a massage. At times,during these massages, Mr. Epstein masturbated, engaged in some sexual touching, and a smallnumber of alleged acts of penetration. However, most of the women who performed massages onMr. Epstein were over the age of 18. Many of the young women have sworn under oath that they, infact, told Mr. Epstein that they were 18 or older, and that they did so because they knew that if theywere not 18 years old, they would not be allowed into Mr. Epstein's home. In fact, Mr. Epstein haspassed a polygraph examination to this effect relative to the government's primary, and youngest,alleged victim, Indeed, many of the women also worked at local massage parlors,which presumably had a requirement that the masseuse have reached the age of majority. To theextent there are allegations that Mr. Epstein should have been alerted to certain underage womenbased on conversations he allegedly had with them, those conversations would have taken place inperson and at his home, thereby precluding any prior scheduling with knowledge of their true ages.As explained below, any factual allegations of repeat massages with such persons would lacknecessary elements required for a federal nexus to such conduct.All of the alleged activity occurred in Mr. Epstein's home in Palm Beach, Florida. Many ofthe massages allegedly involved conduct which, even if engaged in, is not proscribed by federal law,either because the masseuses were of age, or because conduct with underage masseuses onlyinvolved topless massages, massages in undergarments or naked massages. To the extent prohibitedsexual activity occurred, any inducement, enticement, and/or persuasion used would have takenplace during a face-to-face encounter—thus eliminating the possibility for the commission of afederal crime, which requires the existence of a communication through a facility of interstatecommerce in which the defendant persuades or entices the minor to engage in illegal sexual activity.Furthermore, any prohibited sexual activity that did occur based on the facts on the record is best leftto the state to address because the facts of this case do not fall comfortably within the federaldomain.This is a case about purely local activity, involving local actors, and affecting localinterests and thus, should be handled by local authorities. Nonetheless, the USA() has indicatedits intent to prosecute Mr. Epstein for purported violations of 18 U.S.C. §§ 2422, 2423, and1591. However, as set forth in detail in prior submissions, the facts of this case fall squarelyoutside the heartland of those statutes — in fact, in law, and in congressional intent. As their plainHOUSE OVERSIGHT 012185ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 4text and history indicate, these statutes were designed to address problems that are truly nationaland international in scope: human trafficking in § 1591; telephone or Internet sexual predation in§ 2422; and sex tourism in § 2423. Unlike the alleged conduct at issue here, those problemsunquestionably present multi-jurisdictional obstacles that States and localities cannot confronteffectively on their own. Mr. Epstein's conduct was purely local in nature, and the State ofFlorida and Palm Beach County are effectively prosecuting and punishing that conduct.Although CEOS asserts, "that a prosecution of Mr. Epstein might not look precisely like thecases that came before it is not dispositive" (CEOS letter at p. 4), the fact is this case does not lookanything like those cases. The facts here do not carry any of the hallmarks that typify an appropriatefederal prosecution •for child exploitation as reflected in all such prior federal prosecutions.Specifically, the facts here do not carry the hallmarks for a sex trafficking or child prostitutionprosecution. Mr. Epstein did not target minors. In fact, the evidence indicates just the opposite.There was no travel in interstate commerce for the purpose of engaging in illicit sexual activity.There was no prohibited use of a facility of interstate commerce. There was no commercial for profitsexual enterprise. There was no force. There was no violence. There was no use of drugs oralcohol. There was no child pornography.18 U.S.C. § 1591 is clearly designed to combat organized rings of individuals who engage inthe business of human trafficking, involving both a commercial and coercive component. AsPresident Bush has noted:generally speaking, trafficking in persons refers to actions, often including the use offorce, fraud or coercion, to compel someone into a situation in which he or she willbe exploited for sexual purposes, which could include prostitution or pornography, orfor labor without compensation, which could include forced or bonded labor . . .trafficking in persons is often linked to organized crime, and the profits fromtrafficking enterprises help fund other illegal activities. The growth of vasttransnational criminal networks supported in part by trafficking in persons fostersofficial corruption and threatens the rule of law.2This in no way describes the case here. Yet the USA() has been unwavering in its singleminded focus to stretch the limits of these federal statutes beyond their intended use, and beyondprecedent, in order to prosecute Mr. Epstein. As the CEOS letter acknowledges, the legal theoriesthe USAO intends to attempt to pursue against Mr. Epstein are "novel," having never before beensanctioned by federal law. They should not be sanctioned now. As the Supreme Court recentlypronounced, when a statutory term in a criminal statute could support both a narrow or broadapplication of the federal criminal law, "the tie must go to the defendant." United States v. Santos,553 U. S .______and Cuellar v. United States, 553 U.S_____(June 2, 2008), Slip Op. at 6.2 February 25, 2003 Trafficking in Persons National Security Presidential Directive.HOUSE OVERSIGHT 012186ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 5A full and fair review of the facts here is critical to this analysis. Yet, it is clear that CEOSdid not conduct such a review. In his recent letter to Jay Lefkowitz, First Assistant United StatesAttorney ("FAUSA") Jeffrey Sloman confirmed our understanding that the USA() was to have"facilitated" an "independent de novo review of the investigation" by the Department. (May 19,2008 Sloman letter at p. 5). Yet, the CEOS review was not complete, and by its own terms not deAs CEOS itself noted, "our review of this case is limited both factually and legally. We havenot looked at the entire universe of facts in this case. It is not the role of the Criminal Division toconduct a complete factual inquiry from scratch." (CEOS letter at p. 1). Indeed, entire subject areasrelevant to the inquiry were not considered at all by CEOS. In essence, CEOS was only in a positionto make the most cursory possible review, an "abuse of discretion" review, without considering thefacts at the necessary level of detail, and without taking into account the many and varied issues ofmisconduct we have raised in this case. As the CEOS letter indicates, "we did not review the facts,circumstances, or terms included in the plea offer nor any allegations that individuals involved in theinvestigation engaged in misconduct." (CEOS letter at p. 2). All of this begs the question — if it isnot CEOS' role to "conduct a complete factual inquiry," and CEOS did not consider any of theallegations of misconduct here, which at the very least have created a strong appearance ofimpropriety, and, at worst evidence an intent and effort to unfairly prejudice Mr. Epstein to thefinancial benefit of the friends and colleagues of the prosecution team in the USAO, then where andwhen can justice ever hope to be served in this case? This is a prosecution burden that cannot, andshould not, be brushed aside.We contend the limited nature of the CEOS review deeply affected its conclusions. Forexample, CEOS most likely did not review original documents, such as transcripts, and instead reliedon the summaries of federal prosecutors and FBI agents, against whom we have raised seriousconcerns regarding misconduct. If the summary memos from the USA() are as flawed as otherUSAO communications have been, and which we have been able to show are misleading andinaccurate, the CEOS abuse of discretion review is likely flawed as well. Moreover, although theUSAO expected, and personally promised to us, an independent review, FAUSA Sloman's letter alsomakes clear that our pivotal legal challenge to the use of 18 U.S.C. § 2422(b) had already "beenpreviously raised and thoroughly considered and rejected by . .. CEOS prior to" the recent CEOSreview. (May 19, 2008 Sloman letter at p. 5). The fact that CEOS had to evaluate its own decisionwith respect to some of the allegations against Mr. Epstein prevents its subsequent review andopinion from being truly independent.Following this most recent CEOS review "limited both factually and legally," and with nocitation to any case law relative to the statutes in question, CEOS concludes merely, "federalprosecution in this case would not be improper or inappropriate (CEOS letter at p. 5);" in essence,that the United States Attorney could bring this case in the exercise of his federal discretion shouldhe so choose ("we conclude that U.S. Attorney Acosta could properly use his discretion to authorizeprosecution in this case."). (CEOS letter at p. 2). However, CEOS drew the conclusion that theHOUSE OVERSIGHT 012187ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 6federal prosecution of Mr. Epstein would not be "improper or inappropriate" absent any review at allof the misconduct here, and absent a full review of the facts and law. The facts, the law, and thealleged misconduct are each necessarily inextricably intertwined with the question of whether or notthis is a viable federal prosecution. These imposed limits flawed the review from the outset. In anyevent, CEOS concedes that the defense team makes "many compelling arguments." (CEOS letter atp. 5). In the end, then, one is left with the impression that the CEOS review and opinion, althoughconcluding that the USA() could push forward at its own discretion, is a much qualified one.The federal prosecution of Mr. Epstein has been a moving target from the inception. Eachtime the allegations, the witnesses or the applicable law is subject to a searching inquiry, we havefound that the allegations have been misrepresented, the law does not apply to the actual facts here,and the USA() prosecution theory falls apart. Yet, in the face of the voluminous evidence we havesubmitted in this regard, while acknowledging that the theories are "novel," and that our argumentsagainst federal prosecution are "compelling," CEOS concluded, "Mr. Acosta could rightfullyconclude that this federal issue is best resolved by a jury" and that "the USA° has a good faith basisto fully develop the facts on this issue and brief the law to permit a court to decide whether the lawappropriately reaches such conduct." With all due respect, and recognizing that CEOS may be— andapparently was — limited in its authority, it should not be the prerogative of the prosecution arm ofthe United States government to simply roll the dice, and let the court system just sort it out whendealing with the life and liberty of a United States citizen. The Department of Justice should not beso cavalier when labeling someone as a child molester. While it may be within the discretion of theUSA() to do so, it is not in accord with the principles of justice.Indeed, as noted, just a few weeks ago, the Supreme Court underscored this point in Santosand Cuellar. The Court made clear that prosecutorial discretion does not provide the USA() cartblanche to expand criminal statutes as they seek to do here with complete disregard for congressionalintent. The Court rejected speculation as a basis of determining the scope of a criminal statute;"probability is not a guide which a court, in construing a penal statute, can safely take." Slip op. at 7,quoting United States v. Wiltberger, 5 Wheat. 76,105 (1820). "We interpret ambiguous criminalstatutes in favor of defendants, not prosecutors." Slip op. at 12.Based on my experience, I believe that the facts here do not warrant a federal childexploitation prosecution. At its core, this case is quintessentially a state concern as opposed toimplicating any federal interest. Indeed, the Florida State Attorney's Office ("SAO"), led by thechief of the Sex Crimes Division, thoroughly investigated this matter, and presented it to the grandjury. The facts, as opposed to the deeply flawed press reports, were carefully assessed byexperienced State prosecutors who aggressively enforce State criminal laws. Following an extensive15-month State investigation, Mr. Epstein was indicted by a State grand jury on a single felony countof solicitation of prostitution.During the investigation, the State prosecutor exhaustively reviewed the evidence, met face-to-face with many of the alleged victims, considered their credibility — or lack thereof — andHOUSE OVERSIGHT 012188ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 7considered the extent of exculpatory evidence, including a psychosexual evaluation of Mr. Epsteinand a polygraph examination demonstrating that Mr. Epstein genuinely believed at the time of thealleged conduct that the State's key witness was over the age of 18. Then, aftermonths of negotiations, the State reached what it believed was an appropriate resolution of the case.Importantly, this resolution was consistent with that of cases involving other defendants who hadengaged in similar conduct. Implementation of the State resolution of the case was held in abeyance,however, due to the unexpected commencement of the successive federal criminal investigation.While it is true, as CEOS points out, (CEOS letter at p. 3) that many criminal prosecutionsturn on issues of credibility of witnesses, to which many members of the defense team can attest(having had decades of federal criminal litigation experience among us), this does not serve to divestthe prosecutor of his/her duty to make a searching inquiry of the facts before using the power ofprosecution, and the weight of the United States government, to level serious accusations. CEOSlikewise acknowledges as much, "the prosecutors are in the best position to assess the witnesses'credibility." (CEOS letter at p. 3).Since the CEOS letter also singles me out as someone who should be familiar with witnessissues, I feel compelled to note that, of course, I am well aware that it is not uncommon for witnessesto give conflicting statements. I am also fully aware that the credibility of key government witnessesmay be strongly impacted by the $50 million incentive provided via the civil lawsuits at play, andencouraged by the goverrunent here. 3 I have also read many of the conflicts between witnesstestimony and Detective ReCarey's own rendition of that testimony in his reports and/or searchwarrant affidavit. Detective ReCarey apparently formed a view early on as to the purportedcriminality of Mr. Epstein's conduct regardless of the mountain of evidence to the contrary. For aprosecutor that has had an opportunity to review the full facts, and to meet with the witnesses,however, "conflicting statements" cross the line to a "lack of credibility" that simply can not sustaina prosecution. That is where an appropriate application of prosecutorial discretion must be broughtto bear.Again, CEOS was not itself in the position to exercise such discretion. By its own admission,CEOS did not make a full review of the witness statements here, and CEOS certainly did not sitdown across the table and speak to these witnesses. We understand that was apparently not itsperceived role. But, CEOS should recognize that at least one prosecutor in this case — the Chief ofthe SAO Sex Crimes Division has done so. Lana Belohlavek not only met with and interviewedthese witnesses during the course of the 15-month state investigation prior to any federalinvolvement, but she again sat across the table from many of them in connection with recent civil3 It is important to note here that this investigation was launched not upon the complaint of any alleged victim, but,rather, upon the complaint of ather, , and her stepmother, Morenotable still is the fact that has been convicted of federal bank fraud, an has a stateconviction for identify fraud. Hardly pillars of credibili. Yet, the USAO did not supply this information to thedefense. Even more telling is the fact that filed a $50million lawsuit purportedly on behalf of hisdaughter without her authority or knowledge.HOUSE OVERSIGHT 012189ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 80depositions in this matter. Ms. Belohlavek, and the SAO, is likewise well familiar with the breadthof the federal investigation, and has integrated that knowledge into the current enhanced statesentencing recommendation. The SAO remains firm in the position that the proposed state resolutionis a sound one, and that there was no child exploitation here. Notably, however, not once during thependency of the federal investigation has the USA() ever reached out to its state prosecutivecounterpart that initiated this investigation in the first place to discuss the issues or to thoroughlyferret out the facts or the witness credibility issues.In the eight lines the CEOS letter accords to the topic of witness credibility CEOS asserts,"there are multiple mutually-corroborating witnesses," (CEOS letter at p. 3). However, the CEOSletter does not highlight a single one. In contrast, we have put forth numerous "mutuallycorroborating" witness statements. Far from supporting a federal prosecution, these statementsinstead corroborate that 1) the alleged victims lied to Mr. Epstein about their age; 2) there was no useof a facility of interstate commerce by Mr. Epstein; 3) there was no inducement or coercion; 4) therewas no commercial enterprise; and 5) there was no illicit sexual conduct.Indeed, Mr. Epstein took several steps to ensure that no minors entered his home, mostnotably, by affirmatively asking the women whether they were actually 18. See e.g. 'I'r. At38-39. That fact — which many of the potential witnesses have confirmed in sworn interviews —strongly indicates that Mr. Epstein specifically intended to preclude anyone under 18 from givinghim a massage. That fact is confirmed by, among other things, testimony that "helikes the girls that are between the ages of like 18 and 20 . . . ." Tr. at 12. In fact, theevidence bears out that the majority of the women who came to Mr. Epstein's residence to provide amassage were over 18.Many of the young women who were aged 16 and 17 visited Mr. Epstein's residence onlyonce or twice, and the evidence strongly shows that they lied to Mr. Epstein about their age. Two ofthese individuals,an, were 14 and 15 at the time they met Mr.Epstein. Given that each has brought a civil lawsuit against Mr. Epstein, with and herfamily seeking $50 million from Mr. Epstein, their testimony against Mr. Epstein is per se suspect.But, despite their obvious incentive to harm Mr. Epstein, their testimony actually confirms hisinnocence, for instance, has testified that who introduced her to Mr.Epstein, expressly told her to lie to Mr. Epstein about her age.Q: And told you that if you weren't 18 Epstein wouldn't let you into his house,right?A: That's — yes, yes.(deposition) at 32.Q: You didn't want Mr. Epstein to know that you were lying about your age, right?HOUSE OVERSIGHT 012190ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 9A: Correct.Q: You didn't want Mr. Epstein to know that you were not 18 yet, right?A: Correct.(deposition) at 36.In fact, Ms. told Mr. Epstein that she was 18 years old, and confirmed this fact withPalm Beach Police. Id. at 36. Beyond that, Ms. "swore on her mother's grave" that sheand Mr. Epstein did not engage in sex of any kind. Tr. (deposition) at 24. She furtherrepeatedly explained that prior to the time she went to Mr. Epstein's house (she went there onlyonce), nobody ever tried to coerce her to engage in sexual activity with Mr. Epstein. Not over thetelephone, not over the Internet, not at all. Ir. (deposition) at 31-32. These are not factsupon which a federal case can stand.Ms. s age was also unknown to Mr. Epstein when she went to his home., who was introduced to Mr. Epstein by Ms testified in her federal sworn interviewthat Ms. old her to lie to Epstein. aggm- Tr. at 8 ("she just said make sure you're 18because Jeffrey doesn't want any underage girls") (emphasis added). Ms. testimonystrongly suggests that Ms. ied to Mr. Epstein about her own age as well. Ms.also self represented that she worked at a local erotic massage parlor that presumably required aminimum age.The conduct of is likewise illustrative of "mutually corroborating" testimonywhich supports the fact that this is not an appropriate federal case. In the same way that Ms.was referred to Mr. Epstein and brought to his home without having been introduced oracquainted in any manner, Ms. was referred by someone else, , who also toldher to lie to Mr. Epstein about her age, which she did. =Tr. at pp. 8-9).CEOS seeks to buttress the USA() prosecution by asserting "it is possible to satisfy thatelement [proof of specific intent as to the age of the alleged victims] with proof that the defendantwas deliberately ignorant of facts which would suggest that the person was a minor." (CEOS letterat p. 2). Such assertion is counter to the law and to the facts. Reliance on a deliberate ignorancestandard as to any of the three statutes in issue requires the factual predicate of an intent not to learnof an incriminating fact. This is the antithesis of the factual context of this case where there isrepeated proof that the minors believed that they had to lie because Mr. Epstein had an actualpractice of attempting to verify age, and would not let them in his house if they were under the age of18. See United States v. Kennard, 472 F.3d 851, 857-858 (11th Cir. 2006), quoting, United States v.Puche, 350 F.3d 1137, 1149 (11th Cir. 2003) (An instruction on deliberate ignorance is appropriateonly if it is shown [among other things] . . . that the defendant purposely contrived to avoid learningHOUSE OVERSIGHT 012191ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothRule 19, 2008Page 10of all of the facts in order to have a defense in the event of a subsequent prosecution."). Thus, thefacts preclude reliance on the concept of deliberate ignorance as a substitute for proof.The fact that the search warrant affidavit in this case is rife with mis-statements andomissions regarding the key element of age is critical. However, CEOS concludes with no apparentsupporting analysis, "despite the numerous factual errors you describe, the U.S. Attorney's Officecould still plausibly argue that the mistakes — whether inadvertent or intentional — were not materialto the determination . . . ." (CEOS letter at p. 3). Although, as CEOS notes, there are "numerous"such misrepresentations, through affirmative statement or intentional omission, a focus on but one ofthose misrepresentations highlights that such misrepresentations were, in fact, material. The fact isthat Detective ReCarey grossly misrepresented Mr. Epstein's intent as it related to the age of thewomen he permitted entry to his residence.In the search warrant affidavit, Detective ReCarey affirmed that claimed:[Mr. Epstein told her the younger the better.And, stated she once tried to bring a 23 year old female and Epstein stated that thefemale was too old.What Detective ReCarey, no doubt intentionally, omitted wafurther explanation,which rendered Mr. Epstein's comments innocuous:A: Let me put it this way, he — I tried to bring him a woman who was 23 and he didn'treally like it.Q: He didn't go for it?A: It's not that he didn't go for it. It's just that he didn't care for it. And he likes thegirls that are between the ages of 18 and 20. (Statement at 12) (emphasisadded).Had that critical information, information that turns allegedly illegal conduct into moreinnocent conduct, been included, it would have seriously undermined the probable cause for thesearch warrant.Similarly, and equally problematic, Detective ReCarey did not include the many statementsdemonstrating that, when asked by Mr. Epstein, the women affirmatively misrepresented their agesas being 18, and/or that Mr. Epstein was not aware of their true ages. Indeed, although DetectiveReCarey did note that Ms bid Mr. Epstein that she was 18, he omitted from the affidavitthe key point as to why she lied:HOUSE OVERSIGHT 012192ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 11=said tell him you're 18 because if you're not, he won't let you in his house.So I said I was 18. As I was giving him a massage, he was like how old are you.And then I was like 18. But I kind of said it really fast because I didn't want to makeit sound like I was lying or anything. at 38-39.Thus, consistent with the guidance provided in Franks v. Delaware, 438 U.S. 154 (1978), thesearch warrant affidavit in this case reveals knowing and reckless falsehoods and omitted materialinformation. This is precisely the type the United States Supreme Court sought to guard against.The age of the alleged victims, and of Mr. Epstein's intent in that regard, is an element of thecrimes that must be proven in order to sustain a conviction. In particular, § 2422(b) requires that thedefendant specifically intended to target a minor. See, e.g., United States v. Murrell, 368 F.3d 1286(11th Cir. 2004) ("[T]o prove an attempt the government must first prove that [defendant], using theintemet, acted with a specific intent to persuade, induce, entice, or coerce a minor to engage inunlawful sex.") (Emphasis added). Section 2422(b) expressly requires that the crime be committed"knowingly," and that requisite mental element applies as to each element of the crime. UnitedStates v. XCitement Video, Inc., 513 U.S. 64, 68-69 (1994); United States v. Meek, 366 F.3d 705,718 (9th Cir. 2004); United States v. Root, 296 F.3d 1222, 1227 (11th Cir. 2002); United States v.Bailey, 228 F.3d 637, 638-639 (6th Cir. 2000). How, then, could the USA() "plausibly argue" that amisrepresentation about an element of the crime could be viewed as "not material"? If the elementsof the alleged crime are not met, there is no probable cause to sustain the search warrant in the firstinstance. If the elements are not met, there is no federal crime. That is material.Moreover, it is clear from the plaint text of the statute that the statutorily proscribed actpursuant to 18 U.S.C. §2422(b) is the actual use of a facility of interstate commerce to persuade,entice, induce, or coerce. "The underlying criminal conduct Congress expressly proscribed in passing§2422(b) is the persuasion, inducement, enticement, or coercion of the minor rather than the sex actitself. That is, if a person persuaded a minor to engage in sexual conduct (e.g., with himself or a thirdparty) without then committing any sex act himself, he would nevertheless violate §2422(b)." UnitedStates v. Murrell, 368 F.3d 1283, 1286 (11th Cir. 2004). See also, United States v. Bailey, 228 F.3d637, 639 (6th Cir. 2000) ("Congress has made a clear choice to criminalize persuasion and theattempt to persuade, not the performance of the sexual acts themselves."). Thus, if there has beensexual misconduct (which we deny) without the requisite persuasion, there is no violation of thisfederal law.The investigation and testimony in this case makes clear that Mr. Epstein did not use anyfacility of interstate commerce to commit any act forbidden by 18 U.S.C. § 2422(b)—to persuade,induce, entice, coerce—nor did he direct any of his assistants to do so. Indeed, by way of example,as clear on this point at her deposition during which she repeatedly testified thatnobody—not Mr. Epstein or any of his assistants—ever used the Internet or phone in any way to tryto persuade her to engage in sexual activity with Mr. Epstein. (deposition) at 31-32.Nonetheless, even assuming, arguendo, that persuasion to engage in sexual conduct occurred overHOUSE OVERSIGHT 012193ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 12the telephone (which we deny), it is black letter law that the mens rea must coincide with the actusreus. Thus, the government must prove that Mr. Epstein has the specific intent to target a knownminor to engage in prohibited sexual activity at the time of the call. We have seen zero evidence ofthis. To the extent Mr. Epstein later may have persuaded a particular individual to engage inunlawful sexual activity during a massage, such persuasion occurred face to face, and can not workretroactively to render the earlier phone call an offense under the statute.As to the purported violation of 18 U.S.C. § 2423 for allegedly traveling in interstatecommerce for the purpose of engaging in illicit sexual activity, CEOS does not deny that Mr. Epsteinwas returning to one of his residences when he traveled to Florida!' CEOS explicitly stated it "fullyunderstand[s] our argument" (CEOS letter at p.2) that Mr. Epstein should not be charged under§ 2423(b) because the dominant purpose for his traveling to Palm Beach was not to engage in illegalsexual activity, but to simply return to one of his residences. Rather, this is apparently another"compelling" point of law which may be left to "a court to decide whether the law properly reachessuch conduct." (CEOS letter at p. 2).5 Notably, implicit in this concession by CEOS is that the lawhas never before been so applied, that is, there is no precedent for a court to extend the statute as theUSA() seeks to do here. In fact, the United States Supreme Court prohibited the criminalization oftravel under identical circumstances over a half century ago. See Mortenson v. United States, 322U.S. 369, 374 (1944) (intention to engage in proscribed conduct must "exist before the conclusion ofthe interstate journey and must be the domMate motive of such interstate movement." (Emphasisadded.)Beyond an absence of proof regarding the travel element in connection with 18 U.S.C. §2423,the requisite age requirement for a violation of that statute is important. 18 U.S.C. §2423, byreference to Chapter 109A (18 U.S.C. §2423(0(1)), specifically defines a minor for purposes of thatstatute as an individual who has not attained the age of 16. If an alleged victim is 16 years of age orolder, a violation of this statute pursuant to 2423(f)(1) can only occur if it can be proven that force,threat or drugs were involved. See, 18 U.S.C. §§ 2241 et seq. There are no such allegations here. Asa result, in order to find a violation under 18 U.S.C. § 2423, the United States would have to provethat Mr. Epstein engaged in one of the sexual acts defined at 18 U.S.C. § 2246(2) with an individualunder the age of 16, and that he formed the intent and dominant purpose to do so prior to the time hemade a return trip to Florida. Again, there is no such evidence here. has specificallytestified that 1) she never engaged in sexual activity with Mr. Epstein; 2) she never even met ortalked to Mr. Epstein prior to her arrival at his house; and 3) she lied about her age not only to Mr.Epstein, but, in fact, to the world on her MySpace page when she said that she was 18 years old. It is,then, also worth noting in this regard that 18 U.S.C. §§2243(c) provides an affirmative defense ifproven by a preponderance of the evidence if Mr. Epstein reasonably believed that was4 In addition to his residence there, Mr. Epstein also has several businesses, and personal matters and contacts to whichhe attends in Florida. For example, beginning in 2002, Mr. Epstein visited his mother nearly every weekend in PalmBeach until she passed away in April, 2004.5 As previously set forth herein, and as more fully explained in other submissions related to this case, the recentSupreme Court decisions in Santos and Cuellar make this attempted stretch of the law improper.HOUSE OVERSIGHT 012194ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 13had attained the requisite legal age. Finally, although 18 U.S.C. §2423(f)(2) also defines "illicitsexual conduct" as any commercial sex act with a person under the age of 18, 18 U.S.C. §2423(g)also provides a specific affirmative defense as to that age element if proven by a preponderance ofthe evidence that Mr. Epstein reasonably believed that the young women had attained the requisitelegal age. As we have demonstrated, time and again the women involved lied to Mr. Epstein as toilleir true age, representing that they were, in fact, over the age of 18. Many of them also representedthat they worked at local massage parlors, which presumably would have imposed a legal agerequirement.Lastly, in contrast to 18 U.S.C. §1591, Mr. Epstein's conduct did not involve trafficking ofwomen or children in the sex industry, and was not part of any phenomenon that, in the aggregate,had an economic impact on interstate or foreign commerce. Additionally, Mr. Epstein did notbenefit financially from the alleged conduct. Therefore, as the SAO determined, and still believes,Mr. Epstein was a customer, a "John" for whom prosecutions are best left to the State to address.Indeed, there is no reported precedent extending federal law to a local "John" who does not violatethe child exploitation statutes. Indeed, CEOS does not point to a single case where federalprosecutors have used § 1591 in a case involving facts like these. Instead, every § 1591 prosecutionhas involved national or international sex trafficking and/or for-profit prostitution rings, involvingthe knowing use of minors and/or forcible coercion, or forcible rape, physical abuse or intimidation.These are the elements required by the statute, and they are not met here.Although CEOS could, perhaps, point to United States v. Evans, 476 F.3d 1176 (11th Cir.2007) as a case that, standing alone, involved wholly intrastate conduct, the facts of that case are fardifferent in key respects than this one. The Evans case involved both the commercial and coercivecomponents that Congress, and administration policy statements intended in 18 U.S.C. § 1591prosecutions. Evans, and his co-conspirators (Madison and Yearby) were not "Johns." Theyoperated a for profit prostitution ring marked by control of, and extreme violence toward, thevictims, who they knew were underage. Indeed, Evans forced one such victim, age 14 years old, tocontinue to work even after she had been hospitalized with ADDS. As part of their business, Evansand his co-conspirators provided the victims with cell phones, hotels, and condoms, and the victimswere forced to give all of their money from this prostitution ring to Evans and his co-conspirators.None of this type of activity comes close to the facts regarding Mr. Epstein. Finally, but significantly,the prostitution ring in Evans was not, in fact, entirely intrastate as the companion case of one of theEvans co-defendants makes clear. See, United States v. Madison, 477 F.3d 1312, 1313-1314 (11thCir. 2007) (Jane Doe #2 stated that she traveled to Atlanta, Georgia with Madison to work as aprostitute).Thus, courts, including the Eleventh Circuit in Evans, have underscored the point that § 1591simply is not intended to cover the kind of alleged conduct at issue here. "Section 1591 does notcriminalize all acts of prostitution (a vice traditionally governed by state regulation). Rather, itsreach is limited to sex trafficking that involves children or is accomplished by force, fraud, orcoercion." United States v. Evans, 476 F.3d at 1179 n. 1; See also United States v. Sims, 171 Fed.HOUSE OVERSIGHT 012195ALLEN GUTHRIE MCHUGH & THOMAS, PLLCMr. John RothJune 19, 2008Page 14Appx. 849, 2006 WL 14581 at *3 (11th Cir. 2006) (to establish Sims's guilt on the sex trafficking ofa minor count, the government had to show that Sims benefited financially from Owen's sexualactivity and that Sims knew that (a) force or coercion would be used to cause Owens to engage in acriminal sex act or (b) that Owens was under the age of 18.) (emphasis added). Again, none of thesefactors is present in this case. The Eleventh Circuit's interpretation of the statute makes perfectsense: were § 1591 not limited in this fashion, it would threaten to criminalize a host of localizedbehavior that has nothing to do with human trafficking, and, thus, is of no valid federal interest.In sum, to accord discretion to the USAO, albeit without benefit of the requested full denovoreview, to exercise authority to pursue a prosecution which involves a "novel" application of threefederal statutes in the face of numerous "compelling arguments" is not warranted, as it is notsupported by the facts, the law, or justice. Echoing the admonition of the Supreme Court in theBerger decision, the Comment to Rule 3.8 of the Rules of Professional Conduct (SpecialResponsibilities of a Prosecutor), says it best "A prosecutor has the responsibility of a minister ofjustice and not simply that of an advocate. This responsibility carries with it specific obligations tosee that a defendant is accorded procedural justice and that guilt is decided upon the basis ofsufficient evidence." This is a responsibility that can not be taken for granted. The government bearsthe burden of assuring that it possesses sufficient evidence to prove each element of a crime withrespect to some specific victim before publicly branding Mr. Epstein a child molester. In this case,however, the USA() has not met its burden for any victim for any of the crimes alleged. It is notenough to simply gloss over the required proof, and rely on the jury or the court to just sort it all outin the end. The stakes are too high. As a result, the USA() should not be permitted to pursue anunfounded federal criminal case against Mr. Epstein under the guise of prosecutorial discretion.Such prosecution in this case necessarily would appear to be selective to Mr. Epstein. To beclear, our request that Mr. Epstein should not be prosecuted federally would not permit him to gocompletely unpunished, but, rather, would simply place him in the same prosecution position asothers similarly situated. Therefore, we continue to believe that after a complete, de novo, andindependent review, the only appropriate conclusion will be that this case is best left to the state toresolve.STEPHANIE D. THACKERSDT/kdtEnclosuresHOUSE OVERSIGHT 012196