Epstein Secrets

1. Jeffrey Epstein and Financial Trust Company, Inc. invested hundreds of millions of dollars with Highbridge as an investment manager with its many sub- advisors from

ose sub-advisors beginning in 2002 and, according to the Securities and Exchange Commission, remained a sub-advisor through at least 2007. 3. Mr. Epstein has had virtually no contact with Mr. Zwirn, except for a five minute face-to-face introduction and various telephone calls trying to resolve dispu

in limiting Mr. Epstein's lock-up period to two years, as opposed to the three-year lock-up period the Zwirn fund was imposing on other investors. [JE, REMEMBER THERE WAS ALSO A ONE-YEAR PLUS LIQUIDITY OPTION --- SO WE CAN'T SAY "EVERYONE ELSE". ALSO, I BELIEVE THIS WOULD BE THE FIRST TIME THAT WE

1. Jeffrey Epstein and Financial Trust Company, Inc. investe

mained a sub-advisor through at least 2007. 3. Mr. Epstein has had virtually no contact with Mr. Zwirn, exce

ade that statement to Mr. Susman. 8. Although Dubin & Swieca Asset Management was a partner in Zwirn's management entities, we do not know whether Henry Swieca was involved at all. 9. According to Mr. Zwirn, Mr. Dubin was notified that Mr. Epstein's redemption was not consistent with Mr. Zwirn's understan

Jeffrey Epstein's Deep Ties to Top Wall Street Figures - The New York Times Page I of 4 BUSINESS EbeNcto Doric gimes Jeffrey Epstein's Deep Ties to Top Wall Stree

top JPMorgan Chase executive and one of the highest-ranking figures on Wall Street. Mr. Staley had good reason to maintain his relationship with Mr. Epstein, who received him at his Palm Beach office, where he had been permitted to serve some of his 13-month sentence in 2008 and 2009. Over the years, Mr.

Jeffrey Epstein's Deep Ties to Top Wall Street Figures -

had good reason to maintain his relationship with Mr. Epstein, who received him at his Palm Beach office, where

ars later, in 2004, Mr. Staley orchestrated a deal in which JPMorgan bought a majority stake in Highbridge. Mr. Dubin, and the Highbridge co-founder Henry Swieca, became JPMorgan employees. It is not clear whether or how Mr. Epstein was compensated for helping broker that deal. "Mr. Staley has never engaged

tners, LLC, D.B. Zwim & Co., L.P., DBZ GP, LLC, Zwim Holdings, LLC, and Daniel Zwirn. Introduction 3. Over a three-year period beginning in 2002, Jeffrey Epstein ("Epstein"), through a firm he owned and managed named Financial Trust Company, Inc. ("FTC"), made an $80 million investment in D.B. Zwim Special O

Zwim & Co., L.P., DBZ GP, LLC, Zwim Holdings, LLC, and Daniel Zwirn. Introduction 3. Over a three-year period beginning in 2002, Jeffrey Epstein ("Epstein"), through a firm he owned and managed named Financial Trust Company, Inc. ("FTC"), made an $80 million investment in D.B. Zwim Special Opportuniti

3. Over a three-year period beginning in 2002, Jeffrey Epstein ("Epstein"), through a firm he owned and

Fund, The 2005 Letter Agreement did not provide Mr. Epstein with any such right as of March 31, 2007, becaus

of the Fund's investment manager. Statement of the Claim 23. In 2002, Epstein was introduced to Daniel Zwim by Glenn Dubin. Dubin and his partner Henry Swieca started Highbridge Capital, a very successful investment management firm. Epstein had a long-standing relationship with Dubin and Higbridge, who pr

kground 2 I. DBZ's Investment Strategy 3 2. Mr. Zwirn's Role at DBZ 3 3. Mr. Dubin's Involvement with DBZ 4 4. DBZ's Lock-Ups 4 C. Mr. Epstein's Relationship with Mr. Dubin 6 D. FTC's Investments in the Fund 7 E. Accounting Improprieties at DBZ 8 F. DBZ's Discovery of Accounting Imp

Third-Party Claimants Financial Trust Company, Inc. and Jeepers, Inc. (together, "FTC"). Preliminary Statement At no time did Daniel Zwim promise Jeffrey Epstein that FTC could immediately withdraw $80 million of its investments in DBZ's Fund. Mr. Epstein's claim that Mr. Zwim made such a promise is a newly

ary Statement At no time did Daniel Zwim promise Jeffrey Epstein that FTC could immediately withdraw $80

volvement with DBZ 4 4. DBZ's Lock-Ups 4 C. Mr. Epstein's Relationship with Mr. Dubin 6 D. FTC's Inves

director and the senior portfolio manager of the Special Opportunities Group at Highbridge. B. DBZ Background In 2002, Mr. Zwirn, Mr. Dubin, and Henry Swieca (Mr. Dubin's business partner) established Highbridge/Zwim Capital Management, LLC ("Highbridge/Zwim") as a separate management company to carry ou

1. Jeffrey Epstein and Financial Trust Company, Inc. invested hundreds of millions of dollars with Highbridge as an investment manager with its many sub-advisors from

ose sub-advisors beginning in 2002 and, according to the Securities and Exchange Commission, remained a sub-advisor through at least 2007. 3. Mr. Epstein has had virtually no contact with Mr. Zwim, except for a five minute face-to-face introduction and various telephone calls trying to resolve dispute

1. Jeffrey Epstein and Financial Trust Company, Inc. investe

mained a sub-advisor through at least 2007. 3. Mr. Epstein has had virtually no contact with Mr. Zwim, excep

ade that statement to Mr. Susman. 8. Although Dubin & Swieca Asset Management was a partner in Zwim's management entities, we do not know whether Henry Swieca was involved at all. 9. According to Mr. Zwirn, Mr. Dubin was notified that Mr. Epstein's redemption was not consistent with Mr. Zwim's understand

o., L.P., and Daniel Zwim. Introduction 2. At all times relevant to the claims stated herein, Claimants FTC and Jeepers were owned and managed by Jeffrey Epstein ("Epstein"), a wealthy and successful investor. 3. Starting in 2002, Epstein (through FTC) began investing in D.B. Zwim Special Opportunities Fund

el Zwim. Introduction 2. At all times relevant to the claims stated herein, Claimants FTC and Jeepers were owned and managed by Jeffrey Epstein ("Epstein"), a wealthy and successful investor. 3. Starting in 2002, Epstein (through FTC) began investing in D.B. Zwim Special Opportunities Fund, L.P. ("F

imants FTC and Jeepers were owned and managed by Jeffrey Epstein ("Epstein"), a wealthy and successful inv

Fund, The 2005 Letter Agreement did not provide Mr. Epstein with any such right as of March 31, 2007, becaus

1008645v1/011585 EFTA00586235 Statement of the Claim 22. In 2002, Epstein was introduced to Daniel Zwim by Glenn Dubin. Dubin and his partner Henry Swieca started Highbridge Capital Corporation, a very successful investment management firm. Epstein had a long-standing relationship with Dubin, and High

ifferent position. 8 MR. SUSMAN: Exactly. Ready. 9 MR. SCHWARTZ: Good morning, 10 Mr. Epstein. 09:06:28 11 (Discussion off the record.) 12 JEFFREY EPSTEIN , 13 called as a witness, having been duly sworn 14 by the notary public, was examined and 15 testified as follows: 16 EXAMINATION BY 17 BY

E: Rick Noble from Fortress 22 for Fortress Value Recovery Fund. 23 MR. SUSMAN: Steve Susman on behalf of 24 FTC, JEEPERS, and the witness, Mr. Epstein. 25 Before we get going, before we swear 09:04:18 VERITEXT REPORTING COMPANY www.veritext.com EFTA00299090 Page 7 1 Proceedings 2 him in,

il 20, 2011 23 9:02 a.m. 24 25 Deposition of JEFFREY EPSTEIN. 212-267-6868 VERITEXT REPORTING COMPAN

on behalf of 24 FTC, JEEPERS, and the witness, Mr. Epstein. 25 Before we get going, before we swear 09:04

that JPMorgan purchased 10:45:49 6 Highbridge. 7 A. I believe 50 percent. 8 Q. And who owned the other 50 percent? 9 A. I believe it was Henry Swieca. 10 Q. Did he also meet with JPMorgan, to your 10:46:00 11 knowledge? 12 A. I don't know. 13 Q. Was he an active partner in Highbridge? 1

tner, Henry Swieca, owned a significant portion of D.B. Zwim & Co., L.P. 4. Financial Trust Company, Inc. ("FTC"), which I understand was owned by Jeffrey Epstein, was an important client of Dubin and Highbridge, and I understand that FTC had made the majority of its substantial investment in the D.B. Zwirn Sp

o. The irregularities impacted both the Highbridge account and the funds that D.B. Zwim & Co. managed. 6. In late October 2006, Dubin told me that Epstein was very nervous about the revelations of the issues at Zwim's management company. Dubin told me that Epstein was demanding to withdraw FTC's entir

ny, Inc. ("FTC"), which I understand was owned by Jeffrey Epstein, was an important client of Dubin and Hi

t of money that was managed by Daniel B. Zwim ("Zwim") and his investment management company, D.B. Zwirn & Co, L.P. As well, Dubin and his partner, Henry Swieca, owned a significant portion of D.B. Zwim & Co., L.P. 4. Financial Trust Company, Inc. ("FTC"), which I understand was owned by Jeffrey Epstein,