Confidential Due Diligence Report — YHS LLC Rather than flat-out decline to charge Epstein, Krischer referred the case to the grand jury to "appease" the chief, Goldberger Said. A state attorney's spokesman would say only that the office refers Cases to the grand Jury when •here are issues with the viability of the evidence or witnesses' credibility. s,-.th the state attorney and the grand jury concluded there was not sufficient evidence that Epstein had sex with minors, according to Goldberger. "It was just a childish performance by the .ch Police Department," Goldberger said. ii.: defense attorney said one of the alleged victims who claimed she was a minor was in fact over the age of 18. Another alleged victim who was subpoenaed to testify to the grand jury failed to do so. Epstein's accusers, he added, have histories of drug abuse and thefts. "These women are liars. We've established that." But why would they all invent their stories about meeting Epstein for sexual massages? "I don't have an answer as to what was the motivation for these women to come forward and make these allegations," Goldberger said. NOTES: Ran all editions. GRAPHIC: PHOTO (C) Jeffrey Epstein (mug) LOAD-DATE: August 10, 2006 Confidential - This report is not to be disseminated or photocopied to any third party without the express consent of Global Corporate Security. Confidential Treatment Requested by JPMorgan Chase CONFIDENTIAL JPM-SDNY-00003268 SDNY_GM_00272466 EFTA01481017

