Villafana, Ann Marie C. (USAFLS) From: Levy, Mike (USAPAE) Sent: Thursday, July 19, 2007 6:42 PM To: King, Damon; Corbet, (USACAC); USAEO-PSC-Coordinators Subject: RE: Disclosing identifying In o mation about victims Take a look at the comments to Rule 16. In the mid-1970s Congress rejected an attempt by the Rules Committee to require disclosure of witnesses' names and addresses. The congressional material with the rulet may prove helpful. From: King, Damon iii Sent: Thursda Jul 19, 2007 2:37 PM To: Corbet, (USACAC); USAEO-PSC-Coordinators Subject: RE: Disc osing identifying information about victims Jen: We're not aware of any rule that requires the Government to provide the address of a victim, child or not. Of course, the defendant is entitled to conduct his own investigation which may reveal victim address information and in the age of public databases (ChoicePoint, Lexis/Nexis, etc.), it Is prudent to assume that trhough the defendant's own investigation this information will be obtained. We've had good experiences/results by getting a Guardian ad Litem GAL appointed under 3509 (along w/employing the other provisions in the sections) and found it to be a very helpful in legal mechanism to employ to protect the child victims from harassment and intimidation, with the additional benefits and ensuring appropriate services are provided to the child and facilitating the child's testimony. I've attached some samples from In a sex trafficking case involving a wealthy defendant and 3 minor victims which the court granted over defense objections/opposition. Of note, intimidation and harassment of the child victim can be discouraged to some degree through this mechanism without necessity of obtaining a protective order because once a GAL is appointed to represent a child, the child would be a "person represented by counsel" under the Rule 4.2 of the ABA Model Rules of Professional Conduct precluding the defense attorney (or person on the atty's behalf) from speaking with the child victim w/o permission from the GAL (of course, the prosecutor would need to get the same permission). As note 2 to the rule states, "This Rule applies to communications with any person who is represented by counsel concerning the matter to which the communication relates." Some additional resources that may be helpful are attached such as the Attorney General Guidelines on Victim and Witness Assistance 2005 Article VI (Guidelines for Child Victims and Child Witnesses), USA Bulletin articles, and the ABA Guidelines for GALs. - dak Damon A. King Deputy Chief Child Exploitation and Obscenity Section Criminal Division United States Department of Justice 1400 New York Ave. N.W. Suite 6400 Washirigton, DC 20005 (w) 202-353-7304 (I) 202-514-1793 From: Corbet, (USACAC) (mailto Sent: Wednesday, July 18, 2007 9:15 PM To: USAEO-PSC-Coordinators Subject: Disclosing identifying information about victims Defense counsel in our district have been getting very aggressive about attempting to interview minor victims in production and trafficking/prostitution cases. Their current m.o. is to demand early in the case that we provide the victim's address or they threaten to file a motion to compel disclosure of the information. Has anyone responded to such a motion, or have any advice about how to respond? Jen Corbel, CDCA EFTA00194470

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA Certified to be a true and - correct copy of the—original, Carlos Juenke, Clerk S. Metric urt So is Distri f Florida Date .Dieyuly Clerk CASE NO. 06-80020-.CR-HURLEY/VITIMAC UNITED STATES OF AMERICA, Plaintiff, vs. JOSEPH SUTERA, ERIC RESSNER, AUGUSTIN CASTELLLANOS, ROBERT CATANESE, and STEPHANIE MIRANTE, Defendants. / FEB - 3 2006 CLARENCE MADDOX. . CLERK V.S. DIST. CT. E.O. OF FIA. • W.P.H. UNITED STATES EX PARTE APPLICATION FOR ENTRY OF POST-INDICTMENT PROTECTIVE ORDER AND MEMORANDUM OF LAW The United States of America, makes application to this court, pursuant to 18 U.S.C. § 982(b)(1) and 21 U:S.C. § 853(e) (1)(A)s, for a restraining order to preserve the avail'abil'ity of: %Certaill property that is subject to forfeiture in the above-styled criminal action. The United States requests that this Court enter an order restraining and prohibiting the following from alienating the assets identified in this motion or from engaging in any condUct that would depreciate, damage or in any way diminish the value of the assets: FILED by D.C. EFTA00194471

a. The jdefefident JOSEPH SUTERA ("Defendant"), individuaily, _ . and as an offider and/or'beneficial owner of any corporate entity, - his agents, servants, employees, attorneys, family members, heirs, and those persons in. concert or participation with b. Ail ebose persons who may be entitled to possession of any portion of the properties restrained herein, whether by virtue of a claim of title, security interest, lien, judgment, contract, or any other legal or equitable basis, including but not limited to--. the defendant's wife, Evelise B. Sutera; and c. All financial institutions; holding any accounts subject to this order. It is also requested that the financial institutions be prohibited from taking offsets against such accounts, and that they continue to credit any deposits, interest, dividends,_ or other credits to such accounts in the normal course of, business, and such deposits, interest, dividends, and other credits shall be'subject to this order. I'. INTRODUCTION On February 2, 2006, a federal grand jury in the. Southern. DiStrict 'of' Florida- returned an eighty-four count -indictMent- against defendant, JOSEPH SUTERA, and others. The defendant is chargedmith violations of 18 U.S.C. SS 371, 1347, 1001, involving health care fraud and 18 U.S.C. § 1957, involving money lAundering, A copy of the Indictment is attached hereto as Exhibit. "A" and incorporated herein. As part of said indictment, the United States 2 EFTA00194472

'is seeking criminal forfeitdge pi.fraudrit to:18 U.S.C.. §§ 982(a) (1) • - and (a) (7) of the following assets: a. The CONTENTS of the defendant's residence located at• 912 Mill.Creek.Drive, Palm Beach Gardens, Florida, incAuding:Apup limited to a grand piano, consumer electronic equipment., indluding stereo systems and television sets, artwork, fixtures; decorator items, and furniture. b. Contents of IDS Life Insurance Company IRA Account number 93-107241382-2-004 in the name of Joseph Sutera. c. Contents of IDS Life Insurance Company IRA Account number 93-107241388-9-004 in the name of Joseph Sutera's d. IDS Life Insurance Company life insurance policy number 9090-6909552-1-004 in the name of defendant Joseph Sutera and his wife. e. IDS Life Insurance Company life insurance policy number 9090-7233747-2-004 in the name of defendant Joseph Suter.ifs:wite;- f. Wachovia Bank account number 1010110078678 in the name.pf: defendant Joseph Sutera. Wachovia Bank account number 2000021128710 in the name:of. :.... MRF Inc., d/b/a The Medicine Shoppe Pharmacy. h Wachovia Bank account number 1010055623793 in the name of defendant Joseph Sutera's wife. By this motion, the United States seeks an order restraining. the transfer, alienation or dissipation of the above listed assets.. .:,. 3 EFTA00194473

AFFIDAVIT OF JAY CURTIS SCHEURER T1S SCHEURER, being first duly sworn on oath, hereby swear and affirm • • as follows: INTRODUCTION •.• 1. I am Currently employed by the United States Food mid Drug Administration, Office of Criminal Investigations (FDA/OCI) as a Special Agent and have been so-employed since • May, 2002. I have approximately nine years of prier law enforcement experience as a Special Agent with the United States Department of Education, Office of Inspector General. I am currently assigned to the FDA/OCI Miami Field Office, Plantation, Florida, with the responsibility of investigating violations of the Federal Food, Drug, and. Cosmetic Act, (hereinafter "FD&C Act"), distribution of controlled substances under Title 21, and related crimesiincluding financial fratid and money laundering. I have received training frit the United States Food and Drug Administration (FDA) in. conducting investigations regarding the illegal distribution of controlled substances and other pharmaceuticals as well as training in the investigation of fraud and money laundering whales. 2. I am part of an investigative team which includes law enforcement officers from • • FDA/OCI, the Federal Bureau of Investigation, Postal Inspection Service Inspectors,. and.: Inspectors from Drug Enforcement Administration's (DEA) biversion unit. Members of F.. the team have significant experience and training in the investigation of both pharmaceuti6a1 drug violations and financial crimes. Members of the team have.also consulted with numerous experts, including those in the chemistry and. insurance claims. • • GOVERNMENT EXHIBIT • 4 ms&rtailutilna fPittadi and... correct copy of the original, Carl •s Juenke, District Co Sou il District Date ty Clerk . • . .. EFTA00194474

3. Since aPpr0ximately isiarch;'1004,'We haviheen intestigationtitunitrerHot • .. • individuals including Toseph Sutera, a licensed pharmacist who, from appitodmately .June, 2001 to September, 2005, owned of The Medicine Shoppe, a retail pharmacy • lOcateil at 3365 Burris Road, Suite 104, in Palm Beach Gardens; Florida. 4. On February 2, 2006, a federal grand jury in the Southern District of Florida indipted . .. • .• • • Joseph Sutera and others for conspiracy to commit health care fraud, in violation of 18. § 371; health care fraud in violation of 18 U.S.C. §1347; false statements to law enforcement, in violation of 18 U.S.C. §1001;.and moneylaunciering, in violation of 18 U.S.C. § 1957. The indictment also included the forfeiture of the following assets associated with Sutera: A. A stun of $9,941,761.44 in United States currency representing the groas proceeds obtained as ti result of the offense. The contents of his residence located at 912 Mill Creek Drive, Palm Belch Gardens; Florida, including but not limited to a grand piano,consumer electronic . • equipment, including stereo sYstems•and television sets; artwork, nxttires,•and. decimator items, and furniture. C. . PrOceeds lathe amount of approximately$362,083.32 from' he sale of a parcel of • . real estate formerly deeded to defendant JOSEPH SUTERA located at Nature Court, Palm Beach Gardens, Florida. . D. Proceeds in the amount of approximately $396;793.25 from the sale of a parcel of real estate formerly deeded to defendant JOSEPH SUTERA located at Palm - Bay, Palm Beach Gardens, Florida. E. Proceeds in the amount of approximately $150,275.98 from the sale of a parcel of EFTA00194475

real estate formerly deeded to Stab), assoCiatedTivith defendant' • • • JOSEPH SUTERA, (ticked:at Indiainevin Road;Jupiter, Florida: • . . F. . Proceeds in the amount of approximately $34,023.58 from the sale of a parcel of real-estate forinerly deeded to defendant JOSEPH SUTERA located at:Santa • Barbara Way, Palm Beach Gardens, Florida. G. • proceeds received from a Mortgage in the amount of approximately $20,000.00 recorded on a parcel of real estate formerly deeded to defendant-JOSEPH SUTERA located at Santa Barbara Way, Palm Beach Gardens, Florida. Said mortgage was recorded on August 20, 2004, at Book 17424, Page 201 of the records of Palm:Beach County, Florida. Contents of IDS Life Insurance Company IRA Account number 93-107241382-2- 004 in, the name of defendant JOSEPH SUTERA. Contents of IDS Life Insurance.Company IRA Account number 93-107241388-9- 004 in the name of defendant JOSEPH SUTERA's wife. J. IDS Life Insurance Company life insurance policy number 9090-6909552-1-004 . in the name of defendant JOSEPH SUTERA and his wife. • • IDS Life Insurance Company life insurance policy number 9090-7233747-2-004.. • . in the name of defendant JOSEPH SUTERA's wife :: • L Wachovia Bank account number 1010110078678 in the name attendant • • • JOSEPH SUTERA. M. Wachovia Bank account number 20000211287710 in the name of MO Inc., d/b/a •. . The Medicine Shoppe pharmacy. • • Wachovia Bank account number 1010055623793 in the name of defendant EFTA00194476

••••••••-• —lost-PH STIEMays wife .. . • . . • ante Presidential Rolex Watch with diamonds, acquired on or about January 12,' • 2003 for approximately $15,875.00, from Rained Jewelers. 5.. • Private health insurinde companies pay on phaimaceatiCal claims based upon . . information received. from pharmacies about prescriptions that they have been asked to . . fill by physicians. In most cases, payment is made directly to the subscribing pharmacy. These claims, and payments made on these claims, are most often transmitted by • interstate wire or by private or public mail. The claim information suburitted by the phannaoY includes, among other things, the name of the patient, the name of the preicribing physician, and the type and quantity of medication prescribed. Insurance companies rely on the information in the claim to be true and accurate, and do not . regularly conduct independent audits of claims prior to paythent. Materially falai and fraudulent claimaor payment include claims for drugs that were not prescribed, were not. delivered to patients named on the claims. A substantial number.of the claims were for Ketamine, a schedule DI controlled substance With a reimbursement to the pharmacy of approximately $1,000 per claini. 6. Evidence of the scheme includes the pharmacy's database, taken nal search on August •• • 26, 2004, which shows more than $17 million in claims submitted to various insurance ,. companies, backed up by the insurance companies' records.. • 7. Proof of the falsity of a substantial number of the claims includes the statements of • numerous doctors who were interviewed as part of the investigation, a substantial number ,. . of whom stated that they never prescribed Ketamine or most of the other drugs for whiCh claims were submitted under their names. Patient records from these doctors corroborate EFTA00194477

• their statements as, in many instances, the riamei of thilitienfa for blights were • associated with dick names were not even patient's of that &dor'. 8. At least two physicians have admitted to conspiring with Sutera to falsely substantiate prescriptioni for the prescription drug claims subniitted through the Medicine ShoPpe•to• private insurance companies. for his compounded cream containing Ketamine or . • BUpiyacaine. 9. In Wilton, numerous patients were interviewed. Most of them stated that they did not kpow their names were being used for the clainis and that they either never received the :medications, including the Ketamine cream, for which claims were submitted in their names, or never requested or received prescriptions for drugs which were sent to theni. 10. Further, at the.time of the se-arch; Sutera admitted to one of the agents that he had been submitting false claims. • • 11. All known insurance payments for false and fraudulent prescription drug claims..from the. . . private insurance companies were deposited into the accounts of The Medicine Shoppe • and commingled with insurance payments for legitimate claims. 12. An analysis was conducted of the bank records for successive operating business bank accounts maintained by The Medicine Shoppe, including the last known account, Wachovia account number 200002-1128710. This analysis revealed that from july.2901 through May 2005 approximately $9,941,761.00-was deposited into these accounts from. private insurance companies. Inspection of copies of the deposited checks indicated that . . these funds represented payments for claims filed by The Medicine Shoppe,:. . .13. An analysis was conducted of the bank records for the personal bank accounts maintained by Joseph Sutera, including Wachovia account number 101011007.8678.. EFTA00194478

This analysis revealed that from July 2061 through May 2005.aPproximately $4,306,129.00 was deposited into these accounts. 14. Affiant interviewed Martin Fields, who owned The Medicine Shoppe pharmacy from • •' . • • beceniber.1999 through approximatelylune 2001. when he sold it to Joseph Sutera: Martin Fields advisedlhat during the apprOxiMately18 mcnithethat he owned The Medicine Shoppe pharmacy it lost between $70,000 and $80,000. Martin Fields sold The Medicine Shoppe pharmacy to joseph,Sutera in exchange for Sutera taking over. Field? franchise payments to. Medicine Shoppe International. At the time of this transaction Fields owed Medicine Shoppe.Inteinational approximately $170,000. 15. My investigation has revealed that Joseph Sutera filed a voluntary petifion•for bankruptcy • . . . bearing Docket # 97g2416 on 5/16/97. In the petition Joseph Sitters listed his addrest as • 1420 Ocean Way, Bldg 8B, Jupiter, Florida a property belonging to his sister, Sullen • Sutera. At the time of filing, Joseph Sutera claimed $125 in assets and $1,594,726 in liabilities and listed himself as unemployed with $1,750 in monthly income in the form • of friends and fatnili, paying his eiperisea. Sutera received a discharge as of 10/8/97.. • 16. I also interviewed individuals who advised me that Sutera told them he had no assets at • the time he purchased the pharmacy, and that Sutera had to borrow approximately $80,000 in order to purchase the pharmacy in 2001. In a personal financial statement' submitted in 2003 as part of a loan application, Supra indicated that he received salary payments in excess of $500,000 per year from• the Medicine Shoppe and only $800 per month from investments. ASSETS TO BE RBSTRANED 17. The contents of the property located at 912• Mill Creek Drive, Palm Beach Gardens, EFTA00194479

• . Florikthe perionaliesidenee of cosephSutera; including but riot lifilitedjoThe. PS ".• . . " . P • •••• • • • • piano, stereo and video equip-inent; finniture, fixtures, artwork and deconitot items. An-- ' - • analysis of the bank records of Joseph Sutera and MRF Inc. has revealed that front shortly before the date of the closing on the purchasOof the residence through August 27;4064.: .• • . . . . • • . . . Joseph Sutera paid Dominque Marriano Interiors a total of $292,093.11 ibi.interior design, . . . funiiture and other i'mprovements. Records provided by Carl's Patio and Furniture Conipanies indicate that between August 2003 and April 2005 $31,758.65 Worth of • fumiture was purchased by Joseph Sutera and delivered to 912 Mill Creek Drive, Palm Beach Gardens, Florida. Records provided by Showplace Interiors, a furniture and interior design business located in Palm Beach Gardens, Florida indicates that between November • 2002 and December 2003 Joseph Sutera purchased $50,915.86 worth of furniture and decorator improvements for 912 Mill Creek Drive, Palm Beach Gardens, Florida Records • provided by Skeffington Furniture Company of Jupiter, Florida indicates that on.or 'about July 14, 2003 $14,67,1.92 worth of furniture was purchased by JosephSuteraattd delivered to 912 Mill Creek Drive, Palm Beach Gardens, Florida, Records provided by Mark • Gregory Piano Gallery of Lake Part, Florida indicate that on or about September 13, 2003 Joseph Sutera purchased a grand piano for $55,120 that was delivered to 912'MillCreek. • Drive, Palm Beach Gardens, Florida: Records and testimony provided bySQund,ildvice Dania Beach, Florida based stereo and televisicin retail store indicate that behveen•June • 2001 and June 2005 approximately $492,892.64 worth of consumer audio/visual •• • • equipment including numerous flat panel LCD television sets were purchased by Joseph : Sutera. Sound Advice records and testimony from the primary sales. representative:for. these purchases indicate that the items were delivered to and/or installed at 912 Mill Creek . EFTA00194480

BeaCh Gardens, Florida:. 18, Calitentiot Wachovia Bank Account #1010110078678 in the name of Joseph. Sutera. • Evidencesecuied during my investigation indicates that:as of at least May 2065. Joseph Sitters maintained this personal bank account at Wachoyia Bank into which payroll Checks.:. from The Medicine Shcippe pharmacy were automatically deposited. The laSt known balance in this account as of January 17, 2006 was $252.68.. 19. Contents of Wachovia Bank Account #2000021128110 in the name of Mlinic. DBA Medicine Shoppe Pharmacy. Evidence secured during my investigation indiCates that as of it least May 2005 Joseph Sutera maintained this business bank account in the mine of MRF Inc. DBA Medicine Shoppe pharrnacy at Wachovia Bank into which both fraudulent and legitimate receipts were being deposited. Deposits in May 20005 totaled $60,753.48. • - The last known balance in this account as of January 17, 2006 was S6.38. • 20. Contents of Wachovia Bank Account #1010055623793 in the name of Evens° B. Sutera. Evidence secured dining my investigation indicates that as of at least May 2005 Evelise : • Sutera, wife of Joseph Sutera maintained this personal bank account at Wachovia Bank . into which payroll checks. from The Medicine Shoppe pharmacy were automatically deposited. The last known balance in this account as of January 18, 2006 was $1420.15. • • . • • 21. Contents of IDS Life Insurance CompanySEP IRA Account #93-107241382,2-004:.i0*-.:: mime of Joseph J. Suteri. On or about October 27, 2003 Joseph Sutera arranged for MRF... Inc. DBA Medicine Shoppe Pharmacy to provide employer funded SEP IRA accounts for employees of MRF Inc. including himself. These account were, established with IDS Life: • •• • • Insurance Company, an affiliate of American Express Corporation. Funding for these SEP • IRAs came exclusively from the operating account of MRF Inc. The latest reported EFTA00194481

balance in the SE? IRA lecountin the name of Joseph Wein as October 27;.2005, $47,041.20. 22. Contents of MS Life Insurance Company SEP' IRA Account #93:107241388-9-004 in the name of Evelise B. Sutera. On or about October 27, 2003 JosephSuter! arranged for MRF - • Inc. DBA Medicine Shoppe Phalli:meito provide employer funded SEP IRA accounts for employees•of MREInc. including his wife, Evelise Sutera.. These accounts were. established With IDS Life Insurance Company, an affiliatenf American Express Corporation. Funding for these SEP IRAS came exclusively front the operating account of MRF Inc. .My investigation has revealed that Evelise Sutera did not work at The Medicine Shoppe pharmacy and was not a bona fide employee. The latest reported balance in the SEP IRA account in the tiame of Evelise Sutera as of October 27, 2005 was $15,922.03 . 23. IDS Lifeinsurance Company Life Insurance Policy #9090-6909552-1-004 in the name of Evelise B. and Joseph J. Sutera. On or about February 12, 2002 Joseph and Evelise Sutera secured a joint $250,000 variable universal life insurance policy from IDS Life Insurance • Company, an affiliate of American Express Corporation. This policy required quarterly • ' premium payments of $5,255.28. Between Februaty 2002 and March ZOOS a total of $68,318.64 in premium payments were made by JoSeph Sutera from either the operating account of MRF Inc. or from his personal bank account at Bank of AmeriCa. The reported cash surrender value of this policy as of June 21, 2005 was $54,516.34. . • 24. MS Life Insurance Company Life Insurance Policy #9090-7233747727004 in the.name of . Evelise B. Sutera. On or about February 11, 2002 Jbseph Sutera secured a. $300,000 20- year term life insurance policy on his wife, EVeliseSutera for which Joseph Sutera was the primary beneficiary. On or about 10/7/03 this policy was converted to a poo,000 variable EFTA00194482

. 6 .. • „universal Ilte.policy.. A new policy number of 90907233747 was assignedafthiittime. • 130;veen FebrUary 2002 .and April 2005"a total of $21,852.62 in proniiiim payments Were ' made on this policy. With the exception of one payment pf $312 niade from an account in • the name. of Eveliie Suteta in March 2003; Joseph Sutera made all paymentS•front either..the operating account of MRF Inc. or from his personal bank account at Bank of America. The reported cash surrender value of this policy as of June 21, 2005 was $18,583.16. • I declare under penalty of perjury that the information contained herein is true and Correct. FURTHER YOUR AFFJANT SAYETH NAUGHT . • 99 CC-77-TH JAY SCHEURER, SPECIAL AGENT, U.S. FOOD AND DRUG ADMINISTRATION • . . Sworn to and subscribed before me • this j_ _day of February, 2006 EFTA00194483

EFTA00194484

AFFIDAVIT MS CAI< riek-oka (r i) litt Cali 1/99' 7 - -and-Explosives-(-MT) and have been so em Toyed since July of-2 . Rye. to 1, ClArr-t441tiaini 41"eat -iv (A. Victteg - crinnit 0/ (An Wed - edit ATFrgentl-served4s-aPoliee-Officer-for--approxima gLacir'DV°' ofNi. cit y Of e ray Stack-Eton ar PTolice-Depariniest. I have. received specialized training ciekt4 O>I4010froil. regarding the investigation ancl-enfereeFfienyf federal fire violations and have tALa dealar Enisvh4revt ) 'd?fi ti‘,,mits to 1-11 investigated subjects who are unlawfully (/4 ;irk INV•Inat S -.4-nnvistecl-felensr and-who-unlawfally-possess-ortransfercertahrtypes-of-firearms, I I, SeHriv1:-Berger, being duly s om, depose and state: Fee/Lk-act 61A-re-otk. Micch 1. I am a Special Agent (S/A) with the Bureau ntalsolielr T-ebacco7 f TMS /`ive a,) ann -silencers;mitehim. guns, biarreled-rifles-orshotgims7terructive-devicesvor-±tany_ -.ether wearnriSr initiolafiOn.of the National FirearmsAtatAD: 2. The facts contained in this affidavit are based on my own personal knowledge as well as information provided to me by other law enforcement officers and witnesses. Because this affidavit is made for the limited purpose of securing the issuance of a search 1;24,1141:1442;24eg.sectAid7-aff search warrant pursuant to 26 U.S.C. § 7302 to seize a Ellocr Taa NuirAiLar Nqotkre.) --WDBLIF26114A451-1-541 it does not contain all the details of this investigation. 3. On August 3 2005, your affiant was contacted for assistance by West Palm Beach Police Department (WPBPD) Vice Agent Rich Birch regarding JOSEPH E. PELUSO, III, (hereinafter "PELUSO"), a W/M, DOB: 09-02-1968, Florida DL# P420- 485-68-322-0, who was alleged to be in possession of machine guns. Agent Birch had received information from a WPBPD confidential informant (hereinafter "CI") who had previously provided reliable information to Agent Birch that PELUSO had offered to sell 1 EFTA00194485

the CI machine s, firearm silencers, and grenades in the past and still had some available for purcha e. Your affiant documented the CI as an ATF informant. The CI has a pending c case and hopes that if he/she assists the government it may ultimately lead to a red lion of the CI's sentence. 4. Your affiant ra a criminal check on PELUSO and learned that PELUSO did not have any felony or dom tic violence convictions and was therefore not prohibited under the law from possessin: firea►ms or ammunition. A criminal history check revealed that PELUSO was arr ted in 2002 by the Riviera Beach Police Department for aggravated assault with a deadl weapon without intent to kill, but court records show that the case was dropped. 5. The CI identified PELU from a photograph. The CI also stated that PELUSO has tattoos from the bottom of his neck to his wrists and has one on his chest that says "only God can judge me." Th- CI also told your affiant that PELUSO drove a black colored Hummer with a Florida nalized tag of SPEEEED. A Department of Motor Vehicles records check revealed tha PELUSO resided at 244 East 25th Street, Riviera Beach, FL 33404 and had a black H er with the Florida tag SPEEEED registered to him at that address. Your affiant so learned that PELUSO has a current concealed weapons permit in the State of Florida. 6. On November 21, 2005, the CI provide our affiant with PELUSO's home telephone number of (561) 882-1392 and a cell phone umber of (561) 779-5644. 7. On the morning of November 22, 2005, the C ade a series of controlled calls to PELUSO and left messages for PELUSO to return i call. At approximately 12:16 pm, your affiant, S/A Vincent Holmes, and the CL went • the Steelworks, 2 EFTA00194486

Piercin: and Tattoo parlor, located at 4246 Okeechobee Boulevard, in West Palm Beach, Florida, b ause the CI said that PELUSO frequented that tattoo parlor. Your affiant observed PE ►USO driving his black Hummer with the tag SPEBEED in the parking lot of the tattoo p or. 8. Several nutes later, at approximately 12:19 pm, the CI's cell phone rang and the telephone numb • r on the Cl's cell phone's caller identification was (561) 682-9111, which was the teleph e number for the tattoo parlor. The CI repeatedly received calls on his cell phone from e tattoo parlor between 12:19pm and 1:01pm. During one of the calls your affiant instruct== the CI to answer the phone, and it was PELUSO. At your affiant's direction, the CI to • PELUSO that the CI would have to call him right back. This call was not recorded. 9. At approximately 1:0 pm, CI made a recorded call to (561) 682-9111. During the call, the CI spoke to P USO, who said that he had been trying to call the CI because he had eight triple x vests ( h is street terminology for bullet proof vests). PELUSO went on to say that he had alt.: dy sold the vests, but that he had a couple of "toys" (which is street terminology for ), and wanted the CI to stop by the tattoo parlor. After that call, ATF agents went to e tattoo parlor and observed PELUSO's Hummer parked outside. 10. In preparation for the CI's meeting 'th PELUSO at the tattoo parlor, your affiant searched the CI and the CI's vehicle, and n• contraband was found. Your affiant then provided the CI with a recording device which CI consented to wear. At approximately 1:31pm, CI went to the tattoo parlor at Okeechobee Blvd., West Palm Beach, Florida. ATF agents conducted a surveillan7 of the CI and the tattoo 3 EFTA00194487

parlor. A proximately 1:41 pm, the CI entered the tattoo parlor and met with PELUSO. S rtly thereafter, both the CI and PELUSO walked outside to PELUSO's Hummer. 11. The who is a previously convicted felon, and PELUSO discussed the various guns that P t USO was selling. PELUSO said that he had an HK pistol with a threaded barrel for a s ressor which he was getting ready to take to Stuart. When asked about the price of e pistol, PELUSO said that he had $1,500 into it. According to PELUSO, the HK pistol w s brand new. PELUSO then opened the fanny pack that he was wearing and showed the his HK pistols. PELUSO told the CI that one was a HK Socom and the other was an compact, and that SWAT teams used them. 12. During the Novembe 22'd meeting, PELUSO also said that he had a .357 magnum revolver. CI told PELUS o that the CI wanted to buy the guns but didn't have the money with him/her. PELUSO th opened the door to his Hummer and showed the CI the HK pistol and the .357 revolver. en the CI asked PELUSO whether it was possible to put a silencer on the HK pistol, • ELUSO said that's what why the gun had a threaded barrel. When the CI asked PELUS • whether he had a silencer for the pistol, PELUSO said that he could get them, and that o e would cost about $1,500. PELUSO also told the CI about the .357 magnum revolver w .ch PELUSO was selling for $400. The CI asked whether PELUSO had any "pineapples (which is street terminology for grenades); however, PELUSO said that he couldn't get hold of his supplier. 13. The CI arranged to meet with PELUSO the ne day to buy the guns. The CI told PELUSO that a lot of people had been running their mo and he/she was planning on taking care of them. The CI also explained to PELUSO that he/she had a criminal 4 EFTA00194488

record. e CI said that he/she had gone into a gun store to buy a gun. The employee had run the CI's record and wouldn't sell the gun to the CI. PELUSO replied, "Oh really." PEL SO and the CI agreed to meet at 4:00 p.m. the following day, to do the deal. 14. Atte the meeting, the CI left the tattoo parlor and was followed by ATF agents to a location here the CI and the CI's vehicle were searched. No contraband was found. Your affiant a o placed the audio and video recordings of the meeting in evidence at ATF. It sho ld also be noted that after CI departed the tattoo parlor, ATF agents remained in the area f the tattoo parlor and observed PELUSO and another male next to PELUSO's Hummer, d PELUSO was showing the male something inside the Hummer. 15. On November 23, 2005, at approximately 2:52 pm, surveillance was established at the tattoo parlor, locat at 4246 Okeechobee Boulevard, in West Palm Beach, Florida. The CI called PELUSO' cell phone and left a series of messages for PELUSO to call the CI. At approximately 17 pm, PELUSO called the CI from (561) 616-3434. PELUSO told the CI that he was a e Planet Smoothie next to Kmart. It should be noted that Planet Smoothie is located a 4366 Okeechobee Boulevard, in West Palm Beach, Florida and has a listed telephone numb r of (561) 616-3434, the same number from which PELUSO bad called the CL The C told PELUSO that the CI would take the "two things" (meaning the two guns) from yester and that the CI would meet PELUSO at the tattoo parlor. PELUSO changed the location the meeting and told the CI not to meet him at the tattoo parlor because it was "hot" (whi is street terminology EFTA00194489

for polic presence or surveillance). Instead, they agreed to meet at Planet Smoothie, which is loc tcd in the vicinity of the tattoo parlor. 16. Yd r affiant provided the CI with recording devices and $2,000 in official ATF funds. The I then consented to a search of the CI's person and vehicle with negative results. At 'proximately 4:41pm, CI, who was followed by ATF agents, drove to Planet Smoothie for c meeting with PELUSO. 17. At approxim. ely 4:57 pm, the CI arrived in the parking lot of the Planet Smoothie and could not fin. PELUSO. After a series of phone calls, the CI met PELUSO a short time later in nearby parking lot. PELUSO was driving a red convertible 2-door Saab beari • Florida tag V27NLQ. A records check revealed that this vehicle is registered to the defen ant's girlfriend, Christine Ventimiglia, who resides at the same address as PELUSO. PELUSO got out of the Saab and greeted the CI. PELUSO was wearing a fanny pack a ound his waist. 18. PELUSO told the CI that h didn't want to meet at the tattoo parlor because Sheriff's deputies had been watching the -hop all morning, and PELUSO had seen them filming the tattoo shop with video cameras. The CI told PELUSO that somebody was probably dealing crack out of the tattoo parlo The CI said that because he/she was a convicted felon, the CI didn't like being over th' e or bringing "shit" over there. PELUSO agreed and told the CI not to go to the to oo parlor anymore. 19. PELUSO then opened the trunk of the Sa • b and showed the CI a Remington 12 gauge shotgun, a .357 Dan Wesson revolver, and a 5 caliber HK semi-automatic pistol. These were the same handguns that PELUSO had hown the CI the day before. The CI agreed to buy all three guns from PELUSO for $2,3 c 0. Because the CI only had 6 EFTA00194490

$2,000, PE USO agreed that the CI could pay him the remaining $300 at a later date. The CI remov the three firearms from the trunk of PELUSO's Saab and placed them in the trunk of the C = Cat 20. PELUSO 'sked the CI if he was looking for anything else, and the CI said that he/she wanted som g fully automatic. PELUSO said that he had just sold two of them. PELUSO stated t he can get the CI an Ingram 9 fully automatic machine gun. PELUSO said that he had a Ily automatic M16 (rifle) suppressed. PELUSO further stated that the M16 is not the to own because "if you don't have the tax stamp, you go to jail for 10 years automati " It should be noted that a check with the ATF National Firearm and Transfer Record ) Branch determined that PELUSO did have a lawfully registered short barreled -15 rifle, an Impulsiia .45 caliber silencer, and an M42000 5.56 caliber silencer registe to his company, Strategic Solutions Unlimited, Inc., at 244 East 25°' Street, Riviera B h. However, NFTR records did not show that PELUSO had a machine gun lawfully tered to him. Neither PELUSO, Strategic Solutions Unlimited Inc., or anyone else t 244 Bast 25th Street, Riviera Beach, Florida has any other registered NFA firearms or tractive devices. Furthermore, the ATF Licensing Center and the NFTR advised yo affiant that neither PELUSO nor Strategic Solutions Unlimited Inc. held a federal fireann icense (EFL) or was licensed to deal in firearms or NFA weapons, such as, short-barreleafifles, silencers or machineguns. 21. During the November 23rd transaction, PELUSO asked the CI if someone was hunting the CI down. PELUSO offered the a a 4afe house" in Abacoa, which is located in Jupiter, Florida. The CI declined PELUSO's tiler. The CI said that he/she had tried to rent a house in the Cl's name, but the landlord wouldn't rent it to the CI 7 EFTA00194491

because CI was a convicted felon. The CI further stated that convicted felons can't buy guns or o anything. PELUSO agreed and said, "they try to suppress you and all they want is ney, the state, supervision, probation, all kinds of shit." PELUSO told the CI that if h he needed a place to hang out for a week or so, if it got hot around here, that PELUSO had buddy in North Carolina. The CI said that he/she was worried about getting pulled over 'th the firearms because "they'll see my record and see this shit, and I'm done." 22. After the tra action ended, the a and PELUSO left in their respective vehicles and were both fo lowed by ATF agents. Your affiant met the CI at a predetermined location and searched the CI and the CI's vehicle. The CI no longer possessed the $2,000 in official finds. Your affiant photographed the firearms which the CI had purchased from PELUSO, removed the Remington shotgun, the Dan Wesson Arms .357 revolver, and the UK .45 semi-automatic.pistol from the Cl's trunk, and placed them into evidence at ATE The video and audio recordings of the transaction were also placed in evidence. 23. On December 2, 2005, at approximately 1:18 pm, your affiant instructed the Cl.to call PELUSO. The CI called PELUSO's home, and PELUSO answered the phone. PELUSO agreed to meet with CI later that day. The CI said that he/she had the $300 which was owed to PELUSO for the Remtnington shotgup•and asked PELUSO if he had the "Ingram" (referring to the Ingram machine gun). PELUSO said that he didn't have it in his possession.but he could get it. The CI asked PELUSO how much he wanted for it, and PELUSO said he had to get $1500 for it and that was a good deal. PELUSO said they normally go for $2500. The CI asked PELUSO if it (th Ingram machine gun) was 8 EFTA00194492

"full" (referring fully automatic), and PELUSO confirmed that it was. PELUSO told the CI that he was t his house, but that he would be in and out, and PELUSO gave the CI his cell phone numb for the CI to call him. 24. Shortly a er the call to PELUSO around 1:50 pm, your affiant drove by PELUSO's residence a 244 East 25t° Street, Riviera Beach, Florida. According to the Palm Beach County Prop • rty Appraiser's Office, PELUSO is the listed owner of the residence. There was a fo sale sign posted at the residence with the number (561) 882- 1392, which is the same n ber the CI had used to call and speak to PELUSO at home. Your affiant observed a whi Ventimiglia from her driver' Ventimiglia opening the door female and recognized the person to be Christine license photograph. Later, your affiant observed a tall fence that is west of PELUSO's residence. Your affiant observed PELUSO's bla 25. Later on December 2 telephone calls to PELUSO. At a Hummer parked in the fenced area. 005, the CI made a series of consensually recorded roximately 4:54 pm, the CI called PELUSO's cell phone and spoke to PELUSO. PEL SO told the CI that they should meet in about an hour in the vicinity of the Bonefish k restaurant located at 2024 North Military Trail, in West Palm Beach, Florida. 26. On December 2, 2005, at app imately 6:26 pm, surveillance was established in the area of the Bonefish Creek taurant. Your affiant searched the CI and the CI's vehicle with negative results. S/A Ber er then provided the CI with $2,000 in official ATF funds. The CI was also provided wi recording devices. 27. On December 2, 2005, at approximatel .56 pm, PELUSO met with the a in the vicinity of Bonefish Creek. PELUSO arrived at i e location in his girlfriend's red 9 EFTA00194493

Saab = then got into the Cl's vehicle. PELUSO told the CI that he didn't have "it" in his car d that a guy was coming to meet them from Stuart (Florida) with the two Mac10 rms. PELUSO said that he and two other guys had shot the guns to make sure they ere what they were supposed to be. PELUSO said it was fully automatic with a threaded b 1. PELUSO said that he had shot the gun and it jammed four times, and he thought th • was something wrong with the feed ramp. One of the guys who was with PELUSO o i ered to take it back to the shop and fix it, however, the other guy who was there had agr u to buy the firearm as is. PELUSO said he didn't want to sell the CI a gun that would jam d so he sold it to the guy for $1,800 right there. PELUSO said it wasn't worth it to sell to the CI for $1,500 and have him return it to PELUSO. 28. PELUSO sai that he told his associate that he needed something else and that the guy was on his w down right now with two Macl Os for a good price. The CI inquired about whether the earrns were fully automatic and their price. PELUSO confirmed that they were full automatic with a threaded barrel (for a silencer). The CI asked PELUSO for instniction on shooting the firearms. PELUSO said that there was a switch marked "F" for fire and " " for safe. PELUSO said there was no full, semi, and safe, just fully automatic and safe. ELUSO also told the CI that when the bigger was pulled thirty rounds were going to fly •ut. 29. During the meeting on Dec ber 2, 2005, the CI said that the CI knew who had shot at the CI's residence and that th CI was going to get them. PELUSO asked if the CI was planning to get them. The CI ponded, "I'm gonna bust them," and then asked PELUSO how many rounds the Mac ot. PELUSO said thirty rounds. PELUSO told the CI that if that's what the CI wasp g on doing, the CI needed something 10 EFTA00194494

better than e Macl 0, that is, an AR-15 with a Beta C mag (magazine) which would shoot one h dred rounds. PELUSO explained that the CI should use an AR-15 because it was a .223 ( iber) and that the rounds would go through a door and even a building. 30. The told PELUSO that the a was going to "catch" the dude when he was in his car. PELUS advised the CI to hit the guy with thel2 gauge (shotgun) that PELUSO had alread sold the CI. PELUSO also told the CI that all of his "shit" was top of the line; that he sell his firearms for $300-$400 less than at the gun shows because he buys them in bulk; and t at he has partners who buy multiple firearms at one time which allows for a better deal. 31. While PELUS and the CI were together in the vicinity of Boston Market, which is next to Bonefish C ek, PELUSO told the CI that his partner was coming from Stuart to meet them. While th were waiting, PELUSO asked the CI for The $300 that the CI owed from the November 3rd transaction. 32. While waiting, PELU told the CI that he had a guy who made silencers for Macl Os. When the CI asked PE USO how much the silencers cost, PELUSO said he didn't know and he would check to s if he could get a better price by buying six of them. PELUSO said he would keep one or himself, sell one to the CI, and dump the other four. 33. PELUSO asked when the CI was going to do the hit on the Mexicans. The CI told PELUSO he would see it on the news. iBLUSO asked the CI specifics about how many persons he was going after and where they lived. The CI said that he/she would do his/her own dirty work. PELUSO asked the CI whether he wanted to hire a professional to take care of it. When the CI asked PELy SO what he meant, PELUSO 11 EFTA00194495

asked, " o you want me to whack them?" The CI declined PELUSO's offer. PELUSO told the C that he had done it for 10 years, that was his life, and "not even here where you could, ',ere everyone speaks the same language and you could see street signs and there's road m s." PELUSO explained that he would get a picture with a name in Hebrew and the had to go after the guy and find him. According to PELUSO, he was in the "special forces\ marine recon. Marine force recon, they would drop us in either parachute in, swim come in by helicopter, do recon, get all the information on the area, find out dependitlg on what the operation was, who's there, who's a captive, who's in charge, who the lead rs are, who are the primary targets, that's what we did." 34. PELUSO tot the CI that he didn't go by the tattoo shop anymore. PELUSO said he was talking to Julio from the tattoo parlor and that Julio said that PELUSO was hanging out with a "fucking at" (the CI). Julio told PELUSO that he didn't want the CI around the shop any more and told PELUSO not to do any deals around the shop. PELUSO said that he had told ulio that if the CI crossed him PELUSO would "kill [the CI] because no one crosses me ad walks." PELUSO and the CI then talked about how the other subjects are dealing dru out of the shop, and how the guys in the shop had been talking about CI. PELUSO sa d the guys in the shop talked about him; his Saab and his Hummer; and how he doesn't wo . PELUSO said that he had a pension after working for fifteen years, and he didn' have to work anymore. 35. PELUSO said that he had h d the CI was looking at fifteen years (imprisonment) because the CI was a cony ted felon. The CI explained to PELUSO that the CI was out on bond. When PELUSO asked the CI if the CI was going to beat the case, the CI responded in the affirmative. PEL t SO told the. CI about Marc Shiner who 12 EFTA00194496

PELUSO id was his lawyer. PELUSO stated that all of the circuit judges were at Shiner's wed . PELUSO said that Marc Shiner had gotten him out of his shit. . PELUSO said he had shot at two black guys and a girl. PELUSO said, "I'm not prejudice, I shoot t bitches, too." 36. PELUS • said that he had been in the military from 1986-1996. After that, PELUSO said that he h d worked as a police officer in New Jersey and earned $70,000 a year. PELUSO said tha he was offered a job as a police officer in Riviera Beach but he turned it down. PELUSO 'd that his plan to become a sky marshal was on hold because they weren't hiring t now. 37. PELUSO said that s associate for whom they were waiting had never let him down. According to PELUS u, his associate and he usually met at Markham Park (in Broward County, Florida) on Tuesd nights. PELUSO said that on Tuesday nights all the gun dealers "everyone that's an class III dealer' went there for a machine gun shoot. PELUSO said that "as long as y have your tax stamp" individuals could possess fully automatic machine guns, suppresso and short-barreled rifles. It should be noted that it is unlawful for a person to possess a earm defined in Title 26, United States Code, 5845, including a rifle having a barrel • r barrels of less than 16 inches in length, a machinegun, or a silencer, without first being re *stered with ATF's NFTR and paying the required tax for said firearm. According to P USO, ATF agents would also be present at Markham Park to see whether individuals sessed the necessary paperwork for the firearms. PELUSO said that he and his boys ha paperwork that wasn't real, but as long as they had the paperwork they could shoot the 13 EFTA00194497

38. PELUSO discussed the Remmington shotgun that he had sold the CI on Novemb• 23, 2005. PELUSO said that he had sold the CI a Remington magnum. PELUSO sa d that the shotgun would shoot 2 1/4" slugs, double O buck, and that one shot of double O b ck was equivalent to nine 9mm rounds. 39. PE ►USO and the CI waited a while longer; however, PELUSO's associate did not show up th the Mac 10 firearms. PELUSO told the CI that when he received it (the machine guns) 'd call the Cl. PELUSO got out of CI's vehicle, and they left the location separately. 40. After the CI an PELUSO ended their meeting, the CI was followed by law enforcement to a safe locatio where your affiant met with the CI. The CI's person and vehicle were searched by your ffiant and the remaining ATF funds which had been previously provided to the CI we returned as the CI had not made any firearms purchases. The audio and video rec' dings of the meeting were taken into custody by your affiant and placed in evidence. e video recording was of poor quality. 41. On December 19, 2005, at a oximately 10:26 am, your affiant instructed the CI to make a recorded call to PELUS •'s cell phone at (561) 779-5644. PELUSO answered the phone and said that he had bee sick and that he was out of the game until after the new year. PELUSO told the CI to cal him the first week in January. 42. On January 10, 2006, at approximate 6:30 am, S/A Kunz conducted a surveillance at PELUSO's residence, and he obse ed Ventimiglia's Saab parked by the front door of the residence. S/A Kunz did not see LUSO's Hummer. Around 3:07 pm that day, the CI made a consensually recorded call to ELUSO's cell phone at (561) 779- 5644. PELUSO answered the phone and said he ha' 't been out of the house in awhile, 14 EFTA00194498

but he ould talk to a few people and call the CI by the weekend to "hook up" the CT. In another • rded call on January 12, 2006, PELUSO told the CI that he had spoken with some peop e and there's stuff out there, but it was a little pricey, and he was doing some price shopp. g. 43. O anuary 13, 2006, at approximately 12:51 pm, the CI made a controlled call to PELUSO' cell phone at (561) 779-5644 which was consensually recorded by the CI. PELUSO answ,• d the phone and said he had a Glock 9mm high capacity, in the box, and another gun or $2200 and that PELUSO could deliver them to the CI that afternoon. According < PELUSO, one was a .223 caliber subgun and the other one was a 9mm handgun. PELUS • said the .223 was a rifle that held thirty rounds which would go for a mile. When the CI uestioned PELUSO about whether the gun was fully automatic, PELUSO said "it uld be that way" or the CI could keep pulling the trigger and fire thirty rounds. PEWS • told the CI he would call when he had the guns. In a call later that day, the CI told P SO that the CI didn't really want the Glock, but so as not to disrespect PELUSO, the CI • uld take it. PELUSO said not to worry about it because he had other people who w ted it, but he figured that it was better for the a to have both guns. In a third call later tha day, the CI asked PELUSO whether he could get his hands on something fully autom . Although PELUSO said that he couldn't, he told the CI that if the CI takes this gun, the • llowing week PELUSO would get a kit for about $90 and make the gun full auto for the I. PELUSO said that the .223 caliber M16 rifle was the same type of gun he had carried in the Marines; that the gun he had for sale was brand new; and that PELUSO's supplier \vas bringing it from Miami. PELUSO also told the a that he had not been able to find an thing to the CI's gun with the 15 EFTA00194499

a subscriber to or customer of such service (not including the contents of communications) only when the governmental entity - * * * (B) obtains a court order for such disclosure under subsection (d) of this section; 18 U.S.C. § 2703(c)(1)(B). Thus a court order is one permitted way to recover transactional data but not content from an electronic communications service. Subsection (d) states: (d) Requirements for a court order -- A court order for disclosure under subsection (b) or (c) may be issued by any court that is a court of competent jurisdiction described in section 3127(2)(A) and shall issue only if the government entity offers specific and articulable facts showing that there are reasonable grounds to believe that the contents of a wire or electronic communication, or the records or other information sought, are relevant and material to an ongoing criminal investigation. 18 U.S.C. § 2703(d). Thus the burden on the United States in obtaining such an order is to present specific facts showing reasonable grounds to believe the material sought is relevant to a criminal investigation. 4. This court is a "court of competent jurisdiction" because it is "a district court of the United States (including a magistrate of such court) . . ." 18 U.S.C. § 3127(2)(A). 5. As further described below, the Federal Bureau of Investigation is investigating violations of Title 18, United States Code, Sections 2422 and 2423, which outlaw the use of "any facility or means of interstate or foreign commerce" to persuade, induce, or entice any individual under the age of 18 to engage in prostitution or sexual activity (§ 2422), and the travel in interstate commerce for the purpose of engaging in illicit sexual conduct (§ 2423). 6. Beginning in October 2005, the City of Palm Beach Police Department ("PBPD") began investigating Jeffrey Epstein, a part-time resident of the City of Palm Beach, along with his personal assistant, Sarah Kellen. PBPD obtained information from a fourteen-year-old girl who Jives in Loxahatchee, Florida, in the Southern District of Florida, and who attended Royal Palm -2- EFTA00194500

Beach High School, also in the Southern District of Florida. The fourteen-year-old girl informed PBPD that she had been paid $300 by Jeffrey Epstein to perform a "sexual massage," which entailed providing a massage to Jeffrey Epstein while Epstein was naked and the fourteen-year-old was wearing only her thong panties. During the massage, Jeffrey Epstein masturbated himself and touched the fourteen-year-old's vagina 4ver-her--thong-pantiesz both with his hand and with a vibrator/massager, arevi_ aCtOtitj rekth-eit ?me 7. Following the receipt of the information from the fourteen-year-old, PBPD began interviewing a series of girls, ranging in age from fourteen through mid-twenties, who reported a similar series of events.' In particular, the girls described how they were contacted via telephone, primarily by Sarah Kellen, Epstein's assistant, to arrange times for the girls to "work" at Epstein's home in Palm Beach. The girls would travel to Epstein's home, usually in the company of another girl. The girls would enter Epstein's home via the kitchen, where they would be met by Epstein LocILALA and/or Kellen. The girls would be escorted up to Epstein's bedroom where a massage table . laity b-e --was-already set up. The girls were told to undress — some undressed only partially and some undressed completely. Epstein would enter the room partially dressed, usually wearing only a towel. Epstein often would remove the towel and get onto the massage table face down. While lying face down, Epstein instructed the girl how to massage him, including in some instances "straddling him" so that Epstein's buttocks and the girl's buttocks touched. After a period of time when the girl massaged Epstein's back, he would turn over and lie face up. While lying face up, Epstein would continue to instruct the girl how to conduct the.massage. Epstein also would masturbate himself and occasionally would manually fondle the vaginal area of the girl — sometimes over the panties, 2A11 of the girls did not report identical events. This summary includes the most common occurrences from the girls' interviews. -3- EFTA00194501

Marl sometimes under the panties, and sometimes penetrating the girl's vagina. On-most instances, Epstein also used a vibrator or massager on the girl's vaginal area, again sometimes over the panties and sometimes under the panties. When Epstein ejaculated, the "massage" was over and the girl was instructed to get dressed and to return to the downstairs area of the home. The girls received between $200 and $300 for the sexual massage. 8. In addition to these sexual massages, some of the girls were paid additional sums to perform more sexual activity, including, for example, engaging in sexual activity with another female Epstein employee, Nadia Marcinkova, while Epstein watched. 9. During the course of PBPD's investigation, a search warrant for Epstein's home was obtained and executed. Many of Epstein's belongings were removed from the home prior to the execution of the search warrant — for example, the computer processing units ("CPU's") were removed from the house but the computer screens, keyboards, cords, etc. were left behind. The missing CPU's were never recovered.—As-set foal' bacnvrthis-suggests-that, if the- hugets-were4o -.—learn-of-the_existswe of thislfotion-and-Order;thernardest ance._ 10. During the search, several telephone message pads were recovered. These message pads show messages taken from several of the girls who were interviewed and who admitted to engaging in sexual massages or other sexual activity with Epstein. The messages contained text such as "I have a female for him" and "has girl for tonight." Some of the messages from the girls were addressed to Epstein and others were addressed to Sarah Kellen, Epstein's assistant. Additional messages recovered during the search contained text such as "I] confirmed at 11 am and [A] 4 pm."' and [A] refer to two of the girls who were interviewed and admitted to engaging in sexual massages and other activity with Epstein. -4- EFTA00194502

11. During the FBI's investigation, some of the girls interviewed by PBPD were re- interviewed and additional girls were, interviewed for the first time. During those interviews the ter/ Gra `lo 14-11ein, AGIJ-i'anA4ssor Nadi,' girls related that Sarah-44gf -Epstein's assistant would contact the girls whilegeellee-iifut Epstein' /110-01-444 tA.) cia3 -war still in New York or elsewhere,' in order to arrange "massage" times upon his arrival in Palm Beach. The F -3.halso)has collected the flight manifests for Epstein's two private planes during the period of January 2004 through December 2005 as well as cell phone records for Kellen, Epstein, av--„‘ct imb and some of the girls. The investigation revealed that, prior to flights to Palm Beach, Kellen would contact some of the girls via cell phone. The message pads show evidence that the girls responded to those telephone calls and left messages confirming their "appointments." 12. The in • Ligation has revealed tw' relevant cell phone numbers operated by Cingular Wireless: (917) 601-414 , which is assign to Jeffrey Epstein, and (917) 855-3363, which is assigned to Sarah Kellen. 13. Based on the foregoin < ere is reason to believe that the items listed in Attachment A for Jeffrey Epstein and Sarah Kelle wonkd yield information relevant and material to the ongoing criminal investigation and will as st in establi4hing the use of a facility and means of interstate commerce and the travel in inter• ate commerce to gage in illicit sexual conduct and prostitution, as well as information pertain' g to the location from Inch the telephone calls were made. 14. The United tates requests that the Court is ue an order authorizing the disclosure of the items listed in A chment A for Jeffrey Epstein and Sarah\ Icellen for the dates shown thereon. 'In addition to a home in Islands. Epstein has at least two pe planes. Epstein has access to virtu charges in this case, there is reaso existence of this Motion and 0rder, the , Epstein also maintains a residence in the U.S. Virgin al planes and has been known to travel overseas on those unlimited assets. Given the seriousness of the potential lieve that, if Epstein and his assistant were to learn of the ay flee the United States. -5- EFTA00194503

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threadkrd barrel "quiet." PELUSO said he hadn't been able to find it because the last gun show (in West Palm Beach) was cancelled so he couldn't meet his supplier. In a final ca later that day, PELUSO spoke again about getting a kit to convert the M16 to fully automatic; that he would sell the M16 without the Glock for $1,500 or with the Glock for $2,200;4hat both the Glock and the M16 were brand new with paperwork; and that his supplier had guns right now. PELUSO told the CI to let him know by 3:00 pm whether the CI wanted the guns. 44. Your affiant obtained records from the State of Florida Department of Motor Vehicles which indicate that on February 6, 2006, PELUSO traded his black Hummer vehicle for a 2004 silver Mercedes sedan, VIN: WDBUF76J14A451154. According to the records, JOSEPH E. PELUSO, III, is the owner of record. There were no recorded liens on the Mercedes. 45. On February 10, 2006, at approximately 1:20 pm, PELUSO called the CI and said that one person had a silencer but wanted $3000 for it and that the CI would have to do the paperwork for it, which would involve paying a $200 tax stamp to ATF, as well as having a corporation or being a class III license holder, firearms dealer, or law enforcement officer. PELUSO said that the silencer should cost $1500 but the guy wanted $3000. Also, PELUSO said there was a thirty day waiting period. When the CI asked PELUSO about the "full thing" referring to the machine gun, PELUSO said he had offered one guy $7500 for it, but the guy didn't want to part with it. PELUSO told the CI that he has contacted all of his resources, and called everyone he knew in the game. PELUSO said he had been staying away from legitimate class III dealers because their stuff was way overpriced. PELUSO said he had a couple of Glocks and wanted $700 a 16 EFTA00194505

piece for them and that he also had a bullet proof vest. The CI agreed to call PELUSO later. 46. On February 13, 2006 at approximately 1:40 pin, the CI made a controlled call, which was consensually recorded by the CI, and PELUSO and he agreed to meet the next day so the CI could buy the Glock firearm from him. 47. On February 14, 2006 at approximately 11:30 am, surveillance was established in the area of the Polio Tropical parking at Okeechobee Boulevard and Spencer in West Palm Beach, Florida. Prior to the CI's meeting with PELUSO, your affiant searched the CI and the CI's vehicle with negative results and provided the CI with $700 in official ATF funds and recording equipment. At approximately 12:09 pm, agents observed PELUSO arriving at the Polio Tropical parking lot; he was driving his 2004 silver Mercedes sedan, bearing the Florida tag SPEEEED. The CI arrived at the parking lot and met with PELUSO, who was standing by his new silver Mercedes. PELUSO opened the trunk of his Mercedes and showed the CI a black zippered case which contained an AR15-type short-barreled rifle. PELUSO said that the AR15 had the capability of firing thirty rounds as fast as the pull of the trigger. The CI asked PELUSO whether he had the other firearm, and PELUSO showed the CI a brand new Glock 9mm firearm. During this deal, the CI asked PELUSO about the silenced M16 machine gun that PELUSO had bragged about owning. PELUSO said it was a dealer's class III weapon and that he didn't have it anymore. PELUSO said those guns were rare because they have been banned and require a tax stamp. The CI asked PELUSO what a tax stamp was. PELUSO said that he owned a corporation and that he had suppressed weapons in his corporation's name. PELUSO said that he had applied to ATF about possessing 17 EFTA00194506

certain firearms and that after the agency had conducted a background check on him, ATF had allowed him to possess suppressed firearms. 48. During the transaction, PELUSO advised the CI that the Glock firearm cost $700 and the AR15 cost $1,500. PELUSO said that the AR15 was brand new. PELUSO also demonstrated for the CI how to put the AR15 together because it was in two pieces inside of a rifle bag. PELUSO told the CI that when the ARTS was assembled it's only this big overall and "it's a 10 year felony." When the CI asked PELUSO about a kit to convert the AR15 to full auto, PELUSO said that no one was selling them because ATF agents have been attending the gun shows. 49. Because the CI had only enough money to buy the Glock firearm, the CI called your affiant about the purchase of the ARI5. While your affiant was speaking to the CI on the phone, your affiant heard PELUSO telling the CI "it's only this big," "it's only 14 inches," and it costs $1,500. When the CI told your affiant that the AR15 was not fully automatic, your affiant heard PELUSO saying that he was still trying to get the part to make it fully automatic and that if he got it, it would take two seconds to install. 50. The CI asked PELUSO if he could hold the AR15 for a day or two for the CI. PELUSO said that he was going to get rid of it and that he had picked up the AR15 from a guy's house and doesn't even like having it on him. PELUSO said that he was selling the AR15 for somebody. PELUSO said that he didn't even keep the AR15 at his house. Finally, PELUSO agreed to hold the AR15 for the CI until the next day. PELUSO also said that the AR15 was "taboo" and that he had wanted to get rid of it because it was a big problem. The CI said that he still wanted the Glock. PELUSO asked the CI if the CI needed the paperwork for the Glock, and the CI said no. PELUSO said that he had the 18 EFTA00194507

paperwork for the Glock and the Bushmaster (referring to the AR15). PELUSO then read from the papers calling the AR15 a "Bushmaster XM15 E25 configuration," which PELUSO said was a law enforcement configuration. PELUSO also said that the AR15 "came from a strange place, you know what I'm saying?" 51. During the February 14, 2006 transaction, PELUSO sold the 9 mm Glock semi-automatic pistol, serial no. HFU033, to the CI for $700. Before leaving the location, the CI arranged to meet PELUSO the next day to buy the AR15. PELUSO said that he would bring the AR15 back, and that it would be kept about 15 minutes away. (It should be noted that PELUSO's Riviera Beach residence is located approximately fifteen minutes by car from Pollo Tropical on Okeechobee Boulevard.) After the meeting was concluded, agents followed PELUSO directly back to his residence located at 244 East 256 Street, in Riviera Beach, Florida. Agents observed PELUSO pulling into his residence. Then another agent observed PELUSO coming out of the front door of the residence and looking inside of his Mercedes. 52. Meanwhile, after the deal, ATF agents followed the CI to a predetermined location where your affiant searched the CI and the CI's vehicle and.determined that the CI no longer had the $700 in official ATF funds. Your afflant took custody of the brand new Glock 9mm, model 17L, semi-automatic pistol, serial no. HFU033, which was still in the manufacturer's box along with two magazines, a magazine loader, a gun lock, a cleaning brush, and some miscellaneous firearm paperwork. These items were placed into evidence at ATF along with the audio and video recordings. 53. On February 15, 2006, at approximately 11:34 am, the CI received an incoming call from PELUSO's cell phone at (561) 779-5644. The CI answered the 19 EFTA00194508

phone, and PELUSO asked the CI if he/she definitely wanted the thing, referring to the Bushmaster short-barreled rifle. PELUSO said that his buddy was going out of town and he would not be able to get the rifle from him, so he needed to know what the CI wanted to do. The CI asked PELUSO if they could meet around the same time tomorrow so that the CI could buy the rifle and bullet proof vest from PELUSO. PELUSO said that he was going to his buddy's house to get it because his buddy was heading to Orlando. PELUSO said that he would meet the CI the following day to conduct the sale. 54. On February 16, 2006, at approximately 11:06 am, surveillance was established at the parking lot of Polio Tropical, located at 2611 Okeechobee Boulevard, in West Palm Beach, Florida. After the CI made several calls to PELUSO, PELUSO returned the calls and said that he would be arriving at the same spot, that is, the Polo Tropical parking lot, at 12:30 pm. 55. Your affiant then searched the CI and the CT's vehicle with negative results. vehicle. Your affiant then provided the CI with $1,500 in official ATF funds and recording equipment. At approximately 12:29 pm, CI was followed by ATF agents to the Polio Tropical parking lot. At approximately 12:48 pm, PELUSO arrived in the parking lot in his 2004 silver Mercedes sedan. PELUSO parked next to the CI's vehicle and they met at the trunk of PELUSO's silver Mercedes. The CI he saw a bullet proof vest in PELUSO's trunk and discussed it with PELUSO. The CI also observed another vest in PELUSO's trunk, which was black with numerous compartments, which is the type of vest worn by special weapons and tactics (SWAT) officers. PELUSO explained that this was not a bullet proof vest but rather something he wore over his bullet proof vest. 20 EFTA00194509

56. The CI and PELUSO then began talking about the Bushmaster short-barreled rifle, which PELUSO had called an AR15 during the February 14th meeting and which the CI had seen in PELUSO's possession on February 14, 2006. The rifle was inside of a black colored, soft zippered rifle bag in the trunk of PELUSO's Mercedes. PELUSO again demonstrated how to assemble the AR15, which was completed in seconds. Also included with the short-barreled rifle was an empty thirty round magazine. When the CI asked PELUSO whether he still had the paperwork for the firearms, PELUSO said he did not. PELUSO also demonstrated for the CI how to operate the Bushmaster rifle, how to load it, and how to chamber a round. The CI then counted the $1,500 in official ATF funds and handed the cash to PELUSO as payment for the rifle. PELUSO said, "done deal." At approximately 12:53 pm, agents observed the CI placing the black rifle bag into the Cl's vehicle. 57. PELUSO then said that he might be getting some Glocks and some other things in the next couple of days. PELUSO said that his contact might be able to get a silencer for $2,500 for the HK .45 firearm which the CI had purchased from PELUSO. PELUSO said that the guy would call him when the guy returned from a gun show in Las Vegas. The CI told PELUSO that he would take it. 58. The CI asked PELUSO where he had gotten his Mercedes. PELUSO said that he had bought it from Luxury Motors. PELUSO said that he had ordered a new 600S Mercedes from Arizona. 59. After the transaction, PELUSO got into his Mercedes and headed westbound. The CI also drove from the parking lot and was followed by agents to a predetermined location where your affiant searched the CI and the Cl's vehicle. The CI no longer had 21 EFTA00194510

the $1,500. Instead, the CI had a brand new Bushmaster .223 caliber short-barreled rifle, model no. XM15-E2S, serial no. LI 59589, with one thirty round magazine in a black colored, soft zippered rifle case. Your affiant placed the rifle and the audio and video recordings into evidence at ATF. 60. The Bushmaster .223 caliber rifle was examined by S/A Stephen Barborini, who is a firearms expert with ATF. Agent Barborini measured the barrel of this firearm and determined that the barrel wasll '/4 inches long. Because the barrel was less than 16 inches in length, the firearm constituted a short-barreled rifle, which is an NFA weapon, and must be registered with ATI?. Your affiant requested that ATF's National Firearms Act (NFA) branch conduct a records check of ATF's NFTR records to determine whether the Bushmaster .223 caliber short barreled rifle bearing serial no. L159589 had been properly registered with ATF as required by federal law. On February 17, 2006, your affiant was advised by ATF's NFA branch that the Bushmaster short-barreled rifle was not registered to any person. Therefore, the rifle could not be lawfully possessed or transferred under federal law. A check with the ATF licensing center along with the NFA branch revealed that neither Joseph PELUSO nor his corporation Strategic Solutions Unlimited Inc., was a licensed firearms dealer or a federal firearms licensee eligible to possess or transfer NFA firearms, such as short-barreled rifles, machineguns, or silencers. 61. On March 2, 2006, your affiant conducted a surveillance of PELUSO's residence and observed PELUSO's 2004 silver Mercedes parked in front of his residence. 62. A records check with the Department of State Division of Corporations in 22 EFTA00194511

Tallahassee, Florida, revealed that Joseph E. PELUSO, III is the owner and president of a corporation named Strategic Solutions Unlimited, Inc., for which the principal place of business is PELUSO's residence located at 244 East 25th Street, Riviera Beach, Florida. The telephone number for the corporation is (561) 882-1392 which is PELUSO's home telephone number. Based on the foregoing, there is probable cause to believe that the 2004 silver Mercedes sedan VIN WDBUF76114A451154 is property intended for use, or has been used, in violating the provisions of 26 U.S.C. §5861(d) which makes it a federal crime to unlawfully possess a short-barreled rifle which is not registered in the National Firearms Registration and Transfer Record and 26 U.S.C. §5861(e) which makes it a federal crime to unlawfully transfer a short-barreled rifle which is not registered in the National Firearms Registration and Transfer Record, and is therefore forfeitable to the United States pursuant to 26 U.S.C. § 7302. FURTHER YOUR AFFIANT SAYETH NAUGHT. SETH M. BERGER, SPECIAL. AGENT BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES Subscribed to and sworn before me this day of March, 2006, in West Palm Beach, Florida. JAMBS M. HOPJCINS • UNITED STATES MAGISTRATE JUDGE 23 EFTA00194512