From: Jay Lefkowitz (mailto:[email protected] Sent: Wed 10/3/2007 4:26 PM Villafana, Ann Marie C. (USAFLS) bject: Re: Proposed Letter to Special Master Marie - I, too, am interested in speed. But I really need to go over this and then discuss with Jeffrey. So please do not send this to any Special Master before we discuss the next steps. Thanks -- Jay "Villafana, Ann Marie C. (USAFLS)" cAnn.Marie.C.VillafanaOusdoj.gov> 10/03/2007 04:24 PM To "Jay Lefkowitz" <JLefkowitzBkirkland.com> cc Subject Proposed Letter to Special Master III, Jay - To move things along, I also have enclosed the proposed text of a letter to the apecial Master. «PROPOSED Letter to Special Master.pdf» A. Marie Villafana Assistant U.S. Attorney 561 209-1047 Fax 561 820-8777 'Malaria. Ann Marty C. (USAFLS)' .4Ann.Markt,VAllefonseusdoLoov> 10/03/2007 04:24 PM To "Jay Leficovaitte calLerkowitalltkirkland.com> cc Subject Proposed Letter to Special Master Hi Jay — To move things along, I also have enclosed the proposed text of a letter to the Special Master. •ROPOSED Letter to Special Master.pdf» A. Marie Villafatia 2 RFP MIA 000308 EFTA00208996

. Assistant U.S. Attorney 561 209-1047 • x 561 820-8777 ViUlan.. Ann Made C (USAFLS)" <Ann Mat4 C V Mai ilnatin0QA OCONI> 10;03/7007 03 18 PM To 'Jay Lens:Pate <JleOkomezi5lIkekland we> cc SuMeM Memo m PDF format Hi Jay - In case you can't open the other version, here it is in pill «Special Master Proposai.pet» A. Marie Villafada Assistant U.S. Attorney 561 209-1047 OX 561 820-8777 • 3 RFP MIA 000309 EFTA00208997

• • • Kenneth W. Stan To Cal Writer Directly: 213 6804440 kstarteltirkland com October 5, 2007 VIA FEDERAL EXPRESS A. Marie Villafana United States Attorney's Office Southern District of Florida 500 South Australian Avenue, Suite 400 West Palm Beach, Florida 33401 Re: Jeffrey Epstein Dear Marie: Dir. Fax: 213480-6500 I write in response to your emails dated October 3, 2007 in which you propose the use of a Special Master to select an attorney representative (the "selected attorney"), a general outline of how the selected attorney should proceed pursuant to the Federal Plea Agreement (the "Agreement"), and a drag joint letter to the Special Master. Below, I've outlined our main areas of concern with the approach you have taken in your proposed drafts. Once we can come to a resolution on the issues detailed herein, we would be happy to cooperate with you on the specific drafting of the proposals. First, the Agreement does not provide for the appointment of a Special Master to appoint the selected attorney. In fact, the Federal Plea Agreement clearly states that "the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons." (Paragraph 7, Agreement). Thus, the Agreement only contemplates the selection of one selected attorney who will represent the identified individuals in a limited capacity. We see no need for the appointment of a Special Master, nor does the Agreement call for one. Second, if the parties cannot settle on a damages amount with Mr. Epstein, then the selected attorney may not continue his representation and is barred from filing lawsuits pursuant to § 2255. Paragraph 7 and Paragraph 8 of the Agicciiient outline the scope and manner of representation of the identified individuals. Specifically, Paragraph 7 defines who may be represented by the selected attorney and Paragraph 8 outlines the terms of that representation. And under Paragraph 8 of the Agreement, the selected attorney is only appointed to protect the interests of those individuals who elect to waive any claim for damages other than the damages agreed to by the parties. Paragraph 8 states: RFP MIA 000310 EFTA00208998

• • • October 5, 2007 Page 2 If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over this person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount as agreed to between the identified individual and Epstein, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. Paragraph 8 addresses how Mr. Epstein's waivers are triggered pursuant to a settlement with each identified individual. The Agreement's silence with respect to what happens if the parties cannot settle on a damages amount indicates that the parties intended for the scope of the selected attorney's representation to be limited to settling claims with Mr. Epstein, not representing these identified individuals in § 2255 lawsuits. Otherwise, the selected attorney will be faced with serious conflicts of interest. For instance, if Mr. Epstein agrees to pay for the selected attorney's fees and monthly expenses, then the selected attorney would effectively be incentivized to reject settlement under § 2255 in an effort to draw out the lawsuits and incur more fees. If allowed to represent the identified individuals in a lawsuit, the best interests of each identified individual may not be served because the selected attorney will always be more interested in pursuing lawsuits in lieu of settling claims against Mr. Epstein efficiently and fairly. Multiple representation of a group of individuals that elects to settle on damages as well as one or more individuals who reject settlement carries with it the heightened potential for irreparable conflicts. For example, a conflict could arise if the selected attorney represents both a client who may be a potential witness and a client who is a civil plaintiff. And the fact that Mr. Epstein could pay compensation to the plaintiff's attorney in such a case only underscores this conflict. The procedure we propose is reasonable and consistent with the Agreement and intention of the parties: the selected attorney should evaluate the claims of each identified individual, negotiate a total fund amount with Mr. Epstein, then distribute the monies based on the strength of each case. For those identified individuals who elect not to settle with Mr. Epstein, they may proceed on their own, but by doing so, they would not be suing under § 2255 as contemplated by Paragraph 8 and therefore may not continue to be represented by the selected attorney. RFP MIA 000311 EFTA00208999

• • • October 5, 2007 Page 3 Third, if the identified individuals choose not to settle with Mr. Epstein, he will not waive liability for those individuals whose claims are not settled by the selected attorney. Paragraph 8 is clear that Mr. Epstein will only waive § 2255 liability so long as each identified individual proceeds exclusively under § 2255 and agrees to waive damages other than "an amount as agreed to between the identified individual and Epstein." (Paragraph 8, Agreement) This interpretation is supported by your own language in the draft proposed joint letter to the Special Master ("Mr. Epstein...agreed to waive any challenge to liability under that section up to an amount agreed to by the parties."). Consequently, those identified individuals who choose not to settle with Mr. Epstein are not covered by the Agreement and will have to prove, among other things, that they are victims under the enumerated statutes. Fourth, our objections to the appointment of a Special Master notwithstanding, we have serious concerns regarding the language in your draft joint letter to the Special Master, which describes Mr. Epstein's alleged conduct. Specifically, we will not concede that "Mr. Epstein, through his assistants, would recruit underage females to travel to his home in Palm Beach to engage in lewd conduct in exchange for money," because we think this overstates the facts. In addition, we will not concede that his most benign conduct involved topless or nude massage by the identified individuals while he masturbated. Nor will we concede that some of the identified individuals visited Mr. Epstein's home over one hundred times. Any joint statement must be such that it cannot be construed as a stipulation to liability that could be utilized against Mr. Epstein as to any individual who elects to reject the settlement contemplated by the Agreement. Fifth, neither federal agents nor anyone from your Office should contact the identified individuals to inform them of the resolution of the case, including appointment of the selected attorney and the settlement process. Not only would that violate the confidentiality of the agreement, but Mr. Epstein also will have no control of what is communicated to the identified individuals at this most critical stage. We believe it is essential that we participate in crafting a mutually acceptable communication to the identified individuals — perhaps in the form of a joint letter explaining the resolution and the settlement process. We further believe that communications between yourself or your case agents and the identified individuals might well violate Rule 6(e)(2XB) of the Federal Rules of Criminal Procedure. The powers of the federal grand jury should not, even in appearance, be utilized to advance the interests of a party to a civil lawsuit. Finally, we are also concerned that you have been engaging in conversations with judges about this matter. We look forward to resolving these open issues with you at your earliest convenience. RFP MIA 000312 EFTA00209000

• • • October 5, 2007 Page 4 Sincerely, Jay P. Lefkowitz RFP MIA 000313 EFTA00209001

• • • FOWLERWHITE BURNETT MMMT • FORT LAUOIROALE • WEST PALM BEACH • ST. PETERSBURG October 8, 2007 Jeffrey Sloman First Assistant United States Attorney United States Attorney's Office Southern District of Florida 500 South Australian Avenue, Suite 400 West Palm Beach, Florida 33401 Re: Jeffrey Epstein Dear Jeff: Es►wmo Sumo PLAZA ITCAMISDON float 1395 °Ram AWN.* MOM. 110MCA 331 31 IttomoNt 13O5/78992OO racseaL21305) 789-9201 www.rostER-rmac-cow Lure ANN SANCHEZ OwtocT Piec No.; 130517890279 Dna ►acs.at No : 13O5/ 728-7570 • •s•s-••••Te/rowteftwHrTc.coN I LVIA FEDERAL EXPRESS II I write to follow up on the conversation we had regarding the role of the attorney representative and the settlement process for 18 U.S.C. § 2255 claims pursuant to the Federal Plea Agreement between your Office and Mr. Epstein (the "Agreement"). First, thank you for reaching out to Marie on these issues. Marie has already left me a voicemail this afternoon asking that I clarify the selection process for the attorney representative and the scope of his role pursuant to the Agreement. With respect to the selection of the attorney representative, you have suggested Former Judge Edward B. Davis of Akerman Senterfitt. We are comfortable with Judge Davis. Pursuant to the Agreement, Judge Davis will represent the identified individuals provided they opt to enter into a settlement agreement with Mr. Epstein with respect to their § 2255 claims. If the identified individuals cannot settle or opt not to settle on a damages amount with Mr. Epstein, then Judge Davis may not continue his representation and is barred from filing lawsuits pursuant to § 2255. As agreed, Mr. Epstein will pay the fees for the services of Judge Davis. The provisions of the Agreement make clear that the role of the attorney representative is to settle the claims of the identified individuals pursuant to the Agreement. While Paragraph 7 defines who may be represented by the attorney representative, Paragraph 8 outlines the scope of that representation. Paragraph 7 states: The United States shall provide Epstein's attorneys with a list of individuals whom it has identified as victims, as defined in 18 U.S.C. § 2255, after Epstein FOWLER WHITE BURNETT P.A. RFP MIA 000314 EFTA00209002

• • • Page 2 has signed this agreement and has been sentenced. Upon the execution of this agreement, the United States, in consultation with and subject to the good faith approval of Epstein's counsel, shall select an attorney representative for these persons, who shall be paid for by Epstein. Epstein's counsel may contact the identified individuals through that representative. Under Paragraph 8 of the Agreement, which provides the terms of the representation, the attorney representative is only appointed to protect the interests of the identified individuals who elect to waive any claim for damages other than the damages agreed to by the parties. Paragraph 8 states: If any of the individuals referred to in paragraph (7), supra, elects to file suit pursuant to 18 U.S.C. § 2255, Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over this person and/or the subject matter, and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount as agreed to between the identified individual and Epstein, so long as the identified individual elects to proceed exclusively under 18 U.S.C. § 2255, and agrees to waive any other claim for damages, whether pursuant to state, federal, or common law. Notwithstanding this waiver, as to those individuals whose names appear on the list provided by the United States, Epstein's signature on this agreement, his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability. Mr. Epstein's waivers are triggered pursuant to a settlement with each identified individual. Paragraph 8 is clear that Mr. Epstein will only waive § 2255 liability "so long as" each identified individual proceeds exclusively under § 2255 and agrees to waive damages other than "an amount as agreed to between the identified individual and Epstein." To that end, Judge Davis' role should be limited to contact, coordination and mediation. This would include the following: - Interviewing each identified individual to confirm standing; - Explaining the identified individual's option to settle § 2255 claims pursuant to the Agreement; - Explaining Mr. Epstein's waivers as to jurisdiction, liability and damages only if the identified individuals elect to settle claims pursuant to the Agreement; FOWLER WHITE BURNETT P.A. RFP MIA 000315 EFTA00209003

Page 3 - Explaining the capacity of his representation, including an explanation that his role is limited to negotiating settlement amounts for each identified individual; - Negotiating a total amount with Mr. Epstein pursuant to the Agreement for each identified individual; - Distribute the monies to each identified individual in the manna he sees fit; and - Assure that the United States Attorney's Office and the FBI not be involved in the civil settlement or litigation. If any of the identified individuals decide not to utilize Judge Davis pursuant to the Agreement, they may proceed on their own, but by doing so, they would not be proceeding as contemplated by Paragraph 8 and therefore may not continue to be represented by Judge Davis. Marie indicated in her message that she would be talking to Jay Lefkowitz tomorrow. In the interest of finality on this matter, I would greatly appreciate it if you could confirm for me that both the settlement procedure and the scope of Judge Davis' representation is resolved. Finally, I find it imperative that we have a meeting later this week with you to finalize this agreement. It should not take longer than 90 minutes. I hope you can set aside the time. Jeff, I greatly appreciate your efforts in helping to resolve this matter. I look forward to hearing from you shortly regarding your availability. Very truly yours, /s/ Lilly Ann Sanchez cc: Jay Lefkowitz, Esq. Alan Dershowitz, Esq. Martin Weinberg, Esq. Wit) W 'Met ***** 202 LAS (IWW7-20151 FOWLER WHITE BURNETT P.A. RFP MIA 000316 EFTA00209004