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Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach. FL: Santa F... Page 1 of 32 The Awareness Center The Awareness Center is the Jewish Coalition Against Sexual Abuse/Assault (JCASA) (1youfind this site helpfid, please consider becoming afinancial sponsor tit Case of Jeffrey Epstein Palm Beach, FL Santa Fe, NM New York, NY El Brillo Way, Virgin Islands Indicted for felony solicitation of prostitution by a grand jury following accusations by teen girls. Jeffrey Epstein was born blue-collar in 1953. the son of a New York City parks department employee. and raised in Brooklyn's Coney Island neighborhood. lie left college without a bachelor's degree but became a math teacher at the prestigious Dalton School in Manhattan. The story goes that the father of one of Epstein's students was so impressed with the man that he put him in touch with a senior partner at atarite.arns. the global investment bank and securities firm. http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661603 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 2 of 32 In 1976, Epstein left Dalton for a job at Bear Steams. By the early 1980s, he had started J. Epstein and Co. That is when he began making his millions in earnest. Little is known or said about Epstein's business except this: He manages money for the extremely wealthy. He is said to handle accounts only of $1 billion or greater. It has been estimated he has roughly 15 clients, but their identities are the subject of only speculation. All except for one: Leslie Wexner, founder of The Limited retail chain and a former Palm Beacher who is said to have been a mentor to Epstein. Wexner sold Epstein one of his most lavish residences: a massive townhouse that dominates a block on Manhattan's Upper East Side. It is reported to have, among its finer features, closed-circuit television and a heated sidewalk to melt away Mlen snow. That townhouse, thought to be the largest private residence in Manhattan, is only a piece of the extravagant world Epstein built over time. In New Mexico, he constructed a 27,000-square-foot hilltop mansion on a 10,000-acre ranch outside Santa Fe. Many believed it to be the largest home in the state. In Palm Beach, he bought a waterfront home on El Brillo Way. And he owns a 100-acre private island in the Virgin Islands. Perhaps as remarkable as his lavish homes is his extensive network of friends and associates at the highest echelons of power. This includes not only socialites but also business tycoons, media moguls, politicians, royalty and Nobel Prize-winning scientists whose research he often funds. Your Financial Support is Needed! Make a Donation Networking and Self-Help Groups for the Awareness Center This link will bring you to a list of different mailing lists offered by The Awareness Center. We offers several different email groups,which include our general mailing list, press-releases, Jewish survivors of childhood sexual abuse, Jewish Survivors of Clergy Abuse (by Rabbis and Cantors), Parents of children who were molested, Family members of sex offenders, etc. Disclaimer: Inclusion in this website does not constitute a recommendation or endorsement. Individuals must decide for themselves if the resources meet their own personal needs. Table of Contents: 1. Background Information 2. Jeffrey Epstein: International Moneyman of Mystery (10/28/2002) 3. Billionaire solielleckozoslitules 3 tinxtindiggnertnya (07/25/2006) 4. Aftedong.prolcir,F.alm_Beachbillionairg_factudicitation charge (07/26/2006) 5. Billionaire and Bill ClintolatlArresied for Solicitation of Underaged Girls (07/26/2006) 6. Billionaire's lawyer tried te,discredit teenZirk Police_say (07/29/2006) 7. Billioniteliatviirdl:lonot Amsted. For.Seliciting_ProAtituk.s. (07/31/2006) 8. Ignorance_of ase_notvalid defense in sexsaiewsc rtan,s (08/04/2006) http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661604 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 3 of 32 9. EpzeirLompsalls female aggnsersjiars (08/08/2006) 10. Police chiefs reputation helps discredit attacks (08/14/2006) 11. Leffrex Epstein craysd _bighonms.sdite friends -and.investigators_aay,_uncitramgids osnancoo 12. Governor:to dump cash from billionaire (08/16/2006) Also see: 1. The Awareness Center's Brochure 2. Scx.Addictios 3. Rabbis. Cantors and Other Trusted Officials 4. Oficnsigrs;.P.rablgins Clurhants.Wctuldni_Sissik Of 5. Recidivism of_S_OLORCIACCULLailkpartment of stice: Center for Sex OlAndallanatemeat.1 Background Information: http://www.dealbreaker.com/2006/08/jeffrey_epstein the_story_sof.html • Jeffrey Epstein's early career at Dalton and Bear Stearns. • His earlier disputes with former business partners and Citigroup. • Rumors that he left Bear Stearns under an SEC inquiry cloud. • Also rumored to have been a spook of some sort. • Mentored by Steven Hoffenberg "now serving a prison term after 'bilking investors out of more than $450 million in one of the largest Ponzi schemes in American history.' • His real estate: private island, huge townhouse in Manhattan, gigantic in new Mexico and a alleged teenage petting zoo mansion in Palm Beach. • Powerful friends: top scientists, former Harvard president Larry Summers, Daily News publisher Mort Zuckerman and Bill Clinton. • Thought to have 15 clients but only one is known—the Wexner family, founders of The Limited clothing stores. Women. • Long linked to media mogul Robert Maxwell's daughter Ghislaine Maxwell. • Said to have also dated a former Miss Sweden and a Romanian model. http://www.theawarenesscentenorg/Epstein Jeffrey.html 4/25/2007 EFTA01661605 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 4 of 32 The Case. • Investigation began after a mother heard her daughter discussing trips to Epstein's place and contacted police. • Private investigators working for Epstein contacted witnesses during the investigation. • Disputes arose between prosecutors and police. An early plea bargain which would have kept Epstein out of jail fell apart. • Alan Dershowitz flew to Palm Beach to paint the girls malting the allegations against Epstein as lying, thieving, drug and alcohol abusing and unreliable. • The "Heidi Fleiss" of Palm Beach is alleged to have.brought six girls between ages 14 and 18 to Epstein's house for massages. While admitting that Epstein had girls over to administer massages, Epstein's camp maintains he is innocent of any criminal wrong-doing. One of his lawyers even insists Epstein will emerge from the case with his reputation untarnished. Mira Jeffrey Epstein: International Moneyman of Mystery By Landon Thomas Jr. New York Magainze - October 28, 2002 He's pals with a passel of Nobel Prize—winning scientists, CEOs like Leslie Wexner of the Limited, socialite Ghislaine Maxwell, even Donald Trump. But it wasn't until he flew Bill Clinton, Kevin Spacey, and Chris Tucker to Africa on his private Boeing 727 that the world began to wonder who he is. He comes with cash to burn, a fleet of airplanes, and a keen eye for the ladies — to say nothing of a relentless brain that challenges Nobel Prize—winning scientists across the country -- and for financial markets around the world. Ever since the Poses "Page Six" ran an item about the presidents late- September visit to Africa with Kevin Spacey and Chris Tucker -- on his new benefactor's customized Boeing 727 -- the question of the day has been: Who in the world is Jeffrey Epstein? It's a life full of question marks. Epstein is said to run $15 billion for wealthy clients, yet aside from Limited founder Leslie Wexner, his client list is a closely held secret. A former Dalton math teacher, he maintains a peripatetic salon of brilliant scientists yet possesses no bachelor's degree. For more than ten years, he's been linked to Manhattan-London society figure Ghislaine Maxwell, daughter of the mysteriously deceased media titan Robert Maxwell, yet he lives the life of a bachelor, logging 600 hours a year in his various planes as he scours the world for investment opportunities. He owns what is said to be Manhattan's largest private house yet runs his business from a 100-acre private island in St. Thomas. Power on Wall Street has generally accrued to those who have made their open bids for it. Soros. Wasserstein. Kratis. Weill. The Sturm and Drang of their successes and failures has been played out in http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661606 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 5 of 32 public. Epstein breaks the mold. Most everyone on the Street has heard of him, but nobody seems to know what the hell he is up to. Which is just the way he likes it. "My belief is that Jeff maintains some sort of money-management firm, though you won't get a straight answer from him," says one well-known investor. "He once told me he had 300 people working for him, and I've also heard that he manages Rockefeller money. But one never knows. It's like looking at the Wizard of Oz — there may be less there than meets the eye." Says another prominent Wall Streeter: "He is this mysterious, Gatsbyesque figure. He likes people to think that he is very rich, and he cultivates this air of aloofness. The whole thing is weird." The wizard that meets the•eye is spare and fit; with a long jaw and a carefully coiffed head of silver hair, he looks like a taller, younger Ralph Lauren. A raspy Brooklyn accent betrays his Coney Island origins. He spends an hour and fifteen minutes every day doing advanced yoga with his personal instructor, who travels with him wherever he goes. He is an enthusiastic member of the Trilateral Commission and the Council on Foreign Relations. He dresses casually -- jeans, open-necked shirts, and sneakers -- and is rarely seen in a tie. Indeed, those close to him say the reason he quit his board seat at the Rockefeller Institute was that he hated wearing a suit. "It feels like a dress," he told one friend. Epstein likes to tell people that he's a loner, a man who's never touched alcohol or drugs, and one whose nightlife is far from energetic. And yet if you talk to Donald Trump, a different Epstein emerges. "I've known Jeff for fifteen years. Terrific guy," Trump booms from a speakerphone. "He's a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it -- Jeffrey enjoys his social life." But beautiful women are only a part of it. Because here's the thing about Epstein: As some collect butterflies, he collects beautiful minds. "I invest in people -- be it politics or science. Ifs what I do," he has said to friends. And his latest prize addition is the former president. In his eyes, Clinton as a species represents the highest evolutionary form of the political animal. To be up close to him, as he was during the African journey, is akin to seeing the rarest of beasts on a safari. As he put it to a friend upon his return from Africa, "If you were a boxer at the downtown gymnasium at 14th Street and Mike Tyson walked in, your face would have the same look as these foreign leaders had when Clinton entered the room. He is the world's greatest politician." "Jeffrey is both a highly successful financier and a committed philanthropist with a keen sense of global markets and an in-depth knowledge of twenty-first-century science," Clinton says through a spokesman. "I especially appreciated his insights and generosity during the recent trip to Africa to work on democratization, empowering the poor, citizen service, and combating HIV/AIDS." Before Clinton, Epstein's rare appearances in the gossip columns tended to be speculation as to the true nature of his relationship with Ghislaine Maxwell. While they are still friends, the English tabloids have• postulated that Maxwell has longed for a more permanent pairing and that for undetermined reasons Epstein has not reciprocated in kind. "Ifs a mysterious relationship that they have," says society journalist David Patrick Columbia, "In one way, they are soul mates, yet they are hardly companions anymore. ifs a nice conventional relationship, where they serve each other's purposes." Friends of the two say that Maxwell, whose social life has always been higher-octane than Epstein's, lent a little pizzazz to the lower-profile Epstein. Indeed, at a party at Maxwell's house, her friends say, one is http://www.theawarenesscenter.org/Epstein Jeffrey.html 4/25/2007 EFTA01661607 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 6 of 32 just as apt to see Russian ladies of the night as one is to see Prince Andrew. The Oxford-educated Maxwell, described by many as a man-eater (she flies her own helicopter and was recently seen dining with Clinton at Nello's on Madison Avenue), lives in her own townhouse a few blocks away. Epstein is frequently seen around town with a bevy of comely young women but there has been no boldfaced name to replace Maxwell. "You may read about Jeffrey in the social columns, but there is much more to him than that," says Jeffrey T. Leeds of the private equity firm Leeds Weld & Co. "He's a talented money manager and an extremely hardworking person with broad interests. Most unusual, though, is that in this media-obsessed age he is not in any sense a self-promoter." Born in 1953 and raised in Coney Island, Epstein went to Lafayette High School. According to his bio, he took some classes in physics at Cooper Union from 1969 to 1971. He left Cooper Union in 1971 and attended NYU's Courant Institute, where he took courses in mathematical physiology of the heart, leaving that school, too, without a degree. Between 1973 and 1975, Epstein taught calculus and physics at the Dalton School. By most accounts, he was something of a Robin Williams—in—Dead Poets Society type of figure, wowing his high-school classes with passionate mathematical riffs. So impressed was one Wall Street father of a student that he said to Epstein point-blank: "What are you doing teaching math at Dalton? You should be working on Wall Street -- why don't you give my friend Ace Greenberg a call." Epstein was in many respects the perfect candidate for Greenberg's consideration. Greenberg, a senior partner at Bear Stearns at the time and a legendary trader in his own right, has long made it clear that it's the hungry, brilliant guys lacking the fancy degrees that he favors at Bear. They even have an acronym: PSDs — poor, smart, and a deep desire to be rich. It was a description that fit Epstein to a T. He was a Brooklyn guy with a motor for a brain, and while he did love teaching, this close-up view of the rarefied Upper East Side life of his students' gave him a taste for the big time. So in 1976, he dropped everything and reported to work at Bear Stearns, where he started off as a junior assistant to a floor trader at the American Stock Exchange. His ascent was rapid. At the time, options trading was an arcane and dimly understood field, just beginning to take off. To trade options, one had to value them, and to value them, one needed to be able to master such abstruse mathematical confections as the Black-Scholes option-pricing model. For Epstein, breaking down such models was pure sport, and within just a few years he had his own stable of clients. "He was not your conventional broker saying 'Buy IBM' or 'Sell Xerox,' " says Bear Stearns CEO Jimmy Cayne. "Given his mathematical background, we put him in our special-products division, where he would advise our wealthier clients on the tax implications of their portfolios. He would recommend certain tax- advantageous transactions. He is a very smart guy and has become a very important client for the firm as well." In 1980, Epstein made partner, but he had left the firm by 1981. Working in a bureaucracy was not for him; what's more, in rubbing up against ever greater sums of money during his time at Bear, he began to feel the need to grab his own piece of the action. In 1982, according to those who know Epstein, he set up his own shop, J. Epstein and Co., which remains his core business today. The premise behind it was simple: Epstein would manage the individual and family fortunes of clients with $1 billion or more. Which is where the mystery deepens. Because according to the lore, Epstein, in 1982, immediately began collecting clients. There were no road shows, no whiz-bang marketing demos — just this: Jeff Epstein was open for business for those with $1 billion—plus. http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661608 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 7 of 32 His firm would be different, too. He was not here just to offer investment advice; he saw himself as the financial architect of every aspect of his client's wealth -- from investments to philanthropy to tax planning to security to assuaging the guilt and burdens that large sums of inherited wealth can bring on. "I want people to understand the power, the responsibility, and the burden of their money," he said to a colleague at the time. As a teacher at Dalton, he had witnessed firsthand the troubled attitudes of some of the poor little rich kids under his charge; at Bear, he had come to the realization that, counterintuitively, the more money you had, the more anxious you became. For a middle-class kid from Brooklyn, it just didn't make sense. From the get-go, his business was successful. But the conditions for investing with Epstein were steep: He would take total control of the billion dollars, charge a flat fee, and assume power of attorney to do whatever he thought was necessary to advance his client's financial cause. And he remained true to the $1 billion entry fee. According to people who know him, if you were worth $700 million and felt the need for the services of Epstein and Co., you would receive a not-so-polite no-thank-you from Epstein. It's nice work if you can get it. Epstein runs a lean operation, and those close to him say that his actual staff— based here in Manhattan at the Villard House (home to Le Cirque); New Albany, Ohio; and St. Thomas, where he reincorporated his company seven years ago (now called Financial Trust Co.) — numbers around 150 and is purely administrative. When it comes to putting these billions to work in the markets, it is Epstein himself making all the investment calls — there are no analysts or portfolio managers, just twenty accountants to keep the wheels greased and a bevy of assistants -- many of them conspicuously attractive young women -- to organize his hectic life. So assuming, conservatively, a fee of .5 percent (he takes no commissions or percentages) on $15 billion, that makes for a management fee of $75 million a year straight into Jeff Epstein's pocket. Nice work indeed. It has been rumored that Linda Wachner and David Rockefeller have been clients, too, but both parties deny any such relationship. What's more, who ever heard of a financial adviser turning down $500 million accounts? All the speculation and mystery has proved fertile ground for some alternative Jeffrey Epstein stories — the most bizarre of which has him playing the piano (he is classically trained) for high rollers in a Manhattan piano bar in the mid-eighties. Another focus of curiosity is the relationship that Epstein has with his patron and mentor Leslie Wexner, founder and chairman of the Columbus, Ohio—based Limited chain of women's-clothing stores. Wexner, who is said to be worth more than $2.5 billion by Forbes, became an Epstein client in 1987. "It's a weird relationship," says another Wall Streeter who knows Epstein. "It's just not typical for someone of such enormous wealth to all of a sudden give his money to some guy most people have never heard of." The Wexner-Epstein relationship is indeed a multifaceted one. Given the secrecy that envelops Epstein's client list, some have speculated that Wexner is the primary source of Epstein's lavish life -- but friends leap to his defense. "Let me tell you: Jeffrey Epstein has other clients besides Wexner. I know because some of them are my clients," says noted m&a lawyer Dennis Block of Cadwalader, Wickersham & Taft. "I sent him a $500 million client a few years ago and he wouldn't take him. Said the account was too small. Both the client and I were amazed. But that's Jeffrey." Epstein' s current residence in Manhattan — a 45,000-square-foot eight-story mansion on East 71st Street -- was originally bought by Wexner for $13 million in 1989. Wexner poured many millions into a full gut renovation, then turned it over to Epstein in 1995 after he got married. One story has Epstein paying only a dollar for it, though others say he paid full market price, which would have been in the http://www.theawarenesscenter.org/Epstein Jeffrey.hunl 4/25/2007 EFTA01661609 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 8 of 32 neighborhood of $20 million. Epstein then undertook his own $10 million gut renovation (special features: closed-circuit TV and a heated sidewalk in front of the house for melting snow), saying to friends: "I don't want to live in another person's house." There are other houses as well, including a sweeping villa in Palm Beach and a custom-built 51,000- square-foot castle in Santa Fe. Said to be the largest house in the state, the latter sits atop a hill on a 45,000-acre ranch. He had it built because of the month or so he found himself spending there, talking elementary particle physics with his friend Murray Gell-Man, a Nobel Prize-winning physicist and co- chair of the science board at the Santa Fe Institute. Epstein also owned a grand house (he has since sold it) near Wexner's opulent manse at the center of the Limited magnate's high-end housing development in New Albany, Ohio. New Albany was a lush sprawl of farmland on the outskirts of Columbus that Wexner, starting in 1988, turned into•a rich village of multimillion-dollar Georgian homes surrounding a Jack Nicklaus—designed golf course. It was a massive development project, financed largely by Wexner himself. Epstein was a general partner in the real- estate holding company, called New Albany Property, despite putting only a few million dollars of capital into the project. "Before Epstein came along in 1988, the financial preparations and groundwork for the New Albany development were a total mess," says Bob Fitrakis, a Columbus-based investigative journalist who has written extensively on Wexner and his finances. "Epstein cleaned everything up, as well as serving Wexner in other capacities — such as facilitating visits to Wexner's home of the crew from Cats and • organizing a Tony Randall song-and-dance show put on in Columbus." Wexner declines to talk about his relationship with Epstein, but it is clearly one that continues to this day. Not that it helped Epstein in any way to land Clinton. Wexner is a staunch Republican donor, and Epstein, aside from a small contribution to the president's legal-defense fund, has given more to the likes of former senator Al D'Amato. What attracted Clinton to Epstein was quite simple: He had a plane (he has a couple, in fact — the Boeing 727, in which he took Clinton to Africa, and, for shorter jaunts, a black Gulfstream, a Cessna 421, and a helicopter to ferry him from his island to St. Thomas). Clinton had organized a weeklong tour of South Africa, Nigeria, Ghana, Rwanda, and Mozambique to do what Clinton does. So when the president's advance man Doug Band pitched the idea to Epstein, he said sure. As an added bonus, Kevin Spacey, a close friend of Clinton's, and actor Chris Tucker came along for the ride. While Epstein got an intellectual kick out of engaging African finance ministers in theoretical chitchat about economic development, the real payoff for him was observing Clinton in his m€tier: talking HIV/aids policy with African leaders and soaking up the love from Cape Town to Lagos. Epstein brings a trophy-hunter's zeal to his collection of scientists and politicians. But the real charge for him is in seeing these guys work it. Like former Democratic Senate leader George Mitchell, for example. In Epstein's mind, Mitchell is the world's greatest negotiator, based on his work in Ireland and the Middle East. So he wrote the senator a bunch of checks. Says Mitchell: "He has supported some philanthropic projects of mine and organized a fund-raiser for me once. I would certainly call him a friend and a supporter." But it is his covey of scientists that inspires Epstein's true rapture. Epstein spends $20 million a year on them -- encouraging them to engage in whatever kind of cutting-edge research might attract their fancy. They are, of course, quite lavish in their praise in return. Gerald Edelman won the Nobel Prize for physiology and medicine in 1972 and now presides over the Neurosciences Institute in La Jolla. "Jeff is http://www.theawarenesscenter.org/Epstein Jeffrey.html 4/25/2007 EFTA01661610 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa F... Page 9 of 32 extraordinary in his ability to pick up on quantitative relations," says Edelman. "He came to see us recently. He is concerned with this basic question: Is it true that the brain is not a computer? He is very quick." Then there is Stephen Kosslyn, a psychologist at Harvard. Epstein flew up to Kosslyn's laboratory in Cambridge this year to witness an experiment that Kosslyn was conducting and Epstein was funding. Namely: Is it true that certain Tibetan monks are capable of holding a distinct mental image in their minds for twenty minutes straight? "We disproved the thesis," says Kosslyn. "Jeff was on his cell phone most of the time -- he actually wanted to short the Tibetan market, because he thought the monk was so stupid. He is amazing. Like a honeybee -- he talks to all these different people and cross-pollinates. Just two months ago, I was talking to him about a new alternative to evolutionary psychology. He got excited and sent me a check." Epstein has a particularly close relationship with Martin Nowak, an Austrian biology and mathematics professor who heads the theoretical-biology program at the Institute for Advanced Study at Princeton. Nowak is examining how game theory can be used to answer some of the basic evolutionary questions — e.g., why, in our Darwinian society, does altruistic behavior exist? Epstein talks to Nowak about once a week and flies him around the country to his various homes to deliver impromptu lectures. Over the past three years, he has written $500,000 worth of checks to fund Nowak's research. This past February, Epstein had Nowak over for dinner at the 71st Street townhouse. It was just the two of them (not including the wait staff), and Nowak, making use of a blackboard in the formal dining room, delivered a two-hour highly mathematical description of how language works. After dinner, Epstein asked if Nowak wanted to meet up with his new friend President Clinton, and off they went to a nearby deli, where Clinton regaled the starstruck former Oxford professor with tales from his own Oxford days. "Jeffrey has the mind of a physicist. Ifs like talking to a colleague in your field," says Nowak. "Sometimes he applies what we talk about to his investments. Sometimes it's for his own curiosity. He has changed my life. Because of his support, I feel I can do anything I want." Danny Hillis, an MIT-educated computer scientist whose company, Thinking Machines, was at the forefront of the supercomputing world in the eighties, and who used to run R&D at Walt Disney Imagineering, thinks Epstein is actually using scientific knowledge to beat the markets. "We talk about currency trading — the euro, the real, the yen," he says. "He has something a physicist would call physical intuition. He knows when to use the math and when to throw it away. If I had acted upon all the investment advice he has been giving me over the years, I'd be calling you from my Gulfstream right now." On the 727 these days, he has been reading a book by E. O. Wilson, the eminent scientist and originator of the field of sociobiology, called Consilience, which makes the case that the boundaries between scientific disciplines are in the process of breaking down. It's a view Epstein himself holds. He wrote recently to a scientist friend of his: "The behavior of termites, together with ants and bees, is a precursor to trust because they have an extraordinary ability to form relationships and sophisticated social structures based on mutual altruism even though individually they are fundamentally dumb. Money itself is a derivative of trust. If we can figure out how termites come together, then we may be able to better understand the underlying principles of market behavior and make big money." So how do termite grouping patterns fare as an investment strategy? Again, facts are hard to come by. A working day for Epstein starts at 5 a.m., when he gets up and scours the world markets on his Bloomberg screen — each of his houses, in New York, St. Thomas, Palm Beach, and New Mexico, as well as the 727, is equipped with the necessary hardware for him to wake up, roll out of bed, and start trading. He will put some calls in to his private banker at JPMorgan to get a reading as to how wealthy http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661611 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa... Page 10 of 32 investors -- the best gauge of market sentiment, he believes — are reacting to the markers movements. Then he will call currency traders in Europe. On a given day, he will spend ten hours or so on the phone — after all, he is running $15 billion essentially by himself. Strangely enough, given his scientific obsessions, he is a computer-phobe and does not use e-mail. "I like to hear voices and see faces when I interact," he has said. Given the huge sums he has to invest, he focuses on assets with extremely high liquidity, like currencies -- though he dabbles in commodities and real estate as well. Those who know him say he is an impulsive, quick-to-change-his-mind trader, still governed by Ace Greenberg's trader's maxim: If the stock is down 10 percent, sell it. He has been on the short side of the Brazilian real, and those close to him say bets there have paid off in spades. He recently took a long position on the euro before its rebound on the basis that Europeans were too proud to see their currency sink any lower against the dollar. His next targets: an across-the-board short of the German stock exchange and a possible attack on the Hong Kong dollar peg in light of the recent disclosure of North Korea's nuclear-weapons program. None of this is investment rocket science, but getting the direction and the timing right, no matter how conventional the investment idea, can spin large money for an investor. Before taking a big position, Epstein will usually fly to the country in question. He recently spent a week in Germany meeting with various government officials and financial types, and he has a trip to Brazil coming up in the next few weeks. On all of these trips, he flies alone in his commercial-jet-size 727. Friends of Epstein say he is horrified at the recent swell of media attention around him (Vanity Fair is preparing a megaprofile, and the Villard House office has had a barrage of calls from other media outlets). He has never granted a formal interview, and did not offer one to this magazine, nor has his picture appeared in any publication. Yet for one so obsessive about his privacy, one wonders -- didn't he realize that flying Clinton and Spacey around Africa was going to blow his cover? As he said to a friend: "If my ultimate goal was to stay private, traveling with Clinton was a bad move on the chessboard. I recognize that now. But you know what? Even Kasparov makes them. You move on." (Top) Billionaire solicited prostitutes 3 times, indictment says By Larry Keller Palm Beach Post - Tuesday, July 25, 2006 Billionaire money manager and Palm Beach part-time resident Jeffrey Epstein solicited or procured prostitutes three or more times between Aug. 1 and Oct. 31 of last year, according to an indictment charging him with felony solicitation of prostitution. Epstein, 53, was booked at the Palm Beach County jail at 1:45 a.m. Sunday. He was released on $3,000 bond. Epstein's case is unusual in that suspected prostitution johns are usually charged with a misdemeanor, and even a felony charge is typically made in a criminal information — an alternative to an indictment charging a person with the commission of a crime. His attorney, Jack Goldberger, declined to discuss the charge. http://www.theawarenesseenter.org/Epstein Jeff ty.html 4/25/2007 EFTA01661612 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa... Page 11 of 32 State attorney's office spokesman Mike Edmondson also had little to say. "Generally speaking, there is a case that has a number of different aspects to it," Edmondson said of a prostitution-related charge being submitted to a grand jury. "We first became aware of the case months ago by Palm Beach police." Prosecutors and police worked together to bring the case to the grand jury, he said. Palm Beach police confirmed that and said the department will release a report today regarding its investigation. Epstein has owned a five-bedroom, 7 1/2 -bath, 7,234-square-foot home with a pool and a boat dock on the Intracoastal Waterway since 1990, according to property records. A man answering the door there Monday said that Epstein wasn't home. A Cadillac Escalade registered to him was parked in the driveway, which is flanked by two massive gargoyles. Epstein sued Property Appraiser Gary Nikolits in 2001, contending that the assessment of his home exceeded its fair market value. He dismissed his lawsuit in December 2002. A profile of Epstein in Vanity Fair magazine said he owns what are believed to be the largest private homes in Manhattan — 51,000 square feet — and in New Mexico — a 7,500-acre ranch. Those are in addition to his 70-acre island in the U.S. Virgin Islands and fleet of aircraft. Epstein's friends and admirers, according to the magazine, include prominent businessmen, academics and scientists and famed Harvard law professor Alan Dershowitz. After long probe, Palm Beach billionaire faces solicitation charge By Larry Keller Palm Beach Post Staff- Wednesday, July 26, 2006 http://www.palmbeachpost.com/localnews/content/local_news/epaper/2006/07/26/sIb_EPSTEIN_07261 Palm Beach billionaire Jeffrey Epstein paid to have underage girls and young women brought to his home, where he received massages and sometimes sex, according to an investigation by the Palm Beach Police Department. Palm Beach police spent months sifting through Epstein's trash and watching his waterfront home and Palm Beach International Airport to keep tabs on his private jet. An indictment charging Epstein, 53, was unsealed Monday, charging him with one count of felony solicitation of prostitution. Palm Beach police thought there was probable cause to charge Epstein with unlawful sex acts with a minor and lewd and lascivious molestation. Police Chief Michael Reiter was so angry with State Attorney Bany Krischer's handling of the case that he wrote a memo suggesting the county's top prosecutor disqualify himself. http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661613 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa... Page 12 of 32 "I must urge you to examine the unusual course that your office's handling of this matter has taken and consider if good and sufficient reason exists to require your disqualification from the prosecution of these cases," Reiter wrote in a May 1 memo to Krischer. While not commenting specifically on the Epstein case, Mike Edmondson, spokesman for the state attorney, said his office presents cases other than murders to a grand jury when there are questions about witnesses' credibility and their ability to testify. By the nature of their jobs, police officers look at evidence from a "one-sided perspective," Edmondson said. "A prosecutor has to look at it in a much broader fashion," weighing the veracity of witnesses and how they may fare under defense attorneys' questioning, he said. Epstein's attorney, Jack Goldberger, said his client committed no crimes. "The reports and statements in question refer to false accusations that were not charged because the Palm Beach County state attorney questioned the credibility of the witnesses," Goldberger said. A county grand jury "found the allegations wholly unsubstantiated and not credible," and that's why his client was not charged with sexual activity with minors, he said. Goldberger said Epstein passed a lie detector test administered by a reputable polygraph examiner in which he said he did not know the girls were minors. Also, a search warrant served on Epstein's home found no evidence to corroborate the girls' allegations, Goldberger said. According to police documents: • A Palm Beach Community College student said she gave Epstein a massage in the nude, then brought him six girls, ages 14 to 16, for massage and sex-tinged sessions at his home. • A 27-year-old woman who worked as Epstein's personal assistant also facilitated the liaisons, phoning the PBCC student to arrange for girls when Epstein was coming to town. And she escorted the girls upstairs when they arrived, putting fresh sheets on a massage table and placing massage oils nearby. • Police took sworn statements from five alleged victims and 17 witnesses. They contend that on three occasions, Epstein had sex with the girls. A money manager for the ultra-rich, Epstein was named one of New York's most eligible bachelors in 2003 by The New York Post. He reportedly hobnobs with the likes of former President Clinton, former Harvard University President Lawrence Summers and Donald Trump, and has lavish homes in Manhattan, New Mexico and the Virgin Islands. He has contributed tens of thousands of dollars to Democratic Party candidates and organizations, including Sen. John Kerry's presidential bid, and the Senate campaigns of Joe Lieberman, Hillary Clinton, Christopher Dodd and Charles Schumer. Goldberger is one of five attorneys Epstein has retained since he became the subject of an investigation. Edmondson said. Among the others: Alan Dershowitz, the well-known Harvard law professor and author, who is a friend of Epstein. Dershowitz could not be reached for comment. Police said the woman who enlisted young girls for Epstein was 20, of Royal Palm Beach. has worked at an Olive Garden restaurant in Wellington an said she was a journalism major at Palm Beach Community College when she was questioned by police last October. She has an http://www.theawarenesseenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661614 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa... Page 13 of 32 unlisted phone number and could not be reached for comment. said she met Epstein when, at age 17, a friend asked her if she would like to make money giving him a massage. She said she was driven to his five-bedroom, 7 1/2 -bath home on the Intracoastal Waterway, then escorted upstairs to a bedroom with a massage table and oils. Epstein and were both naked during the massage, she said, but when he grabbed her buttocks, she said she di n t want to be touched. Epstein said he'd pay her to bring him more girls — the younger the better, told olice. When she tried once to bring a 23-year-old woman to him, Epstein said she was too o , said. who has not been charged in the case, said she eventually brought six girls to Epstein who were pat 0 each time,. said. "I'm like a Heidi FleisiSe quoted her as saying. The girls knew what to expect when t ey were taken to Epstein's home, a said. Give a massage — maybe naked — and allow some touching. One 14-year-old girl took to meet Epstein led police to start the investigation of him in March 2005. A relative of the gir called to say she thought the child had recently engaged in sex with a Palm Beach man. The girl then got into a fight with a classmate who accused her of being a prostitute, and she couldn't explain why she had $300 in her purse. The girl gave police this account of her meeting with Epstein: She accompanied and a second girl to Epstein's house on a Sunday in February 2005. Once there, a woman she thought was Epstein's assistant told the girl to follow her upstairs to a room featuring a mural of a naked woman, several photographs of naked women on a shelf, a hot pink and green sofa and a massage table. She stripped to her bra and panties and gave him a massage. Epstein gave the 14-year-old $300 and she and the other girls left, she said. She said= told her that Epstein paid her $200 that day. Other girls told similar stories. In most accounts, Epstein's personal assistant at the time, now 27, escorted the girls to Epstein's bedroom. whose most recent known address is in North Carolina, has not been charged in the case. Palm Beach police often conducted surveillance of Epstein's home, and at Palm Beach International Airport to see if his private jet was there, so they would know when he was in town. Police also arranged repeatedly to receive his trash from Palm Beach sanitation workers, collecting papers with names and phone numbers, sex toys and female hygiene products. One note stated that a female could not come over at 7 p.m. because of soccer. Another said a girl had to work Sunday — "Monday after school?" And still another note contained the work hours of a girl, saying she leaves school at 11:30 a.m. and would come over the next day at 10:30 a.m. Only three months before the police department probe began, Epstein donated $90,000 to the department for the purchase of a firearms simulator, said Jane Stnider, town finance director. The purchase was never made. The money was returned to Epstein on Monday, she said. http://www.theawarenesscenterorg/EpsteinJeffrey.html 4/25/2007 EFTA01661615 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach. FL; Santa... Page 14 of 32 (Top) Billionaire and Bill Clinton Pal Arrested for Solicitation of Underaged Girls By Jim Kouri AXcess News - July 26, 2006 http://www.axcessnews.com/modules/wfsection/article.php?articleid=10604 (AXcess News) New York - Billionaire Jeffrey Epstein was arrested by police on charges of solicitation after detectives from the Palm Beach, Florida Police Department conducted what they termed "an in-depth investigation." the police report alleges that Epstein was paying underaged girls and young adult women to massage and have sex with him. On Monday, the court records were unsealed, which revealed that he faces the charge of felony solicitation for prostitution. The Palm Beach police chief and his officers, including detectives assigned to the case, were outraged that Epstein wasn't charged with more crimes. Cops, both on and off the record, said they were furious with the county prosecutor and the State Attorney's office for the way in which this case was handled. Police Chief Michael Reiter was so angry that he wrote a letter to the state attorney complaining about the case and requesting that the prosecutor be taken off the case and replaced with one who would move to obtain a superseding indictment with addition charges. The state attorney's office claims that the police department looks at the evidence from a different perspective (i.e., from the courtroom's standpoint). The Palm Beach County prosecutor's office was embroiled in controversy for three years when they pursued a far-reaching drug investigation of conservative talk show icon Rush Limbaugh. There were accusations that the county prosecutor, a Democrat, leaked information to the news media regarding the Limbaugh case. Epstein is pals with former President Bill Clinton and Donald Trump and is known to contribute tens of thousands of dollars to the Democrat Party. Epstein's attorney stated that his client did not commit any crimes. His attorney also stated that his client passed a lie detector test stating the he was not aware that the girls were minors. Lie detector tests are not admissible in a criminal court. However, police officers counter Epstein's lawyers claims by saying they have irrefutable evidence including sworn affidavits from five alleged victims -- some who were underaged when they allegedly had sex with Epstein -- and 17 witnesses. Jeffrey Epstein was called an international mystery money man who appeared on the news media's radar when he jetted to African on his private Boeing with Bill Clinton, Kevin Spacey and Chris Rock. New York Magazine in 2003 stated that he was a man known to love the ladies and was very secretive about http://www.theawarenesscenter.org/Epstein_Jeffrey.html 4/25/2007 EFTA01661616 Case of Jeffrey Epstein - Billionaire Financier (New York, NY; Palm Beach, FL; Santa... Page 15 of 32 his financial endeavors. The article claims no one really knows how he makes his billions of dollars. crop) Billionaire's lawyer tried to discredit teen girls, police say By Larry Keller Palm Beach Post - Saturday, July 29, 2006 Famed Harvard law professor Alan Dershowitz met with the Palm Beach County State Attorney's Office and provided damaging information about teenage girls who say they gave his client, Palm Beach billionaire Jeffrey Epstein, sexually charged massages, according to police reports. The reports also state that another Epstein attorney agreed to a plea bargain that would have allowed Epstein to have no criminal record. His current attorney denies this happened. And the documents also reveal that the father of at least one girl complained that private investigators aggressively followed his car, photographed his home and chased off visitors. Police also talked to somebody who said she was offered money if she refused to cooperate with the Palm Beach Police Department probe of Epstein. The state attorney's office said it presented the Epstein case to a county grand jury this month rather than directly charging Epstein because of concerns about the girls' credibility. The grand jury indicted Epstein, 53, on a single count of felony solicitation of prostitution, which carries a maximum penalty of five years in prison. Police believed there was probable cause to charge Epstein with the more serious crimes of unlawful sex acts with a minor and lewd and lasci