EFTA02533063.pdf

From: Jeffrey Epstein <[email protected]> Sent: Saturday, November 27, 2010 9:51 AM To: David Stern Subject: Re: Daily Mail: Duchess of Debt who talks? On Sat, Nov 27, 2010 at 4:36 A=, David Stern <mailto > > wrote: Duchess of debt: Fergie's ultimatum to her creditors... Accept a quarte= of what I owe you or risk getting NOTHING By RICHARD KA= <http://www.dailymailco.uk/home/search.html?s=y&au=hornamef=Richard+Kay+> and GEOFFREY LEVY <http://www.dailymail.co.uk/home/search.html?==y&authornamef=Geoffrey+Levy+> Last updated at 2:08 AM on 27th November 2010 Much as it pains the Royal Family - in this of all months - the cameras are=once more turning on the Duchess of York. She is beginning, yet again, the=process of dragging herself up from that place where she says she has been=residing in recent times - 'the gutter'. As it happens, in Fergie's case the '=utter' remains the sumptuously comfortable Royal Lodge in Windsor =reat Park, of which she is said to be still 'very much the mistres=' after four years lodging there with ex-husband Prince Andrew. Mi=d you, these days she has to make do without the dozen or so personal staf= who used to be at her beck and call. With Windsor Castle looming ominously in the backgrou=d, Fergie has been filming the six-part documentary examining her downfall= Finding Sarah, which she is contracted to make for Oprah Winfrey'= new TV network in America. Pleasant debt? Fergie, pictured here for America's Harper's Bazaar,=remains 'very much the mistress' of the Royal Lodge in Windsor Gre=t Park Whether this turns out to be a personal sto=y of downfall and dishonour, or survival and redemption, we must wait and =ee. But at 51, the trampoline life of the Duchess does seem to have her bo=ncing skywards once more, though where she will land is anyone's g=ess. Fergie has been working hard on the television series= in which she will examine her own battles with those who have been closes= to her, with her weight and, of course, with money. She is currently livi=g 'quietly — no big nights out' according to someo=e who sees her regularly. Most people would consider this highly sensible, in v=ew of the tricky and at times bitter negotiations that have been going on =ith the Duchess's creditors. Debts of almost £2 million remai=ed even after Prince Andrew initially bailed her out with £1.5 millio= of his own money earlier this year. EFTA_R1_01677157 EFTA02533063 Now, as the Mail revealed this week, the Duchess, in an extraordinary move,=seems to have managed to sidestep the bankruptcy proceedings, which would =ave been an unsavoury diversion in royal wedding year, given that her two =aughters will be sitting on the family pews at Westminster Abbey on April =9. So just how has she done it? We understand that Fergie's creditors have be=n made an audacious offer of just 25 per cent in settlement of the money t=ey are owed - in other words, 25p in every pound. The offer was sent to them in letters and emails on behalf =f the hard-nosed City accountant Price WaterhouseCoopers, who were engaged=by Prince Andrew to get to grips with his ex-wife's finances. It s=t a deadline for acceptance of October 20 this year. What's more, it was conditional on all of the= accepting it. Indeed, the letter spelled out that in the event of there n=t being universal acceptance, the Duchess might have to recourse to an =80 individual voluntary arrangement' to pay what she can over a =eriod of five years. This could mean, the letter warned, that creditors mi=ht receive less than they were being offered now. The offer of a mere quarter of what they were owed di=mayed some creditors. In the event, most have accepted the deal, but two h=ve refused to settle. The amount they were owed is understood to total aro=nd £150,000, and this debt could still derail the entire process and =lunge Fergie back into bankruptcy proceedings. Ironically, the two dissenters, we have learned, were=not the swanky Mayfair lawyers Davenport Lyons (£204,000) or Selfridg=s in Oxford Street (£51,000) that featured high on the list of credit=rs — but are from among the Duchess's most intimate circle= One of them, we understand, is Kate Waddington, the Duchess's close=friend for nearly 20 years and her long-time public relations consultant u=til they parted company over the humiliating tabloid sting in which Fergie=attempted to sell access to Prince Andrew in exchange for £500,000. The other is Johnny O'Sullivan, a 42-year-old bachelor who worked f=r the Duchess as a personal assistant for 14 years until last year, and no= lives in the U.S. Like Ms Waddington, he counted the Duchess as a friend.=/div> Likely dissenter: Kate Waddington (left), who was Sarah Ferguson's clos=st friend for nearly 20 years Indeed, O'Sullivan was the person whom Fergie referred to when she =as filmed accepting a £27,000 down payment from the undercover newspa=er reporter posing as a businessman anxious to get alongside government tr=de envoy Andrew. When her desperate ploy was exposed, the Duchess explaine= she wanted the money to help O'Sullivan meet the fees for a postg=aduate course at a New York university he had enrolled on. What did not emerge at that time was that O'S=Ilivan was among Fergie's biggest private creditors. She is thought to have owed him more than £70,00., made up of unpaid salary and fees as well as cash, which he invested in =artmoor, the company she founded to control her business interests in the =S. and which folded with debts of £650,000. O'Sullivan refuses to talk about the matter, =ut according to friends he is 'very hurt' that he has been=offered so little, especially as the money he used to help Fergie'= business was his life savings. 2 EFTA_R1_01677158 EFTA02533064 Kate Waddington is equally adamant that she will not =iscuss what is clearly a distressing situation for her on a personal level=and a financial one. She has had a ringside seat for most of the turbulent=events in Sarah's life, from her separation and her affairs to the=rollercoaster of her financial crises. She was at first on Fergie'= private staff before leaving to set up her own PR company, Soho-based Spu=nik Communications, in 1998 which then represented Sarah as a client. =A0 And in recent times she also took on the Duchess =80 s socially energetic daughters, Princess Beatrice, 22, and 20-year- ol= Princess Eugenie. We understand Ms Waddington is owed upwards of £70=000. If she accepted the offer from Fergie's advisers, she would r=ceive a mere £18,000. All the same, Miss Waddington does not consider her d=spute is with the Duchess, who is her daughter Flora's godmother. =ccording to a Buckingham Palace source intimately involved in the negotiat=ons, her fury is directed at Prince Andrew. This source says Ms Waddington has made it plain she =eels Andrew has not recognised all the work she has done for his two daugh=ers. For several years, Sputnik employed someone virtually=full-time on the Duchess's account, when much of the work involved=the princesses, whose activities required constant organising and public r=lations guidance. 'Nine times out of ten, Andrew's offi=e would ask Kate's firm to handle things,' says the Palace=insider. Meanwhile, Fergie's advisers are trying to br=ng the overall debt down by scrutinising and challenging some bills from c=rtain creditors. But these are relatively small fry. 'Without =artmoor, she would not have been in this situation; says one advi=er. For Prince Andrew, who drily describes himself as a m=n 'with three children' to look after, this is a tense per=od. He put his hand into his own pocket to help the woman from whom he has=been divorced for 14 years after ten years of marriage, because he knew hi= daughters expected him to help out their mother. 'Beatrice and Eugenie would have been very up=et if he hadn't helped out their mother - and so would the Queen,=E2 says a courtier. 'It is still a source of some concern, and a =istraction for the girls who are both at university. The general feeling i= that the sooner this mess is cleared up, the better for everyone. =99 Andrew's contribution helped pay off her doze= 'personal staff' who were made redundant in the spring wh=n Fergie's finances finally spiralled out of control. The way they were: Prince Andrew and Fergie together at Upton House in 1992=to see their daughter Beatrice, four, in a nativity play Fergie can no longer employ her own staff - but, as ever, friends continue =o ride to her rescue. One is John Caudwell, the mobile phone tycoon and on= of Britain's richest men. His daughter Libby has, we understand, =een helping the Duchess with her charities. Also still on the scene is Geir Frantzen, the Norwegi=n frozen food magnate who gave Fergie the £160,000 Bentley she can st=lI be seen being driven in. He is understood to have offered her a bolthol= for Christmas. Fergie is dreaming now that her Oprah series will ope= doors to a new television career. And she is still hoping her Little Red =hildren's book about a red-headed girl will be made into a series =f money-spinning cartoons. 3 EFTA_R1_01677159 EFTA02533065 She also plans to kick-start herself on the lucrative=after-dinner speaking circuit. Certainly, she will have to go into high-earning mode if she is to continue=not only flying first class but routinely arriving at airports with 25 pie=es of luggage. But even Fergie has her standards. She was offered, we can reveal, a =98monster' sum - believed to be 'well to the north of =A3200,000' - to join the so-called celebs in ITV's I =99m A Celebrity ... Get Me Out Of Here! =he declined. She also declined lucrative offers from American tele=ision networks to join the commentary team for the wedding of Prince Willi=m to Kate Middleton, a job for which you might think she is eminently qual=fied. She is, of course, unlikely to be on the guest list. But because her daughters will be there with the Roya= Family, she considered that, too, to be inappropriate. Maybe, just maybe, the erring Duchess is beginning to=acquire good judgment and restraint. Read more: http://www.dailymail.co.uk/news/art=cle-1333506/Duchess-debt-Fergies-ultimatum-creditors--Accept- quarter-l-owe=risk-getting-NOTHING.html#ixzzl6TCPSme2 <http://www.dailymail.co.uk/news/ar=icle- 1333506/Duchess-debt-Fergies-ultimatum-creditors--Accept-quarter-l-ow=-risk-getting- NOTHING.htmIttbaz16TCPSme2> The information contained in this c=mmunication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the a=dressee. It is the property of Jeffrey Epstein Unauthorized use, di=closure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communication in error, p=ease notify us immediately by return e-mail or by e-mail to [email protected], and destroy thi= communication and all copies thereof, including all attachments. 4 EFTA_R1_01677160 EFTA02533066