EFTA00215719.pdf

United States Attorney's Office Southern District of Florida NEWS BRIEFING To: R. Alexander Acosta, United States Attorney From: July 1, 2008 EFTA00215719 Financier Starts Sentence in Prostitution Case - NYTimes.com Page 1 of 4 he Niugork Eimcs re.MItil r.OMOt, P011mil co nyttmos.com SP0.40110 July 1, 2008 Financier Starts Sentence in Prostitution Case By LANDON THOMAS Jr, The bad news arrived by phone last week on Little St. James Island, the palm-fringed Xanadu in the Caribbean where Jeffrey E. Epstein, adviser to billionaires, lives in secluded splendor. Report to the Palm Beach County jail, the caller, Mr. Epstein's lawyer, said. So over the weekend Mr. Epstein quit his pleasure dome, with its staff of 70 and its flamingo- stocked lagoon, and flew to Florida. On Monday morning, he turned himself in and began serving 18 months for soliciting prostitution. "I respect the legal process," Mr. Epstein, 55, said by phone as he prepared to leave his 78-acre island, which he calls Little St. Jeff's. "I will abide by this." It is a stunning downfall for Mr. Epstein, who grew up in Coney Island and went on to live the life of a billionaire, only to become a tabloid monument to an age of hyperwealth. Mr. Epstein owns a Boeing 727 and the largest town house in Manhattan. He has paid for college educations for personal employees and students from Rwanda, and spent millions on a project to develop a thinking and feeling computer and on music intended to alleviate depression. But Mr. Epstein also paid women, some of them under age, to give him massages that ended with a sexual favor, the authorities say. Federal prosecutors initially threatened to bring him to trial on a variety of charges and seek the maximum penalty, to years in prison. After years of legal wrangling, Mr. Epstein pleaded guilty to lesser state charges. Upon his release from jail, he must register as a sex offender wherever he goes in the United States. People from all walks of life break the law, of course. But for the rich, wrapped in a cocoon of immense comfort, it can be easy to yield to temptation, experts say. http://www.nytimes.com/2008/07/01/business/Olepstein.html?J=1&sq=epsteinecst=nyt&ad... 7/1/2008 EFTA00215720 Financier Starts Sentence in Prostitution Case - NYTimes.com Page 2 of 4 "A sense of entitlement sets in," said Dennis Pearne, a psychologist who counsels people on matters related to extreme wealth. The attitude, he said, becomes, "I deserve anything I want, I can have anything I want — and I can afford it." To prosecutors, Mr. Epstein is just another sex offender. He did what he did because he could, and because he never dreamed he would get caught, they say. Mr. Epstein's defenders counter that he has been unjustly persecuted because of his wealth and lofty connections. Sitting on his patio on "Little St. Jeff's" in the Virgin Islands several months ago, as his legal troubles deepened, Mr. Epstein gazed at the azure sea and the lush hills of St. Thomas in the distance, poked at a lunch of crab and rare steak prepared by his personal chef, and tried explain how his life had taken such a turn. He likened himself to Gulliver shipwrecked among the diminutive denizens of Lilliput. "Gulliver's playfulness had unintended consequences," Mr. Epstein said. "That is what happens with wealth. There are unexpected burdens as well as benefits." Those benefits are on full display on his island where, despite his time in jail, Mr. Epstein has commissioned a new estate. The villa will occupy the island's promontory, which offers views of the Atlantic on one side and the Caribbean on the other. It will have a separate library to house Mr. Epstein's 90,000 volumes, a Japanese bathhouse and what he calls a "Ziegfeld" movie theater. For now, however, those visions of a private paradise have been replaced by the cold reality of a jail cell. The legal drama began in 2005, when a young woman who gave Mr. Epstein massages at his Palm Beach mansion told the local police about the encounter. She was 14 at the time, and was paid $200. The police submitted the results of their investigation to the state attorney, asking that Mr. Epstein be charged with sexual relations with minors. His lawyers say Mr. Epstein never knew the young women were under age, and point to depositions in which the masseuses — several of whom have filed civil suits — admitted to lying about their age. In July 2005, a Florida grand jury charged Mr. Epstein with a lesser offense, soliciting prostitution. Mr. Epstein's legal team, which would eventually include the former prosecutor Kenneth W. Starr and the Harvard law professor Alan M. Dershowitz, was elated: Mr. Epstein would avoid prison. http://www.nytimes.com/2008/07/01/business/Olepstein.html?_r=1&screpstein&st=nyt&ad... 7/1/2008 EFTA00215721 Financier Starts Sentence in Prostitution Case - NYTimes.com Page 3 of 4 But then the United States attorney's office in Miami became involved. Last summer, Mr. Epstein got an ultimatum: plead guilty to a charge that would require him to register as a sex offender, or the government would charge him with sexual tourism, according to people who were briefed on the discussions. David Weinstein, an attorney in the government's Miami office, declined to discuss the specifics of the case. But he did address the subject of Mr. Epstein's means and prominent legal team, and dismissed a proposal by Mr. Epstein's lawyers — who opposed the application of federal statutes in the case — that he be confined to his house in Palm Beach for a probationary period. "In their mind that would be an adequate resolution," Mr. Weinstein said. "Our view is that is not enough of a punishment to fit the crime that occurred." The lurid details of the case have captivated wealthy circles in Palm Beach and New York and transformed Mr. Epstein, who shuns publicity and whose business depends on discretion, into a figure of public ridicule. He said he has been trailed by stalkers and has become the target of lawsuits. In recent months, he said, he received over too letters a week asking for money or jobs as a masseuse. lie recently received a package of gold-tinted condoms. It has been a long, strange journey from Coney Island, where Mr. Epstein grew up in middle- class surroundings. He taught briefly at Dalton, the Manhattan private school, and then joined BeaLatearr_ts, becoming a derivatives specialist. He struck out on his own in the 1980s. His business is something of a mystery. He says he manages money for billionaires, but the only client he is willing to disclose is Leslie H. Wexner, the founder of Limited Brands. As Mr. Epstein explains it, he provides a specialized form of superelite financial advice. He counsels people on everything from taxes and trusts to prenuptial agreements and paternity suits, and even provides interior decorating tips for private jets. Industry sources say he charges flat annual fees ranging from $25 million to more than 8100 million. As it became clear that he was headed for jail, Mr. Epstein has tried to put on a brave face. "Your body can be confined, but not your mind," he said in a recent interview by phone. But the strains were showing. "I am anxious," he said in another recent interview, referring to how inmates would treat him. "I make a great effort to treat people equally, but I recognize that http://www.nyti mes.comt2008/07/01/business/0l epstein.htm I?_r=l&sq =cpstei n&st=nyt&ad... 7/1/2008 EFTA00215722 Financier Starts Sentence in Prostitution Case - NYTimes.com Page 4 of 4 I might be perceived as one of the New York arrogant rich." Jail will certainly be a big change. Mr. Epstein is a man of precise, at times unconventional, habits. He starts his mornings with a secret-ingredient bran muffin prepared by his chef. He seems to have a germ phobia. He never wears a suit, preferring monogrammed sweatsuits and jeans. And he rarely attends meetings — "I never have to be anywhere," he tells his pilots, when he cautions them to avoid flying through chancy weather. Looking back, Mr. Epstein admits that his behavior was inappropriate. "I am not blameless," he said. He said he has taken steps to make sure the same thing never happens again. For starters, Mr. Epstein has hired a full-time male masseur (the man happens to be a former Ultimate Fighting champion). He also has organized what he calls a board of directors of friends to counsel him on his behavior. And Mr. Epstein has changed his e-mail address to alert people that he will be unavailable for the next 18 months. The new address indicates he is "on vacation." CopflW 2000 The New York Times ComorY Pnyleahlict I Nett I Criclons 12ts I kollook INS I 'Work for us Int) http://wwsv.nytimes.corn/2008/07/01/business/Olepstein.html?_r=18csq=epstein&st=nyt&ad... 7/1/2008 EFTA00215723 Billionaire pleads to Fla. prostitution charge - NYTimes.com Page 1 of 1 She Newljork times IMMIX Fettl1110 FORMAT nytinie.s.cort, SPOli$01112 It June 3o, 2008 Billionaire pleads to Fla. prostitution charge By THE ASSOCIATED PRESS Filed at 3:02 p.m. ET WEST PALM BEACH, Ma. (AP) -- New York billionaire Jeffrey Epstein has pleaded guilty to soliciting prostitution from underage girls in South Florida. Circuit Judge Deborah Dale Pucillo sentenced the 55-year-old money manager Monday to 18 months in the Palm Beach County jail, followed by a year of house arrest. He will also be designated a sex offender. Epstein was arrested two years ago. Authorities allege he paid several girls under the age of 18 $200 to $3oo each in return for naked massages at his Palm Beach home that sometimes became sexual. He also faces state and federal lawsuits filed by several women over similar allegations. COPYri9ht 20013 The Att0Ual04 Press PrIvIKLEVICY I Seared I cogsaivis 1 RSS I fit Look I list I COnlact Us I Work for Us I Site IUD http://www.nytimes.com/aponline/us/AP-Billionairc-Prostitution.html?sq=epstein&st=nyt&... 7/1/2008 EFTA00215724 JUL. 1.2008 10:13AM USA° WPB FL NO.348 P.1 NE PALM BEACH POST • TUESDAY, JULY 1, 2008 As part of the plea deal, federal investigators agreed to drop their investigation of Epstein, which they had taken to a grand jury, two law enforcement sources said. WA 3AliGProl/Star Ptiolotrapket Epstein wan indicted two years ago after an 11-month Investment banker Jeffrey investigation by Palm Bejph Epstein waits in court Monday police. They received a before his guilty plea. complaint from a relative of a 14-yearold girl who had Palm given Epstein a naked mas- sage at his five-bedroom, 7,234-square-toot, $8.5 million Intracoastal home. Beacher Fblice concluded that there Se. EPSTEN, DA a. • Crime coverage pleads in sr Read past stories on the Epstein case. • See photos of fugitives, sex case unsolved cases, police blotters, a Wog, special reports and more. • PsIrneeacheost-com Jerey Epstein will serve h years on teen solicitation charges. Pah:L .dA t Port Ser Rion iCE WEST PALM BEACH — He lives in a Palm Beach water, front mansion and has kept company with the Riess of President Clinton, Prince An- drew and Donald Trump, but investment banker Jeffrey Ep- stein will call the Palm Beach County Jail home for the next 18 months. Epstein, 55, pleaded guilty Monday to felony solicitation of prostitution and procuring a person under the age of 18 for prostitution. After serving 18 months in jail, he will be under house arrest for a year And he will have a lifelong obligation to register as a mac offender. He must submit to an HIV test within 48 hours, with the results being pro- vided to his victims or their parents. EFTA00215725 JUL. 1.2008 10:13AM USAO LPB FL N) 34'i Epstein faces civil lawsuits; more clients may be added Epstein will be allowed It% validation of what ► EPSTENfron fit to leave home for woitc we're saying .in the civil were several other girls The New York-based money rata? said mouth attorney brought in 2004 and 2006 to manager told the judge he Jeffrey Herman, who repre- an upstairs room at the home has formed the not-for-profit dints the alleged victims in for similar massages and Florida Science Fbundatlon the federal lawsuits West sexual touching to finance scientific re- Palm Beach attorney Ted The indictment charged search "lin there every day," Leopold represents one al- Epstein only with felony so- Epstein said. leged victim in a civil suit In licitation of prostitution. The The foundation was in- state court He said be antici- state attorney's office later corporated in November. pates unending that lawsuit added the charge of procur- Epstein said he already has to 'add s few other dente" ing underage girls for that awarded money to Harvard as welt and M1T. In the criminal use. po- PulProsecutor e Lanna Be- When he is released from lice went so far as to scour lohlavek said of the plea: "I jail, there la a chance that Ep- Epstein% trash and conduct took into consideration the stein will be forced to move. surveillance at Palm Beach length the trial would have Sex offenders are not allowed international Airport, where been and witnesses having to live within 1.000 fed of a they watched for his private to testify" about sometimes school park or other areas jet so they would know when embarrassing incidents. where children may gather he was in town. They con- Epstein may have made No determination has been cluded that Epstein paid girls a serious mistake soon after made as to whether Epstein% S200 to $300 each after the he was charged. He rejected home complies, but attorneys massage sessions. an offer to plead guilty to one said it likely does. ellnisH ereicli Reiss," count of aggravated assault Sex offenders also typi- Haley , now 22, told with intent to commit a felo- cally must attend counseling police u efforts in ny, according to police docu sessions Belohlavelc said recruiting girls for Epstein. coeds. He would have gotten that was waived for Epstein There was probable cause five years' probation. had no because his private psychia- to charge Epstein with un- Criminal record and not been trist is working with him. lawful sex acts with a minor a registered sex offender, the documents indicate. and lewd and lascivious mo- Epstein arrived in court 'It's validation lestation. Police concluded- Monday with at least three The state attorney% of- attorneys. He wore a blue of what we're saying fice said questions about blazer blue shirt:blue jeans in the civil cases: the girls' credibility led it to and white and gray sneakers. take the unprecedented step After Circuit Judge Deborah JEFFREY HERMAN Dale Pucillo accepted the of presenting the evidence Attorney who represents slated against Epstein to a grand lea, he 'was fingerprinted. 'hems. commenting on the plea jury, rather than directly then removed his c ing and was handcuffed Beach Police Chief for the trip to jail while his, The judge was skeptical but Michael Reiter was furious attorneys tried to shield him agreed to it. with Attorney Barry, watoLiraphers' lenses frodt Epstein legal woes don't Krische Statesaying in a MaY eventually is end with Monday% plea. 2006 letr,ter that the prosecu- released to house attest Ep- There are four pending fed- tor should disqualify himself- stein will have to observe a eral civil lawsuit. and one "' continue to find your 10 pan. to 6 a.m. curfew, have in state court related to, his officeb treatment of these no unsupervised contact behavior At least one woman cases highly unusual," he with anyone younger than has sued him in New York, wrote. He the' asked for and 13 and neither awn nor pos- where he • owns a 51,000- got a federal Investigation. sess pornographic or sexual square-foot Manhattan man- materials "that are relevant sion. toy r deviant behavior? the judgesaid. EFTA00215726 JUL. 1.2008 10:1341 USA0 WPB FL NO.348 P.3 Epstein hired a phalanx of high-priced lawyers —induct- lag Harvard law professor and author Alan Dersbowitz — and public relations people who questioned Reitees com- petence and the victims' truthfulness. In addition to mansions in Palm Beach and Manhat- tan, Epstein owns homes in New Mexico and the Virgin Islands. He a frequent con- tributor to Democratic Party candidates. He also donated S30 million to Harvard in 2003. Former New • York Gov. Eliot Spitzer returned a $50,000 campaign contrilw tion from Epstein after his indictment, then resigned this year during his own sex scandal. And the same Palm Beach Police Depart:Meat that vigorously investigated Epstein returned his swum donation for the purchase of a fireartns simulator Staff writer Eliot Xleirtberg and staff researcher Michelle Quig- ley contributed to this story. O 'arty jellerePbDostcom UNA SANGHVI/IStatt Pnatotapher Jeffrey Epstein (left) appeirs In court Monday. Soon after he was charged two years ago, Epstein reject- ed a deal that would have given him five years' probation and no criminal record, documents show. EFTA00215727 Billionaire heads to jail on teen prostitution charges — South Florida Sun-Sentinel.com Page 1 of 2 sun-sentinel.corn/newillocal/palmbeach/sfl-flpepstein0701sbjul01,0,1047755.story South Florida Sun-Sentinel.com Billionaire heads to jail on teen prostitution charges By Missy Diaz South Florida Sun-Sentinel 11:28 PM EDT, June 30, 2008 WEST PALM BEACH Billionaire Palm Beach- New York-Virgin Islands money manager Jeffrey Epstein traded his navy sport coat for a jail uniform Monday after pleading guilty to hiring underage PalmJsach County girls for erotic massages and sex. The 55-year-old will be designated a sex offender, requiring him to register annually with the Florida Department of Law Enforcement. Epstein, who lives in a 13,000-square-foot mansion on El Brillo Way in Palm Beach, will spend 18 months in the Palm Beach County Jail followed by a year of house arrest. Judge Deborah Pucillo, who grilled Epstein and his attorneys throughout the hearing, read off a litany of other conditions of Epstein's house arrest, including a 10 p.m.-to-6 a.m. curfew, an hourly daily activity log and a stern warning that he not possess, watch or view any "obscene, pornographic or sexually stimulating material relative to your deviant behavior." The judge admonished Epstein not to have any contact — direct or indirect — with his victims, something Pucillo clarified explicitly, saying it includes things like Facebook, MySpace, c-mail and text messages. "That means no messages through carrier pigeons, no messages through third parties. ... Is that clear?" she asked. Epstein told the judge he's an investment banker. He manages money for the very rich and counts among his friends former President Bill Clinton. His real estate holdings include a private island in the U.S. Virgin Islands and a 50,000-square-foot townhouse on Manhattan's tony Upper East Side. According to police reports, in 2004 and 2005 Epstein paid==, then 20 to find girls — "the younger the better"— to "work" for him. Epstein rejected a 23-year-old who brought to Epstein's home. once referred to herself as Heidi Fleiss, the Ho madam whose client list included ce e rities. "The more you do, the more you get paid," reportedly told thesi llte going rate was $200 to $300 per massage. All of the girls knew what to expect, according to "provide a massage, possibly naked, and allow some touching." Following lengthy negotiations dating to Epstein's July 2006 arrest, he pleaded guilty Monday to two counts: procuring a person under 18 for prostitution and felony offer to commit prostitution. The http://www.sun-sentineLcom/newillocal/palmbeach/sfl-flpepstein0701sbjul01,0,697175,pri... 7/1/2008 EFTA00215728 Billionaire heads to jail on teen prostitution charges -- South Florida Sun-Sentinel.com Page 2 of 2 maximum penalty was 15 years in prison. Epstein still faces civil lawsuits in federal court filed by four girls seeking in excess of $50 million each. "We think the guilty plea today is a very positive development for the civil cases and validates the claims the girls were making," said Jeffrey Herman, the Miami attorney representing the girls. Missy Din can be reached at mdiaz@sun-sentinel.com or 561-228-5505. Copyright C 2008, South Florida Suo-Sentinel http://www.sun-sentinel.com/news/local/palmbeach/s11-11pepstein0701sbjul01,0,697175,pri... 7/1/2008 EFTA00215729 Palm Beach money manager pleads guilty to hiring underage girls for sex -- South Florida... Page 1 of 2 sun-sentineLcom/news/local/palmbeach/s11-630epstein,0,69 I 3787.story South Florida Sun-Sentinel.com Palm Beach money manager pleads guilty to hiring underage girls for sex By Missy Diaz Sun-Sentinel.com 12:25 PM EDT, Junc 30, 2008 WEST PALM BEACH Mega-rich Palm Beach-New York-Virgin Islands money manager Jeffrey Epstein traded his navy sport coat for a jail uniform today after pleading guilty to hiring underage Palm Beach County girls for erotic massages and sex. As a result, Epstein will be designated a sex offender, a moniker that will require he register annually with the Florida Department of Law Enforcement and any other jurisdiction that so requires. Epstein, 55, will spend 18 months in the Palm Beach County Jail followed by a year of house arrest. Judge Deborah Pucillo, who grilled Epstein and his attorneys throughout today's hearing, read off a litany of other conditions of Epstein's house arrest, including a 10 p.m. to 6 a.m. curfew, an hourly daily activity log and a stem warning that he not possess, watch or view any "obscene, pornographic or sexually stimulating material relative to your deviant behavior." The judge admonished Epstein not to have any contact — direct or indirect -- with his victims, something Pucillo explained includes things like Facebook, MySpacc, c-mail and text messages. "That means no messages through carrier pigeons, no messages through third paries ... is that clear?" she asked. Epstein, a billionaire who lives in a five bedroom, 7'A bath, 13,000-square-foot mansion on El BrilloWay in Palm Beach, told the judge he's an investment banker. He manages money for the super wealthy and counts among his friends former President Bill Clinton. According to police reports, in 2004 and 2005, Epstein used a then 20-year-old girl to find 14- to 16- year-old girls from her school to "work" for him. htm://www.sun-sentinel.com/news/local/palmbeach/sfl-630epstein,0,3606120,print.story 6/30/2008 EFTA00215730 Palm Beach money manager pleads guilty to hiring underage girls for sex -- South Florida... Page 2 of 2 In return, according to police, Epstein paid her $200 for each girl she found. Epstein's assistant kept the recruiter apprised of when Epstein would be in Palm Beach and the recruiter would take the girls to the mansion. Once there, Epstein's assistant escorted the girl to a bedroom furnished with a massage table and oils. Epstein would enter in only a towel and would touch himself during some sessions and try fondling the girls with sex toys in others, according to police. Following lengthy negotiations dating to Epstein's July 2006 arrest, he pleaded guilty today to two counts: procuring a person under 18 for prostitution, and felony offer to commit prostitution. The maximum penalty was 15 years in prison. Epstein told the judge he takes no prescription medication other than for his cholesterol. He works in the Virgin Islands, he said, but while on house arrest he plans to do charitable work at a non-profit he formed charity called The Florida Science Foundation. State records show the foundation was formed in November for the purpose of providing grants to organizations in science and research. "My background is in physics," Epstein told Pucillo. Harvard and MIT have been recipients of grants from the organization, he said. While the criminal case may have been disposed today, Epstein still faces civil lawsuits in federal court filed by four of the girls who are each seeking in excess of $50 million. "We think the guilty plea today is a very positive development for the civil cases and validates the claims the girls were making," said Jeffrey Herman, the Miami attorney representing the girls. "An important measure ofjustice is that he'll be a registered sex offender." As deputies fingerprinted Epstein, who was dressed in a navy sport coat, jeans and sneakers, a phalanx of his handlers congregated outside the courtroom. His attorney, Jack Goldberger, along with two other men, one in a seersucker suit, the other typing furiously on a laptop computer, stayed with Epstein until lawmen escorted him from the courtroom. Copyright C 2008, South Florida Sun-Sentinel http://www.sun-sentinel.com/ne ws/locaI/paImbeach/sf1-630epste n,0,3606120,print.story 6/30/2008 EFTA00215731 Billionaire pleads to Fla. prostitution charge - 06/30/2008 - MiamiHerald.com Page I of 1 MlamiHerald.com 41 Posted on Mon, Jun. 30, 2008 Billionaire pleads to Fla. prostitution charge New York billionaire Jeffrey Epstein has pleaded guilty to soliciting prostitution from underage girls in South Florida. Circuit Judge Deborah Dale Pucillo sentenced the 55-year-old money manager Monday to 18 months in the Palm Beach County jail, followed by a year of house arrest. He will also be designated a sex offender. Epstein was arrested two years ago. Authorities allege he paid several girls under the age of 18 $200 to $300 each in return for naked massages at his Palm Beach home that sometimes became sexual. He also faces state and federal lawsuits filed by several women over similar allegations. © 2008 Miami Herald Media Company. All Rights Reserved. http://www.miamiherald.com http://www.miamiherald.com/news/nation/AP/v-print/story/588587.html 7/1/2008 EFTA00215732 Campos, Cyndee (USAFLS) Subject: FW NEWS RELEASE: MIAMI-DADE HUSBAND AND WIFE SENTENCED FOR MONEY LAUNDERING June 30, 2008 NEWS RELEASE: MIAMI-DADE HUSBAND AND WIFE SENTENCED FOR MONEY LAUNDERING R. Alexander Acosta, United States Attorney for the Southern District of Florida. Michael E. Yasofsky, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and Mark R. Trouville. Special Agent in Charge, Drug Enforcement Administration, Miami Field Office, announced that defendants, Irven Pressley and his ex-wife, Cynthia Pressley, were sentenced in federal court in Fort Lauderdale. The defendants, who were charged in an 88-count indictment, had previously pled guilty to money laundering, in violation of Title 18 United States Code, Section 1956(h). On June 26. 2008, United States District Court Judge William J Zloch sentenced Irven Pressley to 114 months in prison. On June 27, 2008. he sentenced Cynthia Pressley to 54 months in prison. According to the court documents, Irven Pressley distributed cocaine in the Southern District of Florida. In addition, from late 1989 until December 2004, Irven and Cynthia Pressley conspired to launder funds obtained from Irven Pressley's cocaine sales. In total, the conspiracy laundered more than $1.5 million. Mr. Acosta commended the investigative efforts of the Internal Revenue Service, Criminal Investigation and of the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorneys Marcus A. Christian and Michael Davis. A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdojgov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.00v/ or on http://pacer.flsd uscourts.gov/. EFTA00215733 TCPalm.Com Smuggling trial heads to jury 1. By Megan V. Winslow (Contact) Originally published 09:58 p.m., June 30, 2008 Updated 09:58 p.m., June 30, 2008 WEST PALM BEACH — Among stacks of photographs and bags of narcotics the Rickey Thompson jury mulls over today during deliberations are two exhibits attorneys said should settle the case: a picture of a dead man and a secretly recorded telephone conversation. The picture shows the body ofNigel Warren, one of three illegal immigrants whose 2006 drowning death could mean a life sentence for Thompson, a 43-year-old fisherman and part-time smuggler from the Bahamas. But that's if jurors reject the defense that Warren's choice of dress caused his death in the dark Jupiter Island surf. "That man put on four shirts," said defense attorney David Patrick Rowe during his closing statements Monday. "He put on four pants. He put on construction boots, and he put on a jacket ... and then he went into the water, not because someone pointed a gun at him as they want you to believe — but because he wanted to come to America." Federal prosecutors said the telephone conversation proves Thompson captained yet another boat of illegal immigrants from the Bahamas to Jupiter Island four months earlier in August 2006, when two Haitians drowned and 12 kilos of cocaine washed ashore. During the conversation, a drug mule-turned-informant tells Thompson a passenger from the August trip drowned, prosecutors said, and Thompson replies by warning the informant not to talk about the trip on the phone. The conversation connects two extremely similar smuggling trips, prosecutors said, and supports witness testimony that Thompson used a gun to usher his passengers quickly from his 36-foot power boat and make them swim to shore — whether they knew how to swim or not. "They did not drown because of what they were wearing," said Adrienne Rabinowitz, assistant U.S. attorney. "They did not drown because of what they drank. They drowned because this defendant forced them off the boat." Thompson's shipmate in the smugglings, U.S. citizen Leon Brice Johnson, pleaded guilty in March to six charges, including alien smuggling resulting in death, and is scheduled to be sentenced July 11. He also faces a maximum penalty of life in prison. In addition to three counts of second-degree murder for the deaths of Warren, of Jamaica, and Haitian citizens Roselyne Lubin and Alnert Charles. Thompson faces 27 other criminal counts, including alien smuggling resulting in death and importing drugs . such as marijuana, cocaine and heroin into the U.S. EFTA00215734 Justice to seek more information from Swiss bank - 07/01/2008 - MiamiHerald.com Pagc 1 of 2 MiamiHerald.com Posted on Tue, Jul. 01, 2008 Justice to seek more information from Swiss bank By CHRISTOPHER S. RUGABER The Justice Department said it is seeking information from Swiss bank UBS AG about U.S. taxpayers who may have used offshore accounts to avoid paying federal income taxes. The broadening investigation centers on UBS clients in the United States who may have hidden up to $20 billion in assets from the Internal Revenue Service. The Justice Department said Monday it asked a federal court in Miami to authorize the IRS to serve UBS with a "John Doe" summons. The IRS uses a "John Doe" summons to obtain information about potential tax fraud by unknown individuals. If approved, the summons will direct the bank to identify U.S. taxpapers with accounts at UBS who did not fill out required tax forms. The Justice Department's move comes after Bradley Birkenfeld, a former UBS employee, pleaded guilty June 19 to conspiring to defraud the IRS by helping the bank's clients avoid U.S. tax reporting requirements. Birkenfeld said in a court statement that UBS has about $20 billion in assets in "undeclared" accounts for U.S. taxpayers. UBS employees created sham offshore entities and then filled out IRS forms that falsely claimed the entities owned the accounts, Birkenfeld said. "Offshore accounts harbor billions of dollars, and people should take notice that the secrecy surrounding these deals is rapidly fading," IRS Commissioner Doug Shulman said. "There is reason to suspect that ... many United States taxpayers used UBS's services to shelter their assets and, as a result, failed to file accurate tax returns," U.S. Attorney R. Alexander Acosta said in a statement filed with the court. UBS has said it will cooperate with both Swiss and U.S. authorities and disclose any instances in which U.S. clients may have broken tax laws. Prosecutors say that Birkenfeld and others helped California real estate magnate Igor Olenicoff hide $200 million in assets overseas. Olenicoff, whose fortune is estimated at SI.6 billion by Forbes magazine, pleaded guilty last year to tax charges and agreed to pay the IRS more than $52 million in back taxes, penalties and interest. A Liechtenstein banker charged along with Birkenfeld, 43-year-old Mario Staggl, has been declared a fugitive. http://www.miamiherald.com/business/AP/v-print/story/589487.html 7/1/2008 EFTA00215735 Campos, Cyndee (USAFLS) Subject: FW From NY Times Fro a Sent: Monday, June 30, 2008 6:19 PM To: (USAFLS) Subject: From NY Times U.S. Seeks Names of UBS Clients Top of Form Bottom of Form By LYNNLEY BROWNINQ Published July 1, 2008 Federal authorities, turning up the pressure on UBS, the Swiss banking giant, asked a federal court on Monday to force the bank to turn over the names of wealthy American clients suspected of evading taxes through secret offshore accounts. The request, from the Justice Department, comes amid a widening federal investigation into the private banking services offered by UBS to Americans. While that investigation has centered on a former top UBS private banker, Bradley Birkenfeld, an American, it is rapidly broadening to include clients of the bank. The request was made in court papers filed in the United States District Court for the Southern District of Florida in Miami by R. Alexander Acosta, the top federal prosecutor in Florida. The papers are related to the separate criminal case against Mr. Birkenfeld, who pleaded guilty last month to a single fraud charge and is cooperating with investigators. Amid the disclosure request, the investigation threatens to peel back layers of Swiss banking secrecy, whose tradition began in the Middle Ages. It also increasingly promises to put UBS, the world's largest private bank, on a collision course with American prosecutors and regulators, who argue that Swiss secrecy laws do not apply to American clients who were sold UBS services. A federal judge could rule on the request as early as this week, according to people briefed on the matter. 1 EFTA00215736 The request could open the floodgates to a flow of information about offshore tax evasion. Douglas Shulman, the commissioner of the Internal Revenue Service, said in a written statement: "We will be taking additional steps to ferret out offshore tax avoidance beyond today's announcement involving UBS. If service of the John Doe summons is approved, the I.R.S. will pursue people and advisers identified through the summons process who use offshore bank and financial accounts to circumvent their tax responsibilities." UBS is considering whether to turn over to the United States authorities up to 20,000 American client names as part of the criminal investigation, but it is grappling with pressure from Swiss banking and legal circles not to betray Swiss confidences. Unlike in the United States, tax evasion is legal in Switzerland. Tax fraud, however is not. Prosecutors suspect that UBS helped American clients stash $20 billion overseas in secret offshore accounts, evading $300 million or more in taxes. Specifically, the I.R.S. and federal prosecutors want to force UBS to turn over the names of all American clients who from December 2002 through 2007 had control over accounts at the Swiss-based offices of UBS, its subsidiaries or affiliates — and for which UBS did not have a special tax form known as a W-9. Under United States tax laws, American clients of UBS with assets or investments in offshore undeclared accounts are supposed to sign that form, which discloses names, addresses and taxpayer identification numbers, and then file it with UBS. UBS is supposed to let clients know when they have to sign the form and also withhold any taxes that might be owed to the I.R.S., typically at 28 percent. Clients who do not sign the W-9 are supposed to sell their United States investments held in undeclared offshore accounts. Many UBS clients did not sign the forms but continued to hold the investments — with UBS's knowledge — all while not paying taxes on them, prosecutors said. The request for American client and account names is broad and covers any clients for whom financial advice or solicitations at Swiss-based UBS entities were made. It also covers any United States taxpayers with the authority to receive account statements or trade confirmations or to withdraw money from the Swiss-based accounts. And it covers accounts that were not just managed by but also maintained and monitored by UBS. 2 EFTA00215737 Last but not least, the request for names, or summons, also covers clients for whom UBS did not accurately or timely file 1099 forms, which report income earned, or withhold taxes. The UBS case is the first to turn the spotlight on the rarefied world of private banking, and any disclosure of client names would batter the bank's reputation. Judges have been sympathetic to similar requests in the past from the government. In 2000, the I.R.S. won a Florida federal judge's approval to force Mastercard International to turn over the names of American clients whom the agency suspected of using their credit cards to withdraw money from offshore tax havens, thereby evading payment of income taxes. MasterCard turned over names tied to 230,00o accounts, and more later. The judge also issued similar orders for American Express. Also that year, a San Francisco federal judge backed an I.R.S. request to force Visa International to turn over names of clients with offshore accounts. The case could also become an embarrassment for Marcel Rohner, the chief executive of UBS, as well as for Phil Gramm, the former Republican senator from Texas who is now the vice chairman of UBS Securities, the bank's investment banking arm. Assistant United States Attorney United States Attorney's Office Florida 33394 3 EFTA00215738 PalmBeachPost.Com Justice to seek more information from Swiss bank 1. By CHRISTOPHER S. RUGABER AP Business Ncws WASHINGTON — The Justice Department said it is seeking information from Swiss bank UBS AG about U.S. taxpayers who may have used offshore accounts to avoid paying federal income taxes. The broadening investigation centers on UBS clients in the United States who may have hidden up to $20 billion in assets from the Internal Revenue Service. The Justice Department said Monday it asked a federal court in Miami to authorize the IRS to serve UBS with a "John Doe" summons. The IRS uses a "John Doe" summons to obtain information about potential tax fraud by unknown individuals. If approved, the summons will direct the bank to identify U.S. taxpapers with accounts at UBS who did not fill out required tax forms. The Justice Department's move comes after Bradley Birkenfeld, a former UBS employee, pleaded guilty June 19 to conspiring to defraud the IRS by helping the bank's clients avoid U.S. tax reporting requirements. Birkenfeld said in a court statement that UBS has about $20 billion in assets in "undeclared" accounts for U.S. taxpayers. UBS employees created sham offshore entities and then filled out IRS forms that falsely claimed the entities owned the accounts, Birkenfeld said. "Offshore accounts harbor billions of dollars, and people should take notice that the secrecy surrounding these deals is rapidly fading," IRS Commissioner Doug Shulman said. "There is reason to suspect that ... many United States taxpayers used UBS's services to shelter their assets and, as a result, failed to file accurate tax returns," U.S. Attorney R. Alexander Acosta said in a statement filed with the court. UBS has said it will cooperate with both Swiss and U.S. authorities and disclose any instances in which U.S. clients may have broken tax laws. Prosecutors say that Birkenfeld and others helped California real estate magnate Igor Olenicoff hide $200 million in assets overseas. Olenicoff, whose fortune is estimated at $1.6 billion by Forbes magazine, pleaded guilty last year to tax charges and agreed to pay the IRS more than $52 million in back taxes, penalties and interest. A Liechtenstein banker charged along with Birkenfeld, 43-year-old Mario Staggl, has been declared a fugitive. EFTA00215739  Page I of I A DAY OFF FOR GRIM UBS STAFF By MARK DeCAMBRE July 1, 2008 — Calculate Employees of embattled UBS have seen better days in its 150-year history as Your New