Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/263-28.pdf

EXHIBIT 81 FILED UNDER SEAL Case 1:22-cv-10904-JSR Document 263-28 Filed 08/07/23 Page 1 of 5 GOVERNMENT OF THE UNITED STATES UNITED STATES VIRGIN ISLANDS, DISTRICT COURT FOR THE Plaintiff, SOUTHERN DISTRICT OF NEW YORK v. Case No. 22-cv-10904-JSR JPMORGAN CHASE BANK, N.A., Defendant/Third-Party Plaintiff. JPMORGAN CHASE BANK, N.A., Third-Party Plaintiff, v. JAMES EDWARD STALEY, Third-Party Defendant. Expert Report of Special Agent Joseph Fonseca, FBI (Retired) on behalf of JPMorgan Chase Bank, N.A. June 23, 2023 Case 1:22-cv-10904-JSR Document 263-28 Filed 08/07/23 Page 2 of 5 Case 1:22-cv-10904-JSR Document 263-28 Filed 08/07/23 Page 3 of 5 progra ms designed to identify the transfer of child sexual abuse material, additionally known as chi ld pornography. 8. I have investigated cases involving t h e trnnspo1i and exploitation of women and children across the U.S. border, state lines, an d in oth er countries. I have had the oppo1iunity to assist in the prosecution of more than 100 sexual exploitation cases, with many culminating in trials. 9. I have trained with numerous foreign law enforcement offi cers and learned of different trafficking techniques to gain an understanding how ce1iain trafficking crimes and crimes against children can be investigated and prosecuted in the U.S. I have investigated these trafficking an d crimes against children cases with the assistance of finan cial r ecords obtained from businesses (hotels, car rental companies, apaiiment complexes, etc.), financial institutions , money providers (companies such as Western Union and MoneyGrain), and prepaid debit cai·ds (such as GreenDot). 10. In 2021, I finished my FBI cai·eer as a Counselor for n ew agent trainees at the FBI Academy in Quantico, Virginia. 11. Iain being compensated for my review, analysis, and time in this case at a rate of $125.00 per hour. 12. My compensation is not contingent upon offer ing any specific opinions or on th e outcome of this matter. Summary of Opinions: 13. I was engaged by Wilmer Cutler Pickering Hale and Don LLP (Counsel), counsel for JPMorgan Chase Bank, N .A. (JPMC or the Bank) to provide an expe1i opinion and potentially expe1i test imony in th e matter of Government of the United States Virgin Islands v. JPMorgan Chase Bank, NA., No. 22-cv-10904 (JSR) (S.D.N.Y.) (the Epstein Liti gation). 14. I have reviewed the Second Amended Complaint filed by the Government of the United States Virgin Islan ds (USVI) in this case and understand that it alleges that JPMC intentionally obstm cted the federal government 's enforcement oft~he Traffickin Victims Protection Act 18 U.S.C. 1591, against Jeffrey Epstein an d "pen nitting" Epste in to wit ·aw ai·ge am ounts • s . Counsel re uested that I rovide an o inion 15. In my opinion, based on my review of the mater ials identified in Appendix B to this Repo1i and my yeai·s of experience investigating crimes against children and sex trafficking cases as a Special Agent for the FBI, one or more additional SARs related to Epstein fi led by JPMC wou ld not have resulted in an eai·lier arrest of Epstein nor would 1 Second Amended Complaint, ,r,r 147- 168, Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 22-cv-10904 (JSR) (S.D.N.Y.), Dkt. No. 120. 4 Case 1:22-cv-10904-JSR Document 263-28 Filed 08/07/23 Page 4 of 5 . My conclusion is infonned by the allegations about Epstein's conduct, paiticularly the allegations about his use of relatively small am ounts of cash to compensate women for sexual experiences, the evidence available to investi gators in their investigation into Epstein from 2005-2008, publicly available infonnation about Epstein that law enforcement would have been aware of, including alle ations in the media about his conduct 16. To begin with, over the course of my career, I have never relied on a SAR while investigating a person on charges of sex trafficking. The simple reason for this is due to the victim-center ed approach the FBI utilizes when conducting an investigation into sex trafficking. 17. The victim-centered approach to investigating sex trafficking cases focuses on making sure the victim feels safe, secure, and stable. Once victims ai·e safely recovered and support ed, they ai·e then able to provide the most impo1tant piece of evidence in a sex trafficking case - their testimony. Victim testimony is essential to describe the manner and method of a victim's trafficking, the relevant details of their exploitation and abuse, a nd anything of value given to or received by any person for a sex act by the victim. In the typical sex traffi cking case, investigators would then work to find the best evidence to conoborate the various aspects of the victim 's testimony in order to prove sex trafficking-related chai·ges. 18. Based on my experience as an FBI SA, SARs are not useful in sex trafficking or crimes aga inst children investigations because they ai·e unlikely to directly conoborate a victim 's testimony or provide evidence of the sex trafficking of a victim. Without direction from a vict im alleging the existence of a trafficking operation and describing the manner and method of payment in a way that reasonably matches the transaction activity that potentially could be fl agged in a SAR, law enforcement would be unable to detennine whether a cash or wire transaction that ma be re 01ted in a SAR was related to an traffickin activi . 19. It is also my opinion that investigators have an obligation to affiimatively recover evidence they believe is relevant to their investigation. As such, if the FBI had continued to investigate Epstein's conduct following his Florida state conviction in June 2008, and belie ved that farther evidence of his financial activity was relevant to that investi ation there was enou h info1mation available to law enforcement both an m t e pu 1c recor to a ow mvestigators to evaluate Epstein's activity and, more impo1tantly, to know that they should look to JPMC as a source of additional financial infonnation if they felt it was necessaiy. Specifically, the FBI would have known at all times after 2008 that it could send a 2 I have also reviewed, relied upon, and agree with the conclusions in the expe1t repo1t of Teresa A. Pesce. 5 Case 1:22-cv-10904-JSR Document 263-28 Filed 08/07/23 Page 5 of 5 Signature I declare, under the penalty of perjury, under the laws of the United States of America, that the foregoing is true and correct. Signed this 23rd day of June, 2023: 25