Virgin Islands Appeal of Epstein Ruling

IN THE SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST. THOMAS AND ST. JOHN __________________________________________ ) IN THE MATTER OF THE ESTATE OF: ) PROBATE NO. ST-19-PB-80 ) JEFFREY E. EPSTEIN, ) deceased. ) __________________________________________) GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS’ NOTICE OF APPEAL & PETITION FOR REVIEW OF MAGISTRATE JUDGE’S ORDERS The Government of the United States Virgin Islands (“Government”) hereby petitions pursuant to V.I. Super. Ct. R. 322(b)(1) and/or 322.1(b) for review of the Magistrate Judge’s February 26, 2021 orders (published March 1, 2021)1 in In Re: The Estate of Jeffrey E. Epstein, No. ST-2019-PB-00080, which: (1) Denied the Government’s Motion to Intervene in the Probate action as a claimant against the Estate (order attached as Exhibit 1); and (2) Struck the Government’s Emergency Motion to Freeze All Estate Assets and Cash on Hand (order attached as Exhibit 2). In support thereof, the Government states as follows: BACKGROUND & LEGAL ARGUMENT Jeffrey Epstein was found dead on August 10, 2019, while in custody in New York for sex crimes. Compl., Gov’t U.S. Virgin Islands v. Estate of Jeffrey Epstein, et al., No. ST-2020-CV-14, ⁋ 7 (V.I. Super Ct. Jan. 15, 2020). On August 15, 2019, the Estate of Jeffrey Epstein (“the Estate”) was created. Id. ¶ 8. 1 Although the orders are dated February 26, 2021, the Government did not learn of them until it received a press inquiry on March 12, 2021. The Government contacted the Clerk of the Court, who confirmed that it appears that the Government had not been electronically served with the orders. The Clerk of the Court then served the Government with notice of the orders on March 17, 2021. Therefore, the time to appeal under Rule 322(b)(1) and/or Rule 322.1(b)(2)(A) should be calculated from March 17, 2021, making the Government’s Petition timely. In the Matter of the Estate of: Jeffrey E. Epstein Probate No. ST-19-PB-80 Gov’t’s Notice of Appeal & Petition for Review of Magistrate Judge’s Orders Page 2 of 4 On November 14, 2019, the Executors of the Estate filed an Expedited Motion for Establishment of a Voluntary Claims Resolution Program (“Epstein Fund” or “Fund”). The Motion asked the Magistrate Judge to “establish an independent and voluntary claims resolution program . . . for purposes of resolving sexual abuse claims against Jeffrey E. Epstein[.]” Id. at 1. On January 15, 2020, the Government filed a lawsuit against the Estate, the 1953 Trust, and numerous Epstein business affiliates and associates for violation of the Criminally Influenced and Corrupt Organization Act (“CICO”), 14 V.I.C. § 600 et seq., and civil conspiracy, seeking forfeiture and divestment of assets in favor of the Government, civil penalties, damages, and other remedies.2 The Probate Court’s ruling not only fails to recognize the Government’s interest, which supports mandatory or permissive intervention, but also ignores the complexity of this proceeding and its significance to Epstein’s victims and to the people of the Virgin Islands more broadly. As Plaintiff in its CICO litigation, the Government has an interest in the assets of the Estate, as well as in ensuring that the laws of the Virgin Islands are enforced for the benefit of the Government, the People of the Virgin Islands, and the victims of Epstein’s crimes. The Executors of the Estate, who are alleged to have been affiliated with various entities that participated in Epstein’s criminal enterprise, cannot adequately stand in for the Government. Therefore, the Government should be allowed to intervene. In re the Estate of Small, 57 V.I. 416, 423 (2012); Hendricks v. Clyne, No. ST-16-CV-147, 2019 WL 918607, at *2 (V.I. Super. Ct. Feb. 20, 2019); V.I. R. Civ. P. 24. 2 The Government filed its operative First Amended Complaint in its CICO action on February 10, 2020 and its Second Amended Complaint on February 20, 2021. In the Matter of the Estate of: Jeffrey E. Epstein Probate No. ST-19-PB-80 Gov’t’s Notice of Appeal & Petition for Review of Magistrate Judge’s Orders Page 3 of 4 Finally, with or without intervention, the Probate Court had jurisdiction to decide the Government’s Emergency Motion. It should be noted that the Presiding Judge in its March 12, 2021 Order in the CICO action (Exhibit 3) recognized the overlapping issues in the CICO and Probate matters. As a result, the Court has asked the parties to brief whether this case should be designated as complex and transferred to the same Superior Court Judge assigned to the CICO matter so the Probate and CICO matters can be “coordinated together” to avoid “inconsistent rulings.” ISSUES PRESENTED FOR REVIEW 1. Whether the Magistrate Judge properly denied the Government’s Motion to Intervene as a claimant against the Estate of Jeffrey E. Epstein. 2. Whether the Magistrate Judge properly denied the Government’s Emergency Motion to Freeze All Estate Assets and Cash on Hand based on lack of standing because the Government is not a party to and was denied intervention in the Probate action, even though it has a claim against the Estate. Respectfully Submitted, DENISE N. GEORGE, ESQUIRE ATTORNEY GENERAL Dated: March 17, 2021 By: /s/ Carol Thomas-Jacobs CAROL THOMAS-JACOBS, ESQUIRE Chief Deputy Attorney General Virgin Islands Department of Justice Office of the Attorney General 34-38 Kronprindsens Gade G.E.R.S. Complex, 2nd Floor St. Thomas, U.S. Virgin Islands 00802 Email: carol.jacobs@doj.vi.gov (340) 774-5666 ext. 10101 In the Matter of the Estate of: Jeffrey E. Epstein Probate No. ST-19-PB-80 Gov’t’s Notice of Appeal & Petition for Review of Magistrate Judge’s Orders Page 4 of 4 CERTIFICATE OF SERVICE IT IS HEREBY CERTIFIED that the foregoing Petition complies with the word-count requirement of V.I. Super. Ct. R. 322(b)(2) (773 words) and that a true and correct copy of this petition was served via the electronic filing system and by email to counsel of record on March 17, 2021 to: CHRISTOPHER ALLEN KROBLIN, ESQ. ANDREW W. HEYMANN, ESQ., WILLIAM BLUM, ESQ. SHARI D’ANDRADE, ESQ. KELLERHALS FERGUSON KROBLIN PLLC Royal Palms Professional Building 9053 Estate Thomas, Suite 101 St. Thomas, V.I. 00802-3602 Email: ckroblin@kellfer.com aheymann@solblum.com wblum@solblum.com sdandrade@kellfer.com mwhalen@kellfer.com ANDREW TOMBACK WHITE & CASE, LLP 1221 Avenue of the Americas New York, New York 10020-1095 United States Email: andrew.tomback@whitecase.com DANIEL WEINER MARC A. WEINSTEIN HUGHES HUBBARD & REID, LLP One Battery Park Plaza New York, NY 10004-1482 United States Email: daniel.weiner@hugheshubbard.com marc.weinstein@hugheshubbard.com By: /s/ Carol Thomas-Jacobs CAROL THOMAS-JACOBS, ESQUIRE