EFTA Document EFTA01480957

Confidential Due Diligence Report Copyright 2010 ProQuest Information and Learning All Rights Reserved ProQuest SuperText Copyright 2010 Palm Beach Post Palm Beach Daily News October 16 2010 Saturday Dn1 Edition SECTION: A SECTION; Pg. A.5 LENGTH: 823 words HEADLINE: Claim: Epstein filed lawsuit to 'intimidate' victims' attorney BYLINE: MICHELE DARGAN Daily News Staff Writer BODY: Billionaire sex offender Jeffrey Epstein filed his 2009 lawsuit against attorney Brad Edwards in an effort to get Edwards to drop sex abuse lawsuits filed against Epstein, attorney Jack Scarola said Friday. "The sole motivation for these claims against Mr. Edwards is an attempt to intimidate him so as to abandon the justified prosecution of his claims against Mr. Epstein; Scarola said. Edwards secured deals for victims and Jane Doe, who were among nearly two dozen young women who received confidential settlements from Epstein. Edwards filed a new lawsuit last month against Epstein on behalf of victim asking for $50 million in damages. At a court hearing Friday, Scarola told Circuit Judge David Crow that all lawsuits were settled for "very substantial sums of money, which is directly contrary to the assertions that Mr. Epstein made that these cases were fabrications." The hearing was related to Epstein's lawsuit against Edwards, alleging Edwards was involved in false claims made by Ponzi schemer Scott Rothstein. Epstein says Rothstein lured investors to his scheme by telling them Epstein had agreed to settle sex abuse lawsuits for as much as $200 million. Edwards worked at Rothstein's firm for less than a year; Rothstein is named as a defendant. Speaking on behalf of Epstein, attorney Joseph Ackerman said, "Except in certain cases, we believe the Rothstein firm was marketing cases that didn't exist, not necessarily the ones he settled. We believe actions were taken in those cases that were an abuse of process to inflate the marketing." Edwards filed a counterclaim, alleging Epstein filed a frivolous lawsuit to get him to back down from representing the victims. Epstein had filed a complaint with the Florida Bar against Edwards, raising allegations that Edwards and others were involved in Rothstein's wrongdoing. After investigating the claim, the Florida Bar dismissed the complaint. In July, Edwards received a letter from the U.S. Attorney's Office -- the office responsible for prosecuting Rothstein — identifying Edwards as a potential victim of Rothstein. Scarola wants the judge to sever the cases and fast-track Edwards' case. "This constitutes a very substantial cloud over Mr. Edwards' head," Scarola said. "Public allegations have been made against him that he was a participant in this major fraud, one of the largest in the history of South Florida, and we want, expeditiously, to have that cloud removed." Confidential - This report is not to be disseminated or photocopied to any third party without the express consent of Global Security & Investigations. 1309811B.doc 20 Confidential Treatment Requested by JPMorgan Chase CONFIDENTIAL JPM-SDNY-00003199 SDNY_GM_00272397 EFTA01480957