EFTA Document EFTA01481015

Confidential Due Diligence Report - YHS LLC Copyright 2006 The Palm Beach Newspapers, Inc. Palm Beach Post (Florida' August 10, 2006 Thursday FINAL EDITION SECTION: OPINION; Pg. 20A LENGTH: 428 words HEADLINE: MASSAGING THE SYSTEM BODY: Palm Beach police say their Li-month investigation shows that 53-year-old part-time town resident Jeffrey Epstein committed unlawful sex acts with and lewd and lascivious molestation on five underage girls. Defense attorney Jack Goldberger claims that his client, Jeffrey Epstein, had no idea that the untrained girls he hired for massages were minors. The Palm Beach Count State Attorney's Office could have let a Jury decide whom to believe. Instead, State Attorney Barry Krischer left the public to wonder whether the system tilted in favor of a wealthy, well-connected alleged perpetrator and against very young girls who are alleged victims of sex Grimes. Hr. Krischer took the unusual step of referring the case to a grand fury, which last month _ indicted Jeffrey Epstein on one felony count of solicitation of prostitution. That decision came after Harvard law Professor Alan Dershowitz met with prosecutors to undermine the credibility of the 14- to 17-year-old girls who charged that Mr. Epstein had paid them 8200 to $300 to undress and massage him in his five-bedroom, 7 1/2-bath home on the Intracoastal waterway. The girls, Mr. Dershowitz told prosecutors, had written on myspace.com about smoking marijuana and drinking alcohol. But if the girls have a credibility problem, what about Jeffrey Lipstein? Mr. Goldberger, told The Post: "Mr. Epstein absolutely insisted anybody who came to his house be over the age of 18. How he verified that, I don't know." And prosecutors took him at his word? Police collected evidence that refutes Jeffrey Epstein's defense. Police searched his home and garbage and found phone messages about the girls' school schedules and even a high school transcript, suggesting that Mr. Epstein at least knew that the girls were teenagers. The state attorney's office has responded to criticism from Palm Beach police and others by noting the higher standard prosecutors face for conviction than law-enforcement officers do for _ arrest. But in this case, the state attorney bowed to the risk that a jury might look at both Jeffrey Epstein and the girls, and point fingers at both sides. Even it the girls could be impugned as prostitutes, solicitation of a minor is a crier. Former disc jockey and teacher Bruno Moore was charged with that Tuesday. Investigators say the 34-year- old used the Internet - myspace.com - to recruit a 13-year-old. Police say Jeffrey Epstein used a 20-year-old woman who had a myspace.com account to recruit young girls. His actions were sleazy. It would have been good to ask a jury just how criminal they were. LOAD-DATE: August 12, 2006 Confidential - This report is not to be disseminated or photocopied to any third party without the express consent of Global Corporate Security. Confidential Treatment Requested by JPMorgan Chase CONFIDENTIAL JPM-SDNY-00003266 SDNY_GM_00272464 EFTA01481015