This is an FBI investigation document from the Epstein Files collection (FBI VOL00009). Text has been machine-extracted from the original PDF file. Search more documents →
FBI VOL00009
EFTA00800508
343 pages
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101 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q So by November 6, at least, this article is mentioning the word Ponzi. A Somebody is calling it a Ponzi by then Q So do you now agree with me that there were stories in the press in early November 2009 discussing the Ponzi scheme perpetrated at RRA? A I agree MR. SCAROLA: Again, assuming the authenticity of this online printout, I will agree that this online printout says what it says and makes reference to the Ponzi scheme imploding. THE WITNESS: I will agree to the same thing. BY MR. LINK: Q The reason I'm showing you this article is because when I asked you if that part of the sentence of paragraph six was accurate, you said, I don't remember whether the word Ponzi was used in the articles in November or whether it was December. A Exactly. Q So I am showing these to you now to confirm that, in fact, in early November the Ponzi scheme was being discussed in the press. A I will agree that it appears that the New Palm Beach Reporting Service, Inc. EFTA00800608
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102 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Times used the word Ponzi on November 6th of 2009. I don't think that we are disputing at all that this was a Ponzi scheme. Everybody knows what it was, so -- Q It's not whether -- I'm not disputing with you whether it was. We know that it was. I'm asking you whether the statements in this affidavit -- the factual statements so far -- we are on paragraph six only -- were accurate. So the statement that I was focused on was that in early November 2009, that the Ponzi scheme perpetrated at the firm, meaning RRA, was in the press and on the news. You agree that it was? A I agree that this article on November 6 of 2009 said the word Ponzi. It could have very well been in a bunch of articles by then. It could have very well been on the news. I'm not disputing it being there. I just don't remember the timing of when everybody decided what it was. Q And you see on page two, that's a picture of Mr. Epstein, right? A Yes. Q And underneath his picture it says, "Epstein was bait." You see that? A I do see that. Q Was Mr. Epstein used as bait by the RRA Palm Beach Reporting Service, Inc. EFTA00800609
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103 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 firm to attract potential investors? A I don't see that sentence. Q I'm asking you. MR. SCAROLA: Excuse me. I'm going to object, unless a predicate is laid with regard to Mr. Edwards' personal knowledge. MR. LINK: He has or he doesn't. He can answer the question. THE WITNESS: Are you referring to a specific sentence in this article? BY MR. LINK: Q Do you see the words under his picture? A Yes. It says, "Epstein was used as bait." Q Read the sentence. It says, "One way he did it --" talking about Mr. Rothstein -- "was by tricking investors into believing that his firm was representing numerous underaged girls who had sex with Palm Beach billionaire and convicted child sex-offender Jeffrey Epstein, sources have confirmed." A I see that sentence, too. Q And I asked you whether Mr. Epstein was used as bait to attract potential investors. MR. SCAROLA: And I have objected, unless a predicate is laid with regard to Palm Beach Reporting Service, Inc. EFTA00800610
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104 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Mr. Edwards' personal knowledge. THE WITNESS: I would have no way of knowing that. BY MR. LINK: Q And do you see the next sentence says this is November 6 -- "On top of that, Rothstein claimed that he had flight logs showing that Epstein flew extremely prominent people, including former President Bill Clinton, on his private jet with some of the plaintiffs." A I see that sentence. Q The person who obtained the flight logs from Mr. Epstein for his airplanes during the RRA period of representing the three investors (sic) was you, correct? A I was one of numerous attorneys who took pilot depositions. And as a consequence of a subpoena duces tecum, the pilot brought the flight logs to the deposition. So I was one of several lawyers who had access to flight logs as a result of that deposition that we took in the legitimate cases where we represented and Jane Doe, who were actual underaged victims of Jeffrey Epstein's child molestation. That's what happened. Q Did any of those three folks that you Palm Beach Reporting Service, Inc. EFTA00800611
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105 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 represented tell you that they had sex on Mr. Epstein's plane? MR. SCAROLA: Excuse me. I'm going to object. That clearly calls for attorney-client privileged information. BY MR. LINK: Q And when they were asked that question during their depositions in the underlying cases, did any of them testify that they were on Mr. Epstein planes and had sex on them? A When they were asked what they told me? Q No. During their depositions -- not what they told you. When they were asked during their depositions. I am getting away from the attorney-client. It was a good objection. During their depositions they were asked whether they were on Mr. Epstein's plane and had sex with him. Did any of the three folks that the Rothstein firm represented say they were, in fact, on the plane and had sex with Mr. Epstein on his plane? A They were asked that question? Q Do you know whether they were, sir? A No, I don't remember whether they were. They were asked a lot of questions. Palm Beach Reporting Service, Inc. EFTA00800612
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106 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q So if you don't remember, you don't remember. A I don't remember. Q Do you know who the sources are that have confirmed that the Rothstein firm used Epstein as bait? A No. Q You said there were several lawyers -- and let me make sure I understand that. I am talking about the lawyers at the Rothstein firm. I thought you told me that you were the lead lawyer for the three clients with claims against Mr. Epstein during the six months that you were employed at the Rothstein firm. A I did tell you that. Q And you, in fact, were the lawyer for the Rothstein firm that took the depositions of the pilots, true? A Right. Q And so you would have been the lawyer at the Rothstein firm that had received the flight logs from the pilots, true? A All right. Here is what I'm trying to tell you is -- so, Bob Josefsberg was prosecuting cases against Jeffrey Epstein on behalf of -- Palm Beach Reporting Service, Inc. EFTA00800613
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107 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Let me stop you. MR. SCAROLA: No. I'm sorry. MR. LINK: I don't want to interrupt him if he's Jack, he's answering my question. THE WITNESS: I am. MR. SCAROLA: Well, that's fine. You can move to strike the response, but you can't interrupt him. MR. LINK: Actually, I can. MR. SCAROLA: No, you cannot. MR. LINK: My question was really simple. MR. SCAROLA: Well, whether it's simple or not, he's going to answer the question and complete his response. If you find it to be unresponsive, you can move to strike. But he's permitted to complete his answer. MR. LINK: He's actually not. He's not permitted to answer a question I haven't asked. And you know that. MR. SCAROLA: Continue, if you would with your response. BY MR. LINK: Q Mr. Edwards, answer question, please. Palm Beach Reporting Service, Inc. EFTA00800614
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108 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A I am answering question. Q You are? A Yes. Q So my question was really simple. MR. SCAROLA: No, I'm sorry. You are not going to ask another question until Mr. Edwards has had a chance to respond to the question that you already asked when you interrupted him in the middle of his answer. You may not like the answer. You may think it's unresponsive. You can move to strike it. But he gets to finish it. So continue if you would, please. BY MR. LINK: Q So before you continue it -- MR. SCAROLA: No, not before he continues -- BY MR. LINK: Q You are going to answer my question? That's what you were going to do? A Yes, I'm going to answer your question. Q Then answer my question. A So, Bob Josefsberg represented a volume of girls, who, when they were underaged, were molested by Jeffrey Epstein. Adam Horowitz represented six or Palm Beach Reporting Service, Inc. EFTA00800615
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109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 seven girls who were victims of Jeffrey Epstein's molestation. I represented three girls who were victims of Jeffrey Epstein's molestation. Mr. Scarola's firm represented females who were victims of Jeffrey Epstein's molestation, and so did Sid Garcia, and so did Spencer Kuvin. There were so many girls that Jeffrey Epstein molested while they were underaged that there were many lawyers involved. When we took depositions of anyone, all of the plaintiffs' lawyers would decide together whose deposition we were taking, what the objective was, and what evidence that we could obtain from them. With respect to the pilots, the subpoena duces tecum required for the pilot to bring the flight logs. The flight logs were produced at the deposition, and produced so that all of the plaintiffs' lawyers would have them. So to say that I'm the one who got them from the pilot, maybe I was. Maybe it was Jack, maybe it was Bob. But they were copied. And I had access to them for sure. Bob had access to them for sure. All of the plaintiffs' lawyers did at the same time. It wasn't me out on some vigilante mission that got these flight logs. Palm Beach Reporting Service, Inc. EFTA00800616
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110 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 That's the only clarification that I'm trying to make for you. I think that we are not necessarily on a different page with what you want. Q And you think that answer is responsive to my question? A Yes. Was I the person who got the flight logs? That's your question. Q No. I said were you the lawyer at the Rothstein firm -- only asked you about the Rothstein firm. I don't care about Mr. Scarola. He wasn't even at the deposition. I don't care about Mr. Josefsberg, unless you are telling me he gave the flight logs to somebody at the Rothstein firm, and then I will ask Bob if that's true. A It wouldn't be to me. Q That's was my question. Was there somebody other than you that would have had possession of bringing those flight logs back to the Rothstein firm while you were an employee? A From wherever I got it from, right. No. Q Just you, right? A Yes. Q Okay. That was my question. And -- A Apparently I didn't understand it. Sorry. Palm Beach Reporting Service, Inc. EFTA00800617
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111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q I tried to ask it again, but Mr. Scarola insisted that you give me your speech, and that's okay. MR. SCAROLA: Objection. Move to strike. Argumentive. BY MR. LINK: Q Did the flight logs that you took back to the Rothstein firm have information about Bill Clinton, for example, being on the plane? A The flight logs did indicate that Bill Clinton was one of the passengers with Jeffrey Epstein and his co-conspirators on his airplane, yes. Q Do you know whether Mr. Scarola or Mr. Josefsberg or any of the other lawyers that you mentioned when you were discussing the flight logs would have provided that information to Mr. Rothstein? A I wouldn't think that anyone provided that information to Mr. Rothstein. Q I'm asking about the lawyer you mentioned. Mr. Scarola, your lawyer here, who you represented A I don't think so. Q You don't think he gave it to Mr. Rothstein, do you? A No. Palm Beach Reporting Service, Inc. EFTA00800618
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112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q You don't think Mr. Josefsberg did, do you? A No. Q You don't think Mr. Kuvin did, do you? A No. Q You don't think Ted Leopold did, do you? A No. I don't believe anyone did. Q Let's take a look at this next one. (Plaintiff's Exhibit Number 4 was marked for identification.) BY MR. LINK: Q Are you on any medication today for your anxiety? A No. Q Have you ever been on medication for anxiety -- A No. Q Let me just finish. Have you ever been on medication for anxiety since December 2009? A No. Q This is an article dated November 12. This is an article in the Sun Sentinel. "FBI doubts Rothstein ran a Ponzi scheme alone." Do you see that -- A Yes. Palm Beach Reporting Service, Inc. EFTA00800619
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113 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q -- is the headline. Take a minute and take a look at it. A Yep. Q Do you know Mr. John I'm probably saying this wrong -- John Gillies A No. Q -- the head of the FBI in South Florida? When he said, "I do not believe that this was a one-man show." You see that statement? A I do. Q You see that Mr. Rosenfeldt, at the bottom, said that he had no clue about what was going on? A I see a statement in this article that says, Rothstein's partner, Stuart Rosenfeldt, has said he had, quote, no clue, end quote, about the alleged fraud. Q Was that Mr. Rosenfeldt's position during the last few days of the Rothstein firm while you were employed there? A I don't know that I gathered his position about anything. Q You're aware that he filed, on behalf of the law firm, a preemptive lawsuit to appoint a receiver. You knew that? A I do remember it was filed. Those kind of Palm Beach Reporting Service, Inc. EFTA00800620
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114 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 details aren't totally fresh in my mind. I don't know that he filed it as opposed to somebody. I don't know. Q Wasn't it a big deal when you learned out that the firm you were working for had committed a massive 1.some-billion-dollar Ponzi scheme? MR. SCAROLA: Excuse me. I'm going to object to that question. It assumes facts not in evidence, and that is that the firm committed a Ponzi scheme. BY MR. LINK: Q Go ahead? A This was big news to everybody, yes. Q How did you find out? A I remember going to a meeting on -- I believe it was a Monday -- like down in, like, a cafeteria-style -- the bottom floor of the building that the firm was located in. I don't remember exactly what was told to us, but somebody came in and said Rothstein's in Morocco, trust funds are missing, the firm's closing down. I don't think I stayed for much more than that. Q It was a pretty horrific day, I would guess. A Yeah, it was a bad day. Q Is there any doubt in your mind that in Palm Beach Reporting Service, Inc. EFTA00800621
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115 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 early November 2009, that the press and the news covered the implosion of RRA -- A No. Q -- and covered the Ponzi scheme perpetrated at that firm? Right? A No. There's no doubt. Q And so this first sentence is a true, factual sentence from paragraph six A What exhibit are we on? Q We are on Exhibit Number 1, which would be affidavit -- the sworn statement by Mr. Epstein. A Okay, first sentence. Q Is there anything that you would say is inaccurate or untrue about the first sentence of paragraph six? A "In early November 2009, stories in the press, on the news, and on the Internet were legion about the implosion or RRA, the Ponzi scheme perpetrated at that firm, and the misuse in the Ponzi Scheme of certain civil cases then being litigated against me by RRA partner, Edwards." To the extent that it's saying that the press was -- the press was -- that I was involved in the Ponzi scheme, that's not true. Q Does this sentence say you were involved in Palm Beach Reporting Service, Inc. EFTA00800622
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116 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the Ponzi scheme, sir? A Well, it says, "The Ponzi scheme perpetrated at the firm, and the misuse in the Ponzi scheme of certain civil cases then being litigated against me by RRA partner, Edwards." It's trying to imply that. Q Okay. But does it say that? A It implies that. It's not perfectly written. Q Were Mr. Epstein's files being used as part of the Ponzi scheme? A You showed me an article that says that -- Q They were? A Yeah. "One way he did it was by tricking investors into believing that his firm as representing numerous underaged girls who had sex with Palm Beach billionaire and convicted sex offender Jeffrey Epstein." That doesn't say that the cases against Epstein -- it doesn't say anything about the legitimate cases against Epstein. Q I didn't say it did, did I? All I'm asking you is, isn't it a fact isn't it a true fact that these articles say that Scott Rothstein used the Epstein litigation in order to attempt to entice investors to make the investment? Palm Beach Reporting Service, Inc. EFTA00800623
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13.7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. SCAROLA: Excuse me. THE WITNESS: So far you haven't shown me that. BY MR. LINK: Q Then let's go back and take a look at Exhibit Number 3 that we walked through and has Mr. Epstein's picture that says Epstein was bait. A Right. Q You see that? A Yes. Q So I want you to read that -- this article, and tell me if you agree that this article -- whether it was true or not -- that this article suggests that the cases that you were handling as the lead lawyer -- A Right. Q were being used by Rothstein as bait in order to lure investors. A Is there a part of the article that you want to point me to, or do you want me to read this whole article? MR. SCAROLA: Can we agree Mr. Edwards' name appears nowhere in this article? MR. LINK: What does that have to do with anything, Jack? Palm Beach Reporting Service, Inc. EFTA00800624
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118 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. SCAROLA: You just asked him whether the article says that the cases that he was prosecuting were being used as bait. MR. LINK: Sure. MR. SCAROLA: Mr. Edwards' name is not referenced. There's no -- MR. LINK: I never said that it was, Jack. MR. SCAROLA: There's no reference in this article to the cases that Brad was prosecuting. MR. LINK: I never said it was. Is that an objection to the form? What is it? MR. SCAROLA: That's exactly what it is. You are -- MR. LINK: Then say, objection to the form. MR. SCAROLA: You are misrepresenting what the article says. It says what it says. It doesn't identify the cases that Brad was prosecuting. MR. LINK: You didn't hear my question. Listen, I have let you give a lot of speeches today, and they have been very informative and I have enjoyed them. But if Palm Beach Reporting Service, Inc. EFTA00800625
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119 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you have an objection, please just make it to form now. MR. SCAROLA: That's fine. MR. LINK: Thank you. THE WITNESS: Let me just read the article now. MR. SCAROLA: And while Brad is reading the article, could we have the question read back please. (Thereupon, the requested portion of the record was read back by the reporter as above duly recorded.) MR. SCAROLA: Do we agree that what you were asking was whether Brad's cases were being used to lure investors? MR. LINK: That's what I said. MR. SCAROLA: That's right. That's what I've objected to, because Brad's not referenced anywhere in the article. It doesn't say that. MR. LINK: I never said he was. Let's not argue about it. The question is what it is. You got your objection. It's one of my better questions of the day. THE WITNESS: So what this article says Palm Beach Reporting Service, Inc. EFTA00800626
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120 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY MR. LINK: Q Mr. Edwards, do you remember the question? A You can ask it again. Q So let me give you the question to help maybe clarify Mr. Scarola's comments. Were there any other lawyers at the Rothstein firm while you were there that represented any other plaintiffs, other than the three that we have been talking about, in lawsuits against Mr. Epstein? A Well, and Jane Doe were the only case at RRA. Q So the only cases at RRA were the cases that you were the lead lawyer for, correct? A The only legitimate cases against Jeffrey Epstein where the clients were actually molested by Jeffrey Epstein, I was the lead lawyer on. That's what this article is talking about, but yes. Q I just wanted to clarify, because I asked if the cases that you were the lead lawyer on, those three are the cases that this article is discussing that Mr. Rothstein was using? A I doesn't appear to be. What this article appears to be saying is that -- and this is from Bill Scherer -- saying he used Epstein cases as showpiece as Palm Beach Reporting Service, Inc. EFTA00800627