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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301 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 BY MR. SCAROLA: Q Mr. Edwards, one of the things I have seen is that you have been -- you have gotten awards and accolades and different recognition by your peers over the years, right? A Mr. Haddad and I talked about this ad nauseam at my second deposition, so yes. You've noticed the same thing that your predecessor noticed. Q What I was going to ask you is, I didn't see any such accolades or awards before December 2009. Were you rated by Martindale-Hubbell before December 2009? A This is the same line of questioning. We are just rehashing the same thing. Q So you don't want to answer? MR. SCAROLA: I will let you answer THE WITNESS: It's not that I don't want to answer, it's just wasting time. MR. SCAROLA: I will let you answer that one question. THE WITNESS: I don't know. When Mr. Haddad told me last time all of the accolades, it was -- most of it was news to me. Some of the things I didn't even know about. Martindale-Hubbell, I do. Palm Beach Reporting Service, Inc. EFTA00800808
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302 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 Was I rated before that? I don't know. You would have to go back. BY MR. LINK: Q So the things in this exhibit -- A It's mainly Martindale-Hubbell. Q -- 20 -- 30 -- 23 -- 23. MR. SCAROLA: Twenty-five. MR. LINK: Twenty-five? MR. SCAROLA: Yes, sir. BY MR. LINK: Q Exhibit 25, you're aware of all of these because you ordered plaques, right? A I personally didn't. Did my firm? I don't know. Like, I have never seen this before. I don't know what this organization is. I haven't seen it. Was it ordered? Possibly. Q Do you put these plaques up in your office? A I may have three plaques up in my office. No. I don't have all these plaques. Q You don't have all these plaques up in -- where are you storing your plaques? A I don't know. That's a good question. "Highest possible rating in both legal ability and ethical standards." I feel like I would have remembered seeing this plaque. I haven't seen Palm Beach Reporting Service, Inc. EFTA00800809
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303 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 it. Q But you see the picture of the plaque? A I do. Q With your name on it? A You've made a great exhibit here. I'm going to use it in my next presentation. MR. SCAROLA: Marketers send you these things with a picture of your plaque all the time. MR. LINK: Not me. They know better. Why don't we take a couple minute's break. Let me sort through some of this and see where we can get to to move it along. How's that? THE WITNESS: Anything to move it along. MR. SCAROLA: Sounds promising. THE VIDEOGRAPHER: The time is 5:15 p.m. We are going off the record. (A recess was had.) THE VIDEOGRAPHER: The time is 5:35 p.m. We are back on the record. BY MR. LINK: Q Mr. Edwards, Bill Corte, who is he? A He's an IT guy. Palm Beach Reporting Service, Inc. EFTA00800810
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304 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 Worked at the Rothstein firm? A Yes. Q And did he join the firm that you guys set up, Farmer A No. Q Tell me the name of the firm again. A Farmer, Jaffe, Weissing, Edwards, Fistos & Lehrman. Q Did not join them? A No. Q Did you work with him while he was at Rothstein when you were employed there? A We were both employed there. Q Did you work with him on any of the Epstein files? A No. He didn't work on Epstein files. He was an IT guy. Q I understand. Did you use him for any part of the Epstein cases? A I don't think he worked on any -- we didn't have any IT needs, I don't believe. Q We talked earlier about the settlement with the three clients that you represented when you were at Rothstein, and I think the number was Palm Beach Reporting Service, Inc. EFTA00800811
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305 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 5.2 million -- A It was 5.5 million. It settled in July of 2010, not while I was at Rothstein. Q No, I understand. They were the three same three clients you represented while you were at Rothstein's, right? A Yes. Q Can you tell me, of the 5.5, how much did the three collectively collect from that? A I don't remember that. Q You didn't take those cases on a pro bono basis, did you? A No. It was a contingency arrangement, similar to my arrangement with Mr. Scarola in this case. Q Okay. I understand. I understand. So that contingency, do you remember what percentage the contingency was? A I don't. Q Was it a third, 40 percent? A Probably -- I don't know. But the standard is between zero and a million, 40 percent if it's in litigation; 1 to $2 million, 30 percent; and then over $2 million, 20 percent or something. There's a sliding scale. That's probably what was used. Palm Beach Reporting Service, Inc. EFTA00800812
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306 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 Somewhere in that range, though. So on average between 30 to 35 percent on total? A Yeah. Q Did your clients fund their expenses in the litigation? A No. Q You fronted the expenses for them -- the law firms did? A Yeah. Q The expenses that were fronted by the Rothstein firm, were they ever collected? A What do you mean by that? Q So I assume when you were at the Rothstein firm there were expenses advanced on behalf of the three clients, right? A Right. Q And when Rothstein's firm went away, were those expenses that the Rothstein firm advanced ever paid to the trustee -- A Yeah. Q -- or paid back -- A Yeah. Q They were? A Yes. Q And how much was paid to the trustee for Palm Beach Reporting Service, Inc. EFTA00800813
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307 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the expenses? A I don't remember that. I think this was asked in a prior deposition and I gave the answer. I remember this line of questioning, and I knew then. I just don't now. Too many years have passed. Q But there is some amount of the recovery that went to the trustee, right? A Yes. Q Do you remember what the total costs were that the three clients had deducted from the settlement amount? A I don't. Again, I definitely testified about this at a time that I knew it, which was either my second or third deposition. I don't remember anymore. Q Do you have a rough estimate in your mind about what the expenses were or the costs that were advanced? A Approximately $200,000. Q When -- at the Rothstein firm, the four-plus investigators that would work on the matter, would they record their time as an expense that the clients would pay? A No. Q They did not. So a couple hundred thousand dollars in Palm Beach Reporting Service, Inc. EFTA00800814
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308 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 costs, roughly 30, 32 percent contingency fee. I got that about right? A Yeah. I mean based on the math that we're doing. Again, I'm approximating based on -- Q I understand. A Yeah. Q So -- that's really hard math. I like a round number. Roughly a million six or seven in fees to your -- to the firm? A It wasn't that much, because we had to pay a portion of the fees to the trustee, too. Q Oh, they got a portion of the fees and the cost? half. A Yes. Q Do you remember what portion they got? A I don't. Q Half? More? Less? A I just don't remember. I think less than Q Do you? All right. Other than -- A It worked out based on how long different lawyers were there. And I was at RRA for such a short period of time that it would not have been half. That's my deductive reasoning that leads me to answer Palm Beach Reporting Service, Inc. EFTA00800815
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309 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 question that way. Q I got it. So there was -- obviously there were three firms that had an interest in whatever the fee recovery was. Brad Edwards, PA? A Yep. Q The Rothstein firm? A Wait. No. Brad Edwards, PA didn't It was the Rothstein firm -- when I came to that firm, all of my cases became RRA cases. I didn't retain -- Q Separate interest -- A No. I didn't retain any separate interest. I just became an employee of a firm. Q And gave them the cases? A They were their cases. Q I got it. A So when I left, I took the cases with me because there was no RRA anymore. Q I didn't understand. Let me make sure I got this. When you left Brad Edwards, PA and became -- the salaried employee? A Yes. Q Salaried employee -- you brought those cases with you and did not retain any percentage in Palm Beach Reporting Service, Inc. EFTA00800816
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310 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 those cases? A Correct. Q Got it. And when those case leave and go to the new Farmer firm, those cases go with, and there's an agreement with the trustee for Rothstein about how fees and costs will be shared? A Exactly. MR. LINK: Thank you very much. I have questions only as to the areas that you instructed him not to answer. But other than that, I'm finished. CROSS-EXAMINATION BY MR. SCAROLA: Q Brad, there were a number of questions asked of you in regard to signatures on documents that you do not recognize. But you testified that it was your intent that those documents be filed under your authority; is that correct? A Right. Q Do you have any reason to believe that, although you did not recognize those signatures, that those documents were signed without your authority? A No. As I explained, I authorized the cases to be filed. And any attorney could sign the pleading and have it filed. It was my pleading. I wanted it to Palm Beach Reporting Service, Inc. EFTA00800817
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311 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 be filed. Attorneys sign pleadings for people all the time. So I authorized it to be filed. Q There was -- A I think that the implication was that I authorized somebody to sign my signature. I didn't authorize anybody to sign my signature. I authorized the cases to be filed -- an attorney could sign it, get it filed. Q Was that an unusual circumstance? A No. Q Was it unique in any respect with regard to anything having to do with the Epstein cases? A No. Q Is it unusual in your experience for other lawyers to operate in the same fashion? A No. I signed pleadings. People sign pleadings for me. It happens in every law firm that I know, so -- Q You were also asked questions about your knowledge of the compromise of claims based on Jeffrey Epstein's intimidation. Did you have any authority to settle claims without the knowledge and consent of your clients? A No. Q Did you have any authority to refuse to Palm Beach Reporting Service, Inc. EFTA00800818
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312 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 settle claims where your clients directed that their claims be compromised? A Repeat that question again. Q Yes. You told us that you couldn't settle a claim without your clients' authority. Did you have any authority to refuse to settle a claim where your client directed you to settle it? A I did not. And as I explained, I wanted to try all of those cases and not settle them. I settled them because the clients wanted them settled. Q Did Jeffrey Epstein's intimidation of clients, to your knowledge, and without violation of any attorney-client communication privilege, have an impact on the amount for which claims against Jeffrey Epstein were being settled? MR. LINK: Object to the form. You are going to testify about what the client said but you are not waiving the privilege? MR. SCAROLA: No. I'm asking him whether from his perspective, as the trial lawyer on those cases, whether Jeffrey Epstein's intimidation had any impact on the amount for which the claims were settled. THE WITNESS: We are talking about just the cases that I handled or all of the Palm Beach Reporting Service, Inc. EFTA00800819
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313 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 cases? BY MR. SCAROLA: Q Right now I'm talking about just cases that you handled. A Of course. It wasn't just my clients. Every single one of the girls were scared to death of Jeffrey Epstein and his intimidation, and my clients were no different. It was the same. His intimidation was very successful in reducing the amount that should been paid to every single one of these abused girls very successfully. MR. LINK: I am going to object and move to strike as inconsistent with the testimony that you already gave under oath to me, but you may continue. BY MR. SCAROLA: Q Do you have an opinion with regard to the full value of the claims of the three clients that you represented? A Sure. Q Did the value of those claims exceed the amounts for which they actually settled? A Of course. Q What are the factors that go into the assessment of the value of a claim against Jeffrey Palm Beach Reporting Service, Inc. EFTA00800820
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314 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Epstein? MR. LINK: Object to the form. THE WITNESS: In my view, it was the disparity of age between Jeffrey Epstein and the particular victim. The way -- the types of conduct, specifically, that Jeffrey Epstein engaged in with the particular victim. It wasn't all identical. The psychological control that Jeffrey Epstein gained over the particular victim, the method that he gain that control over the particular victim, and the lasting impact that his abuse played in that particular victim's life. Some recovered better than others. Some didn't do well at all. MR. LINK: When you say some, are we talking about your three clients? THE WITNESS: I think we're talking about how do you go into evaluating a claim against Jeffrey Epstein. MR. LINK: Generically, unrelated to anyone specifically? MR. SCAROLA: Generically. MR. LINK: Okay. Palm Beach Reporting Service, Inc. EFTA00800821
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315 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE WITNESS: And then -- and then it was an assessment of punitive damages, which, from the best that any of us could tell, it appeared that his net worth was going to be in the range of $2 billion. And the idea of punitive damages was to punish him for the conduct that he committed against that particular victim as well as to deter him from engaging in similar conduct. So understanding just how many other victims had been abused, how long he had been abusing these victims, with what -- with what frequency he was engaging in this conduct, were all variables that would go into making a determination just what amount of money somebody would have to assess against him to deter him from this habitual conduct that he had been engaged in for many years. So when I put into a complaint that we were requesting $50 million -- which is the exact same number that Jeff Herman put into his complaint -- I thought that was a very fair number. And in fact, I always knew that if you Palm Beach Reporting Service, Inc. EFTA00800822
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316 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 took a billion dollars from Jeffrey Epstein and left him with a billion dollars, you would not have actually satisfied the rule under punitive damages, because he would not have been deterred from that future conduct and using his money to create this pyramid of underaged girls that he could abuse. So all of that was what went into how I assessed the value of all of these cases. BY MR. SCAROLA: Q Your earlier testimony established that there were two separate cases filed in different jurisdictions on behalf of One claim filed in state court, one claim filed in federal court, correct? A Correct. Q You have also acknowledged that both of those claims arose out of the same misconduct on Jeffrey Epstein's part, correct? A That's correct. Q Did the federal lawsuit seek the same relief that the state lawsuit sought? A No. Q Explain that, if you would, please. A So when Jeffrey Epstein agreed to a Palm Beach Reporting Service, Inc. EFTA00800823
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317 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 non-prosecution agreement with the federal government, there was a provision within that agreement that said that if one of his victims brought a case against him exclusively under 18 USC 2255, then only under that circumstance of bringing that case exclusively under that count would Jeffrey Epstein not contest liability and agree to a minimum statutory damage amount of $150,000. He later contested and said that an earlier application of the statute applied and it should only be $50,000. But nonetheless, that was the general principle. That statute did not allow for punitive damages. And as I just explained, we assessed the punitive damages as being extraordinary in the case. So that's the answer to that question in terms of the difference of the damages that we were claiming in the state action, which contained a claim for punitive damages and proceeded under common law theories of battery or intentional affliction, emotional distress. Those kinds of things in the federal claim was to proceed under 18 USC 2255. What happened in the summer of 2009 was that it was realized -- like I said, not by me -- it was initially realized by Mr. Cassell, but I agreed, Palm Beach Reporting Service, Inc. EFTA00800824
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318 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that III.'s case was proceeding only in state court, and that we had not taken advantage at all of the provision in the non-prosecution agreement, which would allow for statutory damages under 18 USC 2255, and that 's birthday -- 21st birthday, I believe -- was coming up in August, and that the statute of limitations would run -- or begin to run at that birthday for bringing the 2255 claims. Q Explain to the ladies and gentlemen of the jury, if you would please, what the statute of limitations as applied under the circumstance meant. What was the significance of the statute of limitations? A Well, the statute of limitations in any sense is you only have so long from the time that the tort or the crime is committed to bring a claim, otherwise it's waived forever. So what we did not want to do is fail to bring the claim under 2255 and that claim expire at her 21st birthday, and it ultimately be a more beneficial claim to have brought and us not have the ability to bring it any more. Because it was also around that same time that we began to believe that -- there was an argument -- and perhaps the right argument -- the argument that I still believe Palm Beach Reporting Service, Inc. EFTA00800825
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319 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to this day probably we would win on, but it never got tested -- was that while Jeffrey Epstein, under 2255, would have to agree -- if you exclusively sued him under that -- would have to agree to admit to liability and to statutory minimum damages of 150,000. It was his position that that would be the maximum regardless of the number of times that he molested that particular person. IMIIIII's circumstance, she had been molested by him for years and dozens and dozens and dozens of times. I don't know how many times. Maybe 100 times while a minor. So we started to think, you know what, if you settled one of these cases for $150,000, it's grossly undervaluing the case. If he has to admit to liability and you can multiply 150,000 times the number of offenses that he committed, it saves that victim from having to endure extensive discovery and intimidation that they -- especially -- was having to endure. And if we win that argument, then that's definitely the best way to try this case, especially for Q Why that difference? Why would be shielded from abuse to which she was subjected in the state court proceeding if the determination was made to proceed in federal court under 18 USC 2255? Palm Beach Reporting Service, Inc. EFTA00800826
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320 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 A If that determination was made in federal court, she would not have been shielded in state court, but we could have dismissed the state court claim and only proceeded under the federal case. Then we would be presenting a case in front of the jury where all of the -- let's call it dirt that Jeffrey Epstein had dug up about would not be -- would not all have to come into evidence, and we could save her some of the problems that we assessed as being problems with her case. Q You spoke about the statute of limitations andM turning 21. What is the statute of limitations that applies in a federal 18 USC 2255 claim? A From recollection, there were two readings of the statute. I haven't seen the statute in a long time -- at least in a while -- but it's -- it uses some language that it's three years from the date that the disability no longer exists, which we interpret as her being a minor. So I think it's three years from the time that she's no longer a minor. So at the time she turned 21, there was an argument that her 2255 claims, if we chose to proceed under them, would have expired. Q Did the timing of the filing of that Palm Beach Reporting Service, Inc. EFTA00800827