Analysis of Possible Corporate Prosecution

In connection with the investigation of Jeffrey Epstein for sex trafficking, we have been asked to analyze the feasibility of bringing criminal charges against one or more Epstein-controlled corporate entities that formally owned properties at which he abused certain minor victims.

The image is not a chart. It contains text that outlines the legal requirements for prosecuting a corporation.

Key information:

• Prosecution requirements for a corporation:
  • Its agent(s) must have committed criminal acts.
  • The acts must have been within the scope of corporate duties.
  • The intent behind the acts must have been, at least in part, to benefit the corporation.
• Context: This information relates to the prosecution of Jeffrey Epstein for sex trafficking offenses.

This memorandum presumes familiarity with relevant prior case memoranda as well as the charges set forth in United States v. Jeffrey Epstein, 19 Cr. 490 (RMB), and similarly presumes that the corporate agent—Epstein himself—committed criminal acts, namely sex trafficking offenses in violation of Tide 18, United States Code, Section 1591.

I. Background and Ownership of Property

On July 2, 2019, a federal grand jury in the Southern District of New York returned an indictment (the "Indictment") charging Jeffrey Epstein with one count of sex trafficking of minors, in violation of 18 U.S.C. § 1591, and one count of conspiracy to commit sex trafficking of minors, in violation of 18 U.S.C. § 371. Beginning in at least 2002, Epstein enticed and recruited dozens of minor girls to engage in sex acts with him, for which he paid the victims hundreds of dollars in cash. He undertook this activity in several locations, including his mansion in Manhattan, New York (the "New York Residence") and his estate in Palm Beach, Florida (the "Palm Beach Residence").

Between 1962 and 1989, prior to Epstein's ownership, the New York Residence was operated as a school, under the auspices of the Birch Wathen Lenox School (the "Birch School"). In 1989, the Birch School sold the property to the Nine East 71st Street Corporation, which at the time was wholly owned by Leslie Wexner, the billionaire founder of the Limited Company. In or about 1998, Wexner agreed to sell the New York Residence to Epstein for $20 million. We believe the change of ownership occurred through a transfer of control of the Nine East 71st Street Corporation, the LLC that had purchased the New York Residence in 1989. Documents we have reviewed reflect that in 2011, ownership of the New York Residence was transferred from one Epstein-controlled entity to another: from Nine East 71st Street Corporation, of which Epstein was President, to Maple, Inc. The New York Residence is valued at approximately $55-86 million, and its parent company owner is herein referred to as the "Corporation."

II. Principles and Requirements of Corporate Prosecution

A. Legal Framework and Application

This image is not a chart. It contains text that defines the conditions for corporate criminal liability under federal law. The conditions are:

• Offenses committed by the corporation's officers, employees, or agents.
• Offenses committed within the scope of their employment.
• Offenses committed at least in part for the benefit of the corporation.

Here, the Corporation—which appears to have existed only as an on-paper holding company for the New York Residence—had no formal business or corporate purpose, and Epstein, who appears to have been its sole officer or member, was not an "employee" and had no defined corporate responsibilities. We have not identified any documents that reflect a statement of corporate purpose or other mission statement for the entity itself, and it does not appear to have had any employees or operations, other than as a holding company.