About Me

Welcome to my blog. For those of you who do not know, I was incarcerated at the Federal Prison Camp in Miami, Florida for 11 months. It took six years from the time that I knew I was under investigation to the day I reported to prison. In many ways those six years were worse than the 11 months I actually sat. This blog is going to deal with many of the issues facing people like myself who are just trying to navigate the legal system when they find out they are in trouble and are thrown into the crazy world that is our criminal justice system. My case was kind of high profile so I dealt with it all. I am sharing what I learned so that others will be a little more prepared as to how to deal with various situations and to hopefully shed a little bit of light on what really goes on in the system. Please email me with any questions and if you would like to utilize my consulting services. Appreciate any comments and critiques! Email me at mike@whitecollarguru.com with any questions.

Sunday, July 19, 2020

The Jeff Epstein Netflix Special and Brad Edwards. A Story I have Never Told Before.

I just finished watching the Jeff Epstein special on Netflix. It made me sick to my stomach and if anyone reading this wants to avoid losing their appetite, he or she should not watch this. As a parent of two daughters, it makes me sick. The whole episode is so incomprehensible. From the fact that his crimes went on for so long to the sweetheart deal his lawyers got for him to his ultimate end proves that adage that often times, truth is stranger than fiction.

There is another part of the story that was not covered in the Netflix story. It is a story that maybe five people are privy to. It is a story that I have told to perhaps three people. I am not even sure that I told it to my own lawyers. It is a story that needs to be told. I share this story not out of vengeance not out of malice. I share this story because as a father of two daughters I am outraged. I am outraged at what happened to these girls and I am outraged that law enforcement either covered up his actions or were complicit in the crimes. I am also outraged because while it is terrible that these girls were exploited by Jeff Epstein, while it is outrageous that Alex Acosta allowed him to get away with it,  it is equally abhorrent that they were exploited for financial  by someone else many of these victims trusted. While I generally refrain from talking about my own personal case, I feel that this story merits an exception because as I said, nearly 11 years after I was initially implicated in a crime, it is a story that must be told.

 

When Jeff Epstein was arrested, I did post a blog about him. For those of you who missed it, you can read it here: http://www.whitecollarguru.com/2019/07/will-jeff-epstein-walk-free.html. My personal opinion is that ultimately Jeff Epstein was going to get away with it. Sure, he was going to be in prison until his trial started and possibly would have even been found guilty. However, at some point there was going to be some court, possibly the Supreme Court, that was going to have to tackle the question of whether Epstein’s deal, flawed as it was, did protect him from being prosecuted for all of his related crimes that took place prior to 2008. My personal opinion was that at the end of the day, the law was going to come down on Epstein’s side.  I say this for simple reason that if it would not, then every person who accepted a plea deal, present company included, could, in theory be charged for that same crime in another district. The entire system of plea deal would fall apart at the seams and defendants would no longer accept plea deals. From a purely pragmatic standpoint Epstein’s deal was going to stand.

That, however, is not the story I wish to tell today. I am sure there are many of you who are familiar with my case to varying degrees. But for those who are not and for those who just do not remember, I was involved in a case that purportedly was selling what were effectively viatical settlements. In simple terms, a plaintiff would settle for a payment to be paid out over a period of time and rather than wait, the plaintiff would sell the stream of payments to an investor at a discount in exchange for a lump sum payment up front. This is a common investment pitched by JG Wentworth as well as some other companies. The types of cases ranged from sexual harassment claims to class action to employment issues to qui tam cases and the returns were similarly varied. Unbeknownst to me, and unfortunately for the investors none of the cases actually existed. Ultimately the prosecutors admitted I had no role in that scheme but managed to get me to plea to something else, but that is a story for another time.

 

I am going to take you all back to the summer of 2009. Jeff Epstein had recently been released from prison. At around the same time, Alex Acosta, the person who headed up the US Attorney’s Office for the Southern District of Florida stepped down to become dean of the law school at Florida International University. He also started hanging out in Fort Lauderdale with Scott Rothstein at around the same time. Scott Rothstein was the mastermind behind the viatical settlement Ponzi scheme. I myself met Acosta at least two times at Bova Prime, a restaurant in Fort Lauderdale. For those of you who have watched the Netflix series, you will remember that there are three attorneys representing the victims of Jeff Epstein. It is my belief that representing these victims and getting their stories told is of the noblest cases a lawyer can take. One of those prominently featured is an attorney by the name of Brad Edwards. Coincidentally enough, Brad Edwards joined Scott Rothstein’s firm in 2009 and was a lawyer there at the time Acosta started hanging around with Rothstein. Why did Edwards join Rothstein’s firm? Well according to what I had heard, he was representing a bunch of victims and his firm did not have the financial capabilities to handle the case. His clients certainly had hired him on a pure contingency basis. Scott Rothstein’s firm did, however, have the financial resources to fund the cases. I imagine for Rothstein, it amounted to the opportunity to earn fees from these settlements in exchange for funding these cases. Unfortunately, Rothstein, and it seem ultimately Edwards, and possibly even Acosta had more sinister plans in mind.

 

As I mentioned the cases that were purportedly being funded varied. In September of 2009, a new “class” of cases emerged. We were told that we were now going to be funding cases that were being settled by a defendant named Jeffrey Epstein. At the time, I really had no idea who he was, but was told he had been pleaded guilty to having sex with underage girls, had just gotten out of prison, and was now being sued by these girls. Supposedly, these girls did not want to relive the horror of their experience at a trial (who could blame them) and were willing to settle confidentially out of court for a stream of payments totaling $20 million. Each. These girls were tired of fighting and tired of waiting and anyone who settled was willing to sell their settlement for a one-time lump payment of $10 million. These were by far the largest individual settlements we were funding and quite honestly the reason for the massive discount was its size and the number of cases that had to be settled.

 

Another aspect of these settlements was their confidentiality in nature. In general, there was little if any information available about the underlying case, even to me. Here however, suddenly there was a plethora of information available to me about the Epstein case. I, as well of one or two of the investors, was permitted to go through court filings and even read depositions and see exhibits. The investor that I can say for certain looked at these documents even had a law degree. I vividly remember looking at a flight manifest from Epstein’s plane that had the names of Bill Clinton and Prince Andrew listed. While my memory is not as fresh as it was in 2009, I seem to recall seeing the names David Copperfield, Robert Mueller and Alan Dershowitz as well. According to Scott, the reason these settlements had to be kept so confidential was not because of Epstein; everyone knew he was a rapist. It was the other people who were with him, who may or may not have victimized these poor girls that were forcing Epstein to keep things confidential.

 

The issue I had was that these cases were just too big. I needed more information. I needed to speak with someone who was intimately involved with these settlements. I told this to Scott, and he arranged for me to speak with the lawyer who was representing these women. He arranged for me to speak with Brad Edwards.

 

My conversation with Brad Edwards was direct and to the point. I asked him straight out if these were his clients and he confirmed that they were. I asked him if they were entering into settlements with Jeff Epstein and he confirmed that they were. I asked him why they would not go to court, and he told me that the pain of reliving the experience was just too great for them to bare. I asked why they cannot wait to receive their $20 million and he explained that they have no money and that they were so traumatized by Epstein that they needed their money up front. He claimed his clients also did not believe Epstein would ultimately pay. I then asked him why the discount was so great, and he explained that since there were so many settlements, it would be impossible to fund them all if the cost to the investor was greater. He also made it seem that he was not giving his clients the option to take the stream of payments. He made it seem that he was telling his clients that if the settle, they also have to sell their settlement to the investor so that everyone is the same. There was only one problem with that Edwards was telling me: None of it was true since none of the settlements, as it turned out actually existed.

 

We had looked through thousands of pages of documents. We had read through depositions. We had seen settlement documents signed by Jeff Epstein. As a result of all of that data as well as Brad Edwards’ confirmation we had funded at least $40 million in “Epstein Settlements”. But now even years later I still cannot believe that Edwards lied to my face, that he aided and abetted Scott Rothstein. Watching him today on the Netflix series, having him portray himself as a hero to these women made me sick. Yes, to the extent that he has been their advocate he is to be praised but so should the other two lawyers featured in the series. Unlike the other lawyers, Edwards exploited his clients. The question is why. Why did he lie to all of these investors and exploit his clients in the name of what turned out to be a fraud? Did he do so because he was getting a payment from Rothstein? Surely, that should have come out by now.  Did he do so simply out of loyalty to his boss, as many others had done?  Did he do so because Scott assured him it was no big deal? To this day I have no idea why he did it, I just know he lied to me and as a result of his lies $40 million was lost.

 

It should not be lost what I mentioned before that around the same time we were funding the settlements, Acosta appeared in Rothstein’s orbit. Coincidence? Maybe. I have come to learn that there are no coincidences in life. In the Netflix series, Edwards claims he was left out of all plea discussion surrounding Epstein. He appears outraged! Yet, it is totally unfathomable to me that he and Acosta did not at least cross paths during the summer of 2009. It is unfathomable to me that Scott did not arrange for them to meet. It is unfathomable to me that even if he had heard that Acosta was in the vicinity that he would not have accosted (pun intended) him! The only explanation is that Edwards is a liar and that he (and possibly even Acosta) were complicit in Rothstein’s fraud.

 

Now there is one major problem with my conspiracy theory and a major reason that I am not to believed. Rothstein, in the years following his being sent off to prison for 50 years gave a series of depositions. In one of those depositions he seems to exonerate Edwards and says that Edwards had no idea that his records were being used to perpetuate a fraud. For me this was very confusing, and it has puzzled me for many years. It is especially puzzling in light of the lies Scott spewed about me and many others at his depositions. Yet for Edwards, someone who lied to me, got a free pass. Sure, it is possible that Rothstein simply forgot, but why go out of his way to exonerate the man? It simply made no sense.  Today, as I was watching the Netflix special, it finally came to me. Rothstein had been hoping for a break in his sentence. He was hoping that by implicating others the prosecutors would recommend his sentence be substantially reduced. Let us not forget the position that Alex Acosta had formerly held; he was the US Attorney for the Southern District of Florida. He was appointed by President George W. Bush. In other words, he was the former boss of the same people who had the power to reduce Rothstein’s sentence. Is it really out of the realm of possibility that the prosecutors told Rothstein to keep whatever dirt he had on Acosta to himself? Clearly, since he and Edwards were so connected to the Epstein case, any implication of Edwards would inevitably lead back to Acosta! This is especially so since Acosta left the USAO and started hanging around with Rothstein at the same time Edwards starts helping Rothstein perpetuate a fraud. The prosecutors needed to keep their old boss and by extension out of this mess. Opening up that can of worms would certainly have reflected poorly on the office given the amazing plea deal given to Epstein. It certainly would not have helped Rothstein get a reduction! That is my theory anyway.

It does give rise to another issue and I guess it applies to every defendant in the Rothstein mess. If the prosecutors were trying to protect their old boss and by extension the entire office, it does taint the entire investigation. Prosecutors are able to quite easily steer an investigation in anyway they can. It would seem, that since Epstein was such a big part of the Rothstein scheme that the entire office should have recused itself because of that every conflict relating to Epstein. However, none of them did so. It does call the entire direction into question and could very well be a reason for any of the defendants to appeal their convictions. That however is a side point and not relevant to the story today.

 

So, there you have it. That is my story according to the best of my recollection. In light of the series it is a story that I had to finally put on paper so to speak. I did fund it cathartic to finally get it off my chest as I had been keeping it bottled up for so long. So, will the real Brad Edwards please stand up?


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