From: Daniel Sabba Sent: 5/27/2015 5:43:54 PM CC: Chip Packard Stewart 0ld Todd Steven To: Paul Morris Subject: JE follow-up - past litigation with Citi. [SC] Classification: Strictly Confidential Paul — were you aware JE sued Citi7 You mentioned today you assessed the likelihood of JE being a litigious client negligible, so would like to get more clarity on the lawsuit below. Many thanks, Daniel FINANCIAL TRUST CO., INC. v. CITIBANK N.A. ryo 0W2002-108 268 F Supp 2d 561 (2003) FINANCIAL TRUST COMPANY, INC. and Jeffrey E. Epstein, Plaintiffs, v. CITIBANK, N.A. and Citigroup, Inc. d/b/a "Citigroup," Defendants. District Court, Virgin Islands, D. St. Thomas and St 'kiln. June 19, 2003. Maria Tankenson Hodge, Hodge S Francois, St. Thomas, VI, for the plaintiffs. Gregory H. Hodges. Dudley, Topper and Feuerzeig, LW, St Thomas. VI, for the defendants. MEMORANDUM OPINION MOORE, District Judge. After careful consideration of the parties' written and oral arguments, I will deny the defendants' motions to dismiss for lack of personal jurisdiction and to transfer this case to New York. Further, I find that the amended complaint adequately states claims of breach of fiduciary duty and negligent misrepresentation. Finally, I will grant the defendants' motion to dismiss Counts I, II, Ill, and VI for failure to meet Federal Rule of Civil Procedure 9(b)'s heightened pleading requirement for fraud, but I will grant leave for the plaintiffs to amend their pleadings. I. FACTUAL AND PROCEDURAL BACKGROUND In their amended complaint, Jeffrey E. Epstein ["Epstein") and Financial Trust Company, Inc. ("FTC") [collectively "plaintiffs") allege that Citibank, N.A. ('Citibank") and Citigroup, Inc. ("Ciligroup, [collectively "defendants") misrepresented facts and fraudulently induced them to borrow $10 million to invest in a venture managed by AIG Global Investment Corporation ["AIG"). The plaintiffs allege that the defendants failed to disclose information and