Confidential Due Diligence Report Copyright 2008 The Palm Beach Newspapers, Inc. All Rights Reserved Palm Beach Post (Florida) July 1, 2008 Tuesday SECTION: A SECTION; Pg. 1A LENGTH: 974 words HEADLINE: PALM BEACHER PLEADS IN SEX CASE BYLINE: By LARRY KELLER Palm Beach Post Staff Writer DATELINE: WEST PALM BEACH BODY: He lives in a Palm Beach waterfront mansion and has kept company with the likes of President Clinton, Prince Andrew and Donald Trump, but investment banker Jeffrey Epstein will call the Palm Beach County Jail home for the next 18 months. Epstein, 55, pleaded guilty Monday to felony solicitation of prostitution and procuring a person under the age of 18 for prostitution. After serving 18 months in jail, he will be under house arrest for a year. And he will have a lifelong obligation to register aS a sex offender. He must submit to an HIV test within 48 hours, with the results being provided to his victims or their parents. As part of the plea deal, federal investigators agreed to drop their investigation of Epstein, which they had taken to a grand jury, two law enforcement sources said. Epstein was indicted two years ago after an 11-month investigation by Palm Beach police. They received a complaint from a relative of a 14-year-old girl who had given Epstein a naked massage at his five-bedroom, 7,234- square-foot, $8.5 million Intracoastal home. Police concluded that there were several other girls brought in 2004 and 2005 to an upstairs room at tte home for similar massages and sexual touching. The indictment charged Epstein only with felony solicitation of prostitution. The state attorney's office later added the charge of procuring underage girls for that purpose. Prosecutor Lanna Belohlavek said of the plea: "I took into consideration the length the trial would have been and witnesses having to testify" about sometimes embarrassing incidents. Epstein may have made a serious mistake soon after he was charged. He rejected an