Memorandum Subject Date Re: Operation Leap Year May 1, 2007 To From R. Alexander Acosta, United States Attorney Jeff Sloman, First Assistant United States Attorney Chief, Criminal Division MAUSA, Northern Region Chief, Northern Region a(' I. Introduction This memorandum seeks approval for the attached indictment charm Jeffrey Epstein, JEGE Inc., and Hyperion Air, Inc. The proposed indictment contains 60 counts and seeks the forfeiture of Epstein's Palm Beach home and two airplanes.' The FBI has information regarding Epstein's whereabouts on May 16th and May 19th and they would like to arrest him on one of those dates. Epstein is considered an extremely high flight risk' and, from information we have received, a continued danger to the community based upon his continued enticement of underage girls. For these reasons, we would like to present a sealed indictment to the Grand Jury on May 15, 2007, and we would like the presentation of that indictment and the status of the investigation to remain confidential. Epstein's crimes are considered crimes of violence and negotiation with his attorney's may undermine our arguments for pretrial detention. 'Each of the airplanes is held in a separate "shell corporation," JEGE, Inc., and Hyperion Air, Inc. Epstein is the sole shareholder in both of these corporations and they serve no purpose other than to hold and maintain the airplanes for Epstein's personal use. Because these assets are not held as personal property in Epstein's name, I have indicted the two corporations, which will be named as co-conspirators and as aiders and abettors in the relevant offenses. 'Epstein's resources are virtually limitless. In addition to the two airplanes, one of which cost $42,000,000, he has homes around the world, and a fortune estimated to exceed $1 billion. EFTA02857524