Memorandum SubjectDate Re: Operation Leap Year May 1, 2007 (Revised 9/13/07) ToFrom R. Alexander Acosta, United States Attorney Jeff Sloman, First Assistant United States Attorney Chief, Criminal Division MAUSA, Northern Region Chief, Northern Region M, I. Introduction This memorandum seeks a royal for the attached indictment charging Jeffrey Epstein, a/k/a 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. aF 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 a 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. The investigation initially was undertaken by the City of Palm Beach Police Department in res nse to a complaint received from the parents of a 14-year-old girl, "Jane Doe #16," from . When Jane Doe #16 and another girl began arguing at school because the other girl accused Jane Doe #16 of being a prostitute, one of the school principals intervened. The principal searched Jane Doe #16's purse and found $300 cash. The principal asked Jane Doe #16 where the money came from. Jane Doe #16 initially claimed that she earned the money working at "Chik-Fil-A," which no one believed. Jane Doe #16 then claimed that she made the money selling drugs; no one believed that either. Jane Doe #16 finally admitted that she had been paid $300 to give a massage to a man on Palm Beach Island. Jane Doe #16's parents