WEBVTT - Case May Unearth Secrets of Epstein

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<v Speaker 1>You're listening to Bloomberg Law with June Grasso from Bloomberg Radio.

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<v Speaker 1>Former socialite Gallaine Maxwell spent the last few months at

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<v Speaker 1>a luxurious one fifty six acre estate with cathedral ceilings,

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<v Speaker 1>a barn and views of the mount Sun of pet Foothills,

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<v Speaker 1>hidden away in the woods of Bradford, New Hampshire, the

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<v Speaker 1>type of luxury retreat she'd grown accustomed to as Jeffrey

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<v Speaker 1>Epstein's girlfriend. Now, however, her accommodations are not so glamorous

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<v Speaker 1>and downright confining. Her new digs are at the Metropolitan

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<v Speaker 1>Detention Center in Brooklyn, New York, a place so infamous

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<v Speaker 1>that a magistrate judge once said she was reluctant to

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<v Speaker 1>send women there because of the unconscionable conditions. Maxwell was

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<v Speaker 1>arrested last Thursday in New Hampshire on multiple charges, including

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<v Speaker 1>conspiracy to entice underage girls to engage in illegal sex

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<v Speaker 1>acts with Epstein. Joining me is Bloomberg Legal reporter Patricia Hurtado.

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<v Speaker 1>Pat tell us about Xwell before she met Jeffrey Epstein.

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<v Speaker 1>She's the daughter of a multimillionaire investor who bought a

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<v Speaker 1>lot of newspapers in the UK and the New York

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<v Speaker 1>Dailing News. And his name is Robert Maxwell. And she

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<v Speaker 1>grew up in the UK, born in France, group in

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<v Speaker 1>Britain and educated at Oxford And she traveled in you know,

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<v Speaker 1>prominent circles, and she met Epstein and became his girlfriend

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<v Speaker 1>and seems to have introduced him to a lot of

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<v Speaker 1>you know, high powered people and influential people like Prince Andrew.

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<v Speaker 1>What was her relationship with Epstein, Like, she started as

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<v Speaker 1>his girlfriend and then allegedly it evolved into her sort

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<v Speaker 1>of running this sex ring. Yeah, it's a very strange

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<v Speaker 1>story that they dated and then according to some of

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<v Speaker 1>the victims of sexual abuse by Epstein, they call her

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<v Speaker 1>as kind of like a procurist who not only ran

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<v Speaker 1>his household for him, but also seems to have lured

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<v Speaker 1>these enticed young women into the Epstein's orbit, inviting them

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<v Speaker 1>in and then during sessions she normalized what the prosecutor

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<v Speaker 1>said was you know, a barent behavior. She normalized massages

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<v Speaker 1>that became sexualized. And they the girls who are very young, underaged,

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<v Speaker 1>some from broken homes or very poor would be finding

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<v Speaker 1>themselves in the company of a woman who was there

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<v Speaker 1>and they thought she was their friend. And then suddenly

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<v Speaker 1>they're being asked to disrobe and give him a massage.

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<v Speaker 1>Has she been in hiding or is it the first

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<v Speaker 1>time that they've decided to charge her. Well, there's different stories.

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<v Speaker 1>I mean, if you several newspapers claimed that she was

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<v Speaker 1>in Paris, she was kind of like Zeller everywhere she's No,

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<v Speaker 1>she's in l A. No, she's in Paris, you know,

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<v Speaker 1>while she's on Avenue talk and she's eating outside on

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<v Speaker 1>the Left Bank or whatever. So the government says that

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<v Speaker 1>she has been in the United States since Epstein's arrest

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<v Speaker 1>a year ago this this week, but that she was

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<v Speaker 1>basically hiding. There was money that was transferred. That's where

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<v Speaker 1>she bought this million dollar home hidden away in the

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<v Speaker 1>mountains of New Hampshire and Bradford, New Hampshire. So they

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<v Speaker 1>were saying she was actually in high The government says

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<v Speaker 1>she was actually in hiding, and that's one of the

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<v Speaker 1>arguments they're arguing she should not get bail because she's

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<v Speaker 1>a risk of a high risk of flight. She could abscone,

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<v Speaker 1>she could cut off an electric um ankle monitor and

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<v Speaker 1>take off and they wouldn't be able to find her

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<v Speaker 1>because they she would have had a head start on them.

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<v Speaker 1>Does she have money? Is that known? Uh, It's unclear.

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<v Speaker 1>The government does say that she seems to have been

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<v Speaker 1>the recipient of millions of dollars transferred to her from

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<v Speaker 1>Epstein's accounts, and there's back and forth. It's unclear why,

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<v Speaker 1>but it's like the transfers go back and forth and

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<v Speaker 1>one million will get sent to her on account controlled

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<v Speaker 1>by her associated with Epstein, and then the money would

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<v Speaker 1>get transferred back. This was all before he died in

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<v Speaker 1>jail style last year. So the Southern District came out

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<v Speaker 1>with the charges. What have they charged her with? Yeah,

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<v Speaker 1>there's six counts, including conspiracy, there's alluring and enticing of

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<v Speaker 1>young underage girls for sex. There's also a charge that

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<v Speaker 1>she lied under oath during a deposition where one of

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<v Speaker 1>these victims sued her and she claimed to not know

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<v Speaker 1>what they were talking about. So the government sort of

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<v Speaker 1>added that on as extra and an extra charge that

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<v Speaker 1>she's also lied in criminal cases. It's interesting because they

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<v Speaker 1>charged her with engaging inst activity between and when Epstein

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<v Speaker 1>was case was brought for time period much later. It's

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<v Speaker 1>unclear why, but it sounds like that's what the government

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<v Speaker 1>had the strongest evidence. They have three women unidentified female

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<v Speaker 1>victims who said they were underage miners when she lured

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<v Speaker 1>them into his household and engaged in sexual activity with

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<v Speaker 1>these young women as well as Epstein. Where is she now, Well,

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<v Speaker 1>she's being held at the federal jail in Brooklyn. It's

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<v Speaker 1>in Sunset Park. You can see it off the Dusty

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<v Speaker 1>b Quee and she is being held in presumably solitary confinement.

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<v Speaker 1>It's a federal jail that's been criticized for having terrible conditions,

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<v Speaker 1>and one federal magistrate was presiding over conditions there she

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<v Speaker 1>called so bad she likened them to a third world

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<v Speaker 1>country condition. She is likely to be asking for bail.

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<v Speaker 1>The government is arguing she should not be granted, and

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<v Speaker 1>there will now be a hearing on the field day

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<v Speaker 1>on the Live four team before a federal judge about

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<v Speaker 1>whether she should get bailed. Do we have any idea

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<v Speaker 1>what her defense will be pat it's unclear what her

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<v Speaker 1>defense is. They haven't said anything. The Statute of Limitations

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<v Speaker 1>does not expire when it revolves underage youth for sex trafficking,

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<v Speaker 1>so there's no statute of limitations, even though we're talking

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<v Speaker 1>about crimes that susually happened twenty seven years ago. But

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<v Speaker 1>I'm sure that her lawyers are going to challenge the

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<v Speaker 1>veracity of these women. How do you know what you're

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<v Speaker 1>talking about? How can you be sure that was twenty

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<v Speaker 1>seven years ago? You know your memory it could be

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<v Speaker 1>a very cloudy at this point, and attack them perhaps.

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<v Speaker 1>I mean, there was already an argument posed by f

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<v Speaker 1>Stein's defense lawyers that these women were basically suggesting that

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<v Speaker 1>they were sex workers and not victims um, which was

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<v Speaker 1>not a view too fondly at their original oral arguments

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<v Speaker 1>that they have for Epstein. His lawyers made that argument,

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<v Speaker 1>and the judge didn't take too kindly to hearing these

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<v Speaker 1>young women who are underage. You know, you can't form

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<v Speaker 1>consent if you're fourteen years old, you're not a sex worker.

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<v Speaker 1>Even if you took money, you're not a sex worker

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<v Speaker 1>because you know you're underage. And supposedly Epstein knew that,

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<v Speaker 1>and supposedly she knew it. So there are so many

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<v Speaker 1>questions that people are looking to this case to answer,

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<v Speaker 1>And one of the questions is who else will she incriminate?

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<v Speaker 1>Do we know what the government has against any other people?

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<v Speaker 1>We don't know that. And someone who's suggested to me

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<v Speaker 1>that it's possible that some of the employees that work

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<v Speaker 1>for Epstein, you know, longtime housekeepers say, or some someone

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<v Speaker 1>like an assistant, maybe secretly cooperating. The government has already

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<v Speaker 1>gotten that evidence. Conceivably, she is basically one of the

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<v Speaker 1>key figures in this network and this web of that

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<v Speaker 1>Epstein used to entice these young women. But there are

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<v Speaker 1>possibilities there are people that helped aid him. And there's

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<v Speaker 1>an article today we're writing, um my colleagues writing the

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<v Speaker 1>Deutsche Bank had helped the lawyer working for Epstein to

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<v Speaker 1>make transfers of money. There's possibility that the government has

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<v Speaker 1>said publicly that they would like to interview Prince Andrew,

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<v Speaker 1>and former U S Attorney Jeffrey Berman kept inviting the

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<v Speaker 1>Prince to come and speak. He says he's offered, but

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<v Speaker 1>that the government wouldn't agree to, you know, didn't agree

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<v Speaker 1>to the terms. The government insists they have repeatedly asked him,

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<v Speaker 1>and he's not agreed to. So they want to speak

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<v Speaker 1>to Prince Andrew, what role, under what circumstances they may

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<v Speaker 1>be looking to talk to him, It remains unclear. In

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<v Speaker 1>your article, you mentioned that there's a potential that it

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<v Speaker 1>could tarnish top figures on Wall Street, in Corporate America

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<v Speaker 1>and in Washington. Yeah, and it's intriguing that there are

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<v Speaker 1>papers under seal that in the civil lawsuits that there

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<v Speaker 1>were depositions given in which other men are named and

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<v Speaker 1>one of the name defendants and other individuals like men

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<v Speaker 1>who have sex with these young women. And it's intriguing

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<v Speaker 1>about who would be on that group as those documents

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<v Speaker 1>remain under seal. Do you make anything of the fact

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<v Speaker 1>that prosecutors from the Public Corruption Unit have been assigned

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<v Speaker 1>to the case? You know, I was asking around about that,

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<v Speaker 1>and it could be that it was considered the kind

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<v Speaker 1>of case that possible involved high profiled individuals that may

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<v Speaker 1>have been under suspicion or implicated in this involvement with Epstein,

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<v Speaker 1>and he had a lot of powerful friends and claimed

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<v Speaker 1>to know a lot of powerful influential people. So it

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<v Speaker 1>could be that with the consideration, the government decided to

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<v Speaker 1>go with that unit that has had that experience in

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<v Speaker 1>the past of dealing with potential high profile figures. And

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<v Speaker 1>we need to remember that this case also came after

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<v Speaker 1>Secretary Acosta did a did a plea deal when he

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<v Speaker 1>was the U S attorney with Epstein. So it's the

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<v Speaker 1>kind of thing where if you're going after a descendant

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<v Speaker 1>that already reached a plea deal with a guy who's

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<v Speaker 1>now in the cabinet President Trump's cabinet, whether you want

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<v Speaker 1>to have some prosecutors who have some agility with dealing

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<v Speaker 1>with you know, high influential types that you know, it's

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<v Speaker 1>a it's a hotitay tho that you might want to

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<v Speaker 1>have somebody without that experience to deal with it. Where

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<v Speaker 1>did the civil lawsuits stand? Is there in a state

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<v Speaker 1>of Epstein? Or might they now be able to go

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<v Speaker 1>after her? There is a question if she can. She

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<v Speaker 1>has sought to get access to money from Epstein, and

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<v Speaker 1>there's also a slew of lawsuits by victims against Epstein

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<v Speaker 1>and others involved with him, other employees and his accountant.

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<v Speaker 1>For example. There is the state of money. It's valued

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<v Speaker 1>at more than six hundred million dollars and it was

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<v Speaker 1>in the Virgin Islands that he established it right before

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<v Speaker 1>he connad a suicide. So that money has now been

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<v Speaker 1>made available for potential victims to come forward, and it's

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<v Speaker 1>being operated by people who handled the World Trade Center.

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<v Speaker 1>Non eleven victims fund, So it's another pocket of money

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<v Speaker 1>that's available to victims, and they can come forward confidently

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<v Speaker 1>that they can make a claim and it's going to

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<v Speaker 1>have less it's going to be less restrictive and less

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<v Speaker 1>demanding for establishing a claim than would normally be required

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<v Speaker 1>under a civil suit. And these women might get from

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<v Speaker 1>some financial recourse. You know, some of their lives have

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<v Speaker 1>been destroyed that they have never been the saints since

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<v Speaker 1>they were young girls that were already from maybe a

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<v Speaker 1>poor background or broken home or runaways, and then they

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<v Speaker 1>became victims for for Epstein schemes and they've never recovered

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<v Speaker 1>since then. Is there any talk that there might be

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<v Speaker 1>a plea deal in this case because she has information

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<v Speaker 1>that prosecutors may want, there is a possibility, you know,

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<v Speaker 1>I'm sure that the government would like to have her

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<v Speaker 1>plea guilty and allow her to do some prison time

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<v Speaker 1>and results of a plea deal. Some people have suggested

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<v Speaker 1>that since she's so high ranking, you know, she was

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<v Speaker 1>a very involved, high profile person in his world, she

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<v Speaker 1>might know others, so they would certainly like to hear

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<v Speaker 1>from her. However, they noted, you know, it's a kind

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<v Speaker 1>of thing like when you make a plea deal. Usually,

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<v Speaker 1>don't go after the crime boss. You might go after

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<v Speaker 1>his underlings first and work your way up with cooperators

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<v Speaker 1>until you get to the big top person. And since

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<v Speaker 1>Epstein's death, it robbed the government of having him at

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<v Speaker 1>the center. Now she's the second closest person to the center.

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<v Speaker 1>I'm sure they would love to have her flee guilty,

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<v Speaker 1>but whether or not they would let her walk away

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<v Speaker 1>with too light a sentence doesn't seem possible. Thanks Pat.

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<v Speaker 1>That's Gumber Legal reporter Patricia Hurtado and Brosso and this

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<v Speaker 1>is Ver