EPSTEIN
page 1 / 2557 . OCR, unverified
Dataset92 200
--- SOURCE: 0200__EFTA00593790.txt ---
METADATA_SOURCE: 0200
METADATA_FILENAME: EFTA00593790.pdf
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Confidential Attorney-Client Privileged Communication and Work Product.
Please do not forward except as set forth below.
CONTINUED LITIGATION HOLD / PRESERVATION NOTICE
FROM:
ATTORNEYS DARREN K. INDYICE AND BENNET J. MOSKOWITZ
TO:
MATTER: STEVEN JUDE HOFFENBERG, INDIVIDUALLY, AND AS CONSTRUCTIVE
TRUSTEE OF THE NOTEHOLDERS AND BONDHOLDERS OF TOWERS
FINANCIAL CORPORATION, PLAINTIFFS, AGAINST JEFFREY E. EPSTEIN,
INDIVIDUALLY, AND AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
OF THE FINANCIAL TRUST COMPANY, THE FINANCIAL TRUST
COMPANY, XYZ CORP., AND ABC, INC., DEFENDANTS, INDEX NO. 1:16-
cv-03989-RJS (S.D.N.Y.)
**NOTE:
YOU MUST COMPLETE THE WRITTEN ACKNOWLEDGEMENT
ATTACHED TO THIS NOTICE
Confidential Attorney-Client Privileged Communication and Work Product.
Please do not forward except as set forth below.
This Continued Litigation Hold/Preservation Notice is issued to memorialize your document
preservation obligations in connection with a lawsuit commenced by Steven Jude Hoffenberg
("Hoffenberg"), individually, and as Constructive Trustee of the Noteholders and Bondholders
of Towers Financial Corporation (collectively, "Plaintiffs"), on the one hand, against Jeffrey E.
Epstein ("Epstein"), individually, and as President and Chief Executive Officer of The Financial
Trust Company ("FTC"), FTC, XYZ Corp., and ABC, Inc. (collectively, "Defendants"), on the
other hand, concerning Defendants' alleged role in a "Ponzi" scheme in which the bondholders
and noteholders of Towers Financial Corporation ("Towers") were defrauded.
As a matter of background, until April 1993, Hoffenberg was the CEO, President and Chairman
of the Board of Towers.
In 1997, U.S. District Court Judge Robert W. Sweet sentenced
Hoffenberg to a term of twenty years imprisonment and ordered that Hoffenberg pay
$475,157,340.00 in restitution following Hoffenberg's conviction for defrauding the bondholders
and noteholders of Towers through an extensive Ponzi scheme.
On May 27, 2016, Plaintiffs sued Defendants in the United States District Court for the Southern
District of New York by filing a Complaint. Plaintiffs' Complaint essentially alleges that
Epstein is one of the "co-conspirators" referenced throughout Judge Sweet's 1997 opinion
sentencing Hoffenberg, and, accordingly, that Hoffenberg, acting as a constructive trustee on
behalf of the victims of the Towers Ponzi scheme, is entitled to recover damages from
Defendants, including Epstein and FTC, for the benefit of the victims. Hoffenberg v. Epstein,
16-cv-03989, Complaint [Doc. 1] (S.D.N.Y. May 27, 2016).
Hoffenberg alleges that FTC and Defendants XYZ Corp. and ABC, Inc. (which are fictitious
names for unidentified financial and real estate companies, or subsidiaries thereof, including, but
not limited to, holding companies, trust companies and hedge funds, which Epstein allegedly
EFTA00593790
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Confidential Attorney-Client Privileged Communication and Work Product.
Please do not forward except as set forth below.
created, owned or managed) were incorporated and created with funds that were fraudulently
acquired through various Ponzi schemes involving Towers, which Hoffenberg and Epstein
carried out. Id. at
Plaintiffs have asserted causes of action for fraud, conversion and
unjust enrichment, breach of fiduciary duty, and negligence. Id. at ΒΆΒΆ43-71.
During the course of the lawsuit, Epstein and FTC may be asked to produce documents relating
to the parties' claims and/or defenses. It is critical that you continue to preserve documents
potentially relevant to such requests.
In particular, it is essential that you and members of your staff continue to preserve and not
delete, discard, or otherwise destroy documents related to/concerning Towers and/or Hoffenberg;
and/or otherwise related to/concerning the subject matter of Plaintiffs' allegations described
above. This instruction to continue to preserve documents supersedes and takes precedence over
your standard document retention policies and practices. Failure to preserve documents that are
relevant to the lawsuit could provide significant obstacles to Epstein's and/or FTC's claims and
defenses and could result in serious penalties.
The documents, which must be preserved, include hard copy paper documents as well as
electronically stored information ("ESI") on your computers or other electronic storage devices.
ESI should be afforded the broadest possible meaning and includes potentially relevant
information stored in central repositories (such as file servers, e-mail servers, databases,
voicemail systems, websites, social networking sites, SharePoint sites, eRooms, and similar
collaborative workspaces), as well as locally stored information including on work and personal
computers, mobile phones, portable drives, "thumb drives," CDs, DVDs, and other portable