Federal prosecutors' letters to Bear Stearns on Epstein subpoena, Aug.–Sept. 2007

EXHIBIT 198¶

500 South Australian Ave., Suite 400 West Palm Beach, FL 33401 (361)8204711 Facsimile; (561) 820-8777 Dime Did: (561) 20P-1047¶

September 6, 2007¶

VIA. FACSDMI¶

Mr. David Petercsak Bear Steams 320 Park Avenue, 12th Floor New York, NY 10022¶

Re: Subpoena to Bear Stearns companies. Inc.¶

Dear David:¶

I apologize for the delay in sending this letter. The primary date ranges for documents and information related to meetings with Mr. Epstein are the months of July 2_0. 04, March 2005, April 2005, September 2005, and October 2005.¶

Please let me know when I can expect the list of accounts at other financial institutions that Bear Stearns has either transferred money to or received money from on behalf of Mr. Epstein, so that I may narrow the financial records request accordingly. You also had mentioned that you expected to have some documents ready to produce at around this time. I would appreciate an update in that regard so that we can discuss whether an appearance before the grand jury by the Custodian of Records is required.¶

Thank you for your assistance with this matter, and if you have any questions or concerns, please do not hesitate to contact me.¶

cc: Dennis Block, Esq.¶

By:¶

Sincerely,¶

R. Alexander Acosta United States Attorney¶

A. Marie Villafaila Assistant United States Attorney¶

A. Marie Villafaila 500 S Australian Ave, arh Floor West Paint Beach, Florida 33401 (561) 820-8711 Fru:simile (561)820-8777¶

FACSIMILE COVER SHEET¶

TO: David Petertsali,¶

FAX NO. 917-849-2172 PHONE NO. 212-272-4266¶

CC: -Dena Block. Esq.¶

PAX NO. 212-SO4-557 PHONE NO. 212-504-5555¶

DATE: September 6.2007 # OF PAGES: 2¶

RE: Dear Stearns Subnoena¶

FROM: A. MARIE VILLAFASIA. Assistant U.S. Attorney¶

PHONE NO. 561 209-1047¶

COMMENTS:¶

United States Attorney Southern District of Florida¶

A. Marie Villafaña 500 S. Australian Ave, 4th Floor West Palm Beach, Florida 33401 (561) 820-8711 Facsimile (561) 820-8777¶

FACSIMILE COVER SHEET¶

TO: David Petercsak¶

FAX NO. 917-849-2172¶

PHONE NO. 212-272-4266¶

CC: Dennis Block, Esq.¶

FAX NO. 212-504-5557¶

PHONE NO. 212-504-5555¶

DATE: August 27, 2007¶

OF PAGES: 3¶

RE: Bear Stearns Subpoena¶

FROM: A. MARIE VILLAFAÑA, Assistant U.S. Attorney¶

PHONE NO. 561 209-1047¶

COMMENTS:¶

500 South Australian Ave., Suite 400 Watt Palm Beach. FL 33401 (56)) 820.8711 Facsimile. (561) 820-8777 Direct Dial: (561) 209-1047¶

August 27, 2007¶

WA FACSIMILE¶

Mr. David Fetercsak Bear Steams 320 Park Avenue, 12th Floor New York, NY 10022¶

Re: Subpoena to Bear Stearns Companies. Inc,¶

Dear David:¶

It was a pleasure speaking with you and your colleagues today. As we discussed, here is a list of the entities related to Jeffrey Epstein of which I am aware:¶

1. J. E1 Virgin Islands Foundation, Inc.?
1. J. Epstein & Company, Inc.,’
1. Epstein Interest4)
1. Financial Trust Company, Inc.Qt) ties PerurieS
1. NES. LLC tars {sup}4044
1. New York Strategy Group, Inc. 0
1. JEGE, Inc e•
1. Hyperion Air, Inc. 0/

W Bear Steams knows of other entities where Jeffrey Epstein is the chief executive officer (or chief operating officer) or is the sole owner/shareholder, then please provide information regarding those entities, as well.¶

As we discussed, if you could provide me with a list of accounts at other financial institutions that Bear Steams has either transferred money to or received money from on behalf of Mr. Epstein, I may be able to narrow the financial records request accordingly.¶

MR. DAVID P£IFACSAK AUGUST 27, 2007 PAGE 2 oft¶

I will be meeting with the case agents tomorrow, and I will try to narrow the date ranges for information regarding meetings with Mr. Epstein. I will send a letter with that information tomorrow or Wednesday.¶