Latest / The Vault: The Epstein Files / The Epstein Estate's Opposition To The USVI Intervening In Probate Proceedings (11/1/26)

Transcript

The Epstein Estate's Opposition To The USVI Intervening In Probate Proceedings (11/1/26) · The Vault: The Epstein Files

• 0:00
  Speaker 1: What's up everyone and welcome back to the Epstein Chronicles.
• 0:04
  Speaker 1: In this episode we're going to dive back into those
• 0:06
  Speaker 1: Epstein court documents and this time we're going to be
• 0:10
  Speaker 1: looking at the opposition to the government's motion to intervene.
• 0:16
  Speaker 1: Probate number ST-19-PB-80. Opposition to government's motion to intervene. Comes now.
• 0:26
  Speaker 1: the co-executors of the estate of Jeffrey E. Epstein, the estate,
• 0:31
  Speaker 1: Darren K. Endyke, and Richard D. Kahn, by and through
• 0:34
  Speaker 1: Keller Halls, Ferguson, Croblan, PLLC, and hereby oppose the motion
• 0:39
  Speaker 1: to intervene filed by the government of the Virgin Islands.
• 0:43
  Speaker 1: Because the GVI's motion to intervene is flawed, both substantively
• 0:48
  Speaker 1: and procedurally, the court should deny that application. Part 1.
• 0:53
  Speaker 1: The proposed intervention serves no proper purpose. The GVI asserts
• 0:57
  Speaker 1: that its intervention in this probate proceeding is, in part,
• 1:01
  Speaker 1: required to ensure that the administration of the estate conforms
• 1:05
  Speaker 1: to the laws of the Virgin Islands. Motion to intervene
• 1:08
  Speaker 1: at 1. That is nonsense. Under Virgin Islands law, it
• 1:12
  Speaker 1: is the court's charge, not the GVI's, to oversee the
• 1:16
  Speaker 1: proper administration of estates and ensure that they're compliant with
• 1:20
  Speaker 1: the Virgin Islands law. The Superior Court has original jurisdiction
• 1:24
  Speaker 1: to supervise and administer estates and fiduciary relations. Virgin Island
• 1:30
  Speaker 1: Code 4, Section 76A. The Superior Court has jurisdiction and
• 1:36
  Speaker 1: the power to administer justice in all matters relating to
• 1:39
  Speaker 1: the affairs of decedents to try to determine all questions,
• 1:43
  Speaker 1: legal or equitable, arising between any or all of the
• 1:47
  Speaker 1: parties for any proceeding. as to any and all matters
• 1:52
  Speaker 1: necessary to be determined in order to make a full, equitable,
• 1:56
  Speaker 1: and complete disposition of the matter by such order or
• 1:59
  Speaker 1: decree as justice requires. Virgin Island Code 15, Section 161.
• 2:06
  Speaker 1: The court is unrestricted in its power to dispose of
• 2:09
  Speaker 1: such cases as justice requires and is explicitly authorized to
• 2:13
  Speaker 1: grant letters of administration, direct and control, and executor or
• 2:18
  Speaker 1: administrator's conduct. distribute assets, and order the sale of the
• 2:23
  Speaker 1: deceased person's property. Otley v. The Estate of Bell, 61, VI, 480, 489, 490, VI, 2014.
• 2:31
  Speaker 1: The GVI offers no explanation for why it believes the
• 2:36
  Speaker 1: court is not up to that task, nor does the
• 2:39
  Speaker 1: GVI explain why it waived more than five months to
• 2:43
  Speaker 1: seek to intervene in this proceeding, which the co-executors commenced
• 2:48
  Speaker 1: on August 15th, 2019. That the GVI decided to wait
• 2:53
  Speaker 1: two weeks to commence civil actions and file criminal activity
• 2:57
  Speaker 1: liens against the estate is a self-created emergency. The GVI
• 3:01
  Speaker 1: has long known that Mr. Epstein, and now the estate,
• 3:05
  Speaker 1: own substantial real property in the Virgin Islands. The GVI
• 3:10
  Speaker 1: also purports to find a potential conflict of interest in
• 3:13
  Speaker 1: the co-executor's administration of the estate. in particular in proposing
• 3:18
  Speaker 1: to hire independent, nationally recognized claims administration experts to design
• 3:23
  Speaker 1: and implement the proposed Epstein Victims' Compensation Program. Motion to
• 3:28
  Speaker 1: intervene at 1. The purported conflict does not exist. The
• 3:32
  Speaker 1: mere existence of a possible adverse interest without more is
• 3:36
  Speaker 1: not sufficient grounds for a complaint in the Virgin Islands.
• 3:40
  Speaker 1: See Estate of Vos, 317, F. 2d, 281, 282, N. 4, 3rd Circuit, 1963.
• 3:48
  Speaker 1: Here the co-executors do not have an interest adverse to
• 3:52
  Speaker 1: the estate which would prevent them from faithfully administering their
• 3:56
  Speaker 1: fiduciary duties, nor is there any allegation of neglect or
• 4:00
  Speaker 1: dereliction of their fiduciary duties. Indeed, there is absolutely no
• 4:05
  Speaker 1: evidence that the co-executors' manner and conduct in executing their
• 4:09
  Speaker 1: office has run afoul of the standard of care required
• 4:13
  Speaker 1: of an executor. There is, and can be, no allegation
• 4:17
  Speaker 1: that the co-executors have been unfaithful to their trust. It
• 4:21
  Speaker 1: cannot be a conflict of interest for the co-executors to
• 4:24
  Speaker 1: have known Mr. Epstein during his lifetime if that were
• 4:27
  Speaker 1: the case no one could ever appoint a friend or
• 4:30
  Speaker 1: trusted colleague as executor of his or her estate. Nor
• 4:34
  Speaker 1: can Indyk and Kahn's past and present involvement in various
• 4:38
  Speaker 1: Epstein business entities constituted disqualifying conflict of interest. Motion to
• 4:44
  Speaker 1: intervene at 6. That some of those entities are alleged
• 4:47
  Speaker 1: to share liability in Epstein's civil and criminal violations in
• 4:51
  Speaker 1: the Virgin Islands and elsewhere. ID at 6 and 7.
• 4:55
  Speaker 1: Nothing is more than an unsupported, unproven allegation. None of
• 4:59
  Speaker 1: those business entities have ever been criminally charged and none
• 5:03
  Speaker 1: have ever been found liable for Mr. Epstein's alleged conduct.
• 5:06
  Speaker 1: Section 2. The Virgin Islands Code and the probate rules govern,
• 5:11
  Speaker 1: not Rule 24. The GVI bottoms its purported right to
• 5:15
  Speaker 1: intervene on Rule 24 of the Virgin Islands Rules of
• 5:19
  Speaker 1: Civil Procedure, Rule 24, motion to intervene at 1, 3, 4,
• 5:25
  Speaker 1: and 7. That is a false bottom. It is the
• 5:28
  Speaker 1: Virgin Islands Code and the Virgin Islands Rules for Probate
• 5:31
  Speaker 1: and Fiduciary Proceedings, the probate rules, that set forth the
• 5:35
  Speaker 1: specific steps required a purported claimant must take to bring
• 5:39
  Speaker 1: a claim against an estate and participate in a probate proceeding.
• 5:43
  Speaker 1: Rule 24 has no application to this proceeding. The exclusive
• 5:47
  Speaker 1: procedure for pursuing a claim against an estate is set
• 5:51
  Speaker 1: forth in Chapter 23 of Title 15 of the Virgin
• 5:55
  Speaker 1: Islands Code and the Probate Rules entitled Claims and Charge
• 5:58
  Speaker 1: Against the Estate. See Virgin Island Code 15, Section 391
• 6:02
  Speaker 1: through 430. The probate rules also include provisions governing a
• 6:09
  Speaker 1: claimant's participation in a probate proceeding. To the extent the
• 6:12
  Speaker 1: GVI has a claim against the estate, it must follow
• 6:16
  Speaker 1: these mandatory claims procedures to make that claim and participate
• 6:21
  Speaker 1: in the proceedings. The Virgin Islands Code and the probate
• 6:24
  Speaker 1: rules also provide that only the procedure for a creditor
• 6:28
  Speaker 1: to present its claim against the estate. Thus, a creditor
• 6:32
  Speaker 1: must follow the process outlined in Virgin Island Code 15, 606B,
• 6:37
  Speaker 1: in order to properly file a complaint against the estate.
• 6:40
  Speaker 1: See Otley Supra 61, VI at 493. The language of
• 6:45
  Speaker 1: Section 606B is absolute. It forbids a creditor from commencing
• 6:50
  Speaker 1: an action against an estate until it has first presented
• 6:53
  Speaker 1: its claim to the executors and they have considered and
• 6:57
  Speaker 1: disallowed that claim. See Oat v. Sewer Enteres, 46 VI
• 7:02
  Speaker 1: 286 290 DVI 2004. While all claimants, including the GVI,
• 7:08
  Speaker 1: may file claims against the estate, they are subject to
• 7:11
  Speaker 1: the jurisdiction of the court in this probate proceeding. See
• 7:15
  Speaker 1: Virgin Island Code 15, Sections 391 and 392. Section 3.
• 7:22
  Speaker 1: The GVI failed to follow the applicable claims procedure. Under
• 7:26
  Speaker 1: Virgin Islands law, one who seeks to assert a claim
• 7:29
  Speaker 1: against an estate must first present this claim to the
• 7:32
  Speaker 1: appointed executor or administrator of the estate. See Virgin Island
• 7:36
  Speaker 1: Code 15, Section 391, requiring every executor or administrator to
• 7:42
  Speaker 1: publish in a local newspaper and to post a notice
• 7:45
  Speaker 1: requiring all persons having claims against the estate to present
• 7:49
  Speaker 1: them with the proper vouchers within six months from the
• 7:52
  Speaker 1: date of the notice to the executor or administrator at
• 7:55
  Speaker 1: a place within this territory therein specified. The claimant must
• 7:59
  Speaker 1: conform to the requirements set forth in Title 15, including
• 8:04
  Speaker 1: verification of its claim by affidavit of the claimant or
• 8:08
  Speaker 1: someone with personal knowledge of the relevant facts. See Virgin
• 8:12
  Speaker 1: Island Code 15, Section 393. Every claim presented to the
• 8:16
  Speaker 1: executor or administrator shall be verified by the affidavit of
• 8:20
  Speaker 1: the claimant or someone on his behalf who has personal
• 8:24
  Speaker 1: knowledge of the facts to the effect that the amount
• 8:27
  Speaker 1: claimed is justly due. that no payments have been made
• 8:31
  Speaker 1: thereon except as stated, and that there is no just
• 8:35
  Speaker 1: counterclaim to the same, to the knowledge of the Affian.
• 8:39
  Speaker 1: If and when such a claim is presented to an executor,
• 8:42
  Speaker 1: the executor is then required to examine the claim, consider it,
• 8:46
  Speaker 1: and then either accept it or reject it. Virgin Island
• 8:49
  Speaker 1: Code 15, Section 394. When a claim is presented to
• 8:53
  Speaker 1: the executor or administrator, as prescribed in Section 393 of
• 8:56
  Speaker 1: this title, If he is satisfied that the claim thus
• 9:00
  Speaker 1: presented is just, he shall endorse upon it the words
• 9:05
  Speaker 1: examined and approved with the date thereof and sign the
• 9:08
  Speaker 1: same officially, and shall pay such claim in due course
• 9:12
  Speaker 1: of administration. If he is not satisfied, he shall endorse
• 9:15
  Speaker 1: thereon the words examined and rejected with the date thereof
• 9:20
  Speaker 1: and sign the same officially. Here the GVI failed to
• 9:24
  Speaker 1: follow the claims procedure required by Virgin Islands law to
• 9:28
  Speaker 1: bring a claim against the estate. Rather than present its
• 9:32
  Speaker 1: claim to the co-executors and call them on to review
• 9:35
  Speaker 1: it and consider it, GVI instead filed a civil action
• 9:39
  Speaker 1: seeking damages and other relief. That is improper. If the
• 9:43
  Speaker 1: GVI wishes to formally appear in these proceedings, it must,
• 9:47
  Speaker 1: like any other creditor, follow the claims procedure set forth
• 9:51
  Speaker 1: in Virgin Island Code 15 Sections 391 through 394. The
• 9:55
  Speaker 1: GVI must present a verified claim supported by documentation. to
• 10:00
  Speaker 1: the co-executors. Pursuant to the statutory scheme, the co-executors are
• 10:05
  Speaker 1: then required to assess the GVI's claim and either reject
• 10:09
  Speaker 1: or accept it. Only then would the GVI have standing
• 10:12
  Speaker 1: to participate in this probate proceeding like all other claimants. However,
• 10:17
  Speaker 1: The Virgin Islands legislature has mandated that any action may
• 10:21
  Speaker 1: be commenced against an executor only after the expiration of
• 10:25
  Speaker 1: 12 months from the date letters testamentary are granted by
• 10:29
  Speaker 1: this court. Outlease Supra 61 Virgin Islands at 491. Quoting
• 10:35
  Speaker 1: Virgin Islands Code 15 Section 606A. These mandatory rules apply
• 10:40
  Speaker 1: to all claimants, including the GVI. A claimant is not
• 10:44
  Speaker 1: permitted to bypass the probate process enacted by the legislature,
• 10:48
  Speaker 1: which was designed precisely for this purpose. To relieve the
• 10:52
  Speaker 1: executors from defending the estate's rights in both civil action
• 10:56
  Speaker 1: and through the probate proceeding simultaneously, see Otley Supra 61
• 11:00
  Speaker 1: Virgin Islands at 494. This process would also ensure that
• 11:05
  Speaker 1: a claimant will not serve the executor with a summons
• 11:08
  Speaker 1: in an attempt to gain priority over estate assets to
• 11:12
  Speaker 1: the detriment of other creditors who properly follow the probate process.
• 11:18
  Speaker 1: Part 4 Even if Rule 24 were applicable, it is not,
• 11:23
  Speaker 1: the contingent nature of the GVI's claim requires the court
• 11:26
  Speaker 1: to deny intervention. On January 15, 2020, the GVI filed
• 11:32
  Speaker 1: a civil forfeiture action against the estate in derogation of
• 11:36
  Speaker 1: the applicable statutory requirements set forth in the Virgin Islands
• 11:40
  Speaker 1: Code and probate rules. Even assuming the GVI's complaint had
• 11:45
  Speaker 1: not been filed in contravention to these mandatory claims rules,
• 11:49
  Speaker 1: the GVI would merely have a contingent claim, i.e. one
• 11:52
  Speaker 1: that's entirely dependent on its success in that separate action.
• 11:57
  Speaker 1: Courts in this circuit have been confronted with the issue,
• 12:00
  Speaker 1: have consistently held that intervention pursuant to Rule 24A2 is
• 12:05
  Speaker 1: inappropriate where the proposed intervener's interest is contingent upon prevailing
• 12:10
  Speaker 1: on a tort claim in a separate action. General Starr
• 12:14
  Speaker 1: Indom Company v. Virginia Island Port Authority 224 F.R.D. 372
• 12:21
  Speaker 1: 375 376 DVI 2004 Proposed intervenors cannot deny that any
• 12:29
  Speaker 1: interest that they have or may have in this matter
• 12:32
  Speaker 1: is purely contingent upon a favorable judgment in their underlying suit.
• 12:37
  Speaker 1: The court finds that such a contingent interest is insufficient
• 12:41
  Speaker 1: to sustain intervention of right. Here, even assuming for the
• 12:44
  Speaker 1: sake of argument that Rule 24 is applicable, the government's
• 12:48
  Speaker 1: contingent interest in a possible favorable judgment in another suit
• 12:53
  Speaker 1: is not an interest significant enough to authorize its intervention.
• 12:57
  Speaker 1: Section 5. Conclusion How and when a creditor may present
• 13:02
  Speaker 1: a claim and participate in a probate proceeding is governed
• 13:05
  Speaker 1: by Title 15 of the Virgin Islands Code and the
• 13:08
  Speaker 1: Probate Rules. If the GVI has a claim against the
• 13:11
  Speaker 1: estate as alleged in its motion to intervene, it must
• 13:15
  Speaker 1: follow claims procedure set forth in Virgin Island Code 15,
• 13:19
  Speaker 1: Sections 391 through 394 and the probate rules to rule
• 13:24
  Speaker 1: under which the GVI seeks to intervene in this proceeding.
• 13:28
  Speaker 1: Rule 24 of the Virgin Islands Rules of Civil Procedure
• 13:31
  Speaker 1: does not apply to this probate proceeding. Because the GVI
• 13:36
  Speaker 1: is not satisfied the requisites For its participation in this
• 13:39
  Speaker 1: probate proceeding, the court should deny the GBI's motion to intervene.
• 13:44
  Speaker 1: Respectfully signed by Christopher Allen Croblan and dated February 3rd, 2020.
• 13:49
  Speaker 1: All right, folks, that's going to do it for this one.
• 13:52
  Speaker 1: All of the information that goes with this episode can
• 13:55
  Speaker 1: be found in the description box.