Labor Secretary Alexander Acosta is once again under fire for a “sweetheart deal” he orchestrated for multimillionaire pedophile Jeffrey Epstein in exchange for testimony in a case involving now-defunct Bear Stearns.
A federal judge said Thursday that then Miami U.S. attorney Acosta and prosecutors violated the victims’ rights with an agreement with Epstein—a friend and confidant of Bill Clinton, Donald Trump and other powerful people—regarding and his abuse of a number of female victims aged 13 through 16.
Acosta, ultimately in charge of the nation’s 401k regulation, 5500 filings, and a revamped fiduciary rule—who also joined President Trump in announcing the latter’s MEP executive order last year—signed off on a 13-month prison sentence, according to a bombshell report from the Miami Herald.
The White House said Friday it’s reviewing Acosta’s handling of the agreement.
Epstein faced a potential life sentence due to the ages and number of victims involved.
Done deal
“It was a material omission for the Government to suggest to the victims that they have patience relative to an investigation about which it had already bound itself not to prosecute,” Marra wrote in his opinion.
While Marra did not have an issue with the deal itself, he did criticize Acosta and prosecutors for how and what they communicated to victims.
“When the Government gives information to victims, it cannot be misleading,” Marra added. “While the Government spent untold hours negotiating the terms and implications of the [non-prosecution agreement] with Epstein’s attorneys, scant information was shared with victims. Instead, the victims were told to be ‘patient’ while the investigation proceeded.”
Acosta was mentioned as a possible replacement for former Attorney General Jeff Sessions after President Trump asked for Sessions’ resignation just after the midterm elections.
As labor secretary, he would also essentially mandate ethical behavior on the part of 401k advisors if a fiduciary rule were to pass.
Acosta withdrew his name from consideration for attorney general after the Herald published its report in late November.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
