In a deal revealed on Tuesday, JPMorgan Chase Bank agreed to make payments to the government of the US Virgin Islands, which had brought a civil lawsuit against the bank for its role in disgraced financier Jeffrey Epstein’s sex trafficking. The bank will pay $75m to settle a lawsuit alleging that it aided the sex trafficking in the latest of legal settlements involving big banks, billionaires, and the late Epstein’s estate.
JPMorgan did not admit any wrongdoing in the settlement, which came one month before the sides were set to go to trial in Manhattan, and out of the penalty amount, $55m will go to Virgin Islands charities and the island’s anti-trafficking efforts.
The remaining $20m will cover attorneys’ fees incurred by the Virgin Islands as part of the litigation in federal court in New York and be used to create a fund to provide mental health services for Epstein’s victims.
Emails and calendars revealed more about his relationships with Staley and other executives, and showed the bank had continued meeting with him after firing him as a client and after repeated warnings from the bank’s compliance officers.
The Virgin Islands said the deal “includes several substantial commitments by JPMorgan Chase to identify, report, and cut off support for potential human trafficking, including establishing and implementing comprehensive policies and procedures.”
JPMorgan also said Tuesday that it had reached a settlement with Jes Staley, a former executive at the bank who had been friends with Epstein, to resolve claims by JPMorgan that he was responsible for any civil damages and costs associated with Epstein-related litigation. The terms of the agreement with Staley are confidential.
Early denials of relationship result in large total settlements
In total, JPMorgan has agreed to $365m in settlements for keeping Epstein as a client for 15 years, starting in 1998.
Epstein had dozens of accounts at JPMorgan’s private bank and communicated often with top bank executives, providing them ongoing business by connecting them to his wealthy contacts. Deutsche Bank, which took on Epstein as a client after JPMorgan, agreed to pay $75m to settle a suit by Epstein accusers earlier this year.
“As part of the settlement, JPMorgan has agreed to implement and maintain meaningful anti-trafficking measures, which will help prevent human trafficking in the future.”
US Virgin Islands Attorney General Ariel Smith
JPMorgan and the Virgin Islands have tussled over which side failed more miserably in not identifying Epstein’s crimes and pretty much ignoring his 2008 conviction for soliciting a minor for prostitution.
After Epstein’s 2019 arrest, JPMorgan had argued that he was just a regular client, but the court cases exposed his incredible influence within the bank, introducing prominent clients and pitching executives on big deals. Emails and calendars revealed more about his relationships with Staley and other executives, and showed the bank had continued meeting with him after firing him as a client and after repeated warnings from the bank’s compliance officers.
USVI Attorney General success
US Virgin Islands Attorney General Ariel Smith said the agreement settles what was the first enforcement action against a bank for facilitating and profiting from human trafficking.
“As part of the settlement, JPMorgan has agreed to implement and maintain meaningful anti-trafficking measures, which will help prevent human trafficking in the future,” Smith said in a statement.
“This settlement is an historic victory for survivors and for state enforcement, and it should sound the alarm on Wall Street about banks’ responsibilities under the law to detect and prevent human trafficking.”
