JPMorgan Chase agreed to pay a hefty sum of $75 million to settle a lawsuit brought by the US Virgin Islands. The lawsuit alleged the banking giant facilitated the sex trafficking operations of the notorious sex predator, Jeffrey Epstein.
Epstein, who died behind bars in an apparent suicide, was a client of JPMorgan from 1998 to 2013. The lawsuit exposed glaring deficiencies in JPMorgan’s oversight of clients, including numerous communications where employees urged the bank to sever ties with Epstein.
Despite these warnings, the bank continued its business relationship with Epstein, raising serious questions about its ethical standards and commitment to corporate responsibility.
JUST IN: JPMorgan Chase will pay $75 million to a victims' fund as part of a settlement involving the late disgraced financier Jeffrey Epstein.
Epstein was found dead in his cell at New York City's Metropolitan Correctional Center in 2019, where he was awaiting trial on sex… pic.twitter.com/epcH9GLZ40
— ABC News (@ABC) September 26, 2023
The lawsuit also revealed Epstein owned two private islands within the US Virgin Islands territory, including Little St. James, infamously known as ‘orgy island’ or ‘pedo island’.
It was here that he allegedly brought many young women and girls, exploiting them for his perverse activities. To prevent onlookers from spying on his misconduct, Epstein purchased a separate nearby island.
In a surprising twist, JPMorgan argued that the US Virgin Islands was also complicit in enabling Epstein’s sex trafficking.
The bank claimed the territory provided Epstein with tax incentives and waived monitoring requirements in exchange for cash and gifts to local officials, including a former first lady.
The settlement concludes the final major legal case stemming from Epstein’s crimes. Last November, the US Virgin Islands reached a settlement of at least $105 million with Epstein’s estate.
Deutsche Bank, another financial institution where Epstein was a client from 2013 to 2018, reached a $75 million settlement with women who accused Epstein of sexual abuse.
BREAKING: JPMorgan to settle Jeffrey Epstein sex trafficking suit by U.S. Virgin Islands for $75 million pic.twitter.com/E3yHUhM7N6
— Insider Paper (@TheInsiderPaper) September 26, 2023
Ghislaine Maxwell, Epstein’s longtime partner and confidante, is currently serving a 20-year prison sentence after being found guilty of child sex trafficking and other offenses in connection with Epstein’s crimes.
The settlement includes $30 million that will go towards charity groups working to combat sex trafficking, $25 million to the territory’s government to fund law enforcement, and $20 million in attorney fees.
While JPMorgan did not admit liability as part of the deal, it expressed deep regret for its association with Epstein.
This case serves as a stark reminder of the responsibility financial institutions bear in preventing illegal activities. It underscores the need for stringent oversight and due diligence in client relationships, particularly when red flags are raised.
The hefty settlement paid by JPMorgan is a clear signal that such negligence will not be tolerated and justice will be served, no matter how powerful the perpetrators may be.