Home » US business news » JPMorgan settles Epstein lawsuits with US Virgin Islands for $75 million
JPMorgan settles Epstein lawsuits with US Virgin Islands for $75 million
https://www.whatjobs.com/news/usa/us-business-news/jpmorgan-settles-epstein-lawsuits-with-us-virgin-islands-for-75-million
By Nithya Bose in US business news, posted September 27, 2023
JPMorgan Chase has reached a $75 million settlement with the US Virgin Islands to resolve complaints related to Jeffrey Epstein.
The bank allegedly facilitated convicted sex offender Epstein's activities, who was its client between 1998 and 2013.
The settlement comes just weeks before a scheduled trial in Manhattan federal court.
Read More: JPMorgan Accused Of Processing Over $1 Billion For Epstein
The action was over the US territory's claim the bank enabled Epstein's sex trafficking operation involving teenage girls and young women for nearly 15 years.
The bank has also reached a confidential settlement with James E. Staley, a former top banker who was a strong advocate for retaining Epstein as a client.
$290 million to nearly 200 victims
In June, JPMorgan had already agreed to pay $290 million to nearly 200 victims of Epstein in a class-action lawsuit.
It mirrored many of the claims raised by the US Virgin Islands.
The US Virgin Islands sued JPMorgan in December, claiming the bank ignored warning signs about Epstein's activities.
Read More: US Virgin Islands Seeks $190 Million From JPMorgan In Epstein Case
The complaint says JPMorgan chose to look the other way because Epstein generated business for the bank.
They sought up to $190 million in compensation from the bank.
The current settlement money will be allocated mainly towards charitable causes in the US territory in the Caribbean and legal fees.
Epstein had a private island residence in the Virgin Islands for approximately two decades.
The settlement specifies that $30 million will go to local charities supporting victims of sex crimes.
Read More: JPMorgan reaches $290 million settlement with Jeffrey Epstein’s victims
The remaining $25 million will assist law enforcement in combatting sex trafficking and other crimes.
An additional $10 million is earmarked for providing mental health support to Epstein's victims.
Epstein died in a federal jail in Manhattan in August 2019, a month after his arrest on federal sex trafficking charges.
He had been a client of JPMorgan before and after pleading guilty in 2008 to soliciting prostitution from a teenage girl.
It required him to register as a sex offender in New York, Florida, and the US Virgin Islands.
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JPMorgan decided to sever ties with Epstein in 2013.
It was only after James E. Staley, the former head of JPMorgan's private bank and later CEO of Barclays, left the bank.
JPMorgan and the US Virgin Islands government disagreed on how they characterized certain settlement terms in their statements.
"Substantial commitments" to strengthening systems
The government claimed the bank had made "substantial commitments" to strengthen systems for detecting and deterring sex trafficking.
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However, JPMorgan stated there were "no new commitments" and that the bank agreed to continue its "previous and ongoing efforts to fight human trafficking."
The settlement with the US Virgin Islands does not involve an admission of liability by JPMorgan.
The bank reiterated its regret for any association with Jeffrey Epstein.
The US Virgin Islands previously reached a $105 million settlement with Epstein's estate.
It also reached a $62.5 million settlement with Wall Street billionaire Leon Black, Epstein's largest client in St. Thomas.
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