Home » US business news » US Virgin Islands seeks $190 million from JPMorgan in Epstein case

US Virgin Islands seeks $190 million from JPMorgan in Epstein case

By Nithya Bose in US business news, posted July 17, 2023

The government of the US Virgin Islands has filed a court document stating its intent to seek a minimum penalty of $190 million from JPMorgan.

The filing accuses the bank of failing to detect and report the sex trafficking activities conducted by the late financier Jeffrey Epstein in the US territory.

The penalty amount was disclosed in response to a request from the federal judge overseeing the lawsuit filed by the Virgin Islands against JPMorgan last year.

It accused the bank of turning a blind eye to Epstein's illicit activities.

The attorney general's office of the Virgin Islands is also seeking new policies from JPMorgan to prevent the bank from providing financial services to human traffickers.

US Virgin Islands Attorney General Ariel Smith said: “We are pursuing this enforcement action because JPMorgan Chase’s institutional failure enabled Jeffrey Epstein’s sex trafficking.”

JPMorgan spokesperson Patricia Wexler said: “This document does not reflect the nature of settlement conversations.”

She added the Virgin Islands’ legal theories were “not well founded and are being challenged by JPM in court.”

JPMorgan Chase has already agreed to pay $290 million to settle a class-action lawsuit filed by Epstein's sex abuse victims.

This lawsuit was joined with the Virgin Islands' lawsuit for legal discovery.

However, JPMorgan and the Virgin Islands government have not yet reached a settlement.

The Virgin Islands' lawsuit is scheduled for a tentative trial in federal court in Manhattan in October.

The government argues the lawsuit serves as an enforcement action against the bank, seeking significant relief to compensate for damages and to deter future misconduct.

The requested $190 million penalty includes fines and the disgorgement of fees earned by JPMorgan from business activities allegedly directed by Epstein.

The US Virgin Islands previously reached a $105 million settlement with Epstein's estate.

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Lawyers representing Epstein's victims said he sexually abused at least 200 women, many of whom were teenagers at the time, across his various residences.

It includes the private island off St. Thomas in the Virgin Islands and properties in Manhattan and Florida.

The Virgin Islands government has enlisted the assistance of lawyers from Motley Rice, a plaintiffs' law firm based in South Carolina, to handle the litigation related to Epstein.

Motley Rice has a retainer agreement with the Virgin Islands government, entitling the firm to receive a portion of any settlement or recovery as compensation.

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