JPMorgan Chase stated Tuesday it’s going to pay $75 million to settle a lawsuit by way of the U.S. Virgin Islands alleging that the massive American financial institution facilitated and benefited from intercourse trafficking of younger women by way of its longtime buyer Jeffrey Epstein.
JPMorgan didn’t admit any wrongdoing within the agreement, which is able to give $55 million to Virgin Islands charities and the American territory’s anti-trafficking efforts.
The remainder $20 million will duvet lawyers’ charges incurred by way of the Virgin Islands as a part of the litigation in federal courtroom in New York.
The Virgin Islands stated the deal “comprises a number of really extensive commitments by way of JPMorgan Chase to spot, file, and bring to an end improve for attainable human trafficking, together with setting up and imposing complete insurance policies and procedures.”
Jeffrey Epstein and Ghislaine Maxwell attend de Grisogono Sponsors The 2005 Wall Boulevard Live performance Collection Benefitting Wall Boulevard Emerging, with a Efficiency by way of Rod Stewart at Cipriani Wall Boulevard on March 15, 2005 in New York Town.
Joe Schildhorn | Patrick McMullan | Getty Photographs
The territory stated that $10 million of the cash won can be used to create a fund to supply psychological well being services and products for Epstein’s sufferers.
JPMorgan additionally stated Tuesday that it had reached a agreement with Jes Staley, a former government on the financial institution who have been buddies with Epstein, to unravel claims by way of JPMorgan that he was once liable for any civil damages and prices related to Epstein-related litigation.
The phrases of the settlement with Staley are confidential.
JPMorgan stated that it “deeply regrets” its affiliation with Epstein, who was once a consumer from 1998 till 2013.
Virgin Islands Legal professional Basic Ariel Smith stated the settlement settles what was once the primary enforcement motion towards a financial institution for facilitating and taking advantage of human trafficking.
“As a part of the agreement, JPMorgan has agreed to enforce and care for significant anti-trafficking measures, which is able to assist save you human trafficking someday,” Smith stated in a remark.
“This agreement is an historical victory for survivors and for state enforcement, and it must sound the alarm on Wall Boulevard about banks’ obligations underneath the legislation to hit upon and save you human trafficking.”
Jes Staley, former leader government officer of Barclays Plc, arrives on the workplaces of Boies Schiller Flexner LLP in New York, US, on Sunday, June 11, 2023. Staley has confronted his first day of testimony about his courting with Jeffrey Epstein as a part of court cases alleging the financial institution enabled the past due financier’s sex-trafficking. Photographer: Stephanie Keith/Bloomberg by the use of Getty Photographs
Bloomberg | Bloomberg | Getty Photographs
The offers come months after a separate $290 million agreement by way of JPMorgan with sufferers of the now-dead predator. That previous deal ended a an identical lawsuit by way of a kind of sufferers in U.S. District Court docket in New york.
As with that prior settlement, the brand new pacts let the financial institution steer clear of a tribulation at the Virgin Islands’ allegations in that very same courtroom, which was once because of get started Oct. 23.
The territory had stated it could ask jurors at that trial to award it no less than $190 million in damages from JPMorgan.
The Virgin Islands up to now received a $105 million agreement from Epstein’s property, and every other $62.5 million from billionaire investor Leon Black to unravel attainable claims associated with Epstein.
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JPMorgan CEO Jamie Dimon and different most sensible financial institution executives have been puzzled by way of legal professionals for the Virgin Islands as a part of its swimsuit towards the company.
Comparable courtroom filings and hearings have resulted in a move of embarrassing headlines in regards to the financial institution because the case was once filed in past due 2022, greater than 3 years after Epstein killed himself in a New york prison following his arrest on federal kid intercourse trafficking fees.
The Virgin Islands claimed JPMorgan successfully not noted repeated purple flags that Epstein was once trafficking girls to his non-public island within the territory as it sought after to retain his trade and that of his rich and strong buddies.
Amongst the ones purple flags was once Epstein’s 2008 responsible plea in Florida to a state fee of soliciting intercourse from an underage woman, a conviction that resulted in a 13-month prison stint.
In past due August, a JPMorgan legal professional instructed Pass judgement on Jed Rakoff that once Epstein died, the financial institution notified the Treasury Division that it since had recognized greater than $1 billion in transactions associated with “human trafficking” by way of him relationship again 16 years.
However the financial institution additionally had alleged in courtroom filings that the Virgin Islands was once complicit in Epstein’s crimes, pronouncing he gave high-ranking territory officers cash, recommendation, and favors in alternate for his or her permitting him to traffick girls there unhindered.
In a press liberate saying the brand new settlement with the Virgin Islands, JPMorgan stated it “believes this agreement is in the most productive pastime of all events, specifically for individuals who can have the benefit of efforts to battle human trafficking, and for survivors that suffer not possible abuse by the hands of those criminals.”
“Whilst the agreement does now not contain admissions of legal responsibility, the company deeply regrets any affiliation with this guy, and would by no means have persisted doing trade with him if it believed he was once the use of the financial institution in any approach to dedicate his heinous crimes,” the remark stated.
“The company will proceed to paintings with legislation enforcement to battle human trafficking and assist to spot fallacious cash motion into the worldwide bills techniques.”
JPMorgan stated that underneath the deal a big portion of the cash will were given to the Virgin Islands “to fortify the infrastructure and features of legislation enforcement to stop and battle human trafficking and different crimes of their territories.”
The financial institution stated it’s going to pay tens of millions extra”to improve USVI charitable organizations whose paintings is aimed toward addressing social ills, together with preventing human trafficking and different intercourse crimes, and to improve survivors on their paths to therapeutic.”
With the remainder cash going to lawyers’ charges, JPMorgan is paying the same quantity, $75 million, that Deutsche Financial institution agreed to pay Epstein sufferers to settle a 3rd New york federal courtroom lawsuit that alleged that financial institution facilitated his intercourse trafficking when he was once a buyer from 2013 thru 2018.
Deutsche Financial institution had taken on Epstein as a buyer after JPMorgan ended its courting with him when Staley left the financial institution.
Epstein for years socialized with high-profile other people corresponding to former President Donald Trump and Invoice Clinton, Britain’s Prince Andrew, and had trade relationships with billionaires corresponding to Black and previous L. Manufacturers CEO Les Wexner.
Ghislaine Maxwell, a British socialite who as soon as was once Epstein’s female friend, was once convicted at a federal felony trial in New york in December 2021 of shopping underage women to be sexually abused by way of him.
Maxwell later was once sentenced to twenty years in jail.
Staley, the previous JPMorgan government has denied claims of wrongdoing, together with an allegation that he sexually assaulted a girl recognized as “Jane Doe,” whose elegance motion swimsuit resulted in the prior agreement with the financial institution.
In November 2021, Staley stepped down as CEO of Barclays after an investigation by way of British financial institution regulators into how he had characterised his courting with Epstein.
That is breaking information. Test again for updates.