JPMorgan Chase has agreed to pay $75 million to settle allegations related to its involvement with Jeffrey Epstein’s illegal activities in the U.S. Virgin Islands, as reported by Reuters. Additionally, the bank has reached a confidential settlement with Jes Staley, a former head of private banking who was closely associated with Epstein, and whom JPMorgan held responsible for maintaining Epstein as a client.
These settlements come just four weeks before the scheduled trial date and represent a significant step in resolving the long-standing scandal that has cast a shadow over JPMorgan throughout the year. These agreements mark the conclusion of a major legal saga surrounding Epstein’s sexual abuse of women, implicating prominent individuals such as Britain’s Prince Andrew and influential figures in the business world.
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The lawsuits against JPMorgan also raised concerns about the bank’s client oversight, alleging that it ignored warning signs and internal alerts regarding Jeffrey Epstein’s activities, including purported withdrawals for payments to young women and teenage girls.
JPMorgan Chase
Epstein had been a client of JPMorgan Chase from 1998 until 2013 when the bank terminated its relationship with him. JPMorgan expressed deep regret for any association with Epstein, emphasizing that it would not have continued doing business with him if it had believed he was using the bank to facilitate his criminal activities.
The settlement with the U.S. Virgin Islands requires JPMorgan to make payments as follows: $30 million to support charitable organizations, $25 million to combat human trafficking, and $20 million for the territory’s legal representation. While JPMorgan Chase did not admit wrongdoing, it had previously agreed in June to pay $290 million to resolve separate claims by numerous of Epstein’s accusers.
U.S. Virgin Islands Attorney General Ariel Smith hailed the settlement as a “historic victory for survivors and for state enforcement,” highlighting the responsibility of banks on Wall Street to detect and prevent human trafficking.
In November of the previous year, the U.S. Virgin Islands reached a separate settlement of at least $105 million with Epstein’s estate. Jes Staley’s lawyers did not immediately respond to requests for comment. JPMorgan Chase had sought to hold him accountable for its losses in the other two lawsuits and to forfeit eight years of pay.
Staley departed JPMorgan Chase in 2013, just before Epstein was dismissed as a client, and later served as Barclays’ CEO for six years. He expressed remorse for his association with Epstein and denied knowledge of his sex trafficking activities.
Epstein died in August 2019 in a Manhattan jail cell while awaiting trial for s*x trafficking, officially ruled as a suicide by New York City’s medical examiner. Initially, the U.S. Virgin Islands had sought at least $190 million from JPMorgan, alleging that the bank ignored warning signs and maintained contact with Epstein after terminating him as a client.
JPMorgan Chase countered by pointing out that the U.S. Virgin Islands played a role by providing Epstein with tax incentives and waiving monitoring requirements in exchange for contributions and gifts to local officials, including a former first lady. Epstein owned two private islands within the territory, one of which he allegedly purchased to shield his illicit activities from prying eyes.
The Epstein connection presented a rare public relations challenge for Jamie Dimon, JPMorgan’s CEO since 2006. Dimon testified under oath that he had little knowledge of Epstein until the financier’s arrest in July 2019.
Among those entangled in the scandal was Leon Black, billionaire co-founder of private equity firm Apollo Global Management, who had close business ties with Epstein. Black settled with the U.S. Virgin Islands for $62.5 million earlier this year to avoid a potential lawsuit, vehemently denying any involvement in Epstein’s criminal activities and expressing regret over his association with Epstein.
In May, Deutsche Bank, where Epstein was a client from 2013 to 2018, reached a $75 million settlement with Epstein’s accusers.
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