JPMorgan Chase Settles Jeffrey Epstein Sex Trafficking Case for $75 Million

JPMorgan Chase has agreed to a $75 million settlement with the U.S. Virgin Islands to resolve claims that the bank facilitated the sex trafficking activities of financier Jeffrey Epstein.

The settlement stipulates that $55 million will be allocated to local charities that offer assistance to victims of domestic abuse, trafficking, and other crimes, as well as to bolster the capabilities of local law enforcement. Additionally, $10 million from the settlement will establish a fund to provide mental health services for survivors of Epstein’s actions, according to the Virgin Islands Department of Justice.

The U.S. Virgin Islands initiated legal action against JPMorgan last year, asserting that its investigation had uncovered the financial institution’s role in enabling Epstein’s recruiters to make payments to victims and acting as an essential component in the Epstein trafficking operation’s functioning and concealment. The lawsuit sought penalties and disgorgement of a minimum of $190 million, along with other damages. Essentially, the U.S. Virgin Islands claimed that JPMorgan was complicit in Epstein’s activities and failed to alert law enforcement or banking regulators to Epstein’s status as a “high risk” customer, despite his repeated substantial cash withdrawals. This settlement averts a trial that was scheduled to commence next month.

Furthermore, the bank disclosed that it reached a confidential legal settlement with James “Jes” Staley, the former top JPMorgan executive responsible for managing Epstein’s account before departing the bank. JPMorgan had previously filed a lawsuit against Staley earlier this year, alleging that he concealed or downplayed Epstein’s misconduct to retain the lucrative account.

In June, JPMorgan had already agreed to a $290 million settlement in a class-action lawsuit involving victims of Epstein’s trafficking crimes. Epstein died by suicide in a federal jail in 2019.