Title: Billionaire Leon Black Agrees to $62.5 Million Settlement with U.S. Virgin Islands Over Epstein Investigation
Date: [Insert Date]
In a recent development, billionaire investor Leon Black has agreed to pay $62.5 million to the U.S. Virgin Islands to resolve any potential claims arising from the territory’s investigation into the sex trafficking operation of disgraced financier Jeffrey Epstein. The settlement was previously undisclosed and came after the Virgin Islands reached a $105 million deal with Epstein’s estate in November.
The settlement agreement, obtained by The New York Times through a public records request, reveals that representatives from both parties engaged in a private mediation session in January to settle the claims. The settlement amount will be paid in cash, as per the agreement.
This settlement underscores Black’s efforts to limit scrutiny surrounding his longstanding social and business ties to Epstein, a registered sex offender who took his own life in a Manhattan jail cell in 2019. The revelation that Black had paid Epstein $158 million for tax and estate planning services had caused significant embarrassment for the billionaire investor.
As a result of these controversies, Black was compelled to step down as the chairman and chief executive of Apollo Global Management, the prestigious private equity firm he co-founded in 1990. He also resigned from his position as chairman of the Museum of Modern Art in New York.
It is important to note that the settlement does not imply any admission of liability on the part of Leon Black, as stated in the four-page agreement. Whit Clay, Black’s spokesperson, emphasized that the payments made to Epstein were for legitimate financial advisory services, which Black now deeply regrets. Clay also highlighted that the settlement does not indicate any suggestion of Black’s involvement in any misconduct.
The settlement occurred after a two-day mediation session attended by lawyers representing Black, the Virgin Islands, and a plaintiffs’ lawyer who represented many of Epstein’s victims. However, the plaintiffs’ lawyer, Brad Edwards, declined to comment on the matter.
Epstein, who faced sex trafficking charges, passed away in August 2019 while in federal custody. Numerous victims have come forward, alleging that they were sexually abused by Epstein at various locations, including his private island residence in the Virgin Islands.
While the settlement with the Virgin Islands does not cover any potential claims against Black from other parties, it explicitly states that it cannot be considered evidence of wrongdoing by Black.
The investigation into Black’s ties to Epstein stemmed from the inquiry that led to the $105 million settlement with Epstein’s estate. The Virgin Islands also filed a lawsuit against JPMorgan Chase in federal court last year, accusing the bank of maintaining a 15-year relationship with Epstein. The territory seeks $190 million in penalties from the financial institution.
JPMorgan Chase, which recently reached a $290 million settlement with Epstein’s victims, is opposing the Virgin Islands’ lawsuit. The bank argues that the government did little to prevent Epstein’s activities and hence should not be entitled to any financial compensation.
The settlement funds received by the Virgin Islands will be allocated towards mental health programs and initiatives aimed at combating sex trafficking, according to the territory’s attorney general’s office.
Ultimately, this settlement represents another significant development in the ongoing legal aftermath surrounding Epstein’s sex trafficking operation and serves as an effort by Leon Black to distance himself from the scandal that has tarnished his reputation.
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