U.S. Virgin Islands Demands $190 Million from JPMorgan Chase in Jeffrey Epstein Lawsuit
NEW YORK, July 14 (Reuters) – The U.S. Virgin Islands is seeking a minimum of $190 million, potentially more, from JPMorgan Chase to settle a lawsuit accusing the bank of disregarding Jeffrey Epstein’s sex trafficking activities. The territory filed a request in federal court in Manhattan on Friday, demanding a $150 million civil fine and the forfeiture of at least $40 million from the bank’s 15-year relationship with Epstein.
In addition to these penalties, the U.S. Virgin Islands is also seeking compensation for Epstein’s victims, punitive damages, the separation of JPMorgan’s business and compliance functions, and the hiring of a compliance consultant. U.S. Virgin Islands Attorney General Ariel Smith stated, “Financial penalties, as well as conduct changes, are important to make sure that JPMorgan Chase knows the cost of putting its own profits ahead of public safety.”
JPMorgan acknowledged efforts to resolve the case in a statement but countered that the filing “does not reflect the nature of settlement conversations.” The bank also dismissed the U.S. Virgin Islands’ arguments for damages as “misdirected” and “not well founded.”
This filing marks the first time the U.S. Virgin Islands has specified a monetary amount in its lawsuit against JPMorgan Chase. The territory holds the bank responsible for providing banking services to Epstein from 1998 to 2013, allowing him to make payments to his victims, and ignoring internal warnings and other red flags because of his status as a wealthy client.
The requested $40 million exclusion does not account for the intangible value that JPMorgan allegedly gained from Epstein’s association with individuals such as Britain’s Prince Andrew and former Israeli Prime Minister Ehud Barak.
Jeffrey Epstein, who died by suicide in August 2019, owned two islands within the U.S. Virgin Islands, one of which he purchased to shield himself from scrutiny as he engaged in sexual abuse of young women and girls on the other.
A trial for the case is scheduled for October 23.
LARGE PAYOUTS
This lawsuit is the largest unresolved case related to Epstein. JPMorgan reached a $290 million settlement last month with dozens of Epstein accusers, while Deutsche Bank, where Epstein was also a client, agreed to a $75 million settlement in May. Both settlements await final court approval.
Epstein’s estate has already paid over $125 million to his victims and more than $105 million to the U.S. Virgin Islands.
Ghislaine Maxwell, Epstein’s former girlfriend, was convicted in December 2021 for aiding in his abuses.
In response to the U.S. Virgin Islands’ case, JPMorgan has attempted to shift blame, accusing the territory of actively supporting Epstein with tax incentives and waiving sex offender monitoring requirements in exchange for cash or gifts to local police and top officials.
JPMorgan is also suing Jes Staley, a former executive close to Epstein, to cover its losses in the two lawsuits it faces. Staley has expressed regret for his friendship with Epstein and has consistently denied knowledge of his sex trafficking activities. He left JPMorgan a few months after Epstein, and served as the chief executive of British bank Barclays from 2015 to 2021.
The case is titled U.S. Virgin Islands v. JPMorgan Chase Bank NA and is filed in the U.S. District Court, Southern District of New York, with the case number 22-10904.
Reporting by Jonathan Stempel in New York; Additional reporting by Nupur Anand and Luc Cohen in New York; editing by Jonathan Oatis and Deepa Babington