In a significant development, JPMorgan Chase has agreed to a $75 million settlement with the U.S. Virgin Islands in relation to allegations that the bank facilitated the sex trafficking activities conducted by financier Jeffrey Epstein.
Out of the total settlement, $55 million will be allocated to local charities and support for victims, while the remaining $20 million will cover legal fees.
The U.S. Virgin Islands had filed a lawsuit against JPMorgan last year, asserting that their investigation exposed the bank’s involvement in assisting Epstein’s recruiters in paying victims, playing a crucial role in the operation and concealment of Epstein’s sex trafficking enterprise. Essentially, they claimed that JPMorgan was complicit in Epstein’s actions and failed to raise concerns with law enforcement or regulatory authorities regarding Epstein’s high-risk status and substantial cash withdrawals.
Additionally, JPMorgan disclosed that it has reached a confidential legal settlement with James “Jes” Staley, the former top executive responsible for managing Epstein’s account before leaving the bank. Earlier this year, JPMorgan had sued Staley, alleging that he had covered up or downplayed Epstein’s misconduct to maintain the lucrative account.
This settlement follows JPMorgan’s previous agreement in June, in which the bank committed to paying $290 million in a class-action lawsuit involving victims of Epstein’s trafficking crimes.
It’s important to note that Epstein tragically died by suicide in a federal jail in 2019.