US Virgin Islands Seeks $190M Penalty from JPMorgan Chase Over Epstein Case
The US Virgin Islands has filed a court document seeking $190 million in penalties and disgorgement from JPMorgan Chase. The document alleges that the bank financially benefited from disgraced financier Jeffrey Epstein’s sex trafficking operation and failed to report suspicious financial activity. The government is also requesting that JPMorgan Chase implement safeguards against human trafficking and separate its business and compliance functions.
Epstein, who was found dead in his jail cell in 2019, was facing federal charges of sexually abusing underage girls. The fallout from his alleged actions has continued to unfold, with legal ramifications for individuals and institutions worldwide. The Virgin Islands Department of Justice stated that JPMorgan Chase should analyze the reasons behind its failures in its banking relationship with Epstein and identify missed opportunities to report his criminal activities.
However, JPMorgan Chase has disagreed with the allegations. A spokesperson for the bank stated that the court document does not reflect the nature of settlement conversations. They also challenged the Virgin Islands’ damages theories in court.
In an effort to prevent similar incidents, the Virgin Islands government is requesting that JPMorgan Chase implement policies that would require the bank to obtain basic information from customers before opening bank accounts. The government also wants to prohibit employees with personal relationships to clients from making decisions regarding client retention.
The government argues that JPMorgan Chase should have subjected Epstein to closer scrutiny as a client after he pleaded guilty to soliciting prostitution with a minor in Florida in 2008.
In June, JPMorgan Chase reached a $290 million settlement in a class-action lawsuit brought by Epstein’s alleged sexual abuse victims. The Virgin Islands government filed its own lawsuit against the bank in December 2022. The lawsuit accuses the bank of non-compliance with federal regulations relating to Epstein’s accounts and alleges that “human trafficking was the principal business of the accounts Epstein maintained at JPMorgan.”
JPMorgan Chase CEO Jamie Dimon denied knowledge of internal reviews of Epstein’s criminal conduct and his account with the bank during depositions for the lawsuit. The trial is set to begin on October 23.
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US Virgin Islands Seeks $190M Penalty from JPMorgan Chase Over Epstein Case
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The US Virgin Islands government is seeking $190 million in penalties and disgorgement from JPMorgan Chase over allegations that the bank financially benefited from Jeffrey Epstein’s sex trafficking operation and failed to report suspicious financial activity. The government is also requesting that the bank implement safeguards against human trafficking and separate its business and compliance functions.
