JPMorgan has reached a settlement agreement to pay $75 million in response to a civil lawsuit brought forth by the US Virgin Islands concerning its alleged involvement with Jeffrey Epstein's sex trafficking activities. This resolution includes a commitment to contribute $30 million to charitable organizations in the US Virgin Islands dedicated to addressing social issues, such as combatting human trafficking and supporting survivors. An additional $25 million will be allocated to strengthen law enforcement efforts within the territory.
Key takeaways from Human Trafficking case
- JPMorgan agrees to pay $75 million in settlement for US Virgin Islands' lawsuit linked to Jeffrey Epstein.
- $30 million will be donated to charitable organizations in the US Virgin Islands, targeting issues like human trafficking.
- An additional $25 million will bolster law enforcement efforts on the island.
- Legal claims with Jes Staley, former CEO of Barclays, are resolved, though specific terms remain undisclosed.
- The US Virgin Islands' lawsuit accused JPMorgan of facilitating Epstein's sex-trafficking operation by managing his accounts.
- JPMorgan commits to cooperating with law enforcement in identifying and terminating accounts linked to human trafficking.
- Additional funds provided by JPMorgan will enhance the US Virgin Islands' law enforcement capabilities.
JPMorgan has agreed to disburse an extra $20 million in fees to the US Virgin Islands attorneys from the law firm Motley Rice LLC as part of this settlement. These financial provisions are in addition to the $290 million that JPMorgan Chase had previously agreed upon to settle a separate class-action lawsuit initiated by Epstein's victims, aimed at establishing a compensation program.
In a noteworthy development, JPMorgan has also resolved legal claims involving Jes Staley, the former CEO of Barclays, who resigned in 2021 following revelations concerning his association with Epstein. During his tenure as a JPMorgan executive, Staley maintained a close relationship with Epstein, involving over 1,000 exchanged emails, even during Epstein's incarceration for soliciting sex with a minor. JPMorgan had previously sued Staley, asserting his sole responsibility for any liabilities stemming from the US Virgin Islands' lawsuit, a claim that Staley had consistently denied. However, the specific terms of this settlement with Staley remain undisclosed.
The US Virgin Islands' lawsuit alleged that JPMorgan played a pivotal role in Epstein's sex-trafficking operation by managing his bank accounts and overlooking suspicious payments that should have triggered concerns within the institution. Notably, the government contended that at least 20 of Epstein's victims received $1 million through accounts overseen by JPMorgan.
In response, JPMorgan countered with claims that the US Virgin Islands government had engaged in similar practices, implying that local politicians had received donations from Epstein and allowed his illegal activities to persist, despite warning signs. Epstein's ownership of two islands in the US Virgin Islands, subsequently sold for $60 million to billionaire Stephen Deckoff, further complicated the legal proceedings.
The lawsuits had created significant upheaval in the US Virgin Islands when they were originally filed, resulting in the removal of Denise George, the former attorney general, by the territory's governor shortly thereafter.
With this settlement, JPMorgan has expressed its commitment to cooperate with law enforcement in identifying and terminating accounts associated with human trafficking, aligning with the US Virgin Islands' efforts to combat this grave issue. The Attorney General of the US Virgin Islands, Ariel M. Smith, has lauded this settlement as a significant victory for survivors and a crucial step toward holding financial institutions accountable for their role in human trafficking. JPMorgan, through its spokesperson Patricia Wexler, has affirmed its ongoing dedication to combating human trafficking, noting that the additional funds will assist the US Virgin Islands in bolstering its law enforcement capabilities to prevent and combat such crimes effectively.
Source: Business Insider
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