JPMorgan Chase has finalized settlements with the US Virgin Islands (USVI) and former executive Jes Staley, concluding litigation related to the sex trafficking scandal involving financier Jeffrey Epstein. This resolution marks the end of a series of legal challenges that implicated various influential figures in the finance and business world.
The bank has agreed to pay $75 million to the USVI, with the settlement including $30 million for charitable organizations, $25 million to enhance law enforcement efforts against human trafficking, and $20 million for attorney’s fees. The terms of JPMorgan’s settlement with Staley, however, remain confidential.
Previously, in June, JPMorgan had agreed to a $290 million settlement to address claims made by several of Epstein’s accusers. Epstein had been a client of the bank from 1998 until 2013, at which point JPMorgan terminated their relationship.
JPMorgan acknowledged the regrettable association with Epstein but clarified that the settlements do not imply admissions of liability. The bank stated it would not have continued its business with Epstein had it known he was using its services to facilitate his crimes.
USVI Attorney General Ariel Smith described the settlement as a significant victory for survivors and a warning to Wall Street about the legal obligations of banks in detecting and preventing human trafficking.
Epstein, who was awaiting trial for sex trafficking, died in August 2019 in a Manhattan jail cell, with his death ruled as a suicide by New York City’s medical examiner.
The lawsuits against JPMorgan highlighted oversight deficiencies within the bank, revealing internal communications that suggested employees had pushed for an end to the business relationship with Epstein.
The settlement resolves a major public relations issue for JPMorgan’s CEO Jamie Dimon, who testified that he was barely aware of Epstein until the financier’s 2019 arrest. The bank had also pointed out the USVI’s role in enabling Epstein’s activities by offering him tax incentives and relaxed monitoring in exchange for financial benefits to local officials.
Epstein’s estate previously reached a settlement of at least $105 million with the USVI, and Deutsche Bank, another of Epstein’s banking clients, settled with his accusers for $75 million in May.
Jes Staley, who left JPMorgan in 2013 and later served as Barclays’s CEO, has expressed regret over his association with Epstein and denied knowledge of the latter’s illegal activities. JPMorgan had sought to hold Staley responsible for covering its losses in the other lawsuits and to forfeit eight years of his compensation.
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