JPMorgan Chase agreed Tuesday to pay $75 million to the U.S. Virgin Islands to settle claims that the bank enabled the sex trafficking acts committed by financier Jeffrey Epstein.
JPMorgan said that $55 million of the settlement will go toward local charities and assistance for victims. Another $20 million will go toward legal fees.
The Virgin Islands, where Epstein had an estate, sued JPMorgan last year, saying its investigation has revealed that the financial services giant enabled Epstein’s recruiters to pay victims and was “indispensable to the operation and concealment of the Epstein trafficking enterprise."
In effect, the Virgin Islands had argued that JPMorgan had been complicit in Epstein's behavior and did not raise any red flags to law enforcement or bank regulators about Epstein being a “high risk” customer and making repeated large cash withdrawals.
Watchdog report describes failures in monitoring Jeffrey Epstein
Although officials still believe Epstein died by suicide, a report found that prison officials did not follow proper procedures to prevent his death.
The bank also said it reached a confidential legal settlement with James “Jes” Staley, the former top JPMorgan executive who managed the Epstein account before leaving the bank. JPMorgan sued Staley earlier this year, alleging that he covered up or minimized Epstein's wrongdoing in order to maintain the lucrative account.
JPMorgan had already agreed to pay $290 million in June in a class-action lawsuit that involved victims of Epstein's trafficking crimes.
Epstein died by suicide in a federal jail in 2019.
Judge approves $290M deal JPMorgan reached with Epstein victims
JPMorgan allowed Jeffrey Epstein to take out loans and withdraw large sums of cash even after he was arrested and pleaded guilty to sex crimes.
