JPMorgan Chase has reached a settlement of $75 million with the US Virgin Islands to resolve a civil lawsuit over its alleged involvement in financier Jeffrey Epstein's sex trafficking operation. The bank will donate $30 million to charitable organizations in the US Virgin Islands that focus on fighting human trafficking and supporting survivors, while another $25 million will be used to strengthen law enforcement on the island.
In addition to the settlement with the US Virgin Islands, JPMorgan has also settled legal claims with Jes Staley, the former CEO of Barclays, who had close ties with Epstein. Staley was accused of being solely responsible for any liability from the US Virgin Islands' lawsuit, but the terms of the settlement were not disclosed.
The US Virgin Islands had accused JPMorgan of facilitating Epstein's sex trafficking operation by managing his bank accounts and ignoring suspicious payments. The government alleged that at least 20 of Epstein's victims received payments totaling $1 million through accounts managed by the bank.
JPMorgan had retaliated by claiming that the US Virgin Islands government was also guilty of similar practices, alleging that local politicians had received donations from Epstein and allowed him to operate freely on the islands. Epstein's two private islands in the US Virgin Islands were sold earlier this year.
US Virgin Islands Attorney General Ariel M. Smith expressed satisfaction with the settlement, stating that it would help make it harder for traffickers to finance their crimes in the future. JPMorgan, on the other hand, stated that it had not introduced any new policies as a result of the settlement and that it was committed to ongoing efforts to combat human trafficking through its anti-money laundering program.
This settlement comes after Deutsche Bank agreed to pay $75 million earlier this year to settle a similar class-action lawsuit brought by Epstein's victims. Epstein's estate has also paid out $125 million to his victims.
Overall, the settlement between JPMorgan and the US Virgin Islands marks a significant step in addressing the allegations of involvement in Epstein's sex trafficking operation. The funds from the settlement will be used to support organizations fighting human trafficking and improve law enforcement capabilities on the island. Both parties have expressed their commitment to combating human trafficking and will continue their efforts in this regard.