JPMorgan Chase has reached settlements with the US Virgin Islands and former executive Jes Staley to resolve lawsuits over sex trafficking by Jeffrey Epstein, largely drawing a line under a scandal that has weighed on America's largest bank for months.
The $75m settlement with the USVI provides $30m for charitable organisations, $25m to strengthen law enforcement against human trafficking, and $20m for attorney's fees. The terms of the settlement with Staley are confidential. In June, JPMorgan agreed to pay $290m to resolve claims by dozens of Epstein's accusers.
The bank said the settlement did not involve admissions of liability, adding: "The firm deeply regrets any association with this man, and would never have continued doing business with him if it believed he was using the bank in any way to commit his heinous crimes." Epstein was a client from 1998 until 2013.
Ariel Smith, the attorney general of the Virgin Islands, described the settlement as "an historic victory for survivors and for state enforcement" and said it should serve as a warning to Wall Street. JPMorgan said it remained committed to fighting human trafficking through its anti-money laundering programme, while Patricia Wexler, an attorney for the bank, noted that controls and compliance were continually improving. Marci Hamilton of Child USA called it "a profound, landmark moment" for trafficking victims.
The deal resolves a rare public relations problem for chief executive Jamie Dimon, who testified under oath in May that he had barely heard of Epstein before his July 2019 arrest. JPMorgan had argued that the USVI was partly to blame for enabling Epstein's trafficking by granting tax incentives and waiving monitoring requirements. The USVI had sought at least $190m.
Epstein died in a Manhattan jail cell in August 2019 while awaiting trial. The USVI reached a separate settlement of at least $105m with his estate in November, and Deutsche Bank, which counted Epstein as a client from 2013 to 2018, agreed a $75m settlement with accusers in May.
