The federal government of the U.S. Virgin Islands in a court docket submitting Friday estimated that it’ll search damages of at the least $190 million from JPMorgan Chase in a lawsuit accusing the large financial institution of facilitating intercourse trafficking by its former long-time buyer Jeffrey Epstein.
The Virgin Islands additionally stated it desires an order requiring JPMorgan to take a collection of steps to guard younger girls and women from different predators sooner or later.
“These units of suggestions goal to handle the identical core downside: JPMorgan’s data of
and failure to report Epstein’s trafficking as a result of it lacked the financial incentive and motivation
to position compliance with the regulation and prevention of trafficking forward of its personal earnings,” the submitting in U.S. District Court docket in Manhattan says.
The American territory additionally stated it’ll search additional compensatory damages particularly for victims of Epstein past the almost $300 million JPMorgan agreed to pay victims final month to settle a lawsuit by considered one of his accusers. The submitting didn’t give an quantity for these extra damages from the financial institution, which has staunchly denied any wrongdoing.
The brand new submitting got here in response to a request final week by Choose Jed Rakoff that the territory element the damages it seeks within the case because it heads towards a scheduled Oct. 23 trial.
The Virgin Islands’ swimsuit accuses JPMorgan of benefiting from Epstein’s trafficking of younger girls to be abused by him and others through the 15 years he was a consumer of the financial institution, which is the most important in america.
The criticism alleges JPMorgan allowed Epstein to maintain many hundreds of thousands of {dollars} in accounts on the financial institution, which he used to fund his trafficking of ladies, regardless of a number of purple flags about him raised by financial institution workers through the years.
“We’re pursuing this enforcement motion as a result of JPMorgan Chase’s institutional failure enabled Jeffrey Epstein’s intercourse trafficking, and JPMorgan Chase should make vital adjustments to detect, report and cease human trafficking,” stated U.S. Virgin Islands Lawyer Basic Ariel Smith in an announcement Friday.
“Monetary penalties, in addition to conduct adjustments, are necessary to guarantee that JPMorgan Chase is aware of the price of placing its personal earnings forward of public security,” stated Smith.
She stated that if the Virgin Islands wins its swimsuit, it’ll makes use of the financial damages it receives “to assist efforts to strengthen, inform, and develop native regulation enforcement and improve the Virgin Islands’ companies for victims of human trafficking and different victims of crime.”
A JPMorgan spokeswoman, when requested for remark in regards to the submitting, indicated for what seems to be the primary time that the financial institution’s attorneys have mentioned a attainable settlement of the lawsuit with attorneys for the Virgin Islands, which might keep away from a trial.
“This doc doesn’t mirror the character of settlement conversations,” stated the spokeswoman, Patricia Wexler. ” As for the USVI’s misdirected damages theories, they aren’t properly based and are being challenged by JPM in court docket.”
It’s common in civil litigation for instances to be settled with out trial.
The submitting says the Virgin Islands desires at the least $150 million in civil penalties alone. The submitting additionally says that it desires JPMorgan to disgorge at the least one other $40 million in charges that Epstein generated for the financial institution, and that JPMorgan acquired from “many ultra-high web price shoppers” he referred to the financial institution.
These shoppers, the submitting stated, included Google co-founder Sergey Brin, Microsoft founder Invoice Gates, Lex Wexner, the founding father of Restricted Manufacturers, and the billionaire Glenn Dubin.
Along with the financial damages, the Virgin Islands is also asking JPMorgan be compelled “to implement new insurance policies, together with separating its enterprise and compliance capabilities and designating an unbiased compliance advisor, to forestall human trafficking,” in accordance with a press launch by Smit’s workplace.
JPMorgan in its personal court docket filings has accused the Virgin Islands itself of being “complicit within the crimes of Jeffrey Epstein.”
The financial institution alleges Epstein gave high-ranking officers there cash, recommendation and favors in alternate for wanting the opposite approach when he trafficked younger girls to be abused there.
Epstein had a residence on a personal island within the territory, the place accusers say he and different individuals sexually abused them.
Final month in the identical court docket the place the Virgin Islands is suing the financial institution JPMorgan agreed, with out admitting wrongdoing, to pay $290 million to victims of Epstein to settle a swimsuit by considered one of his accusers.
In Might, Deutsche Financial institution agreed to pay Epstein victims $75 million to settle a separate lawsuit by an accuser who accused that again of abetting his intercourse trafficking of her and others. Deutsche Financial institution took on Epstein as a buyer after JPMorgan severed ties with him in 2013, years after financial institution workers first voiced considerations about him.
Deutsche Financial institution beforehand agreed to pay New York state’s Division of Monetary Providers a $150 million penalty for failure to detect or stop hundreds of thousands of {dollars} of suspicious transactions associated to Epstein, which included “funds to Russian fashions and to quite a few girls with Japanese European surnames,” the submitting Friday by the Virgin Islands famous.
Epstein, who had been a buddy to former Presidents Donald Trump and Invoice Clinton, in addition to Prince Andrew of Nice Britain, pleaded responsible in 2008 to a Florida state cost of soliciting intercourse from an underage lady. He served 13 months in jail, however spent a lot of that point on work launch every day.
Epstein, then 66, killed himself in a federal jail in New York in August 2019, a month after he was arrested on federal youngster intercourse trafficking fees.
