JPMorgan Chase announced on Tuesday that it will pay $75 million to settle claims made by the U.S. Virgin Islands that the American banking giant enabled and profited from the sex trafficking of young women by Jeffrey Epstein, a longstanding client.
In the settlement, which will donate $55 million to Virgin Islands charities and the American territory’s anti-trafficking initiatives, JPMorgan did not admit to any wrongdoing. The remaining $20 million will be used to pay the Virgin Islands’ legal expenses related to the New York federal court case.
According to the Virgin Islands, $10 million of the funds would be used to establish a fund that will give Epstein’s victims access to mental health assistance.
JPMorgan also disclosed on Tuesday that it had negotiated a confidential agreement with Jes Staley, a former bank executive and Epstein buddy, to settle allegations by JPMorgan that Staley was accountable for any civil damages and expenses linked to Epstein-related litigation.
“This settlement is an historic victory for survivors and for state enforcement, and it should sound the alarm on Wall Street about banks’ responsibilities under the law to detect and prevent human trafficking”, Virgin Islands Attorney General Ariel Smith commented.
“As part of the settlement, JPMorgan has agreed to implement and maintain meaningful anti-trafficking measures, which will help prevent human trafficking in the future,” Smith said.
The agreements follow a separate $290 million settlement by JPMorgan with victims of the predator, who died in an apparent suicide in his Manhattan jail cell while awaiting trial.
