JPMorgan Chase on Monday reached an interim settlement with sexual abuse victims after weeks of embarrassing revelations about its longtime relationship with late financier Jeffrey Epstein, the bank said. attorney announced.
The proposed agreement was filed in Manhattan federal court last November by an unidentified woman on behalf of victims who were sexually abused by Mr. Epstein for about 15 years when they were teenage girls and young women. It says it will settle the lawsuit. The number of victims could exceed 100.
In a statement, the bank and the victims’ attorneys reached an “agreement in principle to settle” the lawsuit on behalf of the victims, saying that “a settlement is in the best interest of all parties, especially the victims.” said. Victims of Epstein’s brutal abuse. The settlement amount was not disclosed in the statement.
The settlement agreement keeps Epstein out of the picture until Jamie Dimon, the chief executive of JP Morgan and one of Wall Street’s most famous bankers, was arrested by the federal government in July 2019. He said he had hardly heard of it, and an agreement was reached after about two weeks of taking depositions all day. Allegations of sex trafficking.
Epstein committed suicide in a Manhattan prison in August 2019, a month after his arrest.
JPMorgan is still facing related lawsuits from the U.S. Virgin Islands government. The lawsuit continues after years of civil litigation against Epstein’s legacy and Ghyslaine Maxwell, who was convicted in Manhattan federal court in 2021 for aiding Epstein’s involvement in sex trafficking. It is the largest related unresolved lawsuit.
The lawsuit filed by the victims alleges that Epstein was registered as a sex offender and that even after he pleaded guilty to a Florida lawsuit in 2008 for soliciting prostitution from a teenage girl, JP Morgan continued to harass the teenage girl. He is accused of ignoring repeated warnings that he is trafficking women and young women for sex. . The bank overlooked a red flag in Mr. Epstein’s activities because it rated him as a wealthy client with access to dozens of wealthier people, according to the complaint.
Court documents and affidavits reviewed by The New York Times show that bankers filed numerous suspicious activity reports about Mr. Epstein’s repeated large cash withdrawals. Legal documents included media reports detailing allegations of sexual abuse of a teenage girl after Epstein was designated a “high-risk client” in 2006, and some of the cash withdrawals were for payments. The bank continued to retain him as a client, despite evidence that to dozens of young women.
JP Morgan provided banking services to Epstein from approximately 1998 to 2013. Federal officials and victims say the worst was done during this period by financiers who had palatial mansions in Manhattan, Fla. and the U.S. Virgin Islands. , New Mexico and Paris.
Before the deal was reached, the bank repeatedly said it would not aid Epstein in his “heinous crimes” and that “in retrospect, it was a mistake to engage with Epstein.”
In a separate lawsuit, the same lawyers for Epstein’s victims negotiated a $75 million interim settlement last month with Deutsche Bank, which succeeded JPMorgan as Epstein’s main banker. Deutsche Airlines, which cut ties with Epstein at the end of 2018, has been sued by New York regulators for $150 million in 2020 for failing to adequately crack down on financial transactions with one of the most disgraceful non-compliance firms. paid the fine of
The settlement with both banks is subject to the approval of Jed Rakoff, U.S. District Court for the District of Manhattan. Judge Lakoff is also presiding over a related case brought by the U.S. Virgin Islands government.
The Virgin Islands, a U.S. territory in the Caribbean, alleges JP Morgan should pay damages for enabling Epstein to launch sex trafficking operations at his private residence off St. Thomas. But JP Morgan vehemently opposed the lawsuit in court documents, claiming that government officials in the country had sided with Epstein for nearly two decades.
Two of Epstein’s businesses received tens of millions of dollars worth of lucrative tax breaks from U.S. territories. Shortly after JP Morgan ended its relationship with Epstein, the Virgin Islands granted Epstein its first boutique banking license.
Judge Lakoff has expedited the case against JP Morgan, taking more than a dozen depositions in the past three months, including testimony from Dimon and Virgin Islands Governor Albert Bryan Jr. JPMorgan’s agreement with Epstein’s victims comes as some of the plaintiffs’ attorneys take a deposition on former JPMorgan executive James E. Staley, who had close ties to Epstein. Established.
In court filings, the Virgin Islands alleged that Epstein and Staley shared sexually suggestive emails about young women.
Staley, better known as Jess, has repeatedly denied in court documents that she did wrong or was aware that Epstein sexually abused young women and teenage girls. JP Morgan subsequently sued Staley to ensure that: If he is found to have engaged in improper conduct, he could be held liable for damages that the bank will ultimately pay.
The victims’ attorneys most involved in litigating and negotiating the proposed settlement with both banks include David Boyes, Sigrid McCauley, Brad Edwards and Brittany Henderson.
“It took a long time, too long, but today is a great day for the survivors of Jeffrey Epstein,” Boyes said of the proposed settlement with JP Morgan. “The settlement will play a key role in helping financial institutions uncover and stop sex trafficking,” said McCauley, who argued before Judge Lakoff that the JPMorgan case should be treated as a class action lawsuit. It shows that there is
In court documents related to the proposed settlement with Deutsche Bank, lawyers for the victims said they expected to seek up to 30% in fees. Attorneys may file similar fee claims in the JPMorgan case. All fee claims must be approved by Judge Lakoff.
In the settlement with Deutsche Bank, each victim is entitled to compensation ranging from $75,000 to $5 million, according to court filings.
The settlements with the banks add to the full relief many of Epstein’s victims have received in recent years. Epstein’s estate has paid nearly $150 million in compensation to more than 125 victims, many of whom may be eligible to apply for additional compensation due to a deal between Germany and JP Morgan. be.
