JPMorgan Chase facing a claim for $190 million by the US Virgin Islands in relation to the Jeffrey Epstein case.
The U.S. Virgin Islands have proposed an independent compliance consultant, Debevoise & Plimpton LLP, to oversee new policies aimed at preventing human trafficking, as part of a lawsuit against Chase bank. The lawsuit, seeking $190 million in damages, alleges that the bank failed to report Jeffrey Epstein's trafficking activities due to a lack of economic incentive.
The lawsuit, filed by U.S. Virgin Islands Attorney General Ariel Smith, claims that Chase bank generated $40 million in fees tied to its relationship with Epstein. The case stems from Epstein's illegal sex trafficking activity in the early 2000s, a suit that was settled last month for $290 million by Chase bank without admitting any wrongdoing.
Chase bank spokesperson Patricia Wexler stated that the filing "does not reflect the nature of settlement conversations." The case is scheduled for a trial on October 23, with ongoing settlement negotiations reported by CNBC.
Another bank with ties to Epstein, PNC bank, acknowledged its error of onboarding Epstein in 2013 and the weaknesses in its processes. Epstein, who died in a Manhattan jail cell in August 2019, was a client of PNC bank following the 2013 dissolution of his relationship with Chase bank.
Jeffrey Epstein referred "many ultra-high net worth clients" to Chase bank, according to the filing. The new policies suggested by the U.S. Virgin Islands include separating business and compliance functions and designating an independent compliance consultant.
The U.S. Virgin Islands are also seeking an unspecified amount in further compensatory damages for Epstein's victims, beyond what Chase bank agreed to pay last month. PNC bank agreed to settle an alleged Epstein victim's class-action lawsuit for $75 million.
Chase bank isn't the only bank to reach a settlement with victims regarding its connection to Epstein. The settlement by Chase bank and the PNC bank settlement mark a significant step towards addressing the fallout from Epstein's criminal activities. However, the legal proceedings continue, with the trial scheduled for October 23.
