On Tuesday, JPMorgan Chase agreed to pay $75 million to settle a lawsuit by the U.S. Virgin Islands which accused the American bank of aiding and benefiting from sex trafficking of young women by its customer Jeffrey Epstein.
Although no wrongdoing was admitted in this agreement, $55 million will be donated to Virgin Island charities and anti-trafficking efforts while the remaining $20 million covers attorneys’ fees incurred by the Virgin Islands during litigation in federal court in New York.
Additionally, JPMorgan Chase committed to implementing comprehensive policies and procedures that would identify, report and terminate any potential human trafficking activity.
Out of the $290 million settlement between JPMorgan and Epstein’s victims, $10 million will be allocated to set up a fund for providing mental health services to those affected.
This comes following a $105 million settlement from Epstein’s estate as well as an additional $62.5 million from billionaire investor Leon Black that was used to resolve potential claims associated with Epstein.
The Guardian reported:
“Ariel Smith, the attorney general of the Virgin Islands, said: ‘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’.
[…] Marci Hamilton, founder of children’s rights group Child USA, said the settlement with JPMorgan Chase served ‘as a profound, landmark moment for women and girls that have fallen prey to human trafficking across the country and beyond’.
‘Our nation’s biggest banks have been put on notice’, said Hamilton.”
Financial Times reported:
“JPMorgan also reached a separate agreement with Staley to resolve its claims against him for allegedly failing to fully disclose the extent of his relationship with Epstein while an employee. Terms of the settlement with Staley were not disclosed.
JPMorgan had sued Staley in March to hold him liable for any penalties the bank would have to pay in the lawsuits related to Epstein and demanded that Staley return more than $80mn in compensation. “