(CTN News) – In a settlement reached with the US Virgin Islands (USVI) and former executive Jes Staley, JPMorgan Chase has largely resolved a scandal that weighed on the largest US bank for months.
As a result of these settlements, the final pieces of litigation in the saga of the women who alleged Epstein sexually abused them have been resolved, which embroiled some of the world’s most influential business and financial figures.
According to JPMorgan, the $75 million settlement includes $30 million for charitable organizations, $25 million for strengthening law enforcement to combat human trafficking, and $20 million for attorney’s fees.
The terms of the bank’s settlement with Staley are confidential.
In June, JPMorgan agreed to pay $290 million to resolve the claims of dozens of Epstein’s accusers.
From 1998 until 2013, Epstein was a client of JPMorgan.
In spite of the fact that this settlement does not involve admissions of liability, JPMorgan deeply regrets any association with the man, and would not have continued doing business with him had it believed he was using the bank to commit his heinous crimes.
According to USVI Attorney General Ariel Smith, the settlement represents a “historic victory for survivors and state enforcement, and it should serve as a warning to Wall Street regarding banks’ legal responsibilities to detect and prevent human trafficking.
Requests for comment from Staley’s lawyers were not immediately responded to.
On October 23, a trial was scheduled.
Epstein died in a Manhattan jail cell in August 2019 while awaiting trial for sex trafficking. His death was ruled a suicide by the medical examiner of New York City.
The USVI demanded in July that JPMorgan pay at least $190 million, including a $150 million civil fine, and possibly much more to settle the lawsuit.
According to USVI, JPMorgan kept Epstein as a valued client even after he was arrested in 2006 on prostitution charges and pleaded guilty two years later, and some bank officials maintained contact with him long after he was dismissed.
The lawsuits revealed deficiencies in JPMorgan’s oversight of clients, including numerous communications where employees urged the bank to cease doing business with Epstein.
With Tuesday’s settlement, Jamie Dimon, who has been CEO of JPMorgan since 2006, has resolved a rare public relations problem.
In May, Dimon testified under oath that he had barely heard of Epstein before his arrest in July 2019.
By giving Epstein tax incentives and waiving monitoring requirements, in exchange for cash and gifts to local officials, including a former first lady, JPMorgan had argued that the USVI was also to blame for Epstein’s sex trafficking.
In addition to two private islands within the territory, Epstein allegedly purchased one in order to prevent onlookers from spying on his conduct on the other.
USVI reached a settlement with Epstein’s estate last November for at least $105 million.
In May, Deutsche Bank, where Epstein worked from 2013 to 2018, reached a $75 million settlement with women who claimed Epstein abused them sexually.
After leaving JPMorgan in 2013, Staley served as chief executive of Barclays for six years.
In its other two lawsuits, JPMorgan wanted him to cover the losses and forfeit eight years of salary.
According to Staley, he regrets being friends with Epstein and denies being aware of Epstein’s sex trafficking activities.