By John Ikani
U.S. Virgin Islands has taken legal actions against JPMorgan Chase, seeking substantial damages of at least $190 million in a recent court filing.
The lawsuit revolves around the bank’s connections with the late financier Jeffrey Epstein, who maintained accounts with them from 1998 to 2013.
Last year, the U.S. territory filed the lawsuit, accusing the largest U.S. bank of facilitating Epstein’s notorious sex trafficking enterprise and neglecting to report suspicious financial activities.
Earlier this year, JPMorgan Chase agreed to a $290 million settlement in a similar lawsuit brought forth by Epstein’s survivors.
As per the court filing, the U.S. Virgin Islands demands $150 million in civil penalties, along with $40 million representing fees and revenues generated for the bank while Epstein was a client.
The funds include earnings from referring “many ultra-high net worth clients to the bank.” Furthermore, the territory insists that the bank implement new policies to proactively combat human trafficking in the future.
The proposed safety measures include “the segregation of JPMorgan Chase’s business and compliance units.”
In addition, an independent compliance consultant should be appointed to ensure the bank prioritizes reporting suspicious activities over profits, according to the territory’s statement.
U.S. Virgin Islands Attorney General Ariel Smith emphasized the significance of their enforcement action, stating, “We are pursuing this enforcement action because JPMorgan Chase’s institutional failure enabled Jeffrey Epstein’s sex trafficking, and JPMorgan Chase must make significant changes to detect, report, and stop human trafficking.”
Smith reiterated that financial penalties and conduct changes are crucial to holding JPMorgan Chase accountable for prioritizing its own profits over public safety.
Should the U.S. Virgin Islands be successful in their legal pursuit, the funds recovered from the case will be dedicated to supporting victims of human trafficking within the territory.
Furthermore, the territory has requested that the bank cover the legal fees incurred from the ongoing lawsuit.
For the first time, the U.S. Virgin Islands disclosed the specific dollar amount it is seeking from JPMorgan Chase in the court document.
The revelation came after the presiding judge ordered the plaintiffs to reveal the damages they seek in the case. The trial is scheduled to commence on October 23.
Responding to the court filing, a spokesperson from JP Morgan Chase contended, “This document does not reflect the nature of settlement conversations. As for the USVI’s misdirected damages theories, they are not well-founded and are being challenged by JPM in court.”
While JPMorgan Chase denies liability, they previously admitted that their association with Epstein was a “mistake and we regret it.”
The bank’s CEO, Jamie Dimon, stated in a recent deposition that he had never met Epstein and had never even heard of him until his arrest in 2019.
