JPMorgan Chase reached a $75 million settlement with the U.S. Virgin Islands (USVI) and former executive Jes Staley in an effort to resolve the lawsuits over the bank’s dealings with pedophile Jeffrey Epstein on Tuesday.
The USVI initially demanded $190 million as the bank kept Epstein as a valued client after he was arrested on prostitution charges in 2006 and pleaded guilty two years later. Both lawsuits also highlighted obvious deficiencies in the bank’s client oversight as it continued its dealings with Epstein even after employees demanded relations cease.
Of the $75 million paid, $30 million has been allocated to support charitable organizations, $25 to strengthen law enforcement working to combat human trafficking, and a further $20 million to cover legal fees.
“While the settlement does not involve admissions of liability, the firm deeply regrets any association with this man, and would never have continued doing business with him if it believed he was using the bank in any way to commit his heinous crimes,” said JPMorgan in a statement.
The attorney general of the USVI, Ariel Smith, stated after the settlement agreement, “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.”