The U.S. Virgin Islands is seeking a minimum payment of $190 million and potentially more from JPMorgan Chase & Co JPM to resolve its lawsuit alleging that the bank had turned a blind eye to late financier Jeffrey Epstein's sex trafficking activities.
What Happened: In a court filing in Manhattan on Friday, the U.S. territory requested $150 million in civil penalties and at least $40 million tied to the bank's 15-year relationship with Epstein, Reuters reported.
The Virgin Islands' attorney general's office disclosed the figures in response to a court inquiry. Additionally, the territory aims to establish new policies at the bank to prevent it from providing financial services to human traffickers and sex offenders.
JPMorgan spokesperson Patricia Wexler told The New York Times that the filing does not reflect settlement discussions and asserted that the Virgin Islands' legal arguments are being contested in court.
JPMorgan had previously agreed to pay $290 million to settle a class-action lawsuit on behalf of Epstein's victims but has not yet settled with the Virgin Islands government.
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Earlier in June, a U.S. judge granted preliminary approval to the $75 million settlement between Deutsche Bank AG DB and Epstein's victims. The court settlement covered women sexually abused or trafficked by Epstein or his associates from Aug. 19, 2013 until his suicide on August 10, 2019.
Why It Matters: In 2019, JPMorgan reviewed its connections with Epstein. This led to the discovery that Epstein had provided frequent business advice to Jes Staley, a former JPMorgan executive.
JPMorgan's internal report showed that Epstein extended invitations to Staley to attend meetings alongside senior officials from foreign governments.
The bank, however, has blamed top U.S. Virgin Islands officials, saying they looked away from Epstein's crimes in exchange for cash and perks.
Epstein was indicted and imprisoned in July 2019 on federal charges of operating a sex trafficking ring. Before his trial began, he was found dead in a Manhattan jail.
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