In a landmark settlement, JPMorgan Chase has agreed to pay $75 million to the U.S. Virgin Islands.
The lawsuit, filed by the territory, alleged that the banking giant had played a role in and profited from the sex trafficking operations of the late financier Jeffrey Epstein.
While JPMorgan Chase has not admitted to any misconduct, it has committed to allocating $55 million of the settlement funds to charities in the Virgin Islands and to the territory's anti-trafficking initiatives, as reported by CNBC. The remaining $20 million will reportedly cover the legal fees the Virgin Islands incurred during the federal court litigation.
The U.S. Virgin Islands has stated that the settlement includes "several substantial commitments by JPMorgan Chase to identify, report, and cut off support for potential human trafficking, including establishing and implementing comprehensive policies and procedures.
The Virgin Islands plans to use $10 million of the settlement funds to provide mental health services to victims exploited by Epstein and his associates.
The territory has also reached a settlement with Jes Staley, a former executive at JPMorgan Chase and a friend of Epstein. Staley has refuted allegations of misconduct, including a claim that he sexually assaulted a woman known only as "Jane Doe." The terms of this settlement remain undisclosed.
JPMorgan Chase expressed deep regret over its association with Epstein, who was a client of the bank from 1998 to 2013. Epstein died in prison on August 10, 2019.
Patricia Wexler, the bank's managing director of corporate communications, issued a statement to the media, saying:
Ariel Smith, the attorney general of the Virgin Islands, stated that this settlement represents the first enforcement action against a bank for facilitating and profiting from human trafficking, according to CNBC.
Smith said, As part of the settlement, JPMorgan has agreed to implement and maintain meaningful anti-trafficking measures, which will help prevent human trafficking in the future.
She added, 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.
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