JPMorgan Chase blasts U.S. Virgin Islands as ‘complicit’ in Jeffrey Epstein intercourse trafficking

JPMorgan Chase in a courtroom submitting Tuesday referred to as the U.S. Virgin Islands “complicit within the crimes of Jeffrey Epstein,” saying the intercourse predator gave high-ranking officers there cash, recommendation and favors in alternate for trying the opposite method when he trafficked younger girls to be abused on his island getaway.

“For 20 years, and for lengthy after JPMC exited Epstein as a consumer, the entity that almost all instantly failed to guard public security and most actively facilitated and benefited from Epstein’s continued legal exercise was the plaintiff on this case — the USVI authorities itself,” the financial institution stated within the Manhattan federal courtroom submitting.

“Quite than cease him, they helped him,” JPMorgan stated, citing hundreds of thousands of {dollars} in tax incentives and different advantages the territory gave Epstein.

That declare comes as JPMorgan defends itself towards a civil lawsuit by the Virgin Islands, which alleges that the financial institution knowingly enabled Epstein’s intercourse trafficking and benefited from it when he was a buyer from 1998 by 2013.

A spokesman for theVirgin Islands’ legal professional normal’s workplace informed CNBC on Tuesday, “JPMorgan Chase facilitated Jeffrey Epstein’s abuse, and must be held accountable for violating the regulation.”

“That is an apparent try to shift blame away from JPMorgan Chase, which had a obligation to report the proof in its possession of Epstein’s human trafficking, and failed to take action,” the spokesman stated.

The financial institution’s submitting Tuesday requested Choose Jed Rakoff to disclaim a movement by the Virgin Islands that may preclude JPMorgan from elevating sure so-called affirmative defenses to the lawsuit.

“USVI’s movement seeks to strike solely these particular defenses that threaten to show its relationship with Epstein,” the submitting stated.

In a footnote, the submitting stated the Virgin Islands had three governors over the previous 16 years: John de Jongh, Kenneth Mapp and present governor Albert Bryan Jr.

“As detailed herein, Epstein had shut ties to every of them,” that footnote stated.

Earlier Tuesday, one other courtroom submitting for the primary time revealed that Bryan is scheduled to be deposed June 6 for the lawsuit. A supply accustomed to the scenario informed CNBC that JPMorgan requested the deposition of Bryan, who has been governor since 2019.

JPMorgan CEO Jamie Dimon is scheduled to be deposed within the swimsuit Friday in New York.

Rakoff final week approved the Virgin Islands to serve a subpoena for Tesla CEO Elon Musk on his electrical automotive firm, in search of paperwork that Musk could have exhibiting any communications involving him, Epstein and JPMorgan.

That subpoena relies on suspicion by the territory that Epstein could have referred Musk or tried to refer him to the financial institution as a consumer.

Epstein, a former pal of Donald Trump and Invoice Clinton, maintained a house on a personal island within the territory the place he sexually abused many younger girls through the years. He used cash from his JPMorgan accounts to pay girls and fly them there.

In its submitting Tuesday, JPMorgan famous that when Epstein was launched from a Florida jail after pleading responsible to procuring a minor for intercourse, he tried to rearrange for his parole to be transferred from that state to the Virgin Islands, the place he registered as a intercourse offender. He additionally maintained his major residence within the territory, which “put him below USVI regulation enforcement’s direct jurisdiction and supervision,” the submitting stated.

The financial institution alleges there was a “decades-long quid professional quo between Epstein and the USVI authorities” that took three varieties.

“First, high-ranking USVI officers spent years courting and gladly accepting Epstein’s affect within the type of presents, favors, and political donations,” the submitting stated.

“Second, in alternate, USVI granted Epstein preferential therapy within the type of greater than $ [amount redacted] million in tax incentives, amongst different advantages. Third, and most troublingly, USVI protected Epstein, fostering the proper situations for Epstein’s legal conduct to proceed undetected.”

Particularly, the submitting says Epstein supported the candidacy of Stacey Plaskett, the Virgin Islands delegate to the U.S. Home of Representatives, after she labored for the USVI Financial Growth Authority, which awarded Epstein “huge tax advantages.” Plaskett had additionally labored at a regulation agency that represented him in enterprise affairs, the submitting says.

Epstein and his workers donated greater than $30,000 to Plaskett’s congressional races, in accordance with the financial institution.

The submitting stated that Epstein’s “major conduit for spreading cash and affect by” Virgin Islands authorities was then-first woman Cecile de Jongh, the spouse of former Gov. de Jongh, who served from 2007 by 2015.

And “regardless of her public position and official duties, First Girl de Jongh managed Epstein’s USVI-based firms … receiving from Epstein a wage, bonuses and different advantages,” the submitting stated.

A lot of the small print of the claims associated to Cecile de Jongh are redacted within the submitting, however in a single part the financial institution says that along with working for his firms she “extensively lobbied on his behalf with authorities officers, together with the governor.”

In one other closely redacted part, the submitting says the Virgin Islands “aided Epstein’s legal exercise.” The particular allegations as to how the federal government did that’s blacked out.

Nearly fully redacted is a piece of the submitting entitled, “Epstein exerted affect over USVI intercourse offender laws and obtained lax monitoring.” In a single unredacted part, the financial institution’s legal professionals wrote, “Whereas the USVI did conduct web site visits of Epstein’s residences, these inspections had been cursory at finest.”

“Regardless of the direct infusions of profitable tax incentives, [redacted] and lax enforcement, Epstein nonetheless couldn’t freely transport and exploit younger girls with out help from USVI authorities officers,” the submitting stated.

“In alternate for Epstein’s money and presents, USVI made life simple for him,” the submitting stated. “The federal government mitigated any burdens from his intercourse offender standing. And it made certain that nobody requested too many questions on his transport and holding of younger women on his island.”

The lawsuit towards JPMorgan was filed in late December by then-Virgin Islands Legal professional Normal Denise George, who a month earlier had obtained a $105 million settlement from Epstein’s property. Days after she filed that swimsuit, Bryan fired George, who had been legal professional normal for 4 years.

The governor fired George reportedly as a result of she didn’t alert him that she deliberate to sue JPMorgan, which is the most important financial institution in the US.

Regardless of George’s firing, the Virgin Islands has continued to aggressively pursue its litigation towards the financial institution.

On Tuesday, there was one other in a sequence of personal phone conferences with Rakoff over the case.

A public docket entry summarized the end result of that convention, which included legal professionals for the Virgin Islands, JPMorgan, former JPMorgan government Jes Staley and an Epstein accuser who has a separate, comparable lawsuit pending towards the financial institution. JPMorgan is attempting to shift any authorized legal responsibility it could have within the swimsuit to Staley, who was a degree of contact for Epstein on the financial institution.

“The deposition of Albert Bryan, Jr. is ordered to proceed on June 6,” that docket entry says.

The entry additionally says that “all events apart from JP Morgan are ordered to contact former officers and administrators of JP Morgan solely by counsel.”

CNBC requested remark from legal professionals for the Virgin Islands and from JPMorgan concerning the convention Tuesday.

Epstein, 66, died by suicide in a Manhattan jail in August 2019, a month after he was arrested and charged in Manhattan federal courtroom with baby intercourse trafficking.

Epstein pleaded responsible in 2008 to a Florida state cost of soliciting intercourse from an underage woman and was sentenced to 13 months in jail.

His prior legal case and stint in jail, which had been identified to JPMorgan on the time, got here in the midst of his tenure as a buyer of the financial institution, the place he maintained accounts from 1998 till the financial institution severed its relationship with him in 2013.

Epstein turned a buyer of Deutsche Financial institution after that.

Deutsche Financial institution final week agreed to settle a Manhattan federal courtroom lawsuit filed by one other Epstein accuser who alleged that financial institution enabled and benefited from his intercourse trafficking. Deutsche Financial institution can pay Epstein victims $75 million in that deal.

Deutsche Financial institution in 2020 agreed to pay a $150 million tremendous to New York’s monetary regulator for its dealings with Epstein and different points.

“We acknowledge our error onboarding Epstein in 2013, and the weaknesses in our processes, and have learnt from our errors and our shortcomings,” financial institution spokesman Dylan Riddle stated final week.

— CNBC’s Eamon Javers contributed to this report.

Correction: Some earlier headlines for this story had been up to date to mirror the proper spelling of Jeffrey Epstein’s identify.