JPMorgan Chase (NYSE:JPM) has reached settlements with the government of the U.S. Virgin Islands and its former head of private banking, Jes Staley, concluding nearly a year of legal challenges related to the bank's ties with convicted sex offender Jeffrey Epstein. The news was confirmed in a statement released on Tuesday.
The bank has agreed to pay $75 million to the U.S. Virgin Islands, less than half of the $190 million initially demanded by the territory. Out of this total, $30 million will be directed towards local charities aimed at combating human trafficking, while $25 million will be allocated to enhance law enforcement capabilities to prevent sex crimes. The remaining $20 million will cover attorney's fees.
In the same statement, JPMorgan expressed regret over its association with Epstein but did not admit any wrongdoing. The bank stated, “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.”
The financial institution also disclosed reaching a confidential settlement with Jes Staley to resolve its claims against him. JPMorgan had sued Staley earlier this year, alleging his responsibility for the bank's involvement with Epstein.
In addition to these settlements, JPMorgan is set to pay $55 million to Virgin Islands charities and anti-trafficking initiatives. Another $10 million will be used to establish a fund providing mental health assistance for Epstein's victims.
Virgin Islands Attorney General Ariel Smith hailed the settlement as a historic victory for survivors and state enforcement. Smith said, “This settlement should sound the alarm on Wall Street about banks' responsibilities under the law to detect and prevent human trafficking.”
These agreements follow a separate settlement made by JPMorgan, in which the bank paid $290 million to victims of Epstein, who died in an apparent suicide while awaiting trial.
As part of the settlement, JPMorgan has committed to implementing and maintaining comprehensive anti-trafficking measures to prevent such incidents in the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.