JPMorgan Chase can be sued by Virgin Islands over Jeffrey Epstein sex-trafficking claims

In the case against JPMorgan filed by a woman suing on behalf of other Epstein victims, Rakoff sustained the claim that the bank “knowingly benefited from participating in a sex trafficking venture” led by its client Epstein.

The judge also said the accusers could pursue claims that JPMorgan “negligently failed to exercise reasonable care to prevent physical harm,” that the bank failed to exercise reasonable care in providing non-routine banking for Epstein, and that the bank obstructed enforcement of the Trafficking Victims Protection Act.

Rakoff sustained the same claims in the accusers’ separate suit against Deutsche Bank.

In the Virgin Islands’ suit, the judge sustained the government’s claim that JPMorgan benefited from participating in Epstein’s sex trafficking, which included shipping women to his private island in the U.S. territory.

The judge dismissed all other claims in the Virgin Islands’ and accusers’ cases.

In a statement, U.S. Virgin Islands Acting Attorney General Carol Thomas-Jacobs said, “We are pleased that the U.S. Virgin Islands will continue to work alongside survivors to hold JPMorgan Chase accountable for enabling Jeffrey Epstein’s heinous sex-trafficking venture.”

“This case is critically important to ensuring that financial institutions do their jobs, with the detailed, real-time information available to them, as a first line of defense in identifying and reporting potential human trafficking, as the law expects,” Thomas-Jacobs said.

“We look forward to uncovering additional facts regarding the depth and reach of JPMorgan’s conduct in the discovery process and ultimately proving our case in court.”

Spokesmen for JPMorgan and Deutsche Bank declined to comment on the ruling.

JPMorgan two weeks ago sued Jes Staley, its former investment banking chief, alleging that he is legally responsible for the lawsuits against the bank in connection with Epstein. The bank seeks to claw back more than $80 million it paid Staley, who resigned as Barclays CEO in late 2021 after an investigation by British financial regulators over his relationship with Epstein.

Epstein for years hobnobbed with celebrity friends who included former presidents Donald Trump and Bill Clinton and Britain’s Prince Andrew.

— With additional reporting by CNBC’s Eamon Javers

Article source: https://www.cnbc.com/2023/03/20/jpmorgan-chase-can-be-sued-by-virgin-islands-over-jeffrey-epstein-sex-trafficking-claims.html