The U.S. Virgin Islands has filed a court document revealing that it is seeking at least $190mn in damages from JPMorgan Chase in its ongoing lawsuit regarding the bank's connections to the late financier Jeffrey Epstein. As per the filing, Epstein maintained accounts with JPMorgan Chase from 1998 to 2013, and the territory alleges that the bank facilitated his human trafficking activities while failing to report suspicious financial transactions.
Last year, the U.S. Virgin Islands initiated legal action against JPMorgan Chase, accusing the bank of aiding Epstein's illicit activities. In June, the financial institution reached a $290mn settlement with Epstein's survivors in a separate lawsuit. The recent court filing by the U.S. Virgin Islands seeks $150mn in civil penalties, as well as $40mn in fees and revenues generated by Epstein's association with the bank, including referrals of high-net-worth clients.
Furthermore, the U.S. Virgin Islands is demanding that JPMorgan Chase implement new policies to prevent human trafficking. The proposed measures include separating the bank's business and compliance units and appointing an independent compliance consultant to ensure that the institution prioritizes reporting suspicious activities over maximizing profits.
U.S. Virgin Islands Attorney General Ariel Smith emphasized the importance of holding JPMorgan Chase accountable for its alleged role in enabling Epstein's human trafficking operations. Smith stated that financial penalties and behavioral changes are necessary to make the bank fully comprehend the consequences of prioritizing profits over public safety.
If successful in its lawsuit, the U.S. Virgin Islands intends to allocate the recovered funds to support victims of human trafficking within its territory. Additionally, the territory has requested that JPMorgan Chase cover the legal fees incurred during the legal proceedings.
The recent court filing represents the first time the U.S. Virgin Islands has disclosed the specific amount of damages it seeks from JPMorgan Chase. The disclosure comes after the presiding judge instructed the plaintiffs to reveal the desired sum. The trial is scheduled to commence on October 23.
In response to the court filing, a spokesperson for JPMorgan Chase asserted that the document does not accurately reflect the nature of settlement discussions and criticized the damages theories put forth by the U.S. Virgin Islands, describing them as unfounded and contested in court.
Although JPMorgan Chase has denied liability, the bank has previously acknowledged that any association with Epstein was a mistake for which they expressed regret. Furthermore, Jamie Dimon, the head of JPMorgan Chase, confirmed in a recent deposition that he never met Epstein and had no prior knowledge of him until his arrest in 2019.
Jeffrey Epstein, a convicted offender, was found guilty in 2008 of procuring a person under 18 for prostitution. He died by suicide in 2019 while in custody at a New York City correctional center, where he faced federal human trafficking charges.
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