Jeffrey Epstein victims who sued JPMorgan Chase win $290 million lawsuit against bank for ignoring warnings about disgraced pedophile

A US federal judge has approved JPMorgan Chase’s $290 million settlement for Jeffrey Epstein’s sex abuse victims, who alleged the bank ignored warnings about the pedophile.

The deal signed Thursday could provide compensation to nearly 200 women victimized by the disgraced financier.

U.S. District Judge Jed Rakoff called it “a truly excellent settlement” that he said could prevent future sex trafficking by warning banks of the consequences of facilitating related transactions.

JPMorgan, America’s largest bank, had reached a tentative settlement in June, avoiding a possible civil lawsuit in Manhattan Federal Court.

It followed embarrassing revelations that JPMorgan ignored internal warnings and overlooked red flags about Epstein because he had been a high-value client.

Epstein is shown with former private banking chief Jef Staley (far left), Larry Summers, Bill Gates (second from right) and Boris Nikolic (far right)

Written statements were submitted by 15 unidentified victims in support of the settlement.

One came from someone who said she was 13 when Epstein first sexually abused her and said she still suffers from depression, anxiety, panic attacks and eating disorders.

“This case, through this very substantial settlement, sends the message that banking institutions have responsibilities that may not have been fully recognized in the past,” Judge Rakoff said.

Epstein was a client of JPMorgan from 1998 to 2013. The bank kept him even after he was arrested on prostitution charges in 2006 and pleaded guilty two years later.

Bank employees were concerned about Epstein’s large cash withdrawals, some of which were used to pay underage girls in exchange for sex, but he was allowed to remain a customer for years.

JPMorgan, America’s largest bank, had reached a tentative settlement in June, avoiding a possible civil lawsuit in Manhattan Federal Court.

According to statements included in the lawsuit, he regularly withdrew between $40,000 and $80,000 a month.

The recordings raised alarm bells among compliance officials, but he explained them away by claiming they were fuel and landing fees for his private plane.

JPMorgan admitted no wrongdoing when it agreed to a settlement.

“This was a fair and just outcome for the nearly 200 survivors who courageously came forward,” a JPMorgan spokesperson said after the hearing.

Earlier on Thursday, Rakoff rejected a request from 16 US states and Washington DC to change the wording of the agreement, which they said could limit their ability to seek damages arising from sex trafficking by Epstein and his associates.

Ghislaine Maxwell, Epstein’s former girlfriend and longtime partner, is serving a 20-year prison sentence after being convicted in December 2021 of recruiting and grooming teenage girls for him to abuse

James Grayson, a New Mexico attorney, said the state has an ongoing investigation into the matter and was concerned that JPMorgan could try to block claims states might bring in the future.

He provided no further details about the state’s investigation. Epstein owned a ranch in New Mexico, where some women said he abused them.

Rakoff countered that the states had not yet filed any claims, noting that the U.S. Virgin Islands — which also sued JPMorgan last year — had reached a $75 million settlement with the bank in September. Epstein owned two islands in the area.

“You’ve been sitting on your hands and now you want to appeal the settlement,” Rakoff said.

“This case sent the message through this very substantial settlement that banking institutions have a responsibility.”

The settlement covered nearly 200 women, led by a former ballet dancer known as Jane Doe 1, who said Epstein abused them.

It was first filed last November on behalf of those who were sexually abused by Epstein over 15 years until 2013.

Epstein’s infamous ‘Pedophile Island’ consisted of a mansion with a 10-person shower, guest villas, a helipad, a private dock and three private beaches, as well as a room with a dentist’s chair

Simone Lelchuk, a lawyer appointed to oversee the distribution of the funds, said in court that 191 people had registered with the fund, although “probably a few” had no legitimate claims.

The judge expressed some concern that the settlement did not include “guidance on how to determine who gets what” and asked Lelchuk to send him summaries of her decisions every three months.

Rakoff approved fees of 30 percent of the settlement value for the attorneys representing the class of women.

David Boies, one of the lawyers, told reporters after the hearing that the deal’s approval was “a big step forward for the survivors.”

Rakoff gave final approval on Oct. 20 to a similar $75 million settlement between Epstein’s accusers and Deutsche Bank, where Epstein banked after JPMorgan fired him.

Epstein died in 2019 at the age of 66 in a Manhattan jail cell while awaiting trial on sex trafficking charges. The New York City Medical Examiner ruled the death a suicide.

Ghislaine Maxwell, Epstein’s ex-girlfriend and longtime partner, is serving a 20-year prison sentence after being convicted in December 2021 of recruiting and grooming teenage girls for him to abuse. She is appealing her conviction.