JPMorgan may face expanded lawsuit over Epstein ties

The U.S. Virgin Islands said Epstein’s behavior was “so common knowledge” at the bank that executives joked about it.

The U.S. Virgin Islands are looking to expand their lawsuit accusing JPMorgan Chase & Co of complicity in the sex trafficking of girls and young women by Jeffrey Epstein, with a new obstruction charge and an allegation that bank executives joked about the late financier.

In a Monday filed in Manhattan federal court, the territory said Epstein’s behavior was “so common knowledge” at JPMorgan, where he was a client from 2000 to 2013, that senior executives “joked about Epstein’s interest in young girls” .

The obstruction charge concerns JPMorgan’s alleged attempt to thwart enforcement of a US anti-trafficking law by processing large cash withdrawals for Epstein and his associates, with the “purpose” of helping Epstein evade criminal liability.

One of the beneficiaries of Epstein’s generosity was his former girlfriend Ghislaine Maxwell, who received more than $23 million from 1999 to 2002, the Territory said.

JPMorgan did not immediately respond to requests for comment from Reuters after market hours.

The U.S. Virgin Islands needs permission from U.S. District Judge Jed Rakoff in Manhattan to amend their complaint.

The lawsuit seeks unspecified damages for Epstein’s alleged sexual abuse of young girls and women on Little Saint James, a private island he owned.

The proposed complaint references a recent statement by Mary Erdoes, JPMorgan’s head of wealth and wealth management, in heavily redacted form.

Chief Executive Jamie Dimon is expected to be impeached in May. Neither Dimon nor Erdoes has been charged with wrongdoing.

JPMorgan is separately suing Jes Staley, the former private bank chief and later the CEO of Barclays PLC, for concealing what he knew about Epstein.

On March 20, Rakoff rejected JPMorgan’s bid to dismiss lawsuits from the U.S. Virgin Islands and Epstein’s prosecutors.

He also declined to dismiss a lawsuit brought by Epstein’s plaintiffs against Deutsche Bank AG, where Epstein was a client from 2013 to 2018.

Epstein died by suicide at the age of 66 in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges.

Maxwell is appealing her conviction and 20 years in prison, which she is currently serving, for complicity in Epstein’s abuse.

Related Post