A New York federal judge on Monday ruled that the U.S. Virgin Islands and the woman who accused late investor Jeffrey Epstein of sexual abuse can continue their lawsuit alleging that JPMorgan Chase knowingly benefited from participating in Epstein’s sex-trafficking scheme.
Additionally, the judge allowed the same portion of the lawsuit filed by Epstein’s accusers Deutsche Bankincluding claims that the bank also knowingly benefited.
The four-page ruling by Manhattan District Judge Jed Rakoff came in response to a motion by JPMorgan and Deutsche Bank to dismiss the three lawsuits.
While Rakoff agreed to dismiss multiple counts in each case, he allowed the other explosive counts to remain and go to trial. The judge wrote that he would issue an opinion explaining the reasons for his decision “in due course.”
Epstein, who killed himself in a Manhattan jail in 2019 while awaiting trial on federal criminal child sex trafficking charges, was a JPMorgan client from 1998 to 2013.
The relationship ended five years after he pleaded guilty in Florida to soliciting underage prostitutes. At a court hearing Thursday before Rakoff, attorneys for the Virgin Islands said JPMorgan CEO Jamie Dimon “knew in 2008 that his billionaire client was a sex trafficker,” a claim disputed by the bank’s lawyers.
Deutsche Bank accepted Epstein as a client in 2013 and remains one despite employees reporting 40 underage girls made sexual demands on him. The bank paid New York banking regulators a $150 million fine for its dealings with him.
Brad Edwards, the Edwards Pottinger attorney who represented Epstein’s abuse accusers, called the verdict Monday. “a monumental victory for the hundreds of survivors of Jeffrey Epstein’s sex trafficking scheme and survivors of sexual harassment in general, all made easier by the fact that no individual or institution is held accountable.
“Epstein’s sex-trafficking operation would not have been possible without the help of JPMorgan Chase, and later Deutsche Bank,” Edwards said. “And we assure the public that we will leave no stone unturned to seek justice for the many victims of one of America’s largest financial institutions.”
In a JPMorgan case filed by a woman suing on behalf of Epstein’s other victims, Rakoff supported claims that the bank “knowingly benefited from participating in a sex-trafficking enterprise” led by Epstein’s clients.
The judge also said that prosecutors can claim that JPMorgan “failed to take reasonable care to prevent physical damage,” that the bank failed to take reasonable care to provide non-routine banking for Epstein, and that the bank obstructed the enforcement of Trafficking. Victim Protection Act.
Rakoff made similar claims in the plaintiffs’ separate lawsuit against Deutsche Bank.
In the Virgin Islands suit, a judge upheld the government’s claim that JPMorgan benefited from participating in Epstein’s sex trade, which included sending women to his private island off the U.S. territory.
The judge dismissed all other claims in the Virgin Islands case and the plaintiffs.
In a statement, US Virgin Islands Acting Attorney General Carol Thomas-Jacobs said, “We are pleased that the US Virgin Islands will continue to work with survivors to hold JPMorgan Chase accountable for enabling Jeffrey Epstein’s horrific sex trafficking enterprise.”
“This case is very important to ensure that financial institutions do their job, with detailed, real-time information available to them, as the first line of defense to identify and report potential human trafficking, as required by law,” Thomas-Jacobs. said.
“We look forward to discovering additional facts about the depth and reach of JPMorgan’s actions in the discovery process and ultimately proving our case in court.”
Spokesmen for JPMorgan and Deutsche Bank declined to comment on the decision.
JPMorgan two weeks ago sued Jes Staley, the former head of the investment bank, saying he was legally responsible for the lawsuit against the bank linked to Epstein. The bank is seeking to recover more than $80 million it paid to Staley, who resigned as CEO of Barclays at the end of 2021 following an investigation by Britain’s financial regulator into his relationship with Epstein.
Epstein has enjoyed a celebrity friendship over the years that includes former presidents Donald Trump and Bill Clinton and Britain’s Prince Andrew.
– With additional reporting by CNBC Eamon Jobverse