JPMorgan Chase and the US Virgin Islands Department of Justice settled a lawsuit alleging the bank benefitted from human trafficking for $75 million.
USVI Attorney General Ariel Smith announced the settlement via video message to islanders today.
JPMorgan committed to establish and maintain comprehensive anti-trafficking procedures to prevent human trafficking as part of the settlement. The payment is a significant achievement for survivors and state enforcement, and should alert Wall Street to banks’ legal obligations to identify and prevent human trafficking, according to Smith.
The Department of Justice persistently pursued this enforcement action to make it harder for traffickers to fund their crimes in the future, and we are certain this settlement will assist accomplish that aim. We are delighted to have supported the survivors throughout this action, and this settlement shows our dedication. We look forward to helping our community move forward and developing a new partnership with JPMorgan after this constructive conclusion of this groundbreaking litigation.”
The deal halts a trial scheduled for next month.
This was the first time a state attorney general invoked the Trafficking Victims Protection Act to punish a bank for human trafficking.
The US Virgin Islands wanted $190 million in bank fines.
Ariel stated that the settlement funds will primarily support victims of human trafficking and other crimes in vulnerable communities, enhance USVI Department of Justice crime-fighting efforts, and establish a $10 million mental health fund for Jeffrey Epstein’s survivors.
JPMorgan Chase pledged to detect, disclose, and end human trafficking assistance in addition to the payment.
US Virgin Islands prosecutors began the case against JPMorgan for enabling and profiting from convicted sex offender Jeffrey Epstein’s sex and human trafficking businesses.
Epstein’s USVI villa was the site of his unlawful operations.
In June 2023, JPMorgan settled a class-action lawsuit with victims of Epstein’s trafficking offenses for $290 million.
Associated Press reported that JPMorgan negotiated a private litigation deal with former senior JPMorgan employee James “Jes” Staley, who supervised the Epstein account before leaving the firm. JPMorgan sued Staley earlier this year for concealing Epstein’s misdeeds to keep the lucrative account.
