By:  Don Driggers

The government of the U.S. Virgin Islands has filed a court document seeking at least $190 million in penalties from JPMorgan Chase for its alleged failure to detect and report Jeffrey Epstein’s sex trafficking operation in the territory. The Virgin Islands’ attorney general’s office disclosed the amount in response to a request from the federal judge overseeing the lawsuit filed against JPMorgan last year. The lawsuit accuses the bank of ignoring Epstein’s activities and calls for the implementation of new policies to prevent it from providing financial services to human traffickers, the NY Times reported.

U.S. Virgin Islands Attorney General Ariel Smith stated that they are pursuing the enforcement action due to JPMorgan Chase’s institutional failure enabling Epstein’s sex trafficking. JPMorgan spokesperson Patricia Wexler responded that the document does not reflect the nature of settlement conversations and argued that the Virgin Islands’ legal theories are being challenged in court.

In its defense, the bank claimed that the Virgin Islands government did little to deter illegal activities conducted by Epstein on his private island residence. JPMorgan Chase has already agreed to pay $290 million to settle a class-action lawsuit filed by Epstein’s victims. This lawsuit, joined with the Virgin Islands’ lawsuit for discovery purposes, has not yet reached a settlement with the government.

The Virgin Islands’ lawsuit against JPMorgan is scheduled tentatively for an October trial in federal court. The government seeks substantial relief to compensate for damages and discourage future misconduct by the bank. The $190 million includes penalties and the disgorgement of fees earned from business allegedly directed to JPMorgan by Epstein.

The U.S. territory previously reached a $105 million settlement with Epstein’s estate in 2020. Epstein, who faced sex trafficking charges, died by suicide in August 2019 while in federal custody. Lawyers representing his victims claim that over 200 women, many of them teenagers, were sexually abused by Epstein at various locations, including his private residence in the Virgin Islands.

The Virgin Islands government is receiving legal assistance from Motley Rice, a plaintiffs’ law firm based in South Carolina, for all litigation related to Epstein. The firm has a retainer agreement with the Virgin Islands government, entitling them to a portion of every settlement and recovery as compensation.

Epstein’s criminal activities came to light in 2005 when a 14-year-old girl reported that he had sexually abused her. This led to an investigation that uncovered a complex web of sex trafficking and exploitation. It was discovered that Epstein had been operating a vast network of underage girls who were recruited to provide sexual services to influential individuals, including politicians, businessmen, and celebrities.

Epstein’s modus operandi involved luring vulnerable young girls, often from disadvantaged backgrounds, with promises of money, opportunities, and mentorship. Once under his control, he would subject them to sexual abuse, both at his private residences and on his private island, known as Little St. James, in the U.S. Virgin Islands.

In 2008, Epstein faced federal charges in Florida for soliciting prostitution from a minor. He reached a controversial plea deal that allowed him to avoid federal charges and receive a lenient sentence. Instead of facing significant jail time, he served only 13 months in a county jail, during which he was granted extensive work release privileges.

Years later, in 2019, Epstein was arrested again, this time facing federal sex trafficking charges in New York.

However, Epstein’s arrest was followed by his untimely death in jail under suspicious circumstances.