JPMorgan Chase & Co. has agreed to pay a settlement of $75 million to resolve litigation in connection with its relationship with the late convicted sex offender Jeffrey Epstein.
The Wall Street financial services giant announced the settlement, which was approved by the court-appointed trustee for Epstein’s estate. As part of the agreement, JPMorgan will pay $75 million in damages and an additional fee of up to $3 million in attorneys’ fees, along with costs and other management fees associated with the settlement.
JPMorgan had been accused of having failed to supervise and monitor Epstein’s accounts at its private bank after the disgraced financier was convicted of soliciting prostitution from underage girls in Florida. Epstein died in prison in 2019 while he was serving a sentence for a federal sex-trafficking conviction.
The lawyers representing the trustee for Epstein’s estate said that the settlement gave Epstein’s victims “peace of mind and closure” by holding JPMorgan accountable for its failure to properly monitor the accounts and other activities in connection with Epstein’s accounts.
JPMorgan has been heavily criticized for its associations with Epstein prior to his 2019 arrest. The bank was one of several financial institutions that were criticized for allowing Epstein to make transactions from his accounts even after he was indicted on multiple child sex-trafficking charges. The settlement is the latest move by JPMorgan to address its involvement with Epstein and his estate.
The settlement comes just a few months after JPMorgan paid out a separate $1.2 million settlement to resolve an investigation by the New York State’s Department of Financial Services for its ties to Epstein’s activities. It marks yet another step JPMorgan has taken in order to address the damages created by its earlier relationships with the late convicted sex offender.
In the wake of Epstein’s incarceration, JPMorgan has taken numerous steps to review, strengthen, and enhance its customer due diligence process, including hiring external experts to review its policies and procedures, and tightening its monitoring controls. The bank also conducted a thorough review of its accounts that had potential ties to Epstein.
JPMorgan’s latest settlement marks the end of the ongoing litigation and provides closure to the victims of Epstein as well as those affected by his actions.
