Disgraced, deceased sex offender and financier Jeffrey Epstein.
In the latest development in the legal proceedings between the U.S. Virgin Islands and JPMorgan Chase, the voluminous filings on both sides continue as the parties make objections to their opponents’ requests for partial summary judgment.
In JPMorgan Chase’s reply to the USVI’s opposition to summary judgment in the bank’s favor, JPMorgan’s attorneys argued that the territory has failed on three occasions to explain why it should be granted “victim damages” or “punitive damages,” or what gives the USVI the authority to enforce federal criminal law. The bank also argues that both parties agreed that the federal investigation into the activities of deceased sex-offender Jeffery Esptein was not publicly disclosed, and therefore it could not have intentionally acted to thwart a probe it did not know was occurring.
“After intense discovery and ample briefing, the USVI’s inability to articulate any viable damages theory – or to identify any facts that could constitute intentional ‘obstruction’ – is now plain,” the reply reads. “Summary judgment should enter.”
In response, the GVI’s legal team argued that the territory is entitled to summary judgment on its claims relating to the Trafficking Victims Protection Act, as Epstein’s sex-trafficking activities were largely centered in and around his property in the territory. Noting that it intends to call at least one alleged victim of Epstein to the stand during trial, GVI says that after 2008, the fact that JPMorgan employees were only scrutinizing Epstein for “reputational risk” and not “continued illegal activity” shows that the bank was indeed in reckless disregard of Epstein’s potential danger to vulnerable girls and women.
Accompanying the two replies were a ream of exhibits previously filed under seal, now available for public viewing with some redacted content. Like previous exhibits before the court, the newest submissions seek to strengthen each side’s claim against the other – that the bank looked the other way while Epstein continued funding and financing his sex-trafficking operation, and that key figures in the government of the Virgin Islands were influenced by Epstein’s money to create a lax oversight environment for the convicted sex offender.
In one example, the role of Cecile de Jongh in the co-option of local politicians using Epstein’s money was further highlighted. On the morning of November 10, 2016, her employer emailed her to ask “how did our candidates do?” Mrs. de Jongh replied to Epstein, “Ten of the twelve candidates that we gave contributions to won.” Attached was a pdf scan of a local newspaper, with the names of winning candidates Marvin Blyden, Janette Millin Young, Myron Jackson, Jean Forde, Kurt Vialet, Novelle Francis Jr., Alicia Hansen, Sammuel Sanes, Nereida Rivera O’Reilly, and Neville James highlighted and ticked.
A $200,000 loan to the de Jonghs from Epstein was also highlighted by JPMorgan as additional evidence of the close relationship he had with the powerful political couple.
For its part, the Virgin Islands has included examples of banking transactions, including transfers into the JPMorgan business checking account of an entity named “Air Ghislaine Inc.” One such transfer was from another JPMorgan account (with account number redacted), in the sum of $7.4 million, on June 18 2007. “As requested,” the transfer memo read. On the same day, Air Ghislaine’s account was debited $7.35 million for the purchase of a helicopter from the Sikorsky Aircraft Corporation.
Evidence of JPMorgan’s continuing relationship with Epstein following his 2008 guilty plea to child prostitution is presented in emails sent to former and current banking executives Jes Staley and Mary Erdoes. In August 2011, Epstein wrote to both individuals suggesting a framework by which high net worth individuals could come together in a relatively anonymous philanthropic investment framework. Ms. Erdoes forwarded the email from Epstein to other JP Morgan team members for further discussion. Weeks later, Epstein send another email, expressing his eagerness to move the idea forward. “I cook it slowly, adding various ingredients, almost fully cook it and then want to turn it over to you,” he told Staley and Ms. Erdoes.
Sensing difficulty, he then offered a possible way forward. “If Tom Pritsker [sic] established an investment bank and I did most things with Tom, could that be a beginning of a solution?” Pritzker was one of the billionaires subpoenaed by GVI for documents in their possession relating to JPMorgan and/or Jeffery Epstein.
The U.S. Virgin Islands also challenged JPMorgan's allegations concerning the loan to the de Jonghs, insisting there was no proof that it resulted in Epstein receiving any favorable treatment, and noting that the loan was made "after the former governor left office."
With both parties firmly holding their respective positions, the case continues to unfold, with a trial scheduled to begin on October 23.
