JPMorgan and Deutsche Bank should face lawsuits accusing them of enabling Jeffrey Epstein’s intercourse trafficking, a US decide has mentioned.
Jed Rakoff, a district decide in Manhattan, dominated the banks should face proposed class motion fits by ladies who mentioned Epstein sexually abused them, saying he would clarify his reasoning at a later stage.
The decide additionally dominated JPMorgan should face a lawsuit by the US Virgin Islands accusing the financial institution of lacking crimson flags about Epstein’s abuse on Little St James, a non-public island he owned there.
The choice might expose the banks to monetary and reputational injury for retaining Epstein as a consumer after the deceased financier registered as a intercourse offender.
Epstein killed himself aged 66 in a Manhattan jail cell in August 2019 whereas awaiting trial for intercourse trafficking. He had pleaded responsible to a Florida state prostitution cost in 2008 and later registered as a intercourse offender.
‘Complicity of banks helped Epstein’s abuses’
Brad Edwards, a lawyer for the ladies, mentioned damages in a scheduled October trial involving greater than 300 Epstein victims might complete billions of {dollars}.
“It’s a landmark decision,” Mr Edwards mentioned. “To my knowledge, it’s the first time a class of victims can pursue sex trafficking cases against two major financial institutions.
“Complicity of the banks was a needed ingredient of Epstein’s abuses, and this supplies a ultimate layer of accountability.”
‘A primary line of defence’
JPMorgan and Deutsche Bank have mentioned that they had no authorized responsibility to guard ladies from Epstein and denied accusations they knew about his abuses.
Epstein was a consumer of JPMorgan from 2000 to 2013, and Deutsche Bank from 2013 to 2018.
The appearing legal professional common of the US Virgin Islands, Carol Thomas-Jacobs, mentioned her workplace’s case would assist guarantee banks act as “a first line of defence in identifying and reporting potential human trafficking, as the law expects”.
The US Virgin Islands beforehand recovered greater than £85.6m ($105m) from Epstein’s property in a settlement in November, whereas 138 Epstein accusers have been awarded greater than £98.7m ($121m) from a compensation fund in 2021, additionally funded by the property.
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The choice comes as JPMorgan’s former non-public banking chief Jes Staley was accused of swapping sexually suggestive messages about younger ladies with Epstein and committing sexual assault himself.
Mr Staley admitted having been pleasant with Epstein however expressed remorse for the connection – and denied realizing about Epstein’s alleged crimes.
He turned chief govt of Barclays Plc after leaving JPMorgan, however resigned in November 2021 amid regulatory issues about his relationship with Epstein.
Source: information.sky.com”