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JPMorgan Faces Accusations Over Undisclosed Epstein-Linked Transactions with the V.I. Government

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The Virgin Islands Government has recently presented fresh allegations against JPMorgan. Documents submitted in a lawsuit on Monday intimate the bank concealed vital details about their dealings with Jeffrey Epstein, particularly transactions amounting to over a million dollars purportedly made to young women following Epstein’s severance from the bank. This information emerged from a correspondence addressed to Judge Jed Rakoff.

In a letter dated July 18, which was initially filed confidentially, the Virgin Islands Government unveiled that during the evidence-gathering phase, they discovered a document hinting at JPMorgan’s “timeline” of significant transactions, a piece of information they had specifically sought from the bank on June 5. Despite several follow-up reminders throughout June, the bank’s official response, as of June 24, was that the desired information had been found and would likely be shared within a week.

Subsequently, on June 30, JPMorgan shared a detailed spreadsheet encompassing details about “more than 9000 transactions to individuals associated with Epstein between 2005 and 2019”. The transactions cumulatively amounted to an astounding $2.4 billion. The Virgin Islands Government acknowledged that this information revealed many previously unidentified transactions. However, they pressed for more comprehensive data, especially details about the initiators of these payments.

Upon the government’s persistence, JPMorgan handed over the requested information on July 14. The data not only shed light on transactions tied to Epstein affiliates but also on transactions the Virgin Islands Government was previously uninformed about. The letter to Judge Rakoff emphasizes that this data was essential to multiple evidence requests and the bank’s delay in presenting it was unwarranted.

Despite the recent disclosure, concerns linger that JPMorgan might still be withholding significant information. Consequently, the Virgin Islands Government has appealed to Judge Rakoff to mandate JPMorgan to release all pertinent documents and details related to “Project Jeep” or any other post-arrest investigations concerning Epstein in 2019. They further seek legal sanctions against the bank for their perceived lapse in disclosing the requested details, underscoring a recurrent trend of delayed disclosures.

In a related development, Jes Staley, cited as a third-party defendant in the lawsuit involving the Virgin Islands Government, Jane Doe, and JPMorgan, has reached out to Judge Rakoff. Staley demands that the bank reveal all correspondences with its legal team concerning the settlement between JPMorgan and Jane Doe.

In a subsequent letter, Staley’s legal representatives highlight the bank’s intent to hold him responsible for the staggering $290 million settlement. They are specifically keen on documentation that elucidates the bank’s rationale behind agreeing to the settlement. Challenging JPMorgan’s intentions, Staley’s team stated that it’s implausible for the bank to disburse a significant nine-figure sum without substantial legal counsel and analysis.

In a countermove, JPMorgan, on July 31, presented its stance, refuting Staley’s claims. The bank underscores that the communications Staley is adamant about accessing are protected by attorney-client privilege. They caution that any deviation from this privilege can jeopardize the sacred trust between clients and their attorneys, who are bound by professional confidentiality. Drawing from historical legal precedents, JPMorgan implored Judge Rakoff to dismiss Staley’s request.

While JPMorgan’s official response to the Virgin Islands Government’s recent claims is pending, the financial community keenly anticipates its forthcoming statement, expected in the imminent days.

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