Latest / The Vault: The Epstein Files / The USVI And Their Motion For Partial Summary Judgement Against JPMorgan (Part 3) (9/20/26)

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The USVI And Their Motion For Partial Summary Judgement Against JPMorgan (Part 3) (9/20/26) · The Vault: The Epstein Files

• 0:00
  Speaker 1: What's up everyone and welcome back to the Epstein Chronicles.
• 0:03
  Speaker 1: In this episode, we're going to pick up where we
• 0:05
  Speaker 1: left off with the USVI and their request for a
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  Speaker 1: partial judgment. Part 4. J.P. Morgan knew of reports that
• 0:13
  Speaker 1: Epstein settled dozens of civil lawsuits alleging child sex trafficking.
• 0:18
  Speaker 1: Then came the reports of the civil lawsuits, another category
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  Speaker 1: of information that was supposed to be part of the J.P.
• 0:24
  Speaker 1: Morgan due diligence. In 2007, Epstein was bracing for a
• 0:28
  Speaker 1: slew of lawsuits from as many as 40 young women.
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  Speaker 1: By early 2008, Erdos and Lisa Waters, then a managing director, AWM,
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  Speaker 1: among others, knew of multiple news outlets reporting the first
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  Speaker 1: lawsuit against J.E., sexual abuse of minor, etc., etc. Then
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  Speaker 1: the next. The teen says that she was lured to
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  Speaker 1: Epstein's Palm Beach mansion and then sexually assaulted in his
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  Speaker 1: massage room. In 2010, J.P. Morgan knew of reports that
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  Speaker 1: Epstein had settled more then two dozen lawsuits and claims
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  Speaker 1: against him by teenagers who say they were lured to
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  Speaker 1: his Palm Beach mansion to give him sexually charged massages
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  Speaker 1: and or sex in exchange for money. These same civil
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  Speaker 1: complaints allege that young girls from South America, Europe, and
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  Speaker 1: the former Soviet republics were recruited for Epstein's sexual pleasure. 5. J.P.
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  Speaker 1: Morgan knew Epstein's 2008 conviction covered sex trafficking conduct. On
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  Speaker 1: June 30, 2008, Epstein pled guilty to felony solicitation of
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  Speaker 1: prostitution and procurement of a 14-year-old minor to engage in
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  Speaker 1: prostitution and was sentenced to 18 months in jail and
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  Speaker 1: required to register as a sex offender. Redacted as described above.
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  Speaker 1: In 2011, William Langford, then Global Head of Compliance, communicated
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  Speaker 1: to Steve Cutler, then General Counsel, concern about retaining Epstein
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  Speaker 1: as a client. Cutler testified that those concerns are heightened,
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  Speaker 1: if you will, by the human trafficking initiative that we're doing,
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  Speaker 1: given that he was convicted of these crimes. Six. Based
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  Speaker 1: on its own human trafficking work, J.P. Morgan knew Epstein
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  Speaker 1: was engaged in human trafficking. Around the time of Epstein's
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  Speaker 1: conviction in 2008, J.P. Morgan's AML, Anti-Money Laundering Compliance Group,
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  Speaker 1: under Langford, created a human trafficking overview. The overview reported
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  Speaker 1: that nearly two-thirds of the women trafficked for prostitution worldwide
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  Speaker 1: come from Eastern Europe, and former... Eastern Bloc countries such
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  Speaker 1: as Albania, Moldova, Romania, Bulgaria, Russia, Belarus, and Ukraine have
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  Speaker 1: been identified as major trafficking source countries for women and children. J.P.
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  Speaker 1: Morgan knew and had even assembled evidence that Epstein had
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  Speaker 1: made at least tens of thousands of dollars in payments
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  Speaker 1: to Redacted and was reported to refer to her as
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  Speaker 1: his Yugoslavian sex slave. J.P. Morgan knew. that it had
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  Speaker 1: made more than $ 1. 2 million in payments to girls or women,
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  Speaker 1: many with Eastern European surnames from Epstein's accounts, from 2003
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  Speaker 1: to 2008. Beginning in 2008, several payments were sent to
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  Speaker 1: high-risk locations such as Belarus, Lithuania, and Russia. AML Compliance,
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  Speaker 1: JP Morgan's in-house human trafficking experts, wanted Epstein gone from
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  Speaker 1: the bank. In 2010, when additional news stories connected Epstein
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  Speaker 1: to human trafficking, AML Compliance was concerned about continuing to
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  Speaker 1: bank a human trafficker while trumpeting the bank's efforts to
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  Speaker 1: rein in human trafficking through the bank. My fear is
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  Speaker 1: that all our touting of goodwill on the human trafficking work,
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  Speaker 1: if anyone should ever say, yet we bank Epstein, a
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  Speaker 1: known child sleaze. I sent you an email yesterday on
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  Speaker 1: that scum Epstein. I reminded McCleary, then head of PB
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  Speaker 1: Risk Management, that he listened to two days of human
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  Speaker 1: trafficking at the forum and this account could be problematic
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  Speaker 1: in several ways. AML Compliance requested the bank re-sponsor this
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  Speaker 1: client in light of the new allegations of human trafficking,
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  Speaker 1: which the firm has been actively assisting law enforcement in
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  Speaker 1: uncovering others engaged in this practice. Langford, the public face
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  Speaker 1: of J.P. Morgan's human trafficking initiative and the global head
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  Speaker 1: of compliance, believe J.P. Morgan should exit Jeffrey Epstein as
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  Speaker 1: a client. But business, including Erdos, decided otherwise. 7. In 2008, J.P.
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  Speaker 1: Morgan knew the feds were connecting certain transactions to Epstein's
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  Speaker 1: sex trafficking. J.P. Morgan also knew that it made many
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  Speaker 1: payments from Epstein's accounts that federal prosecutors believed could be
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  Speaker 1: evidence of sex trafficking. In 2008, J.P. Morgan acquired Barristerns,
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  Speaker 1: where it knew Epstein conducted his brokerage business. Around the
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  Speaker 1: time of Epstein's guilty plea, Arthur Middlemiss, formerly a compliance
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  Speaker 1: officer at Barristerns, assumed a similar role at J.P. Morgan's
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  Speaker 1: and worked on Epstein's investigations. The last portion of this section,
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  Speaker 1: completely redacted. 8. J.P. Morgan employees had personal knowledge of
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  Speaker 1: Epstein's sex trafficking. Many emails over J.P. Morgan's email between
• 4:55
  Speaker 1: Staley and Epstein demonstrate that Staley had personal knowledge of
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  Speaker 1: Epstein's sex trafficking. Staley met Epstein's co-conspirators at Epstein's townhouse, redacted. J.P.
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  Speaker 1: Morgan handled more than $ 210, 000 in payments to redacted from Epstein. J.P.
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  Speaker 1: Morgan admits that Jeff Staley was the senior person at J.P.
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  Speaker 1: Morgan with a business relationship with Epstein. Thus, Staley's knowledge
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  Speaker 1: is imputed to J.P. Morgan. Order at 29. Brigstock, CFO
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  Speaker 1: of AWM, wrote, Airdose comparing a client's house to Epstein's
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  Speaker 1: reminded me of J.E. 's house, except it was more
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  Speaker 1: tasteful and, you know, fewer nymphettes. C. J.P. Morgan participated
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  Speaker 1: in Epstein's sex trafficking venture. Even if participation requires active engagement,
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  Speaker 1: order at 24, there's no genuine dispute that JP Morgan
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  Speaker 1: actively participated in Epstein's sex trafficking venture from 2006 until 2019.
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  Speaker 1: The court found allegations that the bank allowed Epstein to
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  Speaker 1: use its accounts to send dozens of payments to then-known co-conspirators, redacted,
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  Speaker 1: provided excessive and unusual amounts of cash to Epstein, and
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  Speaker 1: structured cash withdrawals so that those withdrawals would not appear
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  Speaker 1: suspicious went well beyond merely providing their usual banking services
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  Speaker 1: to Jeffrey Epstein and his affiliated entities, and were sufficient
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  Speaker 1: to allege active engagement. The New York State Department of
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  Speaker 1: Financial Services entered into a consent order and issued a
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  Speaker 1: $ 150 million penalty to Deutsche Bank for its inexcusable failure
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  Speaker 1: to detect or prevent millions of dollars of suspicious transactions
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  Speaker 1: related to Epstein, including payments to publicly alleged co-conspirators, settlement
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  Speaker 1: payments and dozens of payments to law firms for legal
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  Speaker 1: expenses of Epstein and co-conspirators, payments to Russian models, including
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  Speaker 1: for school tuition and hotel and rent expenses, and to
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  Speaker 1: numerous women with Eastern European surnames, and periodic suspicious cash
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  Speaker 1: withdrawals totaling more than $ 800, 000 over four years. Redacted and redacted.
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  Speaker 1: Payments to co-conspirators redacted and redacted. From August 2006 through 2013, J.P.
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  Speaker 1: Morgan handled $ 678, 741. 51, and $ 607, 804. 30 in payments, respectively, from Epstein's J.P.
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  Speaker 1: Morgan accounts to Redacted and Redacted, Epstein's co-conspirators, recruiters, and
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  Speaker 1: or victims. Even after it decided to terminate Epstein's account
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  Speaker 1: in July 2013, J.P. Morgan still handled a payment of $ 15, 000
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  Speaker 1: from Epstein's J.P. Morgan accounts to Redacted. Redacted and Redacted,
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  Speaker 1: In addition to payments from Epstein, J.P. Morgan also opened
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  Speaker 1: credit cards for Redacted and Redacted through NES LLC, care
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  Speaker 1: of Jeffrey Epstein, only months after Epstein was indicted. NES
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  Speaker 1: LLC is an Epstein entity for which J.P. Morgan had
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  Speaker 1: not conducted the required due diligence and redacted. Payments to
• 8:00
  Speaker 1: co-conspirator Ghislaine Maxwell. After August 2006, J.P. Morgan continued to
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  Speaker 1: handle payments to Maxwell who, by July 2006, It had
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  Speaker 1: reason to suspect was involved with Epstein in the alleged
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  Speaker 1: sex crimes. JP Morgan's payments to Maxwell included more than
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  Speaker 1: $ 7 million to purchase a helicopter. Millions of dollars in
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  Speaker 1: payments to girls and women, many with Eastern European surnames
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  Speaker 1: and or located in Eastern Europe. The whole section redacted.
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  Speaker 1: JP Morgan sent several of the payments by foreign wire
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  Speaker 1: to girls or women to locations in Eastern Europe, including Belarus, Lithuania,
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  Speaker 1: and Russia. J.P. Morgan also handled payments to women for
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  Speaker 1: school tuition and rent expenses. Next section, redacted. $ 1, 000 in
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  Speaker 1: smaller payments to girls and women and $ 100, 000 payments. As
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  Speaker 1: explained above, J.P. Morgan knew from the federal prosecutor's subpoena
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  Speaker 1: to Barra Stearns that law enforcement considered these payments suspicious
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  Speaker 1: and evidence of Epstein's federal sex crimes. MC2 Modeling Agency, SBLC.
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  Speaker 1: As described above, From 2005 to March 2011, JPMorgan extended
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  Speaker 1: an SBLC to Brunel and MC2 despite reports it supported
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  Speaker 1: payment for services as a procurer. By 2007, there were
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  Speaker 1: reports that Epstein had engaged in sexual abuse of minors
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  Speaker 1: through MC2, yet JPMorgan continued to extend the SBLC. Next part, redacted.
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  Speaker 1: Who it knew was covering of Epstein's involvement with MC2.
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  Speaker 1: Payments to high-powered lawyers covering up Epstein's crimes. Following Epstein's
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  Speaker 1: arrest for felony sex crimes and confession to Staley and
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  Speaker 1: prior to the NPA, redacted. After the NPA through 2013, redacted.
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  Speaker 1: Excessive and unusual cash withdrawals. The NYSDFS found inexcusable Deutsche
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  Speaker 1: Bank failures to monitor suspicious cash withdrawals of more than $ 800, 000
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  Speaker 1: over four years. Between September 2003 and November of 2013,
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  Speaker 1: approximately 10 years, JP Morgan handled more than $ 5 million
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  Speaker 1: in outgoing cash transactions for Epstein, ignoring its own policy,
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  Speaker 1: discouraging large cash withdrawals. From August 2006 to 2013, J.P.
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  Speaker 1: Morgan facilitated nearly $ 2. 5 million in cash withdrawals for Epstein,
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  Speaker 1: even though it was widely publicized that Epstein paid for
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  Speaker 1: sexual encounters with minors in cash. Next part, redacted. J.P.
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  Speaker 1: Morgan did not seek an explanation for Epstein's excessive cash
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  Speaker 1: withdrawals until 2011, again in violation of its own policy.
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  Speaker 1: Next part, redacted. J.P. Morgan must file SARS to report
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  Speaker 1: suspicious financial transactions Whenever the national bank detects a transaction
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  Speaker 1: or transactions conducted through the bank and involving or aggregating $ 5, 000
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  Speaker 1: or more in funds or other assets where the bank
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  Speaker 1: believes that it was used to facilitate criminal transaction and
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  Speaker 1: the bank was a substantial basis for identifying a possible suspect. J.P.
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  Speaker 1: Morgan must file a SAR no later than 30 calendar
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  Speaker 1: days after the date of the initial detection of facts
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  Speaker 1: that may constitute a basis for filing a SAR. From
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  Speaker 1: 2003 to 2013, JPMorgan helped Epstein withdraw over $ 5 million
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  Speaker 1: in cash, make millions of dollars in payments to co-conspirators
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  Speaker 1: and accomplices, send more than $ 3 million in wires to
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  Speaker 1: women and girls, and redacted. At the 2006 Rapid Response meeting,
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  Speaker 1: following Epstein's indictment on the felony charges of soliciting underage prostitutes,
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  Speaker 1: JPMorgan explicitly noted cash withdrawals made in amounts of $ 40, 000
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  Speaker 1: to $ 80, 000 several times a month. Next part, redacted. So
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  Speaker 1: we're going to end here. And in the next section,
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  Speaker 1: when we pick back up, we're going to pick up
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  Speaker 1: with D. JP Morgan benefited from participation in Epstein's sex
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  Speaker 1: trafficking venture. All of the information that goes with this
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  Speaker 1: episode can be found in the description box.