JPMorgan Chase allegedly knew of Epstein's misconduct by 2006

AP Photo/Michel Euler, Pool, File

New legal filings claim that JPMorgan Chase was aware of accusations against disgraced financier Jeffrey Epstein regarding underage girls by 2006.

Legal documents allege that JPMorgan Chase knew by 2006 that financier and convicted sex offender Jeffrey Epstein had been accused of paying for underage girls and young women to be brought to his home.

The Financial Times reports that Mary Erdoes, currently the head of asset management at the U.S. bank, stated under oath in a recent deposition that JPMorgan was aware of the allegations by 2006. This was "seven years before the New York-based multinational financial services company cut ties with Epstein."

According to the filings, JPMorgan compliance officials decided in 2010 that Epstein "should go." Lawsuits from an anonymous Epstein victim and the government of the U.S. Virgin Islands, where Epstein owned his notorious compound on Little Saint James island, assert that JPMorgan Chase financially benefited from its relationship with Epstein.

The financier bought Little St. James in 1998 and owned it until his death. The island allegedly hosted former President Bill Clinton, British Prince Andrew, former President Donald Trump, and actor Kevin Spacey.

Forbes reported last week that JPMorgan Chase executives were allegedly aware of Epstein's "interest in young girls" and even joked about it. U.S. Virgin Islands officials are seeking damages from JPMorgan, accusing the financial institution of profiting from human trafficking by continuing business with Epstein after his 2006 arrest in Florida for procuring a minor for prostitution.

JPMorgan Chase has denied that CEO Jamie Dimon was aware of a review into the firm's associations with Epstein and refutes claims that the company benefited from sex trafficking. The company sought to have the lawsuit dismissed, but a federal judge ruled that the case could proceed.

Dimon, who has led the investment bank since 2005 and is considered one of Wall Street's most powerful executives, told CNN that the financial institution has "some of the best lawyers in the world." Dimon will be deposed in a closed session in May. The Financial Times cited another source stating that there is no record of direct communications between Dimon and Epstein, who worked with JPMorgan Chase from 1998 to 2013.

These new allegations against the financial institution follow the settlement of a lawsuit between the Epstein estate and the U.S. Virgin Islands at the end of last year. The lawsuit concerned enforcement actions related to the territory's laws against fraud, sex trafficking, and child exploitation.

The estate agreed to pay $105 million, half of the proceeds from selling Little St. James, and $450,000 for environmental remediation around Great St. James, another island owned by Epstein. Epstein died in his New York City jail cell in 2019 at the age of 66, after being arrested on sex trafficking charges involving young girls.