US Virgin Islands levels new accusations against JPMorgan, says bank ignored Epstein's misdeeds

In a shocking development, the US Virgin Islands revealed new allegations against JPMorgan Chase (JPM.N) over the bank's ties to disgraced Hollywood financier and its former client Jeffrey Epstein.

The accusations also unveiled the executives discussing how Epstein used to surround himself with "nymphettes."

JPMorgan contradicted that the US Virgin Islands was also to be condemned for letting Epstein sexually abuse young women and teenage girls, saying that the territory used its powers to encourage such criminal acts.

The bank condemned the territory of enabling visas that permitted Epstein to bring victims, and of "looking the other way" whenever Epstein, accompanied by young women and girls, used to arrive at the local airports.

Both the allegations were made in dueling Monday night filings in Manhattan federal court.

The US Virgin Islands is now suing JPMorgan for at least $190 million, saying that the bank ignored all the misdeeds committed by Epstein because he was an affluent client, from the year 1998 to 2013.

Ahead of a trial scheduled on October 23, the US Virgin Islands wants a judge to make a declaration that JPMorgan participated in Epstein's sex trafficking and also barred law enforcement.

As per news agency Reuters, its filings include extensive details about the bank's alleged conduct, which included payments of more than $25 million to disgraced late financier's associate Ghislaine Maxwell, and also payments made to Epstein's victims.

They further also quoted an email from September 2012 by a senior JPMorgan executive to Mary Erdoes, who is now the bank's asset and wealth management chief, comparing another client's house to Epstein's.

"Reminded me of JE's house, except it was more tasteful, and fewer nymphettes," the executive wrote. "More like the Frick [museum]. Art was fabulous."

"Wow," Erdoes responded.

On the other hand, JP Morgan wants judges to declare that the US Virgin Islands should not be able to seek financial relief, and also its claim that the bank obstructed law enforcement be rejected.

The bank has already decried the US Virgin Islands for having a cozy relationship with the disgraced Hollywood financier, where the top officials, in exchange for gifts, gave him tax breaks and also renounced sex-offender monitoring requirements.

(With inputs from agencies)

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