JPMorgan Chase was aware by 2006 that Jeffrey Epstein had been accused of paying cash to have underage girls and young women brought to his home — seven years before the bank dropped him as a client, legal filings in New York on Wednesday alleged.
Mary Erdoes, who is now the head of asset management at the US bank, said under oath in a recent deposition that JPMorgan knew about the accusations by 2006, lawyers wrote in newly unredacted portions of a lawsuit filed against the bank by the US Virgin Islands, where Epstein had a home.
“In 2010, JPMorgan compliance officials decided that Epstein ‘should go’,” according to the filings. The bank eventually ended its relationship with Epstein in 2013.
The USVI is seeking damages from JPMorgan, claiming it benefited from human trafficking by continuing to keep Epstein as a client even after he was arrested on a state charge of procuring a minor for prostitution in Florida in 2006. The disgraced financier died by suicide in 2019 while in jail awaiting trial on federal charges.
The filing comes a few days after longstanding chief executive Jamie Dimon told CNN that JPMorgan has “some of the best lawyers in the world” working in compliance “who review all of these things and make decisions at the time based on what they know”.
When asked if the bank should have kept Epstein as a client after his 2008 conviction, Dimon added “hindsight is a fabulous gift”.
Dimon is set to be questioned under oath next month about his knowledge of the decision to retain Epstein. He has denied being involved in any review of Epstein’s account.
JPMorgan declined to comment. It has previously described the lawsuit as meritless. One person familiar with the matter said the bank became aware of the accusations after newspaper reports of Epstein’s arrest.
This is a developing story.