Bank of America’s Settlement with Epstein’s Victims
Bank of America (BofA), the nation’s second-largest bank, has agreed to pay $72.5 million to survivors of Jeffrey Epstein’s sex-trafficking operation as a settlement in a civil suit [source].
The lawsuit brought against BofA alleged that the bank enabled and profited from Epstein’s criminal enterprise by providing banking services to Epstein, his accomplice Ghislaine Maxwell, and Leon Black, the former CEO of Apollo Global Management. The settlement covers at least 60 women who were victimized by Epstein between June 2008 and July 2019.
Bank of America Denies Wrongdoing
The $3.4 trillion-asset BofA has denied any wrongdoing and stated it resolved the case to end the litigation. BofA is the third bank to settle with Epstein’s victims, following similar settlements made in 2023 by JPMorgan Chase for $290 million and Deutsche Bank for $75 million.
Despite the settlement, BofA maintains that it did not facilitate sex trafficking crimes. In an official statement, a BofA spokesperson said, “While we stand by our prior statements made in the filings in this case, including that Bank of America did not facilitate sex trafficking crimes, this resolution allows us to put this matter behind us and provides further closure for the plaintiffs.”
Details of the Lawsuit
The lawsuit, filed last year by a Jane Doe, claimed that BofA failed to monitor and file timely Suspicious Activity Reports (SARs) with the Financial Crimes Enforcement Network (FinCEN) about questionable transactions. The suit focused specifically on a $170 million payment made by Black to Epstein for “tax and estate planning advice,” which the plaintiffs alleged was used to fund a trafficking enterprise. BofA did not report the payment as suspicious under the Bank Secrecy Act, although SARs are mandatory filings for suspicions of money laundering, terrorism financing, or fraud.
U.S. District Judge’s Ruling
In January, U.S. District Judge Jed Rakoff ruled that the case could move forward but dismissed four claims that BofA facilitated Epstein’s scheme. Rakoff found in a February opinion that BofA showed “reckless disregard” and may have “turned a blind eye” to the trafficking scheme. The judge had set a May 11 trial date, leading to the bank’s settlement.
Epstein’s Network and the Banking Industry
Epstein’s vast network touched dozens of industries, but perhaps none as much as the banking industry, which — wittingly or not — helped facilitate many of his crimes. The public release of the files has allowed law enforcement, journalists, and online sleuths to comb through them, and more connections could emerge.
JPMorgan Chase and Deutsche Bank were the primary bankers to Epstein for years and their settlements were slightly different. JPMorgan allegedly ignored internal red flags regarding large cash withdrawals and wire transfers to beneficiaries that allowed Epstein to use his accounts to pay victims. The Deutsche Bank claims focused on its role as Epstein’s banker that enabled his sex-trafficking operation for years. The BofA lawsuit was focused on the bank’s role in providing banking services to Epstein and specifically Black, enabling large, suspicious transactions that funded his activities.
The settlement is expected to be approved on April 2.
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