Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/016-01.pdf

Exhibit 1 to Government’s Amended Complaint against JPMorgan Chase Bank, N.A. Case 1:22-cv-10904-JSR Document 16-1 Filed 01/10/23 Page 1 of 77 IN THE SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST. THOMAS AND ST. JOHN ******************************** GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS, Case No.: ST-20-CV-14 PLAINTIFF, ACTION FOR DAMAGES V. JURY TRIAL DEMANDED DARREN K. INDYKE, in his individual capacity and in his capacity as the EXECUTOR FOR THE ESTATE OF JEFFREY E. EPSTEIN and ADMINISTRATOR OF THE 1953 TRUST; RICHARD D. KAHN, in his individual capacity and in his capacity as the EXECUTOR FOR THE ESTATE OF JEFFREY E. EPSTEIN, and ADMINISTRATOR OF THE 1953 TRUST; ESTATE OF JEFFREY E. EPSTEIN; THE 1953 TRUST; PLAN D, LLC; GREAT ST. JIM, LLC; NAUTILUS, INC.; HYPERION AIR, LLC; POPLAR, Inc.; SOUTHERN TRUST COMPANY, INC.; CYPRESS, INC.; MAPLE, INC.; LAUREL, INC.; AND JOHN AND JANE DOES, DEFENDANTS. __________________________________________ SECOND AMENDED COMPLAINT COMES NOW, the Government of the United States Virgin Islands ("Government") and files this Second Amended Complaint containing information that has become known through further investigation and third-party discovery and in support thereof, would show unto the Court as follows: JURISDICTION AND PARTIES 1. The Attorney General of the United States Virgin Islands (herein after "Virgin Islands") brings this action on behalf of the Plaintiff, Government of the Virgin Islands, pursuant Case 1:22-cv-10904-JSR Document 16-1 Filed 01/10/23 Page 2 of 77 IN THE SIJPERJOR COURT OF THE VIRGIN I LANDS FILED November 30, 2022 12:02 ~M ST-2020-CV-00014 TAMARA CHARLES CLERK OF THE COURT GVI v. Estate of Jeffrey Epstein GVI’s Second Amended Complaint Page 2 of 76 to 3 V.I.C. § 114 and 14 V.I.C. §607 and her statutory authority to enforce the laws of the Virgin Islands, and advocate for the public interest, safety, health and well-being of persons in the Virgin Islands. 2. This Court has subject matter jurisdiction over this civil matter pursuant to 4 V.I.C. § 76 and 14 V.I.C. § 607. 3. This Court has personal jurisdiction over the parties pursuant to 5 V.I.C. § 4903. 4. The Virgin Islands is an unincorporated territory of the United States. It consists of St. Thomas, St. Croix, St. John, and Water Island, and more than 40 surrounding islands and Cays, some of which are privately owned. Among these privately owned islands are Little St. James and Great St. James. 5. Jeffrey E. Epstein ("Epstein") was a resident of the Virgin Islands and he maintained a residence on Little St. James, which he acquired in 1998 and in 2016 he also purchased Great St. James. 6. Epstein registered as a sex offender in the Virgin Islands in 2010. He was a Tier 1 offender under Virgin Islands law based upon his Florida conviction of procuring a minor for prostitution. As a Tier 1 offender, Epstein was required to register annually with the Virgin Islands Department of Justice ("VIDOJ") and give advance notice of his travel to and from the Virgin Islands. Epstein was also subject to random address verification by VIDOJ. 7. Epstein was found dead on August 10, 2019 while in custody in New York for sex crimes. 8. Defendant Darren K. Indyke ("Defendant Indyke") is co-executor of the Estate of Jeffrey E. Epstein and Administrator of The 1953 Trust and was and/or is a participant in the activity of the “Epstein Enterprise,” as set forth below. Case 1:22-cv-10904-JSR Document 16-1 Filed 01/10/23 Page 3 of 77 GVI v. Estate of Jeffrey Epstein GVI’s Second Amended Complaint Page 3 of 76 9. Defendant Richard D. Kahn ("Defendant Kahn") is co-executor of The Estate of Jeffrey E. Epstein and Administrator of The 1953 Trust and was and/or is a participant in the activity of the “Epstein Enterprise,” as set forth below. 10. Defendants Indyke and Kahn, in addition to administering the Estate under the laws of the Virgin Islands, engaged in conduct in the Virgin Islands through their participation in businesses, financial transactions, and accounts registered, held, and operating in the Virgin Islands, and by filing documents with the Government of the Virgin Islands. 11. Defendant, the Estate of Jeffrey E. Epstein ("Estate"), created upon Epstein's death, is domiciled in the Virgin Islands. On August 15, 2019, Defendants Indyke and Kahn filed a Petition for Probate and Letters Testamentary which included Epstein's last will and testament with the Probate Division of the Superior Court of the Virgin Islands. 12. The Petition reported the value of the real and personal property in The Estate located in the Virgin Islands at $577,672,654.00 dollars. 13. According to the Petition, the assets in the Virgin Islands thus far included: a. $56.5 million in cash; b. $127 million in fixed income and equity investments; c. $195 million in hedge fund and private equity investments; and d. $18.5 million in planes, boats, and automobiles. The Estate did not originally value his fine arts, antiques, and other valuables. 14. The Estate also included shares of various corporate entities which hold residences and real property used by Epstein, namely: a. Brownstone in New York City valued at $56 million; b. Ranch in New Mexico valued at $72 million; Case 1:22-cv-10904-JSR Document 16-1 Filed 01/10/23 Page 4 of 77 GVI v. Estate of Jeffrey Epstein GVI’s Second Amended Complaint Page 4 of 76 c. Gated home in Palm Beach, Florida, valued at $12 million; d. Seven units in an apartment building in Paris, valued at $8 million; and e. Great St. James and Little St. James, collectively valued at $86 million. 15. At the time of this Second Amended Complaint filing, the Estate’s most recent accounting, filed February 1, 2021, valued its total assets at $240,782,955.84, which is almost 60% lower than the Estate’s starting valuation less than 18 months earlier when Defendants Indyke and Kahn began their Co-Executorship of the Estate. 16. The Estate is responsible to pay penalties and damages for the acts committed by Epstein and the Epstein Enterprise described below. 17. Defendant The 1953 Trust ("The Trust") was created by Epstein, who "amended and restated" its terms only two days before his suicide. That same day, Epstein revised his Last Will and Testament, transferring all of his "property, real and personal, wherever situated" to The Trust. The Trust also contains Epstein's financial assets and is also responsible to pay damages for the acts committed by Epstein and the Epstein Enterprise described below. Defendants Indyke and Kahn, filed a Certificate of Trust in the Superior Court of the Virgin Islands for The Trust on August 26, 2019. 18. Epstein maintained a deliberately complex web of Virgin Islands corporations, limited liability companies, foundations, and other entities, not all of which are yet known to the Government of the Virgin Islands, through which he carried out and concealed his criminal conduct. 19. Epstein regularly created new entities in the territory and transferred properties and funds between them in order to preserve and shield Epstein's assets and to facilitate and conceal the unlawful acts described in this Complaint. Case 1:22-cv-10904-JSR Document 16-1 Filed 01/10/23 Page 5 of 77 GVI v. Estate of Jeffrey Epstein GVI’s Second Amended Complaint Page 5 of 76 20. These entities held properties, including Little St. James and Great St. James, at which Epstein trafficked and sexually abused women and underage girls. Epstein owned and arranged for private planes, helicopters, boat and automobiles to transport victims to, from, and within the Virgin Islands, and provided money to pay these young women and underage girls. 21. Epstein sat at the hub of this web, serving as presid