Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/246.pdf

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK GOVERNMENT OF THE UNITED ) STATES VIRGIN ISLANDS ) ) Plaintiff, ) ) v. ) Case Number: 1:22-cv-10904-JSR ) JPMORGAN CHASE BANK, N.A. ) ) Defendant/Third-Party Plaintiff. ) ____________________________________) ) JPMORGAN CHASE BANK, N.A. ) ) Third-Party Plaintiff, ) ) v. ) ) JAMES EDWARD STALEY ) ) Third-Party Defendant. ) ____________________________________) STATEMENT OF MATERIAL FACTS AS TO WHICH GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS CONTENDS THERE IS NO GENUINE DISPUTE Epstein Engaged in a Sex-Trafficking Venture 1. In the May 26, 2023 class certification hearing, counsel for JPMorgan stated, “I think the way the Court could use those grand jury findings would be to ascertain something not contested, which is Mr. Epstein was engaged in horrendous criminal activity, including sex trafficking. That’s not something being contested at all by JPMorgan.” Tr. Class Certification Hr’g at 19:3-7, Doe 1 v. JPMorgan Chase Bank, N.A., No. 22-cv-10019 (S.D.N.Y. May 26, 2023); see also id. at 33:10-14 (“Your colleague has just acknowledged, as indeed JPMorgan has repeatedly, that they do not dispute, you do not dispute that Mr. Epstein was engaged in a longtime trafficking venture Case 1:22-cv-10904-JSR Document 246 Filed 07/26/23 Page 1 of 148 2 that involved enumerable young women and that required money to make it work.” (emphasis added)). 2. In statements to the press following JPMorgan’s settlement with Doe, JPMorgan stated: “We all now understand that Epstein’s behavior was monstrous, and we believe this settlement is in the best interest of all parties, especially the survivors, who suffered unimaginable abuse at the hands of this man.” “Any association with him was a mistake and we regret it. We would never have continued to do business with him if we believed he was using our bank in any way to help commit heinous crimes.” Ex. 1. 1 3. Ex. 2 at -196. 4. Ex. 3 at -195. 5. Ex. 4 at - 460. 1 All references to “Ex. __” are to Exhibits to the Declaration of Mimi Liu. Case 1:22-cv-10904-JSR Document 246 Filed 07/26/23 Page 2 of 148 3 6. In 2019, a grand jury found that Epstein “sexually exploited and abused dozens of minor girls at his homes in Manhattan, New York, and Palm Beach, Florida, among other locations.” Sealed Indictment at 1, United States v. Epstein, 19-cr-490 (S.D.N.Y. July 2, 2019), ECF No. 1. 7. Ex. 5 at -364. The article stated that federal prosecutors had charged Epstein with sex trafficking in July 2019, Epstein was arrested on July 6, 2019, and Epstein died on August 10, 2019. Ex. 6. 8. Ghislaine Maxwell was indicted and arrested in 2020 by the United States Attorney’s Office for the Southern District of New York for conspiracy to entice minors to travel to engage in illegal acts, enticement of a minor to travel to engage in illegal sex acts, conspiracy to transport minors with intent to engage in criminal sexual activity, and transportation of a minor with intent to engage in criminal sexual activity. Sealed Indictment, United States v. Maxwell, 20-cr-330 (S.D.N.Y. June 29, 2020), ECF No. 1. Maxwell was convicted on June 28, 2022. 9. JPMorgan admits that Epstein pled guilty to “felony solicitation of prostitution and procurement of minors to engage in prostitution,” “was sentenced to 18 months in jail,” and “was required to register as a sex offender.” Def. JPMorgan Chase Bank, N.A.’s Answer to 2d Am. Compl. and Statement of Affirmative Defenses, ¶ 38, ECF No. 124. 10. A Level 3 sex offender is the highest risk level and poses a “high risk of repeat offense and threat to public safety.” Ex. 7. 11. In November 2011, Epstein’s Level 3 sex offender status was unanimously affirmed by the New York Supreme Court, Appellate Division. The court found that “[c]lear and convincing evidence . . . supported the assessment of points for risk factors sufficient for a level three sex offender adjudication.” Case 1:22-cv-10904-JSR Document 246 Filed 07/26/23 Page 3 of 148 4 The evidence before the [Sex Offender Registration Act] hearing court established that defendant committed multiple offenses against a series of underage girls. The girls were brought to defendant’s home to provide ‘massages’ that led to very serious sex crimes. These facts were established by . . . Florida law enforcement authorities after their investigation . . . . The probable cause affidavit was extremely detailed. It set forth the sworn, tape-recorded statements of the victims. The victims’ detailed accounts of defendants’ crimes corroborated each other, and were also corroborated by other evidence, including declarations against penal interest made by defendant’s accomplice. People v. Epstein, 89 A.D.3d 570, 571, 933 N.Y.S.2d 239 (App. Div. 1st Dept. 2011). 12. Ex . 8 at -006. 13. At Ghislaine Maxwell’s criminal trial, a victim testified under oath, using the pseudonym “Kate.” Kate testified that, starting when she was 17 years old, Maxwell and Epstein flew her “to Palm Beach, to New York, and to the island,” and Kate gave Epstein sexualized massages in each of those locations. Trial Tr. at 1195:7-25, 1198:2-19, 1203:4-9, United States v. Maxwell, No. 20- cr-330 (S.D.N.Y. Dec. 6, 2021), ECF No. 751. 14. Bridgette Carr, an expert in human trafficking for the U.S. Virgin Islands, Ex . 9 at 65-66. 15. U.S. District Judge Marra stated in an opinion in February 2019: Case 1:22-cv-10904-JSR Document 246 Filed 07/26/23 Page 4 of 148 - - 5 From about 1999 and 2007, Jeffrey Epstein sexually abused more than 30 minor girls, including Petitioners . . . , at his mansion in Palm Beach, Florida and elsewhere in the United States and overseas. Because Epstein and his co- conspirators knowingly traveled in interstate and international commerce to sexually abuse Jane Doe 1, Jane Doe 2 and others, they committed violations of not only Florida law, but also federal law. In addition to his own sexual abuse of the victims, Epstein directed other persons to abuse the girls sexually. Epstein used paid employees to find and bring minor girls to him. Epstein worked in concert with others to obtain minors not only for his own sexual gratification, but also for the sexual gratification of others. Jane Doe 1 & Jane Doe 2 v. United States, 359 F. Supp. 3d 1201, 1204 (S.D. Fla. 2019) (internal citations omitted). 16. After Epstein’s death, Judge Berman held a hearing at which several of Epstein’s victims gave statements. Victim testified: “On my third or fourth time meeting [Epstein and Maxwell], they brought me to Jeffrey’s island for the first time, and on the first night there, came tapping on my door late at night to inform me Jeffrey was ready for another massage.” That night, Epstein sexually assaulted her. Hr’g Tr. at 44:4-22, United States v. Epstein, No. 19-cr-490 (S.D.N.Y. Aug. 27, 2019), ECF No. 53. 17. At the same August 27, 2019 hearing, Jane Doe No. 9 testified: “[I]n 2004, when I was 15 years old, I flew on Jeffrey Epstein’s plane to Zorro Ranch, where I was sexual [sic] molested by him for many hours.” Id. at 75:10-12. 18. Ex . 10 at -003. Id. at -018. Id. at -018-19. Id. at -019-20. Case 1:22-cv-10904-JSR Document 246 Filed 07/26/23 Page 5 of 148 - 6 19. Ex. 11 at -036. Ex. 12 at -029. Id. 20. Ex. 13 at -440-41. Id. at -462. 21. Ex. 15 at -458. 22. Jane Doe 981 filed a creditor’s claim in the Epstein estate probate proceeding, alleging that Epst