Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/048.pdf

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ____________________________________ ) GOVERNMENT OF THE UNITED ) STATES VIRGIN ISLANDS, ) Case No. 1:22-cv-10904-JSR ) Plaintiff, ) ) v. ) ) JPMORGAN CHASE BANK, N.A., ) ) Defendant. ) ____________________________________) GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS’ MEMORANDUM OF LAW IN OPPOSITION TO JPMORGAN CHASE BANK, N.A.’S MOTION TO DISMISS Case 1:22-cv-10904-JSR Document 48 Filed 02/15/23 Page 1 of 31 i TABLE OF CONTENTS TABLE OF AUTHORITIES .......................................................................................................... ii INTRODUCTION .......................................................................................................................... 1 FACTUAL BACKGROUND ......................................................................................................... 3 ARGUMENT .................................................................................................................................. 6 I.The Government Pleads an Actionable TVPA Claim. ............................................................. 6 A.Section 1595(d) Applies to JPMorgan’s Conduct. ....................................................... 6 B.The Government Has Parens Patriae Standing Under § 1595(d). ............................... 9 C.The Government Pleads All Elements of a § 1591(a)(2) Violation. ........................... 10 1.JPMorgan’s Participation in Epstein’s Commercial Sex-Trafficking Venture ..... 10 2.JPMorgan Knew or Acted with Reckless Disregard that Minors Would Be Caused to Engage in Commercial Sex............................................................................... 14 3.JPMorgan’s Knowledge or Reckless Disregard of the Use of Force, Threats, Fraud, or Coercion ................................................................................................ 15 4.JPMorgan Knowingly Benefited........................................................................... 18 II.The Government Pleads Actionable CICO Counts. ............................................................... 19 A.CICO Applies to JPMorgan’s Conduct. ..................................................................... 19 B.The Government Pleads Actionable CICO Claims. ................................................... 20 1.Elements of CICO Claim ...................................................................................... 20 a)Association with and Participation in Enterprise ........................................... 20 b)Pattern of Criminal Activity........................................................................... 22 2.Predicate Criminal Activity .................................................................................. 23 C.The Government Has Standing for its BSA-Based CICO Claim. .............................. 24 III.The Government Pleads a CFDBPA Claim. ........................................................................... 25 CONCLUSION ............................................................................................................................. 25 Case 1:22-cv-10904-JSR Document 48 Filed 02/15/23 Page 2 of 31 ii TABLE OF AUTHORITIES Cases Alfred L. Snapp & Son, Inc. v. Puerto Rico, 458 U.S. 592 (1982) ........................................... 9, 10 Alvarez-Machain v. United States, 107 F.3d 696 (9th Cir. 1996) .................................................. 7 American Charities for Reasonable Fundraising Regulation, Inc. v. Pinellas Cty., 221 F.3d 1211 (11th Cir. 2000) ......................................................................................................................... 20 AU Optronics Corp. v. South Carolina, 699 F.3d 385 (4th Cir. 2012)......................................... 10 Cabello v. Fernández-Larios, 402 F.3d 1148 (11th Cir. 2005) ...................................................... 7 Canosa v. Ziff, 2019 WL 498865 (S.D.N.Y. Jan. 28, 2019) ............................................. 11, 12, 19 Feld Entm’t, Inc. v. ASPCA, 873 F. Supp. 2d 288 (D.D.C. 2012) ................................................ 22 First Cap. Asset Mgmt., Inc. v. Satinwood, Inc., 385 F.3d 159 (2d Cir. 2004) ............................ 22 G.G. v. Salesforce.com, 603 F. Supp. 3d 626 (N.D. Ill. 2022) ......................................... 11, 12, 13 Geissv. Weinstein Co., 383 F. Supp. 3d 156 (S.D.N.Y. 2019) ........................................ 11, 12, 18 Gerald v. R.J. Reynolds Tobacco Co., 68 V.I. 3 (V.I. Super. Ct. 2017) ....................................... 23 Handeen v. Lemaire, 112 F.3d 1339 (8th Cir. 1997) .............................................................. 21, 22 HH v. G6 Hospitality, Inc., 2019 WL 6682152 (S.D. Ohio Dec. 6, 2019) ................................... 18 Hughes Aircraft Co. v. U.S. ex rel. Schumer, 520 U.S. 939 (1997)............................................ 7, 8 M.A. v. Wyndham Hotels & Resorts, Inc., 425 F. Supp. 3d 959 (S.D. Ohio 2019) ...................... 14 Niles Freeman Equip. v. Joseph, 161 Cal. App. 4th 765 (Cal. Ct. App. 2008) .............................. 8 Noble v. Weinstein, 335 F. Supp. 3d 504, 524 (S.D.N.Y. 2018) .................................................. 12 Ratzlaf v. U.S., 510 U.S. 135 (1994) ............................................................................................. 24 Stuto v. Fleishman, 164 F.3d 820 (2d Cir. 1999) .......................................................................... 17 Taylor v. Bettis, 976 F. Supp. 2d 721 (E.D.N.C. 2013) ................................................................ 22 United States ex rel. Escobar v. Universal Health Servs., Inc., 842 F.3d 103 (1st Cir. 2016) ..... 17 United States v. Hooker Chems. & Plastics Corp., 749 F.2d 968, 984 (2d Cir. 1984) ................ 10 Unites States ex rel. Grubea v. Rosicki, Rosicki & Assocs., P.C., 318 F. Supp. 3d 680 (S.D.N.Y. 2018) ......................................................................................................................................... 17 Velez v. Sanchez, 693 F.3d 308 (2d Cir. 2012) ............................................................................... 7 Winfree v. N. Pacific R. Co., 227 U.S. 296 (1913) ......................................................................... 8 Statutes 12A V.I.C. § 304 ........................................................................................................................... 25 12A V.I.C. § 328(b) ...................................................................................................................... 25 Case 1:22-cv-10904-JSR Document 48 Filed 02/15/23 Page 3 of 31 iii 12A V.I.C. § 336 ........................................................................................................................... 25 14 V.I.C. § 604(e) ......................................................................................................................... 23 18 U.S.C. § 1591 ........................................................................................................................... 17 18 U.S.C. § 1591(a) ...................................................................................................................... 16 18 U.S.C. § 1591(a)(2) ........................................................................................................ 8, 14, 15 18 U.S.C. § 1595(a) .................................................................................................................. 7, 11 18 U.S.C. § 1595(d) .................................................................................................... 6, 7, 9, 10, 11 5 V.I.C. § 31(3)(B) ........................................................................................................................ 25 Allow States and Victims to Fight Online Sex Tr