Jeffrey Epstein withdrew as much as $80,000 in money ‘a number of occasions a month’ whereas he paid ladies for ‘massages,’ court docket filings say

A photograph of Sarah Kellen and Jeffrey Epstein entered into proof in Ghislaine Maxwell’s trial. They’re standing in entrance of certainly one of Epstein’s jets.US Lawyer’s Workplace for the Southern District of New York

Jeffrey Epstein regularly withdrew tens of hundreds of {dollars} in money from his JPMorgan accounts.

On the time, there have been studies that he paid money to women for “massages” — a code phrase for intercourse.

When requested concerning the massive withdrawals, Epstein mentioned he wanted to pay for jet gas.

Jeffrey Epstein wanted an excuse.

He was withdrawing loads of money from his financial institution accounts with JPMorgan Chase.

Ranging from August 2006, he withdrew tens of hundreds of {dollars} at a time, often a number of occasions monthly.

He often withdrew the cash in $40,000 increments. In a single November 2013 transaction, tied to an account associated to his non-public jet, Epstein withdrew $97,152. Between September 2003 by way of the tip of 2013, Epstein withdrew greater than $5 million in money from his JP Morgan accounts general.

The difficulty was, Epstein banked with JPMorgan’s Personal Financial institution division, reserved for ultrawealthy purchasers.

JPMorgan’s non-public financial institution has a coverage to “discourage” massive money deposits and spending. Bankers, in response to an excerpt of the rules filed in court docket Tuesday morning, are liable for getting purchasers to elucidate their massive money withdrawals.

“It’s the major duty of the Banker to acquire explanations on the supply of the money and acceptability of the supposed use of the case, and to evaluate the plausibility of those explanations for giant money transactions,” the rules say.

The opposite drawback was, Epstein was recognized for utilizing money to repay the teenage ladies he raped.

Epstein’s massive money withdrawals raised pink flags

Epstein, whose property was valued at $630 million after he died in 2019, saved tens of tens of millions of {dollars} of his belongings parked with JPMorgan between 1998 and 2013. A bit of these funds was used to pay over 100 ladies who he sexually abused earlier than his dying.

In an ongoing lawsuit, the federal government of the US Virgin Islands accuses JPMorgan of being conscious of Epstein’s sex-trafficking operation and did nothing to cease it, ignoring quite a few pink flags for years.

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The US Virgin Islands authorities supplied extra perception into Epstein’s relationship with JPMorgan in a sequence of court docket filings Tuesday morning.

It filed a 45-page abstract judgment movement, a 148-page “assertion of reality” that was agreed upon by the federal government and the financial institution, and greater than 300 reveals — most of which have been filed beneath seal or stay extremely redacted.

The paperwork illustrate how JPMorgan staff joked about how Epstein surrounded himself with younger ladies, had due diligence studies that famous prison investigations associated to his abuse of women, and internally expressed concern about his huge frequent money withdrawals — however saved him as a shopper for years anyway.

Jeffrey Epstein’s former dwelling on the island of Little St. James within the U.S. Virgin Islands.Emily Michot/Miami Herald/Tribune Information Service by way of Getty Photographs

A lot of Epstein’s intercourse trafficking, the US Virgin Islands mentioned, consisted of paying money to teenage ladies for “massages” — a code phrase for intercourse. Victims who testified within the trial of Ghislaine Maxwell, who was convicted in 2021 for trafficking ladies to Epstein for intercourse, mentioned they have been paid between $200 and $300 for giving “massages” to Epstein.

Particulars of Epstein’s funds for massages have been additionally reported in a 2006 Palm Seaside Submit article, which turned up in JPMorgan’s inner due diligence studies. The article cited an affidavit from Palm Seaside County police, which described how a lady recruited six different ladies to Epstein for sexualized massages, every of whom was paid $200 per session. One 14-year-old woman was given $300 after giving Epstein a therapeutic massage the place he instructed her to strip bare.

In one other memo dated that yr, JPMorgan staff raised their eyebrows at Epstein’s huge money withdrawals.

“Money withdrawals are routinely made in quantities for $40,000 to $80,000 a number of occasions a month, which whole over $750,000 yr to this point,” staff wrote in a 2006 memo discussing the right way to deal with him as a shopper.

Whereas these withdrawals rang alarm bells, Epstein was one of many Personal Financial institution’s most vital purchasers.

Partly due to his connections to different highly effective and rich folks, JPMorgan’s non-public banking executives used him as a recruiter.

In 2003, in response to Tuesday’s movement, Epstein was “by double, the highest income generator within the Personal Financial institution.” He introduced in purchasers like billionaire hedge fund supervisor Glenn Dubin and Google cofounder Sergey Brin, and made connections with potential purchasers like Invoice Gates, Leon Black, Larry Summers, the Sultan of Dubai, Prince Andrew, Ehud Barak, Thomas Pritzker, and Benjamin Netanyahu, the submitting says.

Epstein died in jail in 2019 whereas awaiting trial on sex-trafficking prices.

In an announcement to Insider, a JPMorgan consultant mentioned the financial institution had no data of his sex-trafficking operation.

“Any affiliation with Epstein was a mistake and in hindsight we remorse it, however we didn’t assist him commit his heinous crimes,” a consultant for JPMorgan Chase instructed Insider in an announcement. “We might by no means have continued to do enterprise with him if we believed he was engaged in an ongoing intercourse trafficking operation.”

JPMorgan lastly requested Epstein concerning the money in 2011

In 2007, Epstein arrived at a plea cope with prosecutors in Florida. Legislation enforcement recognized about 40 ladies and ladies who mentioned he sexually abused them. Alexander Acosta, a US Lawyer on the time, got here to an settlement with Epstein that allowed him to plead responsible to a few prices associated to soliciting intercourse work in alternate for a fast stint in jail, the place he’d largely be on work launch.

JPMorgan’s staff remained uneasy concerning the financial institution’s relationship with Epstein, paperwork obtained by the US Virgin Islands present. However Epstein saved withdrawing huge quantities of money, regardless of the non-public banking division’s pointers. He continued to take out lots of of hundreds of {dollars} in money every year from his JPMorgan accounts, data present.

In a 2011 memo cited within the 148-page “assertion of reality” doc, JPMorgan staff wrote {that a} banker had one other dialog with Epstein “with regard to massive money withdrawals.”

Epstein had an excuse prepared. He instructed them he wanted the cash to pay for gas when he traveled. JPMorgan made an inner word to mirror that.

“Mr. Epstein withdraws wherever from $20K to $40K in money to pay for gas bills when he travels to overseas nations,” the memo mentioned.

The subsequent web page of the “assertion of reality” doc is solely redacted.

Ghislaine Maxwell and Jeffrey Epstein.US Lawyer’s Workplace for the Southern District of New York

By July 18, 2013, the continued money withdrawals rang bells at JPMorgan’s inner anti-money laundering division, which the US Virgin Islands described as “JPMorgan’s in-house human trafficking specialists.”

One compliance officer wrote in an electronic mail that Jeffrey Epstein had saved up huge money withdrawals, merely switching from his private account to a unique account linked to his non-public jet.

“Difficulty is he actually by no means stopped the massive money withdrawals,” a compliance officer wrote then.

The subsequent day, John Duffy, who was then the CEO of JPMorgan’s non-public banking division, emailed Mary Erdoes, the CEO of the wealth administration division, about chopping ties with Epstein. Erdoes had been in frequent communication with Epstein over time, and he wished her recommendation.

Duffy raised just a few speaking factors along with her about what to inform Epstein.

“1. The repetitive nature of your money transactions is an issue for us and our relationship with you[;] 2. The regulatory requirements within the banking business proceed to evolve with a really low tolerance for money exercise when mixed together with your private historical past[;] 3. So, given the intersection of those circumstances we’re in a uniquely challenged state of affairs,” Duffy wrote. “Remediation is required and we have to ask you – in an orderly method – to seek out one other financial institution on your wants.”

“I feel that’s high quality,” Erdoes responded, concerning the proposed language of the financial institution’s anticipated break-up with their billionaire shopper.

JPMorgan formally dropped Epstein as a shopper later that yr.

Final month, the financial institution agreed to pay $290 million to settle a class-action lawsuit introduced by Epstein’s victims over his sexual abuse.

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