JPMorgan wealth CEO Erdoes says bank knew of Epstein sex accusations in 2006, USVI alleges

cnbc.com:

JPMorgan Chase was aware in 2006 of accusations that disgraced former financier Jeffrey Epstein paid to have underaged girls brought to his home, according to the latest allegations in a high-profile legal case.

A filing released Wednesday as part of a lawsuit begun last year by the U.S. Virgin Islands contained fresh revelations about internal discussions at the biggest U.S. bank by assets tied to Epstein, who died by apparent suicide in 2019.

Mary Callahan Erdoes, a veteran JPMorgan executive who became head of the bank's giant asset and wealth management division in 2009, was recently interviewed under oath in the case.

She «admitted in her deposition that JPMorgan was aware by 2006 that Epstein was accused of paying cash to have underage girls and young women brought to his home,» according to the filing.

Erdoes was referring to accusations gleaned from news reports, according to a person with knowledge of the matter. New York-based JPMorgan declined to comment on the filing.

In her deposition, Erdoes testified that JPMorgan terminated Epstein as a customer in 2013 after she became aware that his withdrawals were for «actual cash.»

But Epstein had made substantial cash withdrawals every year he banked with JPMorgan, including more than $800,000 per year in 2004 and 2005.

Those withdrawals drew the attention of bank compliance staff in 2006, who noted that he routinely withdrew $40,000 to $80,000 several times per month, according to the suit.

The cash activity continued in the years after Epstein's guilty plea, though JPMorgan accepted his explanation that the money was for fuel and landing fees associated with Epstein's planes, even during the years when Epstein was incarcerated or under house arrest, the USVI suit