JP Morgan Scandal: How Did Banking Giant Get Involved In The Epstein Files?

In the shadowy world of global finance, JP Morgan's deep ties to Jeffrey Epstein have resurfaced with disturbing force. Newly unsealed documents, revealed in a New York Times investigation on 8 September 2025, exposed how the banking giant ignored red flags surrounding the convicted sex offender's activities.

The report detailed a web of suspicious transactions worth over £717 million ($1.1 billion), some processed even after Epstein's 2008 guilty plea for soliciting a minor. Executives like Jes Staley defended the disgraced financier despite internal warnings, prioritising profits from his estimated £130 million ($200 million) deposits. The scandal now casts a harsh spotlight on the bank's role in enabling potential sex trafficking.

As victims seek justice, the revelations raise urgent questions about accountability in financial institutions entangled in Epstein's crimes.

How JP Morgan Ignored Warnings After Epstein's 2008 Conviction

JP Morgan maintained its relationship with Jeffrey Epstein for years after his conviction on 30 June 2008, processing thousands of transactions that raised alarms internally. Emails from senior executives, including then-general counsel Stephen Cutler, flagged concerns in October 2011: 'This is not an honourable person in any way. He should not be a client.' Still the bank continued to handle Epstein's accounts until 2013.

During this period, Epstein held 134 accounts, generating millions in fees for the bank while wiring funds to Russian and Eastern European entities linked to young women. Compliance officers flagged Epstein's frequent cash withdrawals as potential red flags for money laundering or worse. Yet decisions were often delayed, marked as 'pending Dimon review', referring to CEO Jamie Dimon, who later claimed ignorance until 2019.

It was only after Epstein's arrest on 6 July 2019 that JP Morgan retroactively reported 4,700 suspicious transactions to regulators, underscoring a failure in oversight that enabled the sex trafficking network. Victims' advocates argue this reflects a broader banking scandal where profit trumped ethics.

Key Executives Defended Epstein Despite Sex Trafficking Red Flags

Jes Staley, then head of JP Morgan's private bank, emerged as Epstein's staunchest ally. He visited Epstein's properties like Zorro Ranch during house arrest and emailed in 2009, 'I owe you much'. Staley also introduced Epstein to high-profile clients like Google co-founder Sergey Brin, who later deposited over £2.6 billion ($4 billion), boosting the bank's revenue.

Even as reports of Epstein's abuses surfaced, Staley continued to advocate for maintaining the ties, reportedly saying he would 'trust Epstein with his daughters'. Jamie Dimon testified he had no recollection of Epstein as a client until 2019, despite emails suggesting his involvement in account decisions.

This executive defence has drawn sharp criticism. Law professor Bridgette Carr warned that 'I am deeply worried here that the ultimate message to other financial institutions is that they can keep serving traffickers'. Notably, no executives lost their jobs over the scandal.

Massive Settlements and Revelations in Epstein Banking Ties

In June 2023, JP Morgan agreed to a settlement of £189 million ($290 million) with nearly 200 victims, admitting no wrongdoing but regretting the association. This was followed by a £49 million ($75 million) payout to the US Virgin Islands in September 2023.

The bank's statement read, 'In hindsight we regret it, but we did not help him commit his heinous crimes. We would never have continued to do business with him if we believed he was engaged in an ongoing sex trafficking operation.' These payouts total over £238 million ($365 million), yet no regulatory actions ensued.

The New York Times exposé, drawing from 13,000 pages of records, detailed how Epstein brokered JP Morgan's £846 million ($1.3 billion) acquisition of Highbridge Capital, earning £9.8 million ($15 million) in fees.

On 8 September 2025, X user @davidenrich posted: 'How JPMorgan Enabled the Crimes of Jeffrey Epstein,' linking to the article and sparking discussions on banking ethics.