Deutsche Bank paid $75 million to settle the Jeffrey Epstein lawsuit

Deutsche Bank has agreed to pay $75 million to settle a lawsuit brought by an unnamed woman who alleged that retaining Jeffrey Epstein as a client protected the lender from human trafficking, according to her lawyers. There was profit.

The pseudonymous Jane Doe, who said she was abused by Epstein, first filed a proposed class action against Deutsche in November, a New York law allowing sexual abuse claims where for a limited period of time. The statue of limitations was over to move forward.

She claimed that the German bank “chose profit over obeying the law” and knew it would “earn millions of dollars from facilitating Epstein’s sex trafficking”.

The settlement draws a line under one of three lawsuits involving lenders to Epstein. Two others targeted JPMorgan Chase, which has been sued by a separate alleged victim, and the US Virgin Islands, where Epstein was home. A fourth lawsuit has been filed by JPMorgan against former executive Jess Staley, accusing her of lying about her relationship with Epstein.

Doe’s attorney, Brad Edwards, said in a statement: “We are proud to have achieved such a great result for the victims who deserve justice from all those who played a real part in their abuse.”

Deutsche paid $150 million to the New York State Department of Financial Services in 2020 over its Epstein affair and internal compliance failures, and last year agreed to pay $26 million to shareholders who criticized them over their client vetting process at the bank. accused of misleading.

The Frankfurt-based lender tried to have Doe’s case dismissed, arguing a settlement reached with the Epstein estate in April 2022 – in which she received $7.4 million – included the lender’s liability.

It also argued that Doe’s “slack” complaint “didn’t come close” to sufficiently alleging that Deutsche was part of Epstein’s sex trafficking ring.

Deutsche declined to comment on the agreement. Since the deal with the NYSDFS, Deutsche had invested €4bn in improving its internal compliance systems, building up an anti-financial crimes team of more than 1,900 people, said a person familiar with the matter.

The Frankfurt-based lender first took Epstein on as a client in August 2013, shortly after JP Morgan dropped him amid concerns about his illegal sexual activities and revealed he was paying victims in cash. . Paul Morris, a former JPMorgan banker who moved to Deutsche, advised the bank that Epstein could bring lucrative clients with him, according to court documents. Deutsche eventually dropped Epstein as a client in December 2018.

According to court documents, Epstein, his friends and entities they controlled opened more than 40 accounts at the bank, which deposited a total of more than $110 million in assets.

In his order partially denying Deutsche’s attempt to dismiss the case, Judge Jed Rakoff, who is overseeing the trial, said that Epstein had sought “Deutsche’s advice on how to structure his withdrawals to avoid notice.” Go . . . and he was defended by Deutsche Bank for failing to report suspicious activity.

He said it was “plausible” that Deutsche had profited from human trafficking and agreed to let the matter proceed.

Epstein pleaded guilty in 2008 to state charges of soliciting a minor for prostitution in Florida. He was charged with sex trafficking in 2019 by federal prosecutors, and died in prison by suicide while awaiting trial.