Bank of America to Pay $72.5M in Epstein Sex Trafficking Lawsuit Settlement

Bank of America has agreed to a $72.5 million settlement in a lawsuit alleging the bank facilitated the sex trafficking operation of convicted sex offender Jeffrey Epstein. The settlement, disclosed in court documents filed last Friday, resolves claims brought on behalf of Epstein’s alleged victims, who accused the financial institution of providing banking and investment services to Epstein and his associates while ignoring warning signs and failing to fulfill regulatory responsibilities. The deal, which requires judicial approval, does not include any admission of liability or wrongdoing by Bank of America.

The lawsuit, filed in October 2023 in New York federal court, centers on allegations that Bank of America knowingly supported Epstein’s sex trafficking venture. One plaintiff, identified only as Jane Doe, claimed she was coerced into a “cult-like life” after meeting Epstein in 2011 while living in Russia. According to the complaint, Epstein controlled her financially, emotionally, and psychologically from 2011 through 2019, sexually abusing her on over 100 occasions and forcing her to engage in sexual acts with others. The suit also alleges Epstein paid her rent and income through a Bank of America account and manipulated her immigration status until his death in 2019.

The lawsuit further highlights the involvement of billionaire financier Leon Black, co-founder of Apollo Global Management, who is described as a “critical witness” though not a defendant in the case. The plaintiffs allege that Black transferred $170 million from his Bank of America account to Epstein, purportedly for “tax and estate planning advice,” but contend these funds were used to finance Epstein’s trafficking activities. Black had been scheduled for a deposition in the case but avoided it following the announcement of the settlement. Black has denied any knowledge or wrongdoing related to Epstein’s crimes.

The case against Bank of America is part of a broader legal effort by Epstein survivors targeting financial institutions that allegedly enabled Epstein’s operations. Similar lawsuits against JPMorgan Chase and Deutsche Bank resulted in settlements of $290 million and $75 million, respectively. The lawsuit also criticized Bank of America for failing to file timely suspicious activity reports (SARs) on Epstein’s accounts, a legal requirement intended to flag potential criminal activity such as money laundering. Epstein died by suicide in federal custody in August 2019 while awaiting trial on sex trafficking charges. The recent release of law enforcement documents has revealed Epstein’s ongoing connections with influential figures long after his 2008 conviction on sex crimes. A hearing to determine whether to approve the Bank of America settlement is scheduled for April before U.S. District Judge Jed Rakoff.