Bank of America Settles Epstein Lawsuit for $72.5 Million

Bank of America has agreed to pay $72.5 million to settle a lawsuit accusing the financial institution of ignoring $170 million in suspicious transactions linked to Jeffrey Epstein’s sex trafficking operation, according to NBC News.¹

The settlement was announced on March 27 and is subject to approval by Judge Jed Rakoff of the U.S. District Court for the Southern District of New York. A final fairness hearing is scheduled for August 27.¹

Allegations of Willful Blindness

The lawsuit, filed on behalf of Epstein survivors, alleged that Bank of America processed approximately $170 million in transactions tied to Epstein’s trafficking network while failing to file suspicious activity reports as required by federal anti-money laundering laws.²

Plaintiffs argued that the bank had ample reason to scrutinize Epstein’s accounts, given his 2008 conviction for soliciting a minor and the extensive media coverage of his criminal activities. Despite those red flags, the lawsuit alleged, Bank of America continued to provide Epstein with full banking services, enabling payments to victims and the operation of shell companies used to facilitate trafficking.²

Bank of America did not admit wrongdoing as part of the settlement. The bank said in a statement that it chose to resolve the matter to avoid the cost and distraction of prolonged litigation.¹

Third Major Bank Settlement

The $72.5 million agreement makes Bank of America the third major financial institution to settle Epstein-related litigation. JPMorgan Chase reached a $290 million settlement with Epstein victims in June 2023, the largest such agreement to date.³ Deutsche Bank settled for $75 million in May 2023.⁴

Combined, the three bank settlements total approximately $437.5 million in compensation for survivors of Epstein’s trafficking operation. Legal experts told CBS News that the settlements reflect the financial industry’s significant exposure to liability for enabling Epstein’s crimes over a period spanning more than a decade.³

The JPMorgan settlement drew particular attention because the bank maintained its relationship with Epstein even after his 2008 conviction, only closing his accounts in 2013. Former JPMorgan executive Jes Staley was sued by the bank over his role in facilitating Epstein’s access to its services.³

The settlement covers at least 60 women who were victimized by Epstein between June 2008 and July 2019, according to CNBC.²

The final hearing in August will determine whether the settlement terms are fair to all class members. Victims who are part of the class will have an opportunity to object to the settlement terms before final approval.

References

1. NBC News — “Bank of America settles Epstein lawsuit for $72.5 million”
2. CNBC — “Bank of America to pay $72.5M in Epstein trafficking settlement”
3. CBS News — “Third major bank settles with Epstein victims”
4. PBS — “Deutsche Bank, JPMorgan, and now Bank of America: How banks enabled Epstein”
5. PBS — “Survivors react to Bank of America settlement”