Bank of America reaches tentative settlement over Epstein-linked transactions lawsuit
Epstein died in a federal jail in August 2019 while awaiting trial on sex trafficking charges. (AP: New York State Sex Offender Registry)
In short:
Bank of America has reached a tentative settlement in a lawsuit alleging it ignored suspicious transactions linked to Jeffrey Epstein during his years of sexual abuse.
The case claimed the bank overlooked red flags, including $170 million in payments from Leon Black to Epstein, and enabled financial structures tied to his activities.
What's next?
The settlement terms were not disclosed, but lawyers for victims described it as a step toward justice.
Bank of America has tentatively settled a lawsuit claiming it ignored suspicious financial transactions involving Jeffrey Epstein while he was sexually abusing hundreds of girls and women.
The proposed settlement was revealed in filings in Manhattan federal court on Monday, the same day that billionaire financier Leon Black was originally scheduled to be deposed in the case. Terms were not disclosed.
The bank declined to comment through a spokesperson.
Though not a defendant, Black was recently described as a "critical witness" in the case by Sigrid McCawley, a lawyer for Epstein victims.
The proposed settlement was disclosed in Manhattan federal court filings on Monday, when billionaire Leon Black was due to be deposed. Terms were not revealed. (Reuters)
During a hearing last week, a lawyer for Black persuaded Judge Jed S Rakoff to postpone Black's deposition for 10 days on the grounds that the parties were close to settling. The lawyer, Michael Carlinsky, did not immediately respond to a request for comment on Tuesday.
In a statement, McCawley paid tribute to the "brave and fearless voices" of Epstein victims, saying their "road to justice" had been long and trying, but the Bank of America settlement was "one more step on the road to much-deserved justice".
The October lawsuit accused the bank of ignoring $170 million Black paid from a Bank of America account to Epstein, purportedly for "tax and estate planning advice".
It said the bank ignored "numerous red flags" of improper financial dealings, and "went far beyond what a non-complicit bank would have done and instead assisted Epstein in setting up the necessary financial structure to operate his sex-trafficking venture".
The lawsuit, brought on behalf of a woman identified in court papers only as Jane Doe and "all others similarly situated", said the woman was living in Russia when she met Epstein in 2011 and was "coerced into a cult-like life".
In a statement, Sigrid McCawley paid tribute to the "brave and fearless voices" of Epstein victims. (Reuters: Andrew Kelly)
The lawsuit said the woman was paid by Epstein through a Bank of America account as she was controlled "financially, emotionally, and psychologically" by Epstein from 2011 to 2019 as he sexually abused her on at least 100 occasions, including raping her and forcing her to engage sexually with other women for his sexual gratification.
The lawsuit alleged that Epstein paid her rent and income from a phony job through a Bank of America account, and held her immigration status "over her head, until her ultimate escape when Jeffrey Epstein died".
Epstein died in a federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.
Documents show Jeffrey Epstein had regular contact with CEOs, journalists, scientists and prominent politicians long after his 2008 conviction in state court in Florida on sex crimes charges. (House Oversight Committee Democrats via Reuters)
Epstein was known for his connections with wealthy and powerful men, and the lawsuit said he used them to his advantage in his attacks on women.
The recent Justice Department release of millions of pages of documents from law enforcement probes of Epstein shows he had regular contact with CEOs, journalists, scientists and prominent politicians long after his 2008 conviction in state court in Florida on sex crimes charges.
A review of the documents by The Associated Press and other news organisations showed Black's name appeared 8,200 times, though that figure likely includes some duplicate records.
In March 2021, Black stepped down as CEO of Apollo Global Management, saying he wanted to focus on his family, health, and "many other interests".
A committee of the company's board had issued a report two months earlier concluding that Epstein had advised Black personally on estate planning, tax issues, charitable giving and running his "family office", but provided no services to Apollo or invested in no Apollo funds.
The report also said the review — which Black requested — found "no evidence" that he was involved with Epstein's alleged criminal activities "in any way" or "at any time".
In a statement on Tuesday, Senator Ron Wyden, an Oregon Democrat who sits on the Senate Finance Committee, said the bank's decision to settle was a "step towards justice and a vindication of my staff's investigation into how major Wall Street banks enabled Epstein's crimes".
He said the bank "wilfully looked the other way" as Black paid Epstein the $170 million through "huge wire transfers", often in $10 million or $20 million instalments.
AP