USVI and Epstein Estate Reach $105 Million Settlement — October 2022
The U.S. Virgin Islands Attorney General announces a $105 million settlement with the Jeffrey Epstein estate, resolving the territory's civil lawsuit alleging Epstein used USVI corporate structures to facilitate sex trafficking while exploiting local tax benefits under the Economic Development Commission program. It is the largest government settlement directly tied to Epstein's estate.
People Involved
On October 17, 2022, the U.S. Virgin Islands and the estate of Jeffrey Epstein announced a $105 million settlement resolving the territory’s civil lawsuit against the estate.
The Settlement Amount
The $105 million settlement was the largest government-party recovery from Epstein’s estate. It covered claims that Epstein had used USVI entities to conduct trafficking while simultaneously collecting tens of millions in EDC tax benefits — effectively arguing that USVI taxpayers had subsidized his criminal operation.
Settlement Terms
Beyond the monetary payment, the settlement included:
- Transfer of Little Saint James Island to the USVI government for public use or sale
- Cooperation obligations for document production about Epstein’s USVI financial operations
- Support for an internal USVI investigation into the conduct of local officials who interacted with Epstein
Little Saint James Transfer
The transfer of Little Saint James — which Epstein had purchased for $7.95 million in 1998 and developed into a heavily improved resort-style property — to the USVI was a significant non-monetary component. The island was eventually sold at public auction in 2024 for approximately $60 million, with proceeds benefiting USVI public purposes.
USVI Accountability
The settlement prompted an internal investigation of USVI officials and government personnel who had interacted with Epstein, responded to complaints, or administered his EDC benefits. This aspect of the settlement acknowledged that local government failure had contributed to the environment in which Epstein operated.
Significance
The USVI settlement demonstrated that territorial and state governments could successfully pursue civil claims against trafficking operations conducted through local corporate structures — an important precedent for future anti-trafficking enforcement.