The U.S. Virgin Islands Economic Development Commission (EDC) is a program designed to attract businesses to the territory by offering substantial tax benefits — historically up to 90% reductions in income, corporate, and excise taxes for qualifying participants.
How Epstein exploited it: Epstein incorporated multiple entities in the USVI starting in the early 2000s, including Southern Trust Company and other vehicles. He applied to the EDC program, claiming his financial services businesses were legitimate operations generating jobs and economic activity in the USVI. His application was accepted.
Over the years, Epstein received an estimated $300 million or more in tax benefits through this program, according to the USVI government’s civil lawsuit.
The EDC approval process: The USVI government’s lawsuit alleged that Epstein manipulated the approval and review process for EDC benefits, potentially including through relationships with USVI government officials. The suit named both the estate and certain co-conspirators who allegedly helped him maintain EDC status.
The trafficking connection: The USVI government’s most explosive allegation was that the EDC-affiliated entities were used not just for tax avoidance but were operationally connected to the sex trafficking enterprise run from Little Saint James. The companies allegedly facilitated payments related to the trafficking operation.
The settlement: In 2024, Epstein’s estate settled with the USVI government for $105 million. Former USVI Attorney General Denise George — who brought the original suit — was fired shortly after filing it, raising questions about external pressure, though the case continued under subsequent attorneys general.