Southern Trust Company was a Virgin Islands-registered financial services company through which Jeffrey Epstein claimed to manage client financial affairs. It was the primary vehicle Epstein used to obtain tax benefits from the U.S. Virgin Islands Economic Development Commission (EDC) program — benefits that reduced his tax rate to as low as 6.4% on income booked through the company.
The EDC Program
The U.S. Virgin Islands Economic Development Commission offers generous tax benefits to businesses that establish genuine economic presence on the islands and create local jobs. Benefits can include a 90% reduction in income taxes. The program was designed to attract legitimate businesses to stimulate the USVI economy.
Epstein’s Application
Epstein applied through Southern Trust Company, claiming to run a financial advisory business from the Virgin Islands. His application was approved, providing tax benefits on what he represented as income from financial management services.
Abuse of the Program
The USVI civil lawsuit filed in 2020 alleged that Epstein had abused the EDC program — that Southern Trust Company was not a legitimate operating business managing client finances but a vehicle for concealing his actual income sources and reducing his tax exposure. The suit alleged that USVI officials were aware of irregularities.
Scale of Benefits
USVI prosecutors alleged that Epstein received approximately $60 million in tax benefits through the EDC program over the years. This represented a substantial reduction in his overall tax burden.
USVI Civil Settlement
In 2024, Epstein’s estate settled the USVI civil lawsuit for approximately $105 million, the largest settlement in the case’s history. The settlement included provisions for payments to victims and to the USVI government.
Broader Context
Southern Trust Company was one of multiple offshore and semi-offshore structures Epstein used to manage his finances. Documents unsealed from the SDNY prosecution and civil litigation revealed a layered financial structure involving multiple LLCs and trusts across different jurisdictions.