What Was Southern Trust Company?
Southern Trust Company Ltd. was a financial data and analysis firm registered in the U.S. Virgin Islands, ostensibly operating from Little Saint James. It was the vehicle through which Epstein claimed qualification under the USVI Economic Development Commission (EDC) tax benefit program.
The EDC Certificate
Holders of EDC certificates operating qualifying businesses in the USVI are entitled to:
- 90% reduction in corporate income taxes on USVI-sourced income
- Reduction in personal income taxes for USVI domiciliaries
- Other tax benefits not available on the U.S. mainland
Epstein obtained an EDC certificate through Southern Trust, claiming it was a legitimate operating financial services firm creating USVI jobs.
The Reality
The USVI Attorney General’s suit alleged that Southern Trust:
- Had no genuine operational staff performing real work
- Generated no real financial data management services
- Was structured purely as a tax shelter entity
- Existed to support Epstein’s claim to USVI domicile
The Financial Numbers
The USVI lawsuit alleged Epstein fraudulently obtained approximately million in federal tax exemptions through EDC over the years the certificate was operative. The settlement value of million reflected the estate’s negotiating position.
The Precedent
The case resulted in USVI legislators reviewing the EDC program to add stronger residency and operational requirements, closing loopholes that had enabled Epstein’s approach.