Jeffrey Epstein’s operations in the U.S. Virgin Islands were notable not only for the criminal activity on his private islands but for his alleged cultivation of relationships with local government officials — relationships that critics argued gave him preferential treatment in the USVI’s tax benefit program and insulated his operations from local law enforcement scrutiny.
The USVI’s Economic Development Commission
The U.S. Virgin Islands Economic Development Commission (EDC) program offered major tax benefits to qualified businesses establishing genuine presence on the islands. Benefits included up to 90% reduction in income taxes — reducing Epstein’s effective federal income tax rate to as low as 6.4% on income processed through his USVI entities.
Allegations of Improper Access
The USVI civil lawsuit filed in 2020 alleged that Epstein had obtained his EDC benefits through relationships with officials rather than through genuine economic development. The suit specifically alleged that Epstein:
- Made charitable donations and other payments to individuals and organizations connected to USVI officials
- Cultivated personal relationships with politicians and government figures on the islands
- Maintained access to local legal resources that created a lower-risk operating environment
Named Officials
While the USVI civil lawsuit named Epstein’s estate and financial institutions as primary defendants, public reporting and litigation documents referenced concerns about specific former officials’ relationships with Epstein. The USVI government itself acknowledged investigating these connections.
Denise George Firing
Particularly notable was the firing of USVI Attorney General Denise George in January 2023, reportedly related to her office’s pursuit of the estate lawsuit with terms that included accountability mechanisms the new governor’s administration opposed. George had pursued the estate aggressively; her removal raised questions about political interference in the litigation.
Settlement
The USVI civil case settled in 2024 for approximately $105 million. A portion of settlement funds was designated for USVI government programs.