Background
The U.S. Virgin Islands held a unique legal position in the Epstein case. Epstein had operated his primary financial entities from the USVI since the late 1990s, received substantial Economic Development Commission tax benefits, and owned the Little Saint James and Great Saint James islands in the territory. The USVI had thus been both a host and, the government later alleged, an unwitting enabler of his trafficking operation.
The Lawsuit
In January 2020, USVI Attorney General Denise George filed a civil lawsuit against Epstein’s estate (and in subsequent filings, against JPMorgan Chase) alleging violations of the USVI’s sex trafficking statute, the federal Trafficking Victims Protection Act, and related laws. The core theories were:
- Fraudulent EDC benefits: Epstein’s companies had obtained tax incentives by misrepresenting the nature of their operations. Because the actual business was built on trafficking, the EDC certifications were fraudulently obtained.
- Direct liability: Epstein’s USVI entities—including Southern Trust Company—facilitated recruitment and transportation of victims to the islands.
- Unjust enrichment: The territory had provided tax benefits that subsidized the trafficking enterprise.
Jane Doe Subpoenas
In the course of the litigation, the USVI issued subpoenas to financial institutions including JPMorgan Chase and Deutsche Bank for records related to Epstein’s accounts, seeking to document the flow of money from the mainland trafficking operations through the USVI entities. These subpoenas produced documentary evidence later used in both regulatory proceedings and civil litigation against the banks.
The $105 Million Settlement
In November 2022, the USVI settled its lawsuit against the Epstein estate for $105 million. The territorial government stated it would use the proceeds for victim services, economic development, and territorial operating needs. The settlement was the largest single governmental recovery from the estate.
Controversy Over the AG
The litigation had an unusual subplot: Attorney General Denise George, who filed the suit, was fired by USVI Governor Albert Bryan Jr. in January 2023—shortly after the settlement was announced, in an action that generated considerable speculation about the reasons. Governor Bryan offered a general explanation relating to a lack of communication about the settlement terms; George denied any impropriety. The firing attracted national attention and scrutiny.