The EDC Program
The U.S. Virgin Islands Economic Development Commission offers significant tax exemptions to businesses that establish operations and create jobs in the territory. Companies certified under the program can receive 90% reductions in income tax, among other benefits.
Epstein’s USVI Entities
Epstein established Southern Trust Company in the USVI and claimed EDC certification benefits. He apparently represented the company as engaged in data processing and financial services.
The USVI Lawsuit
The USVI attorney general sued Epstein’s estate, alleging that he fraudulently obtained EDC certifications while using Southern Trust Company as a vehicle for financial operations related to his trafficking network. The lawsuit was settled in 2023 for million.
The Broader Pattern
The USVI tax strategy is one component of a broader pattern of Epstein using legal entities across multiple jurisdictionsUSVI, New Mexico, New York, Paris, Londonto manage wealth in ways that avoided or minimized regulatory scrutiny.