JPMorgan Brass Ignored Red Flags for Years as Epstein Moved $1B Through Bank: NYT

"JPMorgan Chase executives spent years overriding internal warnings about Jeffrey Epstein's financial activity, allowing him to move more than $1 billion through the bank, according to a detailed investigation published Monday by The New York Times Magazine. The report by David Enrich, Matthew Goldstein and Jessica Silver-Greenberg, who collectively reviewed more than 13,000 pages of bank records, deposition transcripts and financial data shows that Epstein's relationship with JPMorgan stretched over decades and survived repeated alarms from compliance officers and senior lawyers."

"By the early 2000s, according to the journalists, Epstein had become one of JPMorgan's most lucrative clients. His accounts held more than $200 million, generating millions in fees and placing him atop an internal list of moneymakers. He brokered a $1.3 billion acquisition of Highbridge Capital in 2004 that proved pivotal for the bank, collecting a $15 million fee himself. In 2011, JPMorgan paid him another $9 million to settle litigation tied to its purchase of Bear Stearns."

"Yet behind the scenes, compliance specialists were sounding alarms. In 2003 Epstein withdrew more than $175,000 in cash, a red flag for potential criminal activity. In 2004 and 2005, he took out more than $1.7 million in cash, much of it later linked to payments to underage girls. At Epstein's request, the bank even opened accounts for two young women without verifying their identities."

JPMorgan Chase executives repeatedly overrode internal compliance warnings, allowing Jeffrey Epstein to move more than $1 billion through the bank over decades. More than $200 million in Epstein accounts generated millions in fees and placed him among top moneymakers. Epstein brokered a $1.3 billion acquisition of Highbridge Capital in 2004 and collected a $15 million fee, and later received a $9 million settlement from JPMorgan tied to the Bear Stearns purchase. Compliance flagged large cash withdrawals and identity lapses, including accounts opened without verification. Bank teams considered cutting ties after legal troubles but senior executives argued to retain him.

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