JPMorgan Chief Executive Officer (CEO) Jamie Dimon is just one of a few billionaires set to testify in lawsuits involving disgraced financier Jeffrey Epstein.
The lawsuits, filed by Epstein's victims, allege that JPMorgan facilitated his financial crimes by turning a blind eye to suspicious transactions and allowing him to move money through his accounts with the bank. Epstein, who dies by suicide in 2019 as he awaited trial on sex trafficking charges, had multiple accounts with JPMorgan. JPMorgan has already paid a $1 billion settlement to the US government over similar allegations.
Dimon's testimony is expected to shed light on the bank's relationship with Epstein and its role in facilitating his financial crimes. It could also lead to further scrutiny of JPMorgan's compliance practices and its handling of suspicious transactions.
JPMorgan's multiple lawsuits related to Epstein's accounts raise questions about the bank's due diligence and anti-money laundering controls. Epstein was a notorious figure who was convicted of sex crimes in 2008. The government of the United States (US) Virgin Islands, where the trial is being held, argues that the bank was not aware of the risks associated with doing business with him.
"[JPMorgan] chose to look the other way on these legal matters while continuing to use their banking relationship to grow their business with new clients introduced by Epstein," the US Virgin Islands stated in a release.
A former Disney executive, Michael Ovitz; Hyatt Executive Chairman Thomas Pritzker; Founder of Google, Sergey Brin, and real estate investor Mort Zuckerman are expected to also be subpoenaed in the coming week to testify in the trial.
Dimon's testimony is likely to be closely watched by regulators and lawmakers and could have implications for JPMorgan's reputation and its relationships with clients. The bank has faced criticism in the past over numerous other scandals, including the London Whale trading loss of 2012 and the 2020 settlement over its role in the Malaysian 1MDB scandal.