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Big Banks Enabled Jeffrey Epstein’s Sex Trafficking Crimes

Unlike the unfounded narrative that cryptocurrency enables crime, big banks are more than happy to serve unsavory clients if it is lucrative enough for them. The latest example of this is a report that Jeffrey Epstein was apparently using his bank accounts to fund sex trafficking and possibly other crimes.

Also Read: Deutsche Bank Collapse Could Crash Global Financial Markets

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The reported death of the Wall Street financier and convicted sex offender Jeffrey Epstein on Saturday morning in a Manhattan prison cell has left a lot of questions. Among these is how exactly he funded his criminal activities, which included sex trafficking of minors to be used by the rich and powerful. One matter that is not a mystery is how Epstein funded his perversions: he used the traditional fiat banking system, with all its extensive KYC and AML regulations.

The alleged suicide of Epstein shouldn’t stop the “Legions of lawyers, bankers and accountants” that have been digging into his financial affairs in recent weeks claims the New York Times. These include officials conducting internal reviews at the two big banks that worked with him for years, JP Morgan Chase and Deutsche Bank. The employees at both of these financial institutions have reportedly been going over their books in a long overdue attempt to understand how they got into business with the convicted criminal and what exactly he was using their banking services for. A person who was briefed on Deutsche Bank’s internal review reportedly said “it appeared that Mr. Epstein was using his accounts for sex trafficking and possibly other illegal activity.”

Big Banks Enabled Jeffrey Epstein’s Sex Trafficking Crimes
Deutsche Bank headquarters on Wall Street in Lower Manhattan, New York

Further, according to the report, compliance officers and other employees at both JP Morgan Chase and Deutsche Bank had strongly advised their higher-ups to stop doing business with Epstein years before his accounts were finally closed. This was suggested not due to the unpalatable nature of his businesses, but due to the risks associated with him such as hurting the bank’s brand and upsetting regulators. However, former employees at both banks said that “managers and executives rejected that advice and kept doing business with the lucrative client.”

Deutsche Bank Only Recently Closed Epstein’s Accounts

Jeffrey Epstein pleaded guilty and was convicted in court of law of both soliciting a prostitute and of procuring a minor for prostitution back in 2008. He served 13 months in custody with work release, as part of a plea deal, where federal prosecutes had identified 36 girls as young as 14 years old who had been victimized. His case was very hard to miss due to the fact that his name was tied to some of the most famous and powerful people in the world such as Donald Trump, former U.S. President Bill Clinton, the U.K.’s Prince Andrew, former Israeli Prime Minister Ehud Barak, and disgraced Hollywood star Kevin Spacey.

Despite all of this, it isn’t too hard to see why the higher-ups at the big banks didn’t want to let go of his business. While not much is known about the source of his money, Epstein definitely had a lot of it moving around. Among his confirmed assets is a private island in the U.S. Virgin Islands, a Manhattan mansion worth over $77 million, a Palm Beach estate worth over $12 million, additional real-estate properties in New Mexico and Paris, a private jet airplane and no less than 15 cars. Considering this, it isn’t that surprising that Deutsche Bank only cut its ties to Epstein when prosecutors were set to charge him again with operating a sex-trafficking ring of underage girls in June of this year.

Big Banks Enabled Jeffrey Epstein’s Sex Trafficking Crimes
A Chase Bank in Manhattan, New York

JP Morgan Chase worked with Epstein from the late 1990s until 2013 and Deutsche Bank served him from 2013 until June 2019. The latter bank has reportedly already started giving his complete transaction history to investigators while the former awaits receiving similar demands for his financial data from U.S. authorities.

In a statement on Saturday after the alleged suicide, Manhattan U.S. Attorney Geoffrey S. Berman expressed his commitment to the victims to keep the investigation ongoing, despite the demise of the defendant. This means that the public will hopefully get a detailed examination into the criminal banking activities of Epstein in due course.

Big Banks Have a Long History of Enabling Crime

Governments, central banks and international financial institutions have all been pushing a largely unfounded narrative in recent years that cryptocurrencies enable illicit activity. Parroted by the mainstream media, it was used as justification to crack down on exchanges and other crypto service providers with demands for less user privacy or outright bans. In contrast, the established banking system has a long and proven track record of enabling all sorts of crimes, despite its burdensome compliance requirements, and yet erring institutions receive nothing more than a fine equal to a slap on the wrist.

The recent seizure of a cargo ship owned by JP Morgan, which was loaded with 20 tons of cocaine, highlight the involvement of the big banks, albeit unwittingly in this instance, in such activities. Money laundering for drug cartels as well as moving funds for terrorists, arms dealers and dictatorial regimes are among the many misdeeds the banks have been caught red-handed abetting over the years.

What do you think about the big banks that reportedly enabled Jeffrey Epstein to fund his sex trafficking crimes? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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Tags in this story
big banks, Crime, Crimes, Deutsche Bank, JPMorgan Chase, Money Laundering, sex trafficking, Wall Street
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Avi Mizrahi

Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.