NEW YORK — A federal judge has allowed key sex-trafficking claims against Bank of America to move forward, finding that alleged facts — if proven — could show the bank recklessly disregarded warning signs tied to the late financier Jeffrey Epstein, according to a ruling reported by Reuters.
U.S. District Judge Jed Rakoff, in a written opinion explaining a Jan. 29 decision, said a proposed class action brought by Epstein accusers may proceed on claims that Bank of America knowingly benefited from Epstein’s trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act. Rakoff dismissed four other claims against the bank and threw out similar claims against Bank of New York Mellon, Reuters reported. He did not rule on the merits of the remaining claims.
In a 42-page opinion, Rakoff said the plaintiff, identified as Jane Doe, “plainly alleges” that Bank of America provided non-routine banking services that assisted Epstein. The judge cited allegations that the bank made Doe a “premier” customer and facilitated large transfers despite having “every reason to know” Epstein was involved in the transactions and in sex crimes. Rakoff also wrote that Doe plausibly alleged the bank “turned a blind eye” to media reports and failed to scrutinize large transfers moving through an account allegedly held by a young woman of limited means.
The opinion further states that Doe plausibly alleged a bank employee — previously a banker for Epstein at JPMorgan Chase and Deutsche Bank — had “direct personal knowledge” of Epstein’s trafficking, potentially exposing Bank of America to civil liability, Reuters reported. The bank had argued the complaint showed only that it serviced wealthy clients connected to Epstein and did not intentionally obstruct law enforcement.
Bank of America said it looks forward to a full review of the facts. A trial is scheduled for May 11. Epstein died by suicide in a Manhattan jail in 2019 while awaiting trial. In 2023, JPMorgan agreed to pay $290 million and Deutsche Bank $75 million to settle related claims brought by Epstein accusers, though neither bank admitted wrongdoing, according to Reuters.