Lawsuits against banks with Epstein ties may shed new light on financier’s crimes | Jeffrey Epstein

For years, survivors of Jeffrey Epstein have demanded justice. For a while, it seemed like they would get it.

Ghislaine Maxwell, Epstein’s ex-girlfriend, was found guilty of sex trafficking four years ago for her involvement in the late financier’s sexual abuse of teen girls – and sentenced to 20 years’ imprisonment.

Meanwhile, banks who had done business with Epstein, although not admitting wrongdoing, paid hundreds of millions in settlements to victims. Donald Trump even made releasing the Epstein investigative files part of his campaign platform, and doubled down on his promise to do so early this year.

In the end, Trump’s justice department did not release these files, and his administration has become embroiled in reports about social ties between him and Epstein. Congressional promises to release files have lagged, due to political jockeying and justice department foot-dragging.

But two new lawsuits could shed light on Epstein’s activities amid the stalemate – regardless of their outcome.

These lawsuits, filed by an anonymous plaintiff against Bank of America and the Bank of New York Mellon (BNY), allege that these financial powerhouses illicitly enabled Epstein’s sex trafficking. The suits are helmed by Sigrid S McCawley, of Boies Schiller Flexner, and Brad Edwards of Edwards Henderson, who have long represented Epstein victims.

“Epstein committed these crimes by means of not only his own extraordinary wealth and power, but through access to funding and financial support from both individuals and institutions, including BNY,” one lawsuit claims. “Egregiously, BNY had a plethora of information regarding Epstein’s sex trafficking operation but chose profit over protecting the victims.”

The Bank of America suit echoes these allegations, claiming the institution “knowingly provided the financial support and the veneer of institutional legitimacy for Epstein and his co-conspirators to fuel their international sex trafficking organization under the guise of non-criminal business activities”. The suit also said Bank of America neglected to file suspicious activity reports.

Longtime attorneys who spoke to the Guardian said proving such a case would be difficult. But they also identified possible outcomes which could provide solace to accusers or disclosure of long-sought information.

Neama Rahmani, a former federal prosecutor who founded West Coast Trial Lawyers, said evidence has to show that an institution’s actions led to harm.

“I don’t think the lawsuit has much of a chance of success – and obviously I am on the side of the victims, and I want them to get answers and criminal justice and compensation,” Rahmani said. Some claims might be too tangential from a legal standpoint.

“It all comes down to evidence,” Rahmani said. A lawyer would need to prove causation, which would mean “but for the defendant’s conduct, the injury wouldn’t have occurred”. In this instance, that would boil down to “but for the bank’s conduct, the victim maybe wouldn’t have been trafficked”, Rahmani explained.

An attorney would also have to go beyond a “but for” measure. “It’s not just ‘but for’ causation. It also has to be a substantial factor: that is the legal test. So whatever misconduct there was, if there was any misconduct … the defendant’s misconduct has to have been a substantial factor in causing the plaintiff harm.

“By engaging in a business relationship with Epstein, is that a substantial factor? I don’t know.”

Liability aside, suits like this could put institutions on notice that relationships with those accused of wrongdoing can have damaging implications for them.

“It’s a PR nightmare,” he said. If the banks try to get these suits dismissed and fail, Rahmani expects a swift settlement. “No one wants to go litigate any of the Epstein-related cases.”

Eric Faddis, a trial attorney, former prosecutor and founder of the Colorado law firm Varner Faddis, said companies can be liable. In this situation, “whether the banks have liability is going to hinge, in part, on what the banks knew, whether they had any knowledge of alleged abuse or criminal wrongdoing”, and somehow provided assistance to Epstein.

“But even then, I think it’s going to be difficult to sort of loop the banks into some kind of sex-trafficking scheme. The banks would probably not be privy to the details of allegations,” Faddis said. While Epstein’s Florida conviction was public, “it’s not illegal for a bank to have a client who’s an unsavory person”.

“It is illegal for a bank to somehow be complicit in the criminal activity of a client, but those two issues are very different, and so I think that it’s going to be a tough lawsuit against the banks.”

That said, important aspects of the litigation could help Epstein survivors.

“The lawsuits have the potential to reveal more information about the ongoing Epstein saga,” Faddis said. “Even though there have been sort of walls put up at every turn for folks seeking this information, when there’s a lawsuit, there’s a discovery process, and that discovery process often requires disclosure of information that was not previously public.”

Edwards said in a statement that the suits could have a deterrent effect and accomplish what lawmakers had failed to do.

“The lawsuits are necessary for complete justice for the victims of Jeffrey Epstein – as well as for future would-be victims who will suffer from similar trafficking organizations – if our financial institutions are not held accountable for the essential role each plays, either in providing the necessary infrastructure for the illegal operation or recognizing the financial component of these crimes and putting an end to it.

He added: “We have a far better chance of making a real difference than Congress, because we know the facts and history of the case and are not motivated by politics but rather by a genuine desire to make a real difference and to protect the survivors, who have already suffered tremendously.

“We approach these matters without any political agenda and thus cannot be deterred by shutdowns, protecting wealthy politically connected individuals, or the other embarrassing partisan gamesmanship you and the rest of the world have had to watch unfold recently.”

McCawley said in a statement: “As Congress works toward unraveling how Jeffrey Epstein was able to orchestrate his criminal sex-trafficking enterprise for decades without detection, we are taking another important step forward toward justice for survivors.”

Asked or comment on the lawsuit, BNY said in a statement: “The claims in the lawsuit are meritless, and we will vigorously defend against it.”

Bank of America’s statement similarly remarked: “We will vigorously defend ourselves in this matter.”