{"version":"1.0.0","segments":[{"startTime":73.63,"endTime":75.47,"body":"3 million pages of evidence."},{"startTime":76.27,"endTime":78.66999999999999,"body":"Thousands of unsealed flight logs."},{"startTime":79.14999999999999,"endTime":84.03,"body":"Millions of data points, names, themes, and timelines connected."},{"startTime":84.83,"endTime":88.91,"body":"You are listening to the Epstein Files, the world's first"},{"startTime":89.07,"endTime":94.14999999999999,"body":"AI native investigation into the case that traditional journalism simply"},{"startTime":94.14999999999999,"endTime":95.22999999999999,"body":"could not handle."},{"startTime":96.42999999999999,"endTime":101.22999999999999,"body":"Foreign welcome back to the Epstein Files."},{"startTime":101.63,"endTime":104.91,"body":"Last time we walked through how Epstein's real estate empire"},{"startTime":104.99,"endTime":107.94999999999999,"body":"used shell companies to hide his wealth and his crimes."},{"startTime":108.59,"endTime":110.47,"body":"Today, we're following the insurance trail."},{"startTime":110.47,"endTime":113.94999999999999,"body":"How a convicted sex offender maintained coverage across a $600"},{"startTime":113.94999999999999,"endTime":117.47,"body":"million empire, and why JP Morgan is now suing its"},{"startTime":117.47,"endTime":119.71,"body":"own insurers over Epstein settlements."},{"startTime":120.19,"endTime":122.94999999999999,"body":"As always, every document and source we reference is available"},{"startTime":122.94999999999999,"endTime":124.82999999999998,"body":"at Epsteinfiles FM."},{"startTime":125.6,"endTime":128.88,"body":"So in November 2024, JPMorgan Chase files a lawsuit in"},{"startTime":128.88,"endTime":131.51999999999998,"body":"New York Supreme Court against its own insurance companies."},{"startTime":131.6,"endTime":135.2,"body":"Liberty Mutual, Chubb Federal Insurance, Westchester Fire."},{"startTime":135.51999999999998,"endTime":138.24,"body":"The bank had already paid $290 million to settle with"},{"startTime":138.24,"endTime":141.39999999999998,"body":"nearly 200 Epstein victims, and now it wants its carriers"},{"startTime":141.39999999999998,"endTime":142.24,"body":"to cover the tab."},{"startTime":142.56,"endTime":144.24,"body":"The insurers said no."},{"startTime":144.24,"endTime":146.92,"body":"Their argument, you don't get to facilitate a sex trafficking"},{"startTime":146.92,"endTime":148.24,"body":"operation and then file a claim."},{"startTime":148.24,"endTime":151.2,"body":"It's an unprecedented move, and it really forces the central"},{"startTime":151.2,"endTime":153.92,"body":"forensic question of this entire financial saga, which is what?"},{"startTime":153.92,"endTime":158.3,"body":"When an institution, a major global bank, enabled a criminal"},{"startTime":158.3,"endTime":160.38,"body":"enterprise like this, who picks up the tab?"},{"startTime":160.62,"endTime":162.3,"body":"Who actually pays for it in the end?"},{"startTime":162.38,"endTime":165.26,"body":"Because $290 million is not a small number."},{"startTime":165.33999999999997,"endTime":166.54,"body":"It's a huge number."},{"startTime":166.62,"endTime":169.42,"body":"And the question is, does that come from shareholders?"},{"startTime":169.57999999999998,"endTime":172.22,"body":"Does it come from the executives who made the decisions?"},{"startTime":172.54,"endTime":176.14,"body":"Or, as JP Morgan is arguing, does it come from"},{"startTime":176.14,"endTime":179.89999999999998,"body":"the insurance carriers who wrote their professional liability policies?"},{"startTime":180.38,"endTime":183.7,"body":"It just feels, on the surface, completely counterintuitive."},{"startTime":183.7,"endTime":184.14,"body":"It does."},{"startTime":184.41,"endTime":188.32999999999998,"body":"You pay a massive settlement for allegedly facilitating a trafficking"},{"startTime":188.32999999999998,"endTime":190.64999999999998,"body":"ring, and then you turn around and file your own"},{"startTime":190.64999999999998,"endTime":191.45,"body":"insurance claim."},{"startTime":191.61,"endTime":194.73,"body":"From a business perspective, though, it's a calculated risk."},{"startTime":194.97,"endTime":198.48999999999998,"body":"They are pushing the definition of what professional liability actually"},{"startTime":198.48999999999998,"endTime":198.93,"body":"covers."},{"startTime":198.93,"endTime":201.73,"body":"They're trying to frame it as an error, a catastrophic"},{"startTime":201.73,"endTime":205.93,"body":"error in banking compliance, a wrongful act in the course"},{"startTime":205.93,"endTime":207.60999999999999,"body":"of providing their professional services."},{"startTime":208.25,"endTime":210.17,"body":"They want this treated as a business loss."},{"startTime":210.95,"endTime":213.39,"body":"But the insurers, they're not seeing it as a simple"},{"startTime":213.39,"endTime":214.07,"body":"business loss."},{"startTime":214.23,"endTime":216.87,"body":"No, they see it as complicity in a crime."},{"startTime":217.10999999999999,"endTime":219.75,"body":"And that's where the two sides are fundamentally at odds."},{"startTime":220.07,"endTime":222.15,"body":"So to really understand this, we need to look at"},{"startTime":222.15,"endTime":222.75,"body":"the documents."},{"startTime":222.75,"endTime":223.82999999999998,"body":"What are we pulling today?"},{"startTime":223.98999999999998,"endTime":226.54999999999998,"body":"Okay, so the primary file is the lawsuit itself."},{"startTime":227.03,"endTime":229.06799999999998,"body":"JPMorgan Chase Bank N.A."},{"startTime":229.192,"endTime":232.164,"body":"versus Liberty Mutual Fire Insurance Co."},{"startTime":232.256,"endTime":232.95,"body":"Et al."},{"startTime":233.19,"endTime":237.98999999999998,"body":"That's New York Supreme Court case number 659255, 2024."},{"startTime":238.53,"endTime":239.25,"body":"And the et al."},{"startTime":239.25,"endTime":242.04999999999998,"body":"There Includes Chubb and its subsidiaries."},{"startTime":242.21,"endTime":242.76999999999998,"body":"Correct."},{"startTime":242.85,"endTime":246.37,"body":"Federal Insurance and Westchester Fire are both Chubb units."},{"startTime":246.45,"endTime":249.04999999999998,"body":"But to understand the context for that lawsuit, you have"},{"startTime":249.04999999999998,"endTime":249.81,"body":"to look backward."},{"startTime":249.89,"endTime":253.29,"body":"So we're also bringing in the nydfs enforcement action against"},{"startTime":253.29,"endTime":255.57,"body":"Deutsche bank, the New York Department of Financial Services."},{"startTime":255.73,"endTime":256.09000000000003,"body":"Right."},{"startTime":256.09000000000003,"endTime":260.33,"body":"And finally, the accounting records from the Epstein victims compensation"},{"startTime":260.33,"endTime":260.69,"body":"fund."},{"startTime":261.01,"endTime":264.25,"body":"Those three files together give you the full financial picture."},{"startTime":264.25,"endTime":265.33,"body":"Okay, let's start with the J.P."},{"startTime":265.33,"endTime":266.04999999999995,"body":"morgan suit."},{"startTime":266.40999999999997,"endTime":268.58799999999997,"body":"The filing is November 2024."},{"startTime":268.738,"endTime":269.40999999999997,"body":"J.P."},{"startTime":269.40999999999997,"endTime":270.33,"body":"morgan is the plaintiff."},{"startTime":270.33,"endTime":271.69,"body":"They're suing their own carriers."},{"startTime":271.77,"endTime":275.16999999999996,"body":"And the claim isn't just for the $290 million settlement"},{"startTime":275.16999999999996,"endTime":276.93,"body":"they paid to the Jane Doe class action."},{"startTime":276.93,"endTime":278.16999999999996,"body":"It's for the legal fees, too."},{"startTime":278.16999999999996,"endTime":281.01,"body":"It's for the legal defense costs, which you have to"},{"startTime":281.01,"endTime":282.81,"body":"assume are in the tens of millions of dollars."},{"startTime":283.04999999999995,"endTime":286.25,"body":"The legal architecture for a case like this is immense."},{"startTime":286.89,"endTime":288.69,"body":"So what kind of policies are we talking about here?"},{"startTime":288.69,"endTime":290.09000000000003,"body":"This isn't like a homeowner's policy."},{"startTime":290.73,"endTime":293.04999999999995,"body":"No, these are complex corporate policies."},{"startTime":293.04999999999995,"endTime":296.61,"body":"We're talking about professional liability insurance, sometimes called errors and"},{"startTime":296.61,"endTime":300.43,"body":"omissions, and then layers of excess liability policies on top"},{"startTime":300.43,"endTime":300.78999999999996,"body":"of that."},{"startTime":300.95,"endTime":303.66999999999996,"body":"So errors and omissions sounds like it covers mistakes."},{"startTime":303.99,"endTime":305.51,"body":"That's exactly the purpose."},{"startTime":305.99,"endTime":309.15,"body":"A trader makes a mistake, a compliance officer misses a"},{"startTime":309.15,"endTime":310.78999999999996,"body":"deadline, they get fined."},{"startTime":311.03,"endTime":312.63,"body":"That's a professional error."},{"startTime":312.71000000000004,"endTime":316.23,"body":"The insurance is there to cover the financial fallout from"},{"startTime":316.23,"endTime":318.78999999999996,"body":"those kinds of human or system mistakes."},{"startTime":318.87,"endTime":321.75,"body":"But Chubb's motion to dismiss, which was filed in June"},{"startTime":321.75,"endTime":325.03,"body":"of 2025, argues this wasn't just a mistake."},{"startTime":325.03,"endTime":326.39,"body":"That's the core of their defense."},{"startTime":326.65,"endTime":328.57000000000005,"body":"They aren't quibbling over the dollar amount."},{"startTime":328.57000000000005,"endTime":333.04999999999995,"body":"They're focused on a single concept, the intentional misconduct clause."},{"startTime":333.04999999999995,"endTime":335.04999999999995,"body":"And that's a standard part of these policies."},{"startTime":335.04999999999995,"endTime":337.97,"body":"It's in almost every liability policy ever written."},{"startTime":337.97,"endTime":339.77,"body":"It's a foundational principle of insurance."},{"startTime":339.77,"endTime":343.40999999999997,"body":"You can't insure against your own intentional criminal acts."},{"startTime":343.40999999999997,"endTime":345.68999999999994,"body":"It's the difference between faulty wiring and arson."},{"startTime":345.92999999999995,"endTime":347.04999999999995,"body":"It's exactly that."},{"startTime":347.37,"endTime":350.09000000000003,"body":"One is an accident, a misfortune."},{"startTime":350.49,"endTime":352.33000000000004,"body":"The other is a deliberate act."},{"startTime":353.11,"endTime":356.75,"body":"The insurers are arguing that JP Morgan knowingly facilitated sex"},{"startTime":356.75,"endTime":357.42999999999995,"body":"trafficking."},{"startTime":357.83000000000004,"endTime":361.42999999999995,"body":"That continuing to bank Epstein with all the red flags,"},{"startTime":361.42999999999995,"endTime":365.42999999999995,"body":"all the public information that wasn't an accident, they're framing"},{"startTime":365.42999999999995,"endTime":368.47,"body":"it as a conscious business decision, a commercial choice."},{"startTime":368.87,"endTime":372.11,"body":"They chose to accept the risk in exchange for the"},{"startTime":372.11,"endTime":374.99,"body":"profits and connections that came with keeping Epstein as a"},{"startTime":374.99,"endTime":375.35,"body":"client."},{"startTime":375.83000000000004,"endTime":378.35,"body":"And the insurers are saying you don't get to file"},{"startTime":378.35,"endTime":380.71000000000004,"body":"a claim for the consequences of that choice."},{"startTime":381.16999999999996,"endTime":383.09000000000003,"body":"But this is where the legal strategy comes in."},{"startTime":383.40999999999997,"endTime":386.57000000000005,"body":"JP Morgan was very careful in their settlement with the"},{"startTime":386.57000000000005,"endTime":388.21000000000004,"body":"victims Extremely careful."},{"startTime":388.21000000000004,"endTime":391.04999999999995,"body":"They settled the case, they paid the 290 million, but"},{"startTime":391.04999999999995,"endTime":392.92999999999995,"body":"they did it without admitting any liability."},{"startTime":393.16999999999996,"endTime":395.85,"body":"That's the pivot point for their entire case against the"},{"startTime":395.85,"endTime":396.25,"body":"insurers."},{"startTime":396.25,"endTime":397.65,"body":"I've read the settlement agreement."},{"startTime":397.73,"endTime":399.89,"body":"It's a masterclass in legal wording."},{"startTime":399.97,"endTime":400.92999999999995,"body":"There's regret."},{"startTime":401.09000000000003,"endTime":402.77,"body":"They say they should have done better."},{"startTime":402.77,"endTime":403.04999999999995,"body":"Right."},{"startTime":403.04999999999995,"endTime":403.97,"body":"But there's no admission."},{"startTime":404.21000000000004,"endTime":406.77,"body":"Nowhere in that document does it say, we admit we"},{"startTime":406.77,"endTime":409.40999999999997,"body":"knowingly facilitated a sex trafficking operation."},{"startTime":409.83000000000004,"endTime":411.18999999999994,"body":"And that's not just semantics."},{"startTime":411.18999999999994,"endTime":413.35,"body":"That's a specific legal mechanism."},{"startTime":413.51,"endTime":414.03,"body":"It is."},{"startTime":414.03,"endTime":418.27,"body":"It's designed to bypass the final adjudication exclusion in the"},{"startTime":418.27,"endTime":419.18999999999994,"body":"insurance policies."},{"startTime":419.35,"endTime":420.03,"body":"Explain that."},{"startTime":420.03,"endTime":423.15,"body":"Most policies state that coverage is voided if there is"},{"startTime":423.15,"endTime":426.23,"body":"a final adjudication, meaning a court judgment or a verdict"},{"startTime":426.23,"endTime":428.63,"body":"that proves the insured party committed a crime."},{"startTime":428.78999999999996,"endTime":431.51,"body":"But because JP Morgan settled, there was no trial."},{"startTime":431.59000000000003,"endTime":434.30999999999995,"body":"There's no trial, no verdict, no final judgment from a"},{"startTime":434.30999999999995,"endTime":434.54999999999995,"body":"court."},{"startTime":434.71000000000004,"endTime":437.99,"body":"So technically, there has been no legal finding of intentional"},{"startTime":437.99,"endTime":438.63,"body":"misconduct."},{"startTime":438.63,"endTime":440.47,"body":"So they can go to Chubb and Liberty Mutual and"},{"startTime":440.47,"endTime":443.09000000000003,"body":"say, look, a court never found us guilty of anything."},{"startTime":443.25,"endTime":445.09000000000003,"body":"We never admitted to anything criminal."},{"startTime":445.09000000000003,"endTime":447.68999999999994,"body":"We simply paid a large sum of money to resolve"},{"startTime":447.68999999999994,"endTime":449.57000000000005,"body":"a nuisance lawsuit and protect our brand."},{"startTime":450.21000000000004,"endTime":453.45000000000005,"body":"Therefore, you must treat this as a claim for alleged"},{"startTime":453.45000000000005,"endTime":454.13,"body":"negligence."},{"startTime":454.21000000000004,"endTime":455.16999999999996,"body":"It's a loophole."},{"startTime":455.16999999999996,"endTime":458.68999999999994,"body":"It's a technical but potentially nine figure loophole."},{"startTime":458.68999999999994,"endTime":461.61,"body":"They are trying to force the insurers to relitigate the"},{"startTime":461.61,"endTime":462.89,"body":"entire underlying case."},{"startTime":462.89,"endTime":464.61,"body":"They're saying, you think we knew?"},{"startTime":464.68999999999994,"endTime":465.33000000000004,"body":"Prove it."},{"startTime":465.49,"endTime":468.28999999999996,"body":"And this is what the legal press, like Law 360,"},{"startTime":468.45000000000005,"endTime":470.68999999999994,"body":"is calling the coverage quagmire."},{"startTime":470.85,"endTime":473.16999999999996,"body":"It's a perfect term for it because it's not just"},{"startTime":473.16999999999996,"endTime":474.21000000000004,"body":"one legal issue."},{"startTime":474.21000000000004,"endTime":475.49,"body":"It's a web of them."},{"startTime":475.89,"endTime":479.16999999999996,"body":"It's about intentionality, but it's also about the very nature"},{"startTime":479.25,"endTime":480.61,"body":"of the harm itself."},{"startTime":480.92999999999995,"endTime":484.37,"body":"The attorney Lilit Asadourian quoted in that article, she put"},{"startTime":484.37,"endTime":485.13,"body":"it very simply."},{"startTime":485.13,"endTime":485.61,"body":"She did."},{"startTime":485.61,"endTime":488.33000000000004,"body":"She said the insurance companies would say, this is not"},{"startTime":488.33000000000004,"endTime":491.21000000000004,"body":"the anticipated risk our policies are meant to protect you"},{"startTime":491.21000000000004,"endTime":491.49,"body":"for."},{"startTime":491.65,"endTime":495.32000000000005,"body":"Which seems logical when you're an actuary setting premiums for"},{"startTime":495.32000000000005,"endTime":495.76,"body":"a bank."},{"startTime":496.32000000000005,"endTime":499.52,"body":"You're pricing the risk of a bad loan, a market"},{"startTime":499.52,"endTime":501.6,"body":"crash, a regulatory fine."},{"startTime":501.67999999999995,"endTime":503.96000000000004,"body":"You're not praising the risk of your client running a"},{"startTime":503.96000000000004,"endTime":506.24,"body":"global sex trafficking ring from his accounts."},{"startTime":506.24,"endTime":508.08000000000004,"body":"That's just not on the actuarial tables."},{"startTime":508.15999999999997,"endTime":511.43999999999994,"body":"And that brings up the second major defense the insurers"},{"startTime":511.43999999999994,"endTime":511.84000000000003,"body":"are using."},{"startTime":512.0,"endTime":514.0,"body":"It's not just about intentional acts."},{"startTime":514.08,"endTime":515.68,"body":"It's about bodily injury."},{"startTime":515.76,"endTime":516.16,"body":"Right."},{"startTime":516.64,"endTime":519.2,"body":"This gets into the weeds of different policy types."},{"startTime":519.52,"endTime":522.8,"body":"Many of these corporate insurance packages include a CGL policy."},{"startTime":523.12,"endTime":526.48,"body":"Commercial general liability and CGL policies are designed to cover"},{"startTime":526.56,"endTime":527.36,"body":"bodily injury."},{"startTime":527.4399999999999,"endTime":530.64,"body":"There's no question the victim suffered horrific bodily injury and"},{"startTime":530.64,"endTime":531.6,"body":"emotional distress."},{"startTime":531.92,"endTime":534.12,"body":"So on its face, it sounds like that should be"},{"startTime":534.12,"endTime":534.56,"body":"covered."},{"startTime":534.56,"endTime":536.88,"body":"But there's a catch, and it's a big one."},{"startTime":537.28,"endTime":540.88,"body":"CGL policies require that the bodily injury result from an"},{"startTime":540.88,"endTime":541.4399999999999,"body":"occurrence."},{"startTime":541.52,"endTime":544.32,"body":"And occurrence is a very specific legal term."},{"startTime":544.32,"endTime":546.08,"body":"It's a term of art in insurance law."},{"startTime":546.35,"endTime":547.23,"body":"It means an accident."},{"startTime":547.47,"endTime":549.99,"body":"So a customer slips on a wet floor in the"},{"startTime":549.99,"endTime":551.63,"body":"bank lobby and breaks their leg."},{"startTime":552.27,"endTime":553.31,"body":"That's an occurrence."},{"startTime":553.31,"endTime":554.1899999999999,"body":"That's an accident."},{"startTime":554.1899999999999,"endTime":556.03,"body":"The bank didn't intend for that to happen."},{"startTime":556.67,"endTime":562.429,"body":"But sexual abuse, trafficking, coercion, those are the opposite of"},{"startTime":562.429,"endTime":562.91,"body":"an accident."},{"startTime":562.91,"endTime":565.07,"body":"They are intentional criminal acts."},{"startTime":565.07,"endTime":568.43,"body":"So the insurer's argument is that because the perpetrator, Epstein,"},{"startTime":568.43,"endTime":571.55,"body":"inflicted the harm intentionally, there was no occurrence."},{"startTime":571.55,"endTime":573.95,"body":"And if there's no occurrence, the policy is never triggered"},{"startTime":573.95,"endTime":574.71,"body":"in the first place."},{"startTime":574.71,"endTime":578.1,"body":"They're saying you can't accidentally enable a sex trafficking ring."},{"startTime":578.65,"endTime":582.13,"body":"The underlying harm is intentional, therefore the CGL policy doesn't"},{"startTime":582.13,"endTime":582.49,"body":"apply."},{"startTime":582.49,"endTime":584.97,"body":"This is a novel argument in this context, though it"},{"startTime":584.97,"endTime":585.21,"body":"is."},{"startTime":585.2900000000001,"endTime":589.0500000000001,"body":"The attorney Dan Cohane, who represents carriers, pointed this out."},{"startTime":589.21,"endTime":592.73,"body":"The whole legal theory that holds a bank financially responsible"},{"startTime":592.73,"endTime":595.57,"body":"for the physical crimes of its customer is a new"},{"startTime":595.57,"endTime":595.9300000000001,"body":"development."},{"startTime":596.1700000000001,"endTime":599.01,"body":"Insurers would argue they never collected premiums for that kind"},{"startTime":599.01,"endTime":599.45,"body":"of risk."},{"startTime":599.61,"endTime":602.8100000000001,"body":"Their position is that it falls completely outside the scope"},{"startTime":602.8100000000001,"endTime":603.9300000000001,"body":"of banking liability."},{"startTime":604.48,"endTime":607.36,"body":"If a court forces them to pay this claim, it"},{"startTime":607.36,"endTime":611.8000000000001,"body":"fundamentally rewrites the risk profile for insuring any financial institution"},{"startTime":611.8000000000001,"endTime":612.4,"body":"in the world."},{"startTime":612.48,"endTime":614.08,"body":"So you have a complete standoff."},{"startTime":614.24,"endTime":614.64,"body":"J.P."},{"startTime":614.64,"endTime":615.84,"body":"morgan paid the settlement."},{"startTime":616.4,"endTime":618.64,"body":"The insurers are refusing to pay them back."},{"startTime":618.88,"endTime":621.2,"body":"The case is now sitting in New York Supreme Court."},{"startTime":621.44,"endTime":626.76,"body":"And if the insurers prevail, that $290 million loss plus"},{"startTime":626.76,"endTime":629.64,"body":"the legal fees, comes straight out of the bank's bottom"},{"startTime":629.64,"endTime":629.9200000000001,"body":"line."},{"startTime":629.9200000000001,"endTime":631.36,"body":"Which means the shareholders pay."},{"startTime":631.53,"endTime":634.25,"body":"The shareholders eat the cost of the compliance failure."},{"startTime":634.65,"endTime":637.2900000000001,"body":"And while that case is unfolding, we have a perfect"},{"startTime":637.2900000000001,"endTime":640.13,"body":"forensic case study of how these failures happen in the"},{"startTime":640.13,"endTime":640.65,"body":"first place."},{"startTime":640.65,"endTime":641.9300000000001,"body":"We have to look at Deutsche Bank."},{"startTime":642.01,"endTime":642.61,"body":"Exactly."},{"startTime":642.61,"endTime":643.69,"body":"This isn't speculation."},{"startTime":644.01,"endTime":645.21,"body":"This file is closed."},{"startTime":645.21,"endTime":647.1700000000001,"body":"We have the consent order from the New York Department"},{"startTime":647.1700000000001,"endTime":650.49,"body":"of financial services dated July 7, 2020."},{"startTime":650.49,"endTime":651.69,"body":"And this is a big deal."},{"startTime":651.85,"endTime":655.2900000000001,"body":"Deutsche bank was fined $150 million."},{"startTime":655.69,"endTime":659.69,"body":"It was the very first enforcement action by any regulator"},{"startTime":659.69,"endTime":663.28,"body":"against a financial institution for its dealings with Jeffrey Epst."},{"startTime":663.6700000000001,"endTime":666.15,"body":"The timeline here is just critical to understanding this."},{"startTime":666.39,"endTime":669.51,"body":"When did Deutsche bank bring Epstein on as a client?"},{"startTime":669.6700000000001,"endTime":671.03,"body":"August 2013."},{"startTime":671.19,"endTime":672.23,"body":"August 2013."},{"startTime":672.39,"endTime":673.5500000000001,"body":"So let's put that in context."},{"startTime":673.5500000000001,"endTime":675.83,"body":"This is after JP Morgan had already fired him as"},{"startTime":675.83,"endTime":676.19,"body":"a client."},{"startTime":676.19,"endTime":676.47,"body":"Right."},{"startTime":676.47,"endTime":677.99,"body":"JP Morgan cut ties with him."},{"startTime":678.07,"endTime":681.3100000000001,"body":"And more Importantly, this is five years after his 2008"},{"startTime":681.3100000000001,"endTime":683.83,"body":"conviction in Florida for soliciting a minor."},{"startTime":684.39,"endTime":687.7900000000001,"body":"He was a publicly known registered sex offender when he"},{"startTime":687.7900000000001,"endTime":689.51,"body":"opened his accounts at Deutsche Bank."},{"startTime":689.71,"endTime":692.75,"body":"And the bank's own internal documents show they knew that."},{"startTime":692.91,"endTime":695.71,"body":"The NYDFS consent order is explicit."},{"startTime":695.71,"endTime":697.87,"body":"They immediately labeled him high risk."},{"startTime":698.03,"endTime":699.87,"body":"That's the highest risk category you can have."},{"startTime":699.87,"endTime":700.3100000000001,"body":"It is."},{"startTime":700.3100000000001,"endTime":704.03,"body":"And they also designated him an honorary peep, politically exposed"},{"startTime":704.03,"endTime":706.23,"body":"person, which is another layer of scrutiny."},{"startTime":706.23,"endTime":708.35,"body":"It's for clients connected to government officials."},{"startTime":708.6700000000001,"endTime":711.83,"body":"So you have the two highest risk flags possible on"},{"startTime":711.83,"endTime":712.99,"body":"this account from day one."},{"startTime":713.07,"endTime":715.91,"body":"That's supposed to trigger enhanced constant monitoring."},{"startTime":715.91,"endTime":717.63,"body":"So they put the right label on the file."},{"startTime":718.23,"endTime":718.91,"body":"But then what happened?"},{"startTime":718.91,"endTime":720.23,"body":"Then you look at the transactions."},{"startTime":720.63,"endTime":722.75,"body":"Let's pull the ledger for one of his main accounts,"},{"startTime":722.75,"endTime":723.99,"body":"the Butterfly Trust."},{"startTime":724.47,"endTime":728.91,"body":"The Source file is EFTA 01356 935."},{"startTime":728.91,"endTime":730.15,"body":"The Butterfly Trust."},{"startTime":730.15,"endTime":732.63,"body":"This was a discretionary trust he used to pay for,"},{"startTime":732.7900000000001,"endTime":733.75,"body":"well, everything."},{"startTime":733.99,"endTime":736.59,"body":"And the transaction ledger reads like a roadmap for the"},{"startTime":736.59,"endTime":737.59,"body":"entire operation."},{"startTime":737.6700000000001,"endTime":738.71,"body":"What do we see in there?"},{"startTime":738.7900000000001,"endTime":742.35,"body":"We see large payments to individuals who were later publicly"},{"startTime":742.35,"endTime":744.11,"body":"named as his co consist conspirators."},{"startTime":744.6700000000001,"endTime":748.59,"body":"We see over $6 million paid out to dozens of"},{"startTime":748.59,"endTime":749.5500000000001,"body":"different law firms."},{"startTime":749.7900000000001,"endTime":753.11,"body":"But it's the smaller recurring payments that really stand out"},{"startTime":753.11,"endTime":755.83,"body":"in the report, that's where the compliance failure is so"},{"startTime":755.83,"endTime":756.27,"body":"obvious."},{"startTime":756.27,"endTime":760.3100000000001,"body":"We see thousands of individual payments with descriptions like school"},{"startTime":760.3100000000001,"endTime":762.83,"body":"tuition, hotel and rent."},{"startTime":762.91,"endTime":763.87,"body":"And the recipients?"},{"startTime":764.03,"endTime":767.59,"body":"The report notes numerous payments to women, many with Eastern"},{"startTime":767.59,"endTime":771.7900000000001,"body":"European surnames, who had no apparent business connection to Epstein"},{"startTime":771.7900000000001,"endTime":772.51,"body":"or his companies."},{"startTime":773.01,"endTime":775.85,"body":"So if you're a compliance analyst looking at this, what"},{"startTime":775.85,"endTime":776.77,"body":"are you supposed to think?"},{"startTime":776.9300000000001,"endTime":779.85,"body":"You're supposed to think this is a massive red flag"},{"startTime":779.85,"endTime":780.85,"body":"for human trafficking."},{"startTime":781.1700000000001,"endTime":784.53,"body":"A registered sex offender is paying the living expenses for"},{"startTime":784.53,"endTime":785.73,"body":"young women around the world."},{"startTime":786.13,"endTime":788.09,"body":"That fits the typology perfectly."},{"startTime":788.09,"endTime":789.89,"body":"So you're supposed to ask for documentation."},{"startTime":789.97,"endTime":793.25,"body":"You're supposed to ask for a lease agreement, an invoice"},{"startTime":793.25,"endTime":796.21,"body":"for the tuition, something to justify the payment."},{"startTime":796.45,"endTime":799.73,"body":"But the nydfs found that Deutsche Bank's compliance team just"},{"startTime":800.78,"endTime":801.1800000000001,"body":"didn't."},{"startTime":801.26,"endTime":802.78,"body":"They processed the payments."},{"startTime":803.26,"endTime":805.62,"body":"It seems like there was a total breakdown between the"},{"startTime":805.62,"endTime":807.58,"body":"compliance department and the business side."},{"startTime":807.9,"endTime":809.9,"body":"The documents suggest exactly that."},{"startTime":810.3000000000001,"endTime":812.9,"body":"The compliance team puts the high risk sticker on the"},{"startTime":812.9,"endTime":813.34,"body":"file."},{"startTime":813.58,"endTime":816.4200000000001,"body":"But the relationship managers, the ones who care about the"},{"startTime":816.4200000000001,"endTime":819.5400000000001,"body":"fees and the revenue, they ensure the transactions go through"},{"startTime":819.5400000000001,"endTime":820.22,"body":"smoothly."},{"startTime":820.86,"endTime":822.5400000000001,"body":"The label becomes meaningless."},{"startTime":822.5400000000001,"endTime":823.58,"body":"And then there's the cash."},{"startTime":823.9,"endTime":826.78,"body":"The cash is, from a forensic standpoint, the most damning"},{"startTime":826.78,"endTime":827.1,"body":"part."},{"startTime":827.66,"endTime":831.98,"body":"The KYC360 analysis of the NYDFS report lays it out"},{"startTime":831.98,"endTime":833.1800000000001,"body":"over four year period."},{"startTime":833.34,"endTime":837.3000000000001,"body":"Over four years, Epstein's accounts process more than $800,000 in"},{"startTime":837.3000000000001,"endTime":838.26,"body":"cash withdrawals."},{"startTime":838.26,"endTime":839.82,"body":"And not in large simple chunks."},{"startTime":839.98,"endTime":840.98,"body":"No, that's the key."},{"startTime":840.98,"endTime":842.94,"body":"You see a clear pattern of structuring."},{"startTime":843.1,"endTime":848.0600000000001,"body":"We see withdrawal after withdrawal for amounts like $7,500 or"},{"startTime":848.0600000000001,"endTime":849.02,"body":"$8,000."},{"startTime":849.1,"endTime":851.02,"body":"And that number is specific for a reason."},{"startTime":851.26,"endTime":854.62,"body":"It's just under the $10,000 reporting threshold."},{"startTime":855.4300000000001,"endTime":859.4300000000001,"body":"Any cash transaction over $10,000 requires the bank to file"},{"startTime":859.4300000000001,"endTime":863.6700000000001,"body":"a currency transaction report, a CTR with the federal government."},{"startTime":864.07,"endTime":867.47,"body":"So making lots of smaller withdrawals is a way to"},{"startTime":867.47,"endTime":868.7900000000001,"body":"try to fly under the radar."},{"startTime":868.7900000000001,"endTime":870.39,"body":"It's a federal crime called structuring."},{"startTime":870.7090000000001,"endTime":873.91,"body":"It's a deliberate attempt to evade those reporting requirements."},{"startTime":874.23,"endTime":877.63,"body":"And for a bank's monitoring system to see that pattern"},{"startTime":877.63,"endTime":879.91,"body":"from a high risk client and not shut it down"},{"startTime":880.07,"endTime":881.63,"body":"is a profound failure."},{"startTime":881.63,"endTime":883.19,"body":"They just kept dispensing the cash."},{"startTime":883.19,"endTime":883.83,"body":"They did."},{"startTime":883.99,"endTime":887.45,"body":"And there's one incident in the NYDFS report that is"},{"startTime":887.45,"endTime":888.53,"body":"just unbelievable."},{"startTime":888.61,"endTime":889.25,"body":"What's that?"},{"startTime":889.33,"endTime":892.49,"body":"One of Epstein's lawyers comes into the bank to withdraw"},{"startTime":892.49,"endTime":895.1700000000001,"body":"$100,000 in cash."},{"startTime":895.33,"endTime":897.73,"body":"$100,000 in a single transaction."},{"startTime":897.73,"endTime":900.25,"body":"And the bank to its credit, actually did ask a"},{"startTime":900.25,"endTime":900.53,"body":"question."},{"startTime":900.53,"endTime":902.85,"body":"They asked, what is the purpose of this withdrawal?"},{"startTime":902.85,"endTime":903.57,"body":"And the answer?"},{"startTime":903.57,"endTime":906.53,"body":"The lawyer claimed it was for tips and household expenses"},{"startTime":906.53,"endTime":908.0500000000001,"body":"for 100 grand in cash."},{"startTime":908.21,"endTime":910.61,"body":"It's not a credible explanation at all."},{"startTime":910.9300000000001,"endTime":913.01,"body":"In an audit, that's an immediate escalation."},{"startTime":913.38,"endTime":916.1800000000001,"body":"But the report states the bank accepted the explanation and"},{"startTime":916.1800000000001,"endTime":917.3000000000001,"body":"processed the withdrawal."},{"startTime":917.5400000000001,"endTime":918.9,"body":"They handed over the cash."},{"startTime":919.46,"endTime":921.1800000000001,"body":"This all circles Back to the J.P."},{"startTime":921.1800000000001,"endTime":922.02,"body":"morgan lawsuit."},{"startTime":922.02,"endTime":922.58,"body":"It does."},{"startTime":922.82,"endTime":925.86,"body":"The insurers are arguing that this kind of behavior isn't"},{"startTime":925.86,"endTime":926.58,"body":"negligence."},{"startTime":927.0600000000001,"endTime":930.5,"body":"When you see structuring, when you see suspicious payments for"},{"startTime":930.5,"endTime":935.02,"body":"rent, when you approve $100,000 cash withdrawal for tips, they"},{"startTime":935.02,"endTime":936.98,"body":"argue that's an intentional business decision."},{"startTime":937.3000000000001,"endTime":940.7,"body":"You're choosing the client's profitability over your compliance obligations."},{"startTime":940.7,"endTime":942.9,"body":"You are actively facilitating their activities."},{"startTime":943.32,"endTime":945.52,"body":"And the documents also show that Deutsche bank wasn't just"},{"startTime":945.52,"endTime":947.32,"body":"looking at one account in a silo."},{"startTime":947.4,"endTime":948.6800000000001,"body":"They had a full picture."},{"startTime":948.76,"endTime":949.32,"body":"Correct."},{"startTime":949.32,"endTime":952.6,"body":"They grouped all of Epstein's entities together under a single"},{"startTime":952.6,"endTime":955.48,"body":"umbrella called the Southern Financial Relationship."},{"startTime":955.64,"endTime":961.6,"body":"That's from SourceFile EFT01420941 so under this one relationship you"},{"startTime":961.6,"endTime":964.96,"body":"had the Butterfly Trust, Southern Trust Company, the aviation company,"},{"startTime":964.96,"endTime":967.08,"body":"Hyperion Air, Neptune llc."},{"startTime":967.24,"endTime":969.88,"body":"They had a God's eye view of the entire network."},{"startTime":969.96,"endTime":973.48,"body":"Their own know your customer center in Mumbai was managing"},{"startTime":973.48,"endTime":974.0400000000001,"body":"this relations."},{"startTime":974.98,"endTime":977.22,"body":"They could see the money moving between the shell companies"},{"startTime":977.38,"endTime":979.74,"body":"to the trust, out to the women they had all"},{"startTime":979.74,"endTime":982.9,"body":"the puzzle pieces, but they didn't act, they didn't terminate"},{"startTime":982.9,"endTime":985.0600000000001,"body":"the relationship until late 2018."},{"startTime":985.3000000000001,"endTime":987.66,"body":"And the report makes it clear that the trigger wasn't"},{"startTime":987.66,"endTime":988.9,"body":"an internal audit."},{"startTime":989.0600000000001,"endTime":992.14,"body":"It was the negative press coverage from the Miami Herald's"},{"startTime":992.14,"endTime":992.58,"body":"reporting."},{"startTime":992.66,"endTime":995.0600000000001,"body":"Public pressure, not internal controls."},{"startTime":995.0600000000001,"endTime":997.3000000000001,"body":"Which tells you everything you need to know about the"},{"startTime":997.3000000000001,"endTime":999.46,"body":"institution's risk appetite at the time."},{"startTime":999.7,"endTime":1002.1800000000001,"body":"So let's shift from the institutions to the victims."},{"startTime":1002.76,"endTime":1005.84,"body":"The banks paid huge settlements, but where did the first"},{"startTime":1005.84,"endTime":1007.4,"body":"round of compensation come from?"},{"startTime":1007.5600000000001,"endTime":1011.16,"body":"The first round came from the Epstein Victims compensation program."},{"startTime":1011.48,"endTime":1013.76,"body":"This was the fund set up by the estate itself"},{"startTime":1013.76,"endTime":1014.6,"body":"after his death."},{"startTime":1014.84,"endTime":1017.2,"body":"And we have the reports on this from Insurance Journal"},{"startTime":1017.2,"endTime":1018.2,"body":"and Politico."},{"startTime":1018.2,"endTime":1021.9200000000001,"body":"The fund was administered by Kenneth Feinberg and Jordana Feldman,"},{"startTime":1021.9200000000001,"endTime":1024.24,"body":"who are the go to experts for these kinds of"},{"startTime":1024.24,"endTime":1025.56,"body":"mass casualty funds."},{"startTime":1025.8,"endTime":1031.47,"body":"It ultimately paid out between 121 and $125 million to"},{"startTime":1031.47,"endTime":1033.1499999999999,"body":"about 150 claimants."},{"startTime":1033.1499999999999,"endTime":1034.19,"body":"Roughly, yes."},{"startTime":1034.43,"endTime":1038.43,"body":"The most important forensic question here is where did that"},{"startTime":1038.43,"endTime":1040.27,"body":"125 million come from?"},{"startTime":1040.43,"endTime":1042.59,"body":"It came entirely from the Epstein estate."},{"startTime":1042.75,"endTime":1045.07,"body":"$0 came from any insurance policy."},{"startTime":1045.47,"endTime":1048.51,"body":"It was all funded through the liquidation of his assets."},{"startTime":1048.9099999999999,"endTime":1051.6299999999999,"body":"Selling the townhouse, the islands, the plains."},{"startTime":1051.87,"endTime":1053.83,"body":"But it wasn't just a straightforward payment."},{"startTime":1053.83,"endTime":1054.75,"body":"There were conditions."},{"startTime":1054.83,"endTime":1056.27,"body":"There were significant conditions."},{"startTime":1056.68,"endTime":1059.3999999999999,"body":"We have the fund's official protocol archived online."},{"startTime":1059.8,"endTime":1062.8,"body":"The key element is the legal release that every claimant"},{"startTime":1062.8,"endTime":1064.6,"body":"had to sign in exchange for the payment."},{"startTime":1064.68,"endTime":1065.96,"body":"You had to give something up."},{"startTime":1065.96,"endTime":1067.56,"body":"You had to give up your right to sue."},{"startTime":1067.96,"endTime":1071.0,"body":"By accepting money from the fund, victims signed away any"},{"startTime":1071.0,"endTime":1074.96,"body":"future civil liability claims against the estate, its employees and"},{"startTime":1074.96,"endTime":1076.52,"body":"any of Epstein's former companies."},{"startTime":1076.6,"endTime":1077.72,"body":"It was a transaction."},{"startTime":1077.72,"endTime":1080.96,"body":"You get a guaranteed confidential payment now, but you can't"},{"startTime":1080.96,"endTime":1083.0,"body":"pursue a larger case in court later."},{"startTime":1083.29,"endTime":1085.69,"body":"Which for many victims is a valid trade off."},{"startTime":1085.69,"endTime":1088.4099999999999,"body":"It avoids the trauma and uncertainty of a public trial."},{"startTime":1088.6499999999999,"endTime":1091.17,"body":"But from the estate's perspective, it was a way to"},{"startTime":1091.17,"endTime":1093.05,"body":"manage and cap its total liability."},{"startTime":1093.4499999999998,"endTime":1097.53,"body":"And the release had some very specific and unusual clauses."},{"startTime":1097.53,"endTime":1098.01,"body":"Yes."},{"startTime":1098.49,"endTime":1102.1699999999998,"body":"The protocol specifically required at least three women who had"},{"startTime":1102.1699999999998,"endTime":1106.2099999999998,"body":"active lawsuits against Ghislaine Maxwell to drop those cases in"},{"startTime":1106.2099999999998,"endTime":1108.57,"body":"order to receive their payment from the estates fund."},{"startTime":1109.12,"endTime":1112.12,"body":"So the estate was using its own compensation fund to"},{"startTime":1112.12,"endTime":1114.9599999999998,"body":"protect a key associate from separate legal action?"},{"startTime":1115.12,"endTime":1116.6399999999999,"body":"It certainly appears that way."},{"startTime":1116.9599999999998,"endTime":1119.1999999999998,"body":"It suggests the fund's purpose was twofold."},{"startTime":1119.6799999999998,"endTime":1122.84,"body":"Compensate victims, yes, but also to act as a legal"},{"startTime":1122.84,"endTime":1124.1599999999999,"body":"shield for the wider network."},{"startTime":1124.32,"endTime":1126.3999999999999,"body":"The numbers here, when you put them side by side,"},{"startTime":1126.3999999999999,"endTime":1127.04,"body":"are telling."},{"startTime":1127.04,"endTime":1127.56,"body":"They are."},{"startTime":1127.56,"endTime":1129.9199999999998,"body":"The estate pays out about 125 million."},{"startTime":1130.32,"endTime":1132.8,"body":"JP Morgan pays 290 million."},{"startTime":1133.1999999999998,"endTime":1136.7199999999998,"body":"Deutsche bank pays 75 million to victims on top of"},{"startTime":1136.7199999999998,"endTime":1138.84,"body":"its $150 million fine."},{"startTime":1138.9199999999998,"endTime":1139.8799999999999,"body":"The math is simple."},{"startTime":1139.8799999999999,"endTime":1142.9599999999998,"body":"The financial institutions that enabled the operation ended up with"},{"startTime":1142.9599999999998,"endTime":1145.8,"body":"a far greater financial liability than the estate of the"},{"startTime":1145.8,"endTime":1146.7199999999998,"body":"man at the center of it."},{"startTime":1146.7199999999998,"endTime":1149.0,"body":"The enablers paid more than the perpetrator."},{"startTime":1149.1599999999999,"endTime":1150.12,"body":"Substantially more."},{"startTime":1150.4399999999998,"endTime":1153.24,"body":"Which suggests the legal and regulatory system has placed a"},{"startTime":1153.24,"endTime":1156.24,"body":"higher price on the systemic failure of the gatekeepers than"},{"startTime":1156.24,"endTime":1157.9599999999998,"body":"on the assets of the criminal himself."},{"startTime":1158.28,"endTime":1160.84,"body":"And speaking of those assets, let's look at how they"},{"startTime":1160.84,"endTime":1161.6399999999999,"body":"were liquidated."},{"startTime":1162.4499999999998,"endTime":1165.6499999999999,"body":"The concept of stigma damages is fascinating here."},{"startTime":1165.8899999999999,"endTime":1170.2099999999998,"body":"This is a real quantifiable factor in forensic accounting, especially"},{"startTime":1170.2099999999998,"endTime":1171.57,"body":"in high profile cases."},{"startTime":1171.8899999999999,"endTime":1174.37,"body":"We're looking at reports from Forbes and the New York"},{"startTime":1174.37,"endTime":1176.61,"body":"Times on the sale of the real estate."},{"startTime":1176.77,"endTime":1181.49,"body":"Let's take The Manhattan townhouse, 9 East 71st Street."},{"startTime":1182.05,"endTime":1184.8899999999999,"body":"An enormous private mansion in one of the most expensive"},{"startTime":1184.8899999999999,"endTime":1186.05,"body":"locations on Earth."},{"startTime":1186.05,"endTime":1189.54,"body":"Based on its size, location and condition, it was valued"},{"startTime":1189.54,"endTime":1191.34,"body":"at $77 million."},{"startTime":1191.5,"endTime":1193.1,"body":"That was its fair market value."},{"startTime":1193.1,"endTime":1194.3799999999999,"body":"But that's not what it sold for."},{"startTime":1194.3799999999999,"endTime":1198.2199999999998,"body":"It sold for $51 million, a $26 million difference."},{"startTime":1198.3,"endTime":1201.1799999999998,"body":"That 26 million is what we would call the stigma"},{"startTime":1201.1799999999998,"endTime":1202.4599999999998,"body":"discount, or the taint."},{"startTime":1202.62,"endTime":1206.3,"body":"The physical asset is unchanged, but its history has permanently"},{"startTime":1206.3,"endTime":1207.5,"body":"impaired its market value."},{"startTime":1207.58,"endTime":1209.82,"body":"And standard property insurance doesn't cover that."},{"startTime":1209.82,"endTime":1210.54,"body":"Not at all."},{"startTime":1210.54,"endTime":1213.98,"body":"Insurance covers physical loss, a fire, a flood."},{"startTime":1214.06,"endTime":1216.26,"body":"It does not cover a loss in market value due"},{"startTime":1216.26,"endTime":1217.58,"body":"to the Property's reputation."},{"startTime":1218.2099999999998,"endTime":1221.53,"body":"That $26 million loss was absorbed entirely by the estate"},{"startTime":1221.53,"endTime":1223.73,"body":"and by extension, the victim's fund."},{"startTime":1223.8899999999999,"endTime":1226.6899999999998,"body":"We see the exact same principle at play with the"},{"startTime":1226.6899999999998,"endTime":1234.29,"body":"aviation assets, specifically the Gulfstream for tail number N212JE, the"},{"startTime":1234.29,"endTime":1235.9699999999998,"body":"so called Lolita Express."},{"startTime":1236.61,"endTime":1238.85,"body":"We have reports from Vanity Fair and the Washington Post"},{"startTime":1238.85,"endTime":1239.25,"body":"on this."},{"startTime":1239.33,"endTime":1242.49,"body":"A businessman named Thomas Huff bought the shell company that"},{"startTime":1242.49,"endTime":1245.3999999999999,"body":"owned the plane, J G E LLC."},{"startTime":1245.56,"endTime":1248.6399999999999,"body":"He paid $3.5 million for it, and the timing was"},{"startTime":1248.6399999999999,"endTime":1249.7199999999998,"body":"terrible for him."},{"startTime":1249.9599999999998,"endTime":1252.84,"body":"He bought it in June 2019, just a few weeks"},{"startTime":1252.84,"endTime":1254.4399999999998,"body":"before Epstein's final arrest."},{"startTime":1254.76,"endTime":1256.56,"body":"He thought he was getting a deal on a used"},{"startTime":1256.56,"endTime":1257.0,"body":"jet."},{"startTime":1257.0,"endTime":1258.1999999999998,"body":"And he was on paper."},{"startTime":1258.6,"endTime":1263.6,"body":"But his lawsuit, which references the RGE LLC invoice, claims"},{"startTime":1263.6,"endTime":1266.0,"body":"the plane's value dropped by one and a half million"},{"startTime":1266.0,"endTime":1268.9699999999998,"body":"dollars almost overnight the moment Epstein was arrested."},{"startTime":1269.1999999999998,"endTime":1271.1999999999998,"body":"But it was worse than just a loss on paper."},{"startTime":1271.1999999999998,"endTime":1273.52,"body":"The asset became operationally toxic."},{"startTime":1273.6,"endTime":1276.76,"body":"Huff alleged in his lawsuit that his legitimate charter customers"},{"startTime":1276.76,"endTime":1279.6,"body":"were being tracked, surveilled and reported to the press."},{"startTime":1279.84,"endTime":1282.6399999999999,"body":"Because the tail number was so infamous, anyone could track"},{"startTime":1282.6399999999999,"endTime":1283.12,"body":"it online."},{"startTime":1283.1999999999998,"endTime":1283.6,"body":"Right."},{"startTime":1283.6799999999998,"endTime":1286.08,"body":"So a CEO charters the plane for a private meeting."},{"startTime":1286.08,"endTime":1288.76,"body":"They land, and suddenly their name is all over Social"},{"startTime":1288.76,"endTime":1290.6799999999998,"body":"media for flying on Epstein's plane."},{"startTime":1290.6799999999998,"endTime":1292.32,"body":"It made the aircraft commercially useless."},{"startTime":1292.48,"endTime":1296.08,"body":"And again, the plane's hull insurance covers a physical crash,"},{"startTime":1296.9599999999998,"endTime":1298.8799999999999,"body":"but not the destruction of its reputation."},{"startTime":1299.04,"endTime":1301.6,"body":"The reputational taint is uninsurable."},{"startTime":1301.9199999999998,"endTime":1304.3999999999999,"body":"Huff was left holding a radioactive asset."},{"startTime":1304.56,"endTime":1306.9599999999998,"body":"There's one final entity we have to examine."},{"startTime":1307.12,"endTime":1311.12,"body":"It's an outlier, but it's crucial for understanding the sophistication"},{"startTime":1311.12,"endTime":1312.24,"body":"of the financial network."},{"startTime":1312.56,"endTime":1313.76,"body":"Southern Country International."},{"startTime":1314.1599999999999,"endTime":1316.1599999999999,"body":"This is from the New York Times and the St."},{"startTime":1316.1599999999999,"endTime":1317.4399999999998,"body":"Kitts Nevis Observer."},{"startTime":1317.76,"endTime":1319.4399999999998,"body":"This wasn't just another shell company."},{"startTime":1319.6,"endTime":1320.0,"body":"No."},{"startTime":1320.32,"endTime":1323.04,"body":"In 2014, Epstein got a license in the U.S."},{"startTime":1323.04,"endTime":1327.1599999999999,"body":"virgin Islands to operate his own bank, an International Banking"},{"startTime":1327.1599999999999,"endTime":1328.6799999999998,"body":"entity, or ibe."},{"startTime":1328.84,"endTime":1331.6399999999999,"body":"She didn't just have a bank account, he owned the"},{"startTime":1331.6399999999999,"endTime":1334.52,"body":"bank itself, which is the ultimate way to control your"},{"startTime":1334.52,"endTime":1335.04,"body":"finances."},{"startTime":1335.04,"endTime":1336.76,"body":"If you are the bank, you don't have to worry"},{"startTime":1336.76,"endTime":1339.8799999999999,"body":"about external compliance officers flagging your transactions."},{"startTime":1340.12,"endTime":1341.8,"body":"You approve your own wires."},{"startTime":1341.8799999999999,"endTime":1344.36,"body":"But the regulatory file on this bank was thin."},{"startTime":1344.4399999999998,"endTime":1345.6399999999999,"body":"It was a ghost bank."},{"startTime":1345.8,"endTime":1347.48,"body":"The USVI regulators noted."},{"startTime":1347.48,"endTime":1350.28,"body":"It never seemed to commence normal operations while Epstein was"},{"startTime":1350.28,"endTime":1350.6,"body":"alive."},{"startTime":1350.6,"endTime":1352.6,"body":"It had no real customers, no staff."},{"startTime":1352.6,"endTime":1355.33,"body":"It was just a license until after he died."},{"startTime":1355.4099999999999,"endTime":1357.25,"body":"And this is where the trail gets strange."},{"startTime":1357.49,"endTime":1360.6499999999999,"body":"Estate filings cited by the New York Times show that"},{"startTime":1360.6499999999999,"endTime":1364.85,"body":"after his death in August 2019, the estate moved $15.5"},{"startTime":1364.9299999999998,"endTime":1367.33,"body":"million into southern country International."},{"startTime":1367.9699999999998,"endTime":1369.09,"body":"Why would they do that?"},{"startTime":1369.33,"endTime":1371.37,"body":"The assets are supposed to be under the control of"},{"startTime":1371.37,"endTime":1372.77,"body":"the court and the executors."},{"startTime":1373.01,"endTime":1374.05,"body":"It's a major question."},{"startTime":1374.53,"endTime":1378.8899999999999,"body":"And then they moved 2.6 million back out, leaving about"},{"startTime":1378.8899999999999,"endTime":1382.07,"body":"a $13 million gap inside this shell bank."},{"startTime":1382.62,"endTime":1386.74,"body":"The USVI Attorney General specifically questioned this, noting they could"},{"startTime":1386.74,"endTime":1389.74,"body":"find no documentation for this loan or transfer."},{"startTime":1390.06,"endTime":1393.98,"body":"The USVI government's lawsuit against JP Morgan alleges this was"},{"startTime":1393.98,"endTime":1395.26,"body":"part of a dark money network."},{"startTime":1395.4199999999998,"endTime":1398.339,"body":"The postmortem activity suggests the bank was being used as"},{"startTime":1398.339,"endTime":1402.02,"body":"a temporary holding vehicle, possibly to move liquid assets outside"},{"startTime":1402.02,"endTime":1404.82,"body":"the immediate reach of the authorities who were freezing accounts"},{"startTime":1404.82,"endTime":1405.3,"body":"at J.P."},{"startTime":1405.3,"endTime":1406.4599999999998,"body":"morgan and Deutsche Bank."},{"startTime":1406.62,"endTime":1408.26,"body":"It was one final shell game."},{"startTime":1408.73,"endTime":1410.01,"body":"So let's synthesize all of this."},{"startTime":1410.01,"endTime":1411.29,"body":"We have the landscape now."},{"startTime":1411.37,"endTime":1414.4099999999999,"body":"JP Morgan pays 290 and sues its insurers."},{"startTime":1414.57,"endTime":1417.6499999999999,"body":"Deutsche bank pays a total of 225 in fines and"},{"startTime":1417.6499999999999,"endTime":1418.25,"body":"settlements."},{"startTime":1418.33,"endTime":1420.1699999999998,"body":"The estate pays out 125."},{"startTime":1420.49,"endTime":1424.2089999999998,"body":"And the insurance industry, through this JP Morgan lawsuit, is"},{"startTime":1424.2089999999998,"endTime":1427.6899999999998,"body":"attempting to draw a very bright, very firm line."},{"startTime":1428.01,"endTime":1431.29,"body":"They are trying to establish a legal precedent that facilitating"},{"startTime":1431.29,"endTime":1435.61,"body":"criminal activity is a business decision, not an insurable accident."},{"startTime":1436.02,"endTime":1438.86,"body":"If they win, it means the shareholders are the ultimate"},{"startTime":1438.86,"endTime":1441.4599999999998,"body":"backstop for institutional compliance failures."},{"startTime":1441.54,"endTime":1445.1,"body":"It creates a powerful financial incentive for boards and executives"},{"startTime":1445.1,"endTime":1446.6599999999999,"body":"to take compliance seriously."},{"startTime":1446.74,"endTime":1448.74,"body":"The documents show the flags were there."},{"startTime":1448.82,"endTime":1450.82,"body":"The high risk labels were on the files."},{"startTime":1450.8999999999999,"endTime":1453.78,"body":"The suspicious activity reports were probably generated."},{"startTime":1453.78,"endTime":1455.86,"body":"But the business side made a different calculation."},{"startTime":1456.02,"endTime":1457.78,"body":"The business side accepted the risk."},{"startTime":1458.1,"endTime":1461.34,"body":"And now, years later, in a New York courtroom, the"},{"startTime":1461.34,"endTime":1463.54,"body":"bill for that risk is finally coming due."},{"startTime":1464.0,"endTime":1467.0,"body":"The final accounting shows that the institutions that provided the"},{"startTime":1467.0,"endTime":1470.6,"body":"financial plumbing for this operation faced a higher dollar penalty"},{"startTime":1470.6,"endTime":1472.48,"body":"than the estate of the man at its center."},{"startTime":1472.56,"endTime":1473.76,"body":"A remarkable outcome."},{"startTime":1473.84,"endTime":1476.6799999999998,"body":"The JP Morgan vs Chubb and Liberty Mutual case is"},{"startTime":1476.6799999999998,"endTime":1477.36,"body":"still active."},{"startTime":1477.6,"endTime":1479.36,"body":"The Deutsche bank file is closed."},{"startTime":1479.36,"endTime":1480.8799999999999,"body":"The victim's fund is closed."},{"startTime":1480.9599999999998,"endTime":1483.1999999999998,"body":"The trail of money has largely run cold."},{"startTime":1483.52,"endTime":1486.36,"body":"But the legal precedent being set in this insurance fight"},{"startTime":1486.36,"endTime":1488.32,"body":"will echo for a long, long time."},{"startTime":1488.32,"endTime":1488.9599999999998,"body":"Next time."},{"startTime":1489.85,"endTime":1490.8899999999999,"body":"The legal reckoning."},{"startTime":1495.77,"endTime":1498.9699999999998,"body":"You have just heard an analysis of the official record."},{"startTime":1499.85,"endTime":1503.6899999999998,"body":"Every claim, name and date mentioned in this episode is"},{"startTime":1503.6899999999998,"endTime":1505.85,"body":"backed by primary source documents."},{"startTime":1506.33,"endTime":1510.4099999999999,"body":"You can view the original files for yourself at Epsteinfiles"},{"startTime":1510.73,"endTime":1511.37,"body":"FM."},{"startTime":1512.1699999999998,"endTime":1514.85,"body":"If you value this data first approach to journalists."},{"startTime":1515.7199999999998,"endTime":1518.6799999999998,"body":"Please leave a 5 star review wherever you're listening right"},{"startTime":1518.6799999999998,"endTime":1519.0,"body":"now."},{"startTime":1519.32,"endTime":1521.56,"body":"It helps keep this investigation visible."},{"startTime":1521.9599999999998,"endTime":1523.48,"body":"We'll see you in the next file."}]}