Deutsche Bank fined $150M for its dealings with Jeffrey Epstein

Kimberly Dole
July 07, 2020 - 10:22 am

Rick Friedman/Rick Friedman Photography/Corbis via Getty Images

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NEW YORK (1010 WINS) -- Deutsche Bank was fined $150 million by New York financial regulators on Tuesday for "mistakes and sloppiness" in its dealings with disgraced financier and sex offender Jeffrey Epstein.

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"This agreement marks the first enforcement action by a regulator against a financial institution for dealings with Jeffrey Epstein," the New York Department of Financial Services said in a statement.

According to the DFS, the bank "failed to properly monitor account activity conducted on behalf of the registered sex offender despite ample information that was publicly available concerning the circumstances surrounding Mr. Epstein’s earlier criminal misconduct."

Authorities said Deutsche Bank's "significant compliance failures" allowed Epstein to conduct millions of dollars worth of transactions that included apparent payments to co-conspirators, victims, and lawyers that should have elicited additional investigations.

"Throughout the relationship, very few problematic transactions were ever questioned, and even when they were, they were usually cleared without satisfactory explanation," DFS said.

The bank's settlement with the state also covered its relationship with two foreign Danske Bank Estonia and FBME Bank and are the first enforcement actions by regulators against a bank for its relationship with Epstein.

Last week, officials arrested Ghislaine Maxwell, the former girlfriend and longtime close associate of Epstein, who killed himself in a Manhattan jail last August while he awaited trial on federal sex trafficking charges.

Maxwell has been indicted on multiple charges, including that she conspired to entice girls as young as 14 to engage in illegal sex acts with Epstein from 1994 through 1997.