Little Saint James, the Caribbean island synonymous with Jeffrey Epstein’s scandals, has roots in a century-old geopolitical deal. In 1917, Denmark sold its West Indies colony, including the then-uninhabited cay, to the United States for £18.6 million ($25 million) amid World War I concerns over German influence.
This transfer of the Danish West Indies to American control laid the groundwork for its later private ownership and notoriety as Epstein’s Island. The 1917 sale included Saint Thomas, Saint John, Saint Croix, and smaller islands like Little Saint James. Valued at £18.6 million ($25 million) in gold, it secured US strategic interests near the Panama Canal.
The Strategic Sale of the Danish West Indies
Denmark had colonised these islands since the 1670s, relying on sugar plantations and enslaved labour until abolition in 1848. By the 19th century, the colony proved unprofitable, prompting early talks with the US in 1867 for a partial sale at £5.5 million ($7.5 million), which fell through due to ratification issues.
The push revived amid the American Civil War and later World War I, when neutral Denmark feared German seizure for submarine bases. US Secretary of State Robert Lansing negotiated the treaty, signed in August 1916 and effective 31 March 1917—Transfer Day. The US paid promptly, with a warrant for the sum, as carrying gold would have weighed nearly 48 tons.
This hardly surprised observers, given the era’s tensions; the Monroe Doctrine reinforced America’s aversion to European footholds in the hemisphere. The deal also implicitly recognised Denmark’s claims over Greenland, averting future disputes there.
From Territory to Private Haven: Epstein’s Island Era
Under US administration, the islands became the unincorporated territory of the US Virgin Islands, allowing private sales of smaller cays. In 1997, venture capitalist Arch Cummin listed Little Saint James for £7.81 million ($10.5 million); Jeffrey Epstein acquired it in 1998 via L.S.J. LLC for £5.9 million ($7.95 million). He renamed it ‘Little St Jeff‘ and renovated with architect Edward Tuttle, adding pools, cabanas, and a distinctive blue-striped temple structure.
In 2016, Epstein expanded by buying Great Saint James for £16.75 ($22.5 million), concealing the purchase through shell entities. The islands featured in his sex trafficking convictions, with court documents detailing how young women were transported there.
A former air traffic controller on nearby Saint Thomas noted, ‘On multiple occasions I saw Epstein exit his helicopter… with children—female children.’ Locals dubbed it ‘Pedophile Island,’ and Epstein registered as a sex offender in the territory from 2010. His activities persisted until his 2019 arrest and death.
Post-Epstein Ownership and Future Plans
Following Epstein’s suicide, his estate settled lawsuits, including with the US Virgin Islands over trafficking claims. The properties, valued at over £446 million ($600 million), were listed at £118 million ($159 million) in 2022 but sold in May 2023 to billionaire Stephen Deckoff for £44.6 million ($60 million).
Deckoff, who founded Black Diamond Capital Management, intends to develop a 25-room luxury resort by 2025. As highlighted in a verified X post by Moyra Grant, the 1917 Denmark sale indirectly paved the way for Epstein’s 1998 purchase.
Well: in 1917 during WW1, for military reasons, Denmark sold over 50 mostly uninhabited islands – then called the Danish West Indies – for $25 million in gold to the USA. Epstein bought Little Saint James from the US in 1998. https://t.co/MAOP3M3lQR
— Moyra Grant (@moyra_grant) January 20, 2026
As of 20 January 2026, no major construction updates have emerged, though the shift from scandal site to holiday destination underscores the islands’ evolving role. The original Denmark Virgin Islands sale, a pragmatic wartime move, continues to resonate in discussions of Epstein’s Island legacy.
Originally published on IBTimes UK
