Jeffery Epstein's former estate on Little Saint James Island in the US Virgin Islands, Photo / Gianfranco Gaglione, AP, File

A US investor has bought two Caribbean islands that were once owned by the late Jeffrey Epstein and where authorities allege many of the disgraced financier’s crimes took place.

Stephen Deckoff, with SD Investments LLC, bought Great St James and Little St James islands in the US Virgin Islands for US$60 million and plans to build an exclusive resort, a spokesman told The Associated Press on Thursday. The islands were on sale for a total of US$110 million.

The investment firm said in a statement that a significant portion of the sale proceeds will go toward the US Virgin Islands government as part of a previous deal with Epstein’s estate.

Forbes first reported the purchase of the islands on Wednesday.

The 25-room resort is slated to open in 2025 and is expected to boost tourism and create jobs, the firm said.

The islands were originally for sale at US$55 million each.

Little St James, which locals had nicknamed “Paedophile Island”, has three beaches, a helipad, a gas station and more than 28ha. Meanwhile, Great St James has more than 65ha, with three beaches.

Epstein died by suicide while awaiting trial in 2019.

He had been accused of federal sex trafficking charges and pleaded not guilty to charges of sexually abusing dozens of girls, some as young as 14.

Authorities said some of the girls had been taken to his home in the Caribbean.