Federal prosecutors allege former asset manager ran an operation that allowed him to sexually exploit dozens of girls.

Financier Jeffrey Epstein was indicted in New York on federal sex-trafficking charges stemming from an alleged scheme to exploit underage girls, another chapter in a lurid legal drama that has surrounded the politically connected money manager for years. Federal prosecutors charged Mr. Epstein, 66 years old, with two counts related to sex trafficking of minors, which together carry a maximum sentence of 45 years in prison. He was arrested Saturday night at Teterboro Airport in New Jersey as he was returning from Paris on his private jet. Mr. Epstein, wearing a short-sleeved navy jail uniform, pleaded not guilty before a federal magistrate judge Monday.

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