JPMorgan Chase is suing Jes Staley, a former prime government, in an try and make him answerable for any penalties the US financial institution might need to pay whether it is discovered to have facilitated Jeffrey Epstein’s sex-trafficking crimes in two high-profile lawsuits.
Staley, who’s alleged within the lawsuits to have “personally noticed” Epstein abusing girls, and to have “hung out” with younger ladies on the disgraced financier’s houses, didn’t disclose this to JPMorgan, the financial institution claimed in a court docket submitting made in a Manhattan federal court docket on Wednesday.
He didn’t make the disclosures “regardless of having a fiduciary responsibility” to inform JPMorgan and regardless of the financial institution “asking him to supply his views as as to whether [it] ought to retain Epstein as a consumer”, the lender alleged.
Within the grievance, attorneys for JPMorgan declare the lender was deceived by Staley, who allegedly protected Epstein’s relationship with the financial institution and in doing so violated its code of conduct.
“Staley repeatedly deserted the pursuits of [the bank] in pursuit of his personal private pursuits and advantages and people of Epstein,” the grievance stated.
Kathleen Harris, a lawyer for Staley, declined to touch upon JPMorgan’s go well with.
JPMorgan’s lawsuit marks the most recent escalation in an more and more contentious authorized battle over the Wall Road financial institution’s connections to Epstein, who died by suicide in 2019 whereas awaiting trial on federal costs that he sex-trafficked underage ladies.
The JPMorgan grievance insists the underlying allegations are “misplaced and with out advantage” however argues that if the lender is discovered liable then it’s Staley who ought to be on the hook for any damages. Additionally it is asking the court docket to order Staley to return his compensation from what the financial institution described because the “time interval of his disloyalty”, from no less than 2006 till 2013.
JPMorgan paid Staley greater than $80mn from 2006 to 2011, in line with regulatory filings.
“The plaintiffs have made troubling allegations in regards to the conduct of our former worker Jes Staley, and if true he ought to be held accountable for his actions,” JPMorgan stated in a press release. “On the time, we couldn’t have imagined any of our workers would interact in the kind of conduct alleged.”
The detailed allegations about Staley have been first made in two separate civil circumstances towards JPMorgan, one introduced by an alleged Epstein sufferer and the opposite by the US Virgin Islands, the place the late financier had a house. Staley just isn’t a defendant in both lawsuit.
The alleged Epstein sufferer, often known as Jane Doe, says in her lawsuit {that a} buddy of Epstein sexually assaulted her utilizing drive. JPMorgan stated on Wednesday that it believed the buddy was Staley.
Staley, a 66-year-old American, received to know Epstein whereas managing his cash at JPMorgan, the place he labored for greater than 30 years till 2013 — the identical 12 months that the financial institution terminated its relationship with Epstein.
Staley grew to become chief government of Barclays in 2015 however resigned six years later following a regulatory investigation within the UK into the way in which he characterised his relationship with Epstein.
Final month, the contents of a few of the 1,200 emails exchanged by Staley and Epstein have been made public as a part of the lawsuits, during which the 2 males made indirect references to Disney princesses and Staley talked in regards to the “hazard” in speaking his emotions to Epstein.
The partially redacted grievance additionally claimed Epstein had twice despatched Staley photos of younger girls, though the pictures weren’t made public.
Brad Edwards, a lawyer for Jane Doe, stated the grievance towards Staley was JPMorgan “trying to deflect” blame.
“Each prime government knew precisely who Jeffrey Epstein was and selected to maintain him as a result of he was making them cash and cash was extra vital than the ladies being abused,” he stated.
Legal professionals for Doe and the Virgin Islands have sought to acquire communications from longstanding JPMorgan chief government Jamie Dimon, in addition to drive him to offer sworn testimony. The financial institution has stated Dimon “was not concerned in any choices relating to Epstein’s account” and declined to touch upon Edwards’ assertion.
A federal choose on Thursday granted the Virgin Islands’ request handy over extra paperwork associated to Dimon.
