JPMorgan Chase is suing Jes Staley, a former top executive at the firm, in an attempt to make him liable for any penalties the US bank might have to pay if it is found to have facilitated Jeffrey Epstein’s sex trafficking crimes in two high-profile lawsuits.
Mr Staley, who is alleged in the lawsuits to have “personally observed” Epstein abusing women, and to have “spent time” with young girls at the disgraced financier’s homes, did not disclose this to JPMorgan, the bank claimed in a court filing made in Manhattan federal court on Wednesday.
He did not make the disclosures “despite having a fiduciary duty” to tell JPMorgan and despite the bank “asking him to offer his views as to whether [it] should retain Epstein as a client”, the lender alleged.
In the complaint, lawyers for JPMorgan claim the lender was deceived by Mr Staley, who allegedly protected Epstein’s relationship with the bank and in doing so violated its code of conduct.
“Staley repeatedly abandoned the interests of [the bank] in pursuit of his own personal interests and benefits and those of Epstein,” the complaint said.
[ JPMorgan sues Jes Staley for damages tied to Epstein lawsuitsOpens in new window ]
Kathleen Harris, a lawyer for Mr Staley, declined to comment on JPMorgan’s suit.
The lawsuit from JPMorgan marks the latest escalation in an increasingly contentious legal battle over the Wall Street bank’s connections to Epstein, who died by suicide in 2019 while awaiting trial on federal charges that he sex-trafficked underage girls.
The JPMorgan complaint insists the underlying allegations are “misplaced and without merit” but argues that if the lender is found liable then it is Staley who should be on the hook for any damages. It is also asking the court to order Mr Staley to return his compensation from what the bank described as the “time period of his disloyalty” – from at least 2006 until 2013.
“The plaintiffs have made troubling allegations concerning the conduct of our former employee Jes Staley and, if true, he should be held responsible for his actions,” JPMorgan said in a statement. “At the time, we could not have imagined any of our employees would engage in the type of conduct alleged.”
[ Jeffrey Epstein’s long shadow falls on JPMorgan and Barclays once moreOpens in new window ]
The detailed allegations about Mr Staley were first made in two separate civil cases against JPMorgan, one brought by an alleged Epstein victim and the other by the US Virgin Islands, where the late financier had a home. Mr Staley is not a defendant in either lawsuit.
Mr Staley, a 66-year-old American, got to know Epstein while managing his money at JPMorgan, where he worked for more than 30 years until 2013 – the same year that the bank terminated its relationship with Epstein.
Mr Staley became chief executive of Barclays in 2015 but resigned six years later following a regulatory investigation in the UK into the way he characterised his relationship with Epstein.
Last month the contents of some of the 1,200 emails exchanged by Mr Staley and Epstein were made public as part of the lawsuits, in which the two men made oblique references to Disney princesses and Mr Staley talked about the “danger” in communicating his feelings to Epstein.
The partially redacted complaint also claimed Epstein had twice sent Mr Staley images of young women, although the photos were not made public. – Copyright The Financial Times Limited 2023
