JPMorgan sues Jes Staley for damages tied to Epstein lawsuits

JPMorgan Chase is suing Jes Staley, a former high govt, in an try and make him chargeable for any penalties the US financial institution may need to pay whether it is discovered to have facilitated Jeffrey Epstein’s intercourse trafficking crimes in two high-profile lawsuits.

Staley, who’s alleged within the lawsuits to have “personally noticed” Epstein abusing girls, and to have “frolicked” with younger women on the disgraced financier’s houses, didn’t disclose this to JPMorgan, the financial institution claimed in a courtroom submitting made in Manhattan federal courtroom on Wednesday.

He didn’t make the disclosures “regardless of having a fiduciary obligation” 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 criticism, 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 criticism mentioned.

Kathleen Harris, a lawyer for Staley, declined to touch upon JPMorgan’s swimsuit.

The lawsuit from JPMorgan 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 prices that he sex-trafficked underage women.

The JPMorgan criticism insists the underlying allegations are “misplaced and with out advantage” however argues that if the lender is discovered liable then it’s Staley who needs to be on the hook for any damages. Additionally it is asking the courtroom to order Staley to return his compensation from what the financial institution described because the “time interval of his disloyalty”, from a minimum of 2006 till 2013.

JPMorgan paid Staley greater than $80mn from 2006 to 2011, in response to regulatory filings.

“The plaintiffs have made troubling allegations in regards to the conduct of our former worker Jes Staley, and if true he needs to be held answerable for his actions,” JPMorgan mentioned in an announcement. “On the time, we couldn’t have imagined any of our workers would have interaction in the kind of conduct alleged.”

The detailed allegations about Staley had 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 is just not a defendant in both lawsuit.

The alleged Epstein sufferer, often known as Jane Doe, says in her lawsuit {that a} pal of Epstein sexually assaulted her utilizing pressure. JPMorgan mentioned on Wednesday that it believed the pal was Staley.

Staley, a 66-year-old American, obtained 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 turned chief govt of Barclays in 2015 however resigned six years later following a regulatory investigation within the UK into the best way he characterised his relationship with Epstein.

Final month, the contents of a number of the 1,200 emails exchanged by Staley and Epstein had 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 criticism additionally claimed Epstein had twice despatched Staley photographs of younger girls, though the images weren’t made public.

Brad Edwards, a lawyer for Jane Doe, mentioned the criticism towards Staley was JPMorgan “making an attempt to deflect” blame.

“Each high govt 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 mentioned.

Attorneys for Doe and the Virgin Islands have sought to acquire communications from longstanding JPMorgan chief govt Jamie Dimon, in addition to pressure him to supply sworn testimony. The financial institution has mentioned Dimon “was not concerned in any selections concerning Epstein’s account” and declined to touch upon Edwards’ assertion.

A federal choose on Thursday granted the Virgin Islands’ request at hand over extra paperwork associated to Dimon.

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