JPMorgan Chase is suing Jes Staley to carry the previous government chargeable for any damages stemming from lawsuits accusing the financial institution of facilitating Jeffrey Epstein’s sex-trafficking.
The financial institution on Wednesday filed a third-party complaint towards Staley, as soon as its non-public banking chief, in Manhattan federal courtroom, arguing he must be held liable if allegations about his relationship with Epstein are proven to be true.
JPMorgan additionally introduced separate claims towards Staley for breaching his responsibility of loyalty to the financial institution. Due to his “faithless service,” the financial institution mentioned it was entitled to get well all compensation paid to Staley between 2006 and 2013 — a determine possible surpassing $80 million.
Staley’s responsibility to JPMorgan required him “to chorus from actions that he knew would harm JPMC, both financially or reputationally,” the financial institution mentioned, “and to report back to JPMC any information or information related to his duties that would have an effect on JPMC’s popularity or that was related to JPMC’s selections to retain a consumer whose enterprise with JPMC may harm that popularity.”
A lawyer for Staley declined to touch upon Wednesday night time. Staley, 66, who went on to develop into Barclays CEO however stepped down in 2021 following a U.Okay. regulatory probe into his Epstein ties, has beforehand denied involvement in Epstein’s sex-trafficking.
The shut ties between Staley and Epstein have been on the core of two fits claiming the financial institution knew or ought to have recognized about Epstein’s crimes and stored him on as a consumer anyway. However Staley himself was not named as a defendant in both a proposed class motion introduced by Epstein victims or a separate lawsuit introduced by the U.S. Virgin Islands.
JPMorgan pressured in its submitting that it was nonetheless denying the claims in each fits towards it. The financial institution has moved to dismiss each fits and is about to argue its motions on Monday earlier than U.S. District Choose Jed Rakoff in Manhattan.
Each the victims’ go well with, filed by a Jane Doe plaintiff, and the U.S. Virgin Islands allege JPMorgan facilitated Epstein’s crimes by permitting him to make use of his financial institution accounts to finance his intercourse trafficking operation, however the financial institution contends the fits do not adequately allege that it had information of its consumer’s criminal activity.
The Doe go well with alleged that Staley “personally noticed” Epstein’s sexual abuse on quite a few events. Unsavory emails between Staley and Epstein, together with photographs of ladies and references to Disney princesses, have been just lately cited within the US. Virgin Island’s go well with, revealing the depths of the banker’s relationship with the intercourse offender.
‘Staley is that this individual’
JPMorgan has argued that none of these allegations present that Staley and due to this fact the financial institution knew Epstein was engaged in sex-trafficking. However, strikingly, the financial institution on Wednesday appeared to counsel it believed Staley might have dedicated sexual assault.
The financial institution famous that the Doe plaintiff described “a strong monetary government” whom Epstein had given permission to do no matter he wished along with her. The manager “used aggressive power in his sexual assault of her,” Doe alleged.
“Upon info and perception, Staley is that this individual,” JPMorgan mentioned.
In its submitting, JPMorgan mentioned Staley did not report his conduct with Epstein and misleadingly vouched for Epstein’s good character. On the premise of the allegations, Staley misrepresented the true information of his private interactions with Epstein, the financial institution added.
“As a substitute, if the allegations of Doe and the USVI are true, Staley repeatedly deserted the pursuits of JPMC and served his personal and Epstein’s pursuits,” JPMorgan mentioned.
Staley labored on the financial institution in varied positions between 1979 and 2013, rising to the extent of CEO of JPMorgan’s company and funding banking division.
Doe alleged that Staley promised to “use his clout inside JPMorgan to make Epstein untouchable” and thwarted the financial institution’s efforts to sever ties with him.
On the premise of Doe’s and U.S. Virgin Island’s allegations, Staley’s disloyalty occurred “repeatedly, lasted for years and continued regardless of quite a few alternatives to right them,” the submitting acknowledged.
Staley was recognized to have exchanged upwards of 1,200 emails with Epstein through the years.
In a single e mail, filed within the U.S. Virgin Islands go well with, Staley appeared to jot down Epstein from the latter’s villa within the U.S. territory on November 2009. On the time, Epstein was underneath dwelling confinement in Palm Seaside, Florida, following his launch on prices of soliciting a minor for prostitution however allowed to journey to New York to satisfy together with his attorneys.
“Presently, I am within the scorching tub with a glass of white wine,” he wrote. “That is a tremendous place. Subsequent time, we’re right here collectively. I owe you a lot. And I deeply respect our friendship. I’ve few so profound.”
In accordance with a December 2009 e mail, Staley bought his desired reunion.
“I notice the hazard in sending this e mail,” Staley allegedly wrote. “But it surely was nice to give you the option, right now, to present you, in New York Metropolis, an extended, heartfelt, hug.”
JPMorgan has argued that the “inappropriate” emails and visits additionally did not fall throughout the scope of Staley’s job or present that he had information of crimes that may be imputed to JPMorgan, the financial institution submitted.
The financial institution reduce ties with Epstein in 2013.
