Former JPMorgan Chase & Co. executive Jes Staley faces a two-day deposition about his relationship with Jeffrey Epstein and what he knew about the late financier’s prolific sex-trafficking operation.
(Bloomberg) — Former JPMorgan Chase & Co. executive Jes Staley faces a two-day deposition about his relationship with Jeffrey Epstein and what he knew about the late financier’s prolific sex-trafficking operation.
Staley has emerged as a central figure in two lawsuits, filed by Jane Doe, a victim of Epstein, and the US Virgin Islands. JPMorgan is accused in both suits of facilitating Epstein’s sex-trafficking venture. Lawyers for the bank told a federal judge Thursday that Staley was scheduled to be deposed over two days beginning March 23.
Parts of USVI’s and Doe’s lawsuits claim that Staley’s alleged knowledge of, and participation in, Epstein’s trafficking ring meant JPMorgan must have or should have known about the crimes too. At Thursday’s hearing, lawyers for JPMorgan asked US District Judge Jed Rakoff to dismiss USVI’s claims, arguing the territory had not met the legal threshold to sue under the trafficking statute.
Rakoff said he won’t rule on the motions to dismiss the suits until the end of the month. The judge set the trial date for USVI’s and Jane Doe’s cases against JPMorgan for Oct. 23.
Mimi Liu, USVI’s lawyer, brought JPMorgan chief executive Jamie Dimon into the mix, alleging he knew his “billionaire client was a child sex trafficker” in 2008 but the bank kept him as a customer anyway. Epstein was charged with soliciting a minor for prostitution in 2008 and the case attracted wide press coverage.
“JPMorgan knew, Staley Knew, Jamie Dimon knew,” Liu said. If Staley, who JPM says acted outside the scope of his employment, was a rogue employee, “why isn’t Jamie Dimon?” she asked.
Felicia Ellsworth, a lawyer for JPMorgan, said the suggestions that Dimon was aware weren’t supported by evidence. Lawyers for the bank have fought efforts to have Dimon deposed, arguing he had no involvement in decisions about Epstein’s accounts.
In a court filing last month, the bank said “Dimon is not relevant to this action,” adding, “he was not involved in any decisions regarding Epstein’s account.”
USVI has accused the bank of feeding off Epstein’s wealth and connections when he was a client from 1998 to 2013. It sued JPMorgan after a similar proposed class action was filed by Jane Doe late last year.
Staley, who was the head of JPMorgan’s private bank, is at the heart of both suits. He and Epstein exchanged more than 1200 emails, with photos of young women and references to visits to Epstein’s luxury properties, including after he was charged in 2008.
JPMorgan sued Staley on March 8, arguing the former executive, who was the CEO of Barclays Plc from 2015 to 2021, should be held liable for any damages awarded against the bank. It’s also attempting to claw back compensation, probably more than $80 million, paid to Staley during what it called his period of disloyalty and for misleadingly vouching for Epstein.
In its complaint against Staley, the bank identified him as the “powerful financial executive” who sexually assaulted Jane Doe and claimed Epstein had given him permission to do whatever he wanted with her.
John Butts, also representing JPMorgan, said Jane Doe had disclosed that detail to the bank through her lawyers.
Read more: JPMorgan’s Staley Suit Seen as Prelude to Epstein Settlement
A lawyer for Staley has previously said her client denied any involvement in sex trafficking.
Staley’s trial is also scheduled to start Oct. 23.
Staley’s US-based attorney Brendan Sullivan Jr. had suggested a later trial date to allow time to prepare a defense. JPMorgan’s lawyers opposed a suggestion that Staley’s case be separated from the others, arguing “all roads go through Jes Staley.”
“He will be at the center of this case no matter whether there is one or two,” Butts said.
Jane Doe has also sued Deutsche Bank AG, which provided banking services to Epstein from 2013 to 2018. That case is scheduled to go to trial separately.
Epstein was charged by US prosecutors in July 2019 with sex-trafficking. He was found dead in his jail cell a month later while awaiting trial. His death was ruled a suicide. Ghislaine Maxwell, his former girlfriend, was sentenced to almost 20 years in prison after being convicted of sex-trafficking. She has appealed.
The cases are Jane Doe 1 v. JPMorgan Chase Bank, 22-cv-10019, and USVI v. JPMorgan Chase Bank, 22-cv-10904-UA, US District Court, Southern District of New York (Manhattan).
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