Former JPMorgan government Staley rejects financial institution’s Jeffrey Epstein accusations By Reuters

By Jonathan Stempel

NEW YORK (Reuters) – The previous JPMorgan Chase & Co (NYSE:) government accused of shepherding the financial institution’s relationship with Jeffrey Epstein formally denied involvement within the disgraced financier’s intercourse trafficking, and blamed JPMorgan for preserving him as a consumer.

In Wednesday night time filings in Manhattan federal court docket, Jes Staley stated his dealings with Epstein weren’t the “proximate trigger” of any damages JPMorgan may incur in two lawsuits it faces over its work with Epstein, a consumer from 1998 to 2013.

Staley, who has denied wrongdoing and expressed remorse for befriending Epstein, stated he didn’t know Epstein would coerce younger girls and women into having intercourse, or that anybody underneath 18 can be pressured into intercourse.

He additionally stated JPMorgan had “unclean arms” for its personal faults in coping with Epstein, and that the biggest U.S. financial institution waived not less than some claims towards him by preserving him on the payroll “after studying of his alleged misconduct.”

JPMorgan declined to touch upon the filings.

Epstein died in a Manhattan jail in August 2019 at age 66 whereas awaiting trial on intercourse trafficking expenses. New York Metropolis’s health worker referred to as the demise a suicide.

Staley’s denials had been anticipated, and contained in “solutions” to New York-based JPMorgan’s effort guilty him for entangling it with Epstein.

Now 66, Staley led JPMorgan’s asset administration enterprise from 2001 to 2009 and its funding financial institution from 2009 to 2013. He was additionally Barclays (LON:) Plc’s chief government from 2015 to 2021.

JPMorgan faces a proposed class motion by girls who accused Epstein of sexual abuse, led by a former ballet dancer referred to as Jane Doe 1, and a lawsuit by the U.S. Virgin Islands, the place Epstein allegedly abused girls on a non-public island he owned.

The financial institution additionally desires Staley to forfeit his pay from 2006 to 2013, estimated within the tens of thousands and thousands of {dollars}.

Jane Doe 1 has additionally alleged that one among Epstein’s pals sexually assaulted her. JPMorgan later stated Staley was that buddy. Staley has referred to as that accusation “baseless.”

On Could 24, U.S. District Decide Jed Rakoff in Manhattan rejected Staley’s bid to dismiss JPMorgan’s complaints. The choose has but to elucidate his reasoning.

Staley is anticipated to testify underneath oath in a June 10 deposition.

In a Could 26 deposition, JPMorgan Chief Govt Jamie Dimon stated he had barely heard of Epstein earlier than the financier’s July 2019 arrest. Dimon additionally repeatedly denied having spoken with Staley about Epstein.

A trial protecting the entire lawsuits is scheduled for Oct. 23.

The circumstances within the U.S. District Courtroom, Southern District of New York are: Jane Doe 1 v JPMorgan Chase & Co, No. 22-10019; Authorities of the U.S. Virgin Islands v JPMorgan Chase Financial institution NA, No. 22-10904; and JPMorgan Chase Financial institution NA v Staley, in Nos. 22-10019 and 22-10904.