Jes Staley says JPMorgan utilizing him as ‘protect’ for Epstein failures By Reuters

By Jonathan Stempel

NEW YORK (Reuters) -A former JPMorgan Chase & Co (NYSE:) government who befriended Jeffrey Epstein urged a U.S. decide to throw out the financial institution’s lawsuit towards him, accusing JPMorgan of deflecting blame for its personal failures in working with the late intercourse offender.

In a Monday evening submitting in Manhattan federal court docket, Jes Staley mentioned the biggest U.S. financial institution had no viable claims towards him over its relationship with Epstein, a consumer from 1998 to 2013, and couldn’t plausibly allege he was solely at fault.

Staley mentioned there have been no allegations he offered providers at JPMorgan that have been the “lifeblood” of Epstein’s sex-trafficking in younger ladies and ladies, or that he noticed suspicious exercise within the financier’s accounts.

“What is definite is that the financial institution can not deal with Mr Staley as its public relations protect by asserting claims that lack any authorized (or factual) foundation,” Staley mentioned.

JPMorgan didn’t instantly reply to requests for remark after enterprise hours.

The New York-based financial institution needs Staley, who spent six years as Barclays (LON:) Plc’s chief government after leaving JPMorgan, to forfeit eight years of compensation, and canopy its losses in two lawsuits stemming from its work with Epstein.

One lawsuit was filed by ladies who accused the financier of sexual abuse. The opposite was filed by the U.S. Virgin Islands, the place Epstein owned a non-public island. Each search cash damages.

JPMorgan has been accused of repeatedly transferring money to pay Epstein’s victims, ignoring many warnings from compliance and different staff to chop ties with him, and dealing with Epstein even after dropping him as a consumer.

The lawsuits towards JPMorgan, and the financial institution’s lawsuit towards Staley, are scheduled for an Oct. 23 trial earlier than U.S. District Choose Jed Rakoff in Manhattan.

STALEY DENIES SEXUAL ASSAULT

Staley led JPMorgan’s asset administration enterprise from 2001 to 2009, and its company and funding financial institution from 2009 to 2013.

In its third-party grievance, JPMorgan accused Staley of “intentional and outrageous conduct” for deceptive it about Epstein’s character and conduct.

In line with court docket papers, Staley swapped sexually suggestive messages about younger ladies with Epstein.

JPMorgan additionally accused Staley of sexually assaulting the named plaintiff, a former ballet dancer referred to as Jane Doe 1, within the lawsuit by Epstein accusers.

Staley referred to as that accusation “baseless.” He has additionally expressed remorse for his relationship with Epstein.

JPMorgan has denied figuring out about Epstein’s crimes.

In a separate submitting on Monday, JPMorgan denied the U.S. Virgin Islands’ major accusations, largely a formality after Rakoff final month rejected the financial institution’s dismissal movement.

Epstein pleaded responsible in 2008 to a Florida state prostitution cost and registered as a intercourse offender.

He died in a Manhattan jail cell in August 2019 in what New York Metropolis’s health worker referred to as a suicide, one month after being criminally charged with intercourse trafficking.

Staley resigned from Barclays in November 2021 amid a dispute with British monetary regulators over his ties to Epstein.

The circumstances within the U.S. District Court docket, 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.

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