Jes Staley must face JPMorgan’s Epstein claim, judge rules

Jes Staley must face claims that he misled JPMorgan Chase about his relationship with Jeffrey Epstein after a New York choose denied the banker’s try to dismiss a lawsuit introduced by his former employer.

The 66-year-old, who spent greater than 30 years at JPMorgan earlier than being fired in 2013, was sued by the financial institution in March, in search of to make Staley chargeable for any damages awarded in two separate claims over JPMorgan’s resolution to retain Epstein as a consumer for 15 years.

The lawsuits towards JPMorgan have been filed in the direction of the tip of final 12 months, one by an unnamed Epstein accuser, and the opposite by the US Virgin Islands, the place the disgraced financier had a house.

They allege that JPMorgan benefited from human trafficking by persevering with to supply banking companies to Epstein regardless of a number of inside pink flags about his arrest and cost for soliciting a minor in Florida, and stories that he was utilizing money to repay intercourse abuse victims.

The Epstein accuser additionally alleged she was raped by Staley, and that Staley witnessed her being abused — claims that Staley has strongly denied.

JPMorgan mentioned that if such allegations have been true, Staley, who was for a interval Epstein’s personal banker, did not comply along with his fiduciary duties.

The lender additionally mentioned Staley, who vouched for Epstein throughout the financial institution, might have mischaracterised the character of his relationship with the disgraced financier, which allegedly concerned a number of visits to Epstein’s properties and emails wherein pictures of younger ladies have been exchanged.

In communications entered into proof as a part of the circumstances towards JPMorgan, Staley described himself as owing Epstein “a lot”, and acknowledged that he had few friendships as “profound”.

In addition to in search of to make Staley chargeable for any damages it faces, JPMorgan can be making an attempt to claw again a few of Staley’s pay.

Staley went on to guide Barclays financial institution in Britain earlier than resigning following an investigation into the way in which he characterised his relationship with Epstein. He has described JPMorgan’s allegations as “slanderous” and “baseless however severe”. His legal professionals didn’t instantly reply to a request for touch upon Wednesday’s resolution.

Staley’s authorized staff had tried to get JPMorgan’s declare dismissed, arguing that the financial institution’s case was “fully absent” of concrete claims. 

“They need to make the allegations . . . they need to say what’s true and what’s not,” Staley’s lawyer Stephen Wohlgemuth instructed the court docket final week.

“This alleged vouching . . . would have been made to JPMorgan staff,” Wohlgemuth mentioned, including that the financial institution might present a full account of what occurred. “What does the financial institution say? Was there vouching? What did Mr Staley really say . . . who did he say it to and why did they depend on it?” 

JPMorgan declined to touch upon the choice. Final week, the financial institution mentioned in an announcement: “Staley is accused of unspeakable acts which can be the muse of the claims towards the financial institution. If true, he’s accountable for any hurt accomplished not simply to the financial institution, however to those ladies.”

Decide Jed Rakoff, who’s overseeing the case, mentioned he would clarify his reasoning for denying Staley’s movement to dismiss at a later date. The circumstances are scheduled to go to trial in New York in October.

If JPMorgan succeeds in its efforts to implicate Staley, the manager may very well be chargeable for thousands and thousands of {dollars} in damages. Final week, Deutsche Financial institution, which retained Epstein as a consumer for 5 years, put aside $75mn to settle a separate declare by an unnamed sufferer, on behalf of dozens of girls.

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