NEW YORK, June 9 (Reuters) – Jes Staley, the onetime asset administration chief at JPMorgan Chase (JPM.N), is about to be questioned beneath oath over the weekend about his ties to the late financier and intercourse offender Jeffrey Epstein, in keeping with an individual conversant in the matter.
The deposition, which isn’t public, is a part of evidence-gathering for 2 civil lawsuits towards the biggest U.S. financial institution.
One is by a proposed class of ladies who say they have been abused by Epstein, and the opposite is by the U.S. Virgin Islands, the place Epstein allegedly abused ladies on a personal island he owned.
Staley’s testimony might be key.
In a Could 1 denial of JPMorgan’s motions to dismiss each lawsuits, U.S. District Choose Jed Rakoff in Manhattan stated the financial institution could also be liable if the plaintiffs present Staley had firsthand data Epstein was operating a intercourse trafficking enterprise.
A JPMorgan spokesperson declined to remark. The financial institution has denied legal responsibility and stated it will have dropped Epstein as a consumer sooner had it recognized of his crimes.
Each lawsuits say JPMorgan missed pink flags suggesting Epstein’s crimes, corresponding to giant money withdrawals and weird transfers.
The financier was a JPMorgan consumer from 1998 to 2013, the final 5 years after pleading responsible to a prostitution cost in Florida.
It has in flip sued Staley, arguing he hid what he knew about Epstein’s trafficking and will cowl any damages the financial institution could face within the instances.
Deutsche Financial institution (DBKGn.DE) agreed in Could to pay $75 million to settle an identical lawsuit accusing it of facilitating Epstein’s intercourse trafficking whereas he was a consumer from 2013 to 2018.
Legal professionals for Staley didn’t reply to requests for remark.
Staley left JPMorgan in 2013, a number of months after the financial institution fired Epstein, and served as Barclays’ (BARC.L) chief government from 2015 to 2021.
Chief Government Jamie Dimon testified that Staley left JPMorgan partly as a result of he was not doing a very good job operating its funding financial institution, his position on the time.
Staley is about to be questioned by attorneys for the ladies, the Virgin Islands, and JPMorgan, in keeping with the particular person conversant in the matter, who was not licensed to talk publicly.
Zachary Margulis-Ohnuma, a lawyer who has represented intercourse trafficking victims and defendants, stated he anticipated the plaintiffs to “grill” Staley on his data of Epstein’s intercourse trafficking and whether or not it affected the dealing with of Epstein’s accounts.
“If they will present that he gave particular consideration to Jeff Epstein to assist him cowl up funds to underage women to have intercourse with them, that is critical enterprise — but additionally very onerous to point out,” stated Margulis-Ohnuma, who shouldn’t be concerned within the case.
In a courtroom submitting responding to New York-based JPMorgan’s claims, Staley stated he didn’t know Epstein would coerce younger ladies and women into having intercourse, or that anybody beneath 18 can be pressured into intercourse.
Staley additionally stated JPMorgan had “unclean palms” given its personal errors in coping with Epstein.
Epstein killed himself at age 66 in a Manhattan jail cell in August 2019 whereas awaiting trial on intercourse trafficking fees.
A trial overlaying all the lawsuits is scheduled for Oct. 23.
Reporting by Luc Cohen in New York; Extra reporting by Nupur Anand in New York; Modifying by Noeleen Walder and Daniel Wallis
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