Former JPMorgan executive Staley rejects bank’s Jeffrey Epstein accusations

The former executive of JPMorgan Chase & Co (NYSE: JPM), who was involved in the bank’s dealings with Jeffrey Epstein, has formally denied any participation in the disgraced financier’s sex trafficking activities and blamed JPMorgan for keeping him as a client.

In Wednesday night filings in Manhattan federal court, Jes Staley said his dealings with Epstein were not the “proximate cause” of any damages JPMorgan might incur in two lawsuits it faces over its work with Epstein, a client from 1998 to 2013.

Staley, who has consistently denied any wrongdoing and has expressed remorse for his association with Epstein, stated that he had no knowledge of Epstein’s involvement in coercing young women and girls into sexual activities, nor was he aware of any pressure on individuals under the age of 18 to engage in sexual acts.

Staley also said that JPMorgan had its own shortcomings in handling the Epstein situation and possessed “unclean hands.” He claimed that the largest U.S. bank waived certain claims against him by retaining him as an employee, even after becoming aware of the alleged misconduct associated with Epstein.

JPMorgan declined to comment on the filings.

In August 2019, at the age of 66, Jeffrey Epstein passed away in a Manhattan jail while awaiting trial on charges of sex trafficking. The New York City’s medical examiner ruled the cause of death as suicide.

Staley’s denials were expected and contained in “answers” to New York-based JPMorgan’s effort to blame him for entangling it with Epstein.

At the age of 66, Staley has had notable leadership roles. He was the head of JPMorgan’s asset management business from 2001 to 2009 and later led its investment bank from 2009 to 2013. Additionally, Staley held the position of chief executive at Barclays (LON: BARC) Plc from 2015 to 2021.

JPMorgan faces a proposed class action by women who accused Epstein of sexual abuse, led by a former ballet dancer, Jane Doe 1, and a lawsuit by the U.S. Virgin Islands, where Epstein allegedly abused women on a private island he owned.

The bank also wants Staley to forfeit his pay from 2006 to 2013, estimated in the tens of millions of dollars.

Jane Doe 1 has claimed sexual assault against one of Epstein’s associates, and JPMorgan later identified Jes Staley as the individual in question. Staley has vehemently denied the accusation, describing it as “baseless.”

On May 24, U.S. District Judge Jed Rakoff in Manhattan rejected Staley’s bid to dismiss JPMorgan’s complaints. The judge has yet to explain his reasoning.

Staley is expected to testify under oath in a June 10 deposition.

In a May 26 deposition, JPMorgan Chief Executive Jamie Dimon said he had barely heard of Epstein before the financier’s July 2019 arrest. Dimon also repeatedly denied having spoken with Staley about Epstein.

A trial covering all of the lawsuits is scheduled for Oct. 23.

Several cases are underway in the U.S. District Court, Southern District of New York. These include Jane Doe 1 v JPMorgan Chase & Co (case number 22-10019), Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA (case number 22-10904), and JPMorgan Chase Bank NA v Staley, which involves cases 22-10019 and 22-10904.