NEW YORK, June 9 (Reuters) – Jes Staley, the onetime asset administration chief at JPMorgan Chase (JPM.N), is ready to be questioned beneath oath over the weekend about his ties to the late financier and intercourse offender Jeffrey Epstein, based on an individual aware of the matter.
The deposition, which isn’t public, is a part of evidence-gathering for 2 civil lawsuits in opposition to the biggest U.S. financial institution.
One is by a proposed class of ladies who say they had been abused by Epstein, and the opposite is by the U.S. Virgin Islands, the place Epstein allegedly abused ladies on a non-public island he owned.
Staley’s testimony might be key.
In a Might 1 denial of JPMorgan’s motions to dismiss each lawsuits, U.S. District Choose Jed Rakoff in Manhattan mentioned 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 mentioned it could have dropped Epstein as a consumer sooner had it identified of his crimes.
Each lawsuits say JPMorgan missed crimson flags suggesting Epstein’s crimes, akin to giant money withdrawals and strange 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 might face within the instances.
Deutsche Financial institution (DBKGn.DE) agreed in Might 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 Govt 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 ready to be questioned by legal professionals for the ladies, the Virgin Islands, and JPMorgan, based on the individual aware of the matter, who was not licensed to talk publicly.
Zachary Margulis-Ohnuma, a lawyer who has represented intercourse trafficking victims and defendants, mentioned 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 ladies to have intercourse with them, that is severe enterprise — but in addition very laborious to indicate,” mentioned Margulis-Ohnuma, who just isn’t concerned within the case.
In a court docket submitting responding to New York-based JPMorgan’s claims, Staley mentioned he didn’t know Epstein would coerce younger ladies and ladies into having intercourse, or that anybody beneath 18 can be pressured into intercourse.
Staley additionally mentioned JPMorgan had “unclean arms” 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 expenses.
A trial masking 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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