Jess Staley must face JP Morgan’s Epstein claim, judge rules

Jess Staley will face claims that she misled JPMorgan Chase about her relationship with Jeffrey Epstein after a New York judge rejected the banker’s attempt to throw out a lawsuit brought by her former employer. Gave.

The 66-year-old, who spent more than 30 years at JPMorgan before being fired in 2013, was sued by the bank in March over allegations made in two separate claims over JPMorgan’s decision to retain Epstein. There was also a demand to make Staley liable for damages. Customer for 15 years.

Lawsuits against JPMorgan were filed late last year, one by an Epstein accuser, and another by the US Virgin Islands, where the disgraced financier was home.

They allege that JPMorgan continued to provide banking services to Epstein despite numerous internal red flags regarding his arrest and allegation for soliciting a minor in Florida and reports that he was willing to pay sexual abuse victims. was using cash.

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

JPMorgan said that if such allegations were true, Staley, who had been Epstein’s personal banker for a period, had failed to comply with his fiduciary duties.

The lender also said that Staley, who vouched for Epstein within the bank, may have misrepresented the nature of his relationship with the disgraced financier, which allegedly included multiple visits to Epstein’s properties and emails. In which photographs of young women were exchanged.

In communications recorded as part of the cases against JP Morgan, Staley described himself as “very close” to Epstein, and said that some of their friendship was “deep”.

In addition to trying to hold Staley liable for any damages caused, JPMorgan is also attempting to garnish some of Staley’s wages.

Staley led Barclays Bank in the UK before resigning following an investigation into his links with Epstein. He described JPMorgan’s allegations as “outrageous” and “baseless but serious”. His lawyers did not immediately respond to a request for comment on Wednesday’s decision.

Staley’s legal team attempted to dismiss JPMorgan’s claim by arguing that the bank’s case was “completely absent” of concrete claims.

“They have to make allegations. , , He has to say what is true and what is not,” Staley’s attorney, Stephen Wolgemuth, told the court last week.

“This alleged vouching . . . would have been done to JPMorgan employees,” Wohlgemuth said, adding that the bank could provide a full account of what happened. “What did the bank say? Was there vouching? What did Mr. Staley actually say. . . to whom did he say this and why did they trust him?”

JP Morgan declined to comment on the decision. Last week, the bank said in a statement: “Basee has been accused of unspeakable acts which are the foundation of the claims against the bank. If this is true, he is liable not only to the bank but also to any damage caused to these women.” Are accountable.

Judge Jed Rakoff, who is overseeing the case, said he would explain his reasoning for rejecting Staley’s motion at a later date. The cases are due to go to trial in New York in October.

If JPMorgan succeeds in its efforts to entrap Staley, the executive could be liable for millions of dollars in damages. Last week, Deutsche Bank, which retained Epstein as a client for five years, set aside $75 million to settle a separate claim by an unnamed victim on behalf of dozens of women.