Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

JPMorgan says it is not liable for top banker's ties to Jeffrey Epstein

Published 02/22/2023, 09:47 PM
Updated 02/23/2023, 05:00 AM
© Reuters. FILE PHOTO: Then Barclays' CEO Jes Staley arrives at 10 Downing Street in London, Britain, January 11, 2018. REUTERS/Peter Nicholls
JPM
-
BARC
-
DB
-

By Jonathan Stempel

NEW YORK (Reuters) - JPMorgan Chase & Co (NYSE:JPM) on Wednesday said it should not be held liable for a former top executive's relationship with Jeffrey Epstein in a lawsuit accusing the largest U.S. bank of facilitating its former client's sex trafficking enterprise.

In a filing in Manhattan federal court, JPMorgan said emails between former executive Jes Staley and Epstein provided no basis for the U.S. Virgin Islands, which filed the lawsuit, to suggest Staley could "detect Epstein's sex trafficking."

The bank also said there was no proof Staley's personal travel to the islands or alleged inappropriate emails were part of his job, and that even assuming Staley helped "direct" Epstein's sex trafficking "his conduct would be far beyond his remit as a JPMC employee."

In seeking the dismissal of the "misdirected and deficient" lawsuit, JPMorgan said there was no explanation for how it might have known about and benefited from Epstein's misconduct by having him as a client from 2000 to 2013.

Lawyers for the U.S. Virgin Islands did not immediately respond to requests for comment. Staley is not a defendant.

Epstein killed himself in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges.

JPMorgan's dismissal motion came one week after a court filing said Staley and Epstein had exchanged about 1,200 emails between 2008 and 2012, including some about young women that contained sexual content.

Epstein had pleaded guilty in 2008 to a Florida state prostitution charge.

Staley, a former JPMorgan private banking chief, has acknowledged having a friendship with Epstein but denied knowing about his alleged crimes.

After leaving JPMorgan, Staley became chief executive of Barclays (LON:BARC) Plc but resigned in November 2021 amid a dispute with British financial regulators examining his ties to Epstein.

The U.S. Virgin Islands sued JPMorgan for unspecified damages in December 2022, saying the bank should have known about Epstein's misconduct on a private island he owned there.

© Reuters. FILE PHOTO: Then Barclays' CEO Jes Staley arrives at 10 Downing Street in London, Britain, January 11, 2018. REUTERS/Peter Nicholls

Epstein's victims are also suing JPMorgan and Deutsche Bank AG (NYSE:DB), where Epstein was a client from 2013 to 2018. Both banks are seeking dismissals.

The case is Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, U.S. District Court, Southern District of New York, No. 22-10904.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.