JPMorgan Chase & Co. is suing Jes Staley to hold the former executive responsible for any damages stemming from lawsuits accusing the bank of facilitating Jeffrey Epstein’s sex-trafficking.

The bank on Wednesday filed a third-party complaint against Staley, once its private banking chief, in Manhattan federal court, arguing he should be held liable if allegations about his relationship with Epstein are shown to be true.

JPMorgan also brought separate claims against Staley for breaching his duty of loyalty to the bank. Because of his “faithless service,” the bank said it was entitled to recover all compensation paid to Staley between 2006 and 2013 — a figure likely surpassing $80 million.
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Staley’s duty to JPMorgan required him “to refrain from activities that he knew would damage JPMC, either financially or reputationally,” the bank said, “and to report to JPMC any facts or knowledge relevant to his duties that could affect JPMC’s reputation or that was relevant to JPMC’s decisions to retain a client whose business with JPMC might damage that reputation.”

A lawyer for Staley declined to comment on Wednesday night. Staley, 66, who went on to become Barclays Plc chief executive officer but stepped down in 2021 following a UK regulatory probe into his Epstein ties, has previously denied involvement in Epstein’s sex-trafficking.

Read More: 23 of Jeffrey Epstein’s Accusers Finally Got Their Day in Court. Here’s What They Said

The close ties between Staley and Epstein have been at the core of two suits claiming the bank knew or should have known about Epstein’s crimes and kept him on as a client anyway. But Staley himself was not named as a defendant in either a proposed class action brought by Epstein victims or a separate lawsuit brought by the US Virgin Islands.

JPMorgan stressed in its filing that it was still denying the claims in both suits against it. The bank has moved to dismiss both suits and is set to argue its motions on Monday before US District Judge Jed Rakoff in Manhattan.

Both the victims’ suit, filed by a Jane Doe plaintiff, and the USVI allege JPMorgan facilitated Epstein’s crimes by allowing him to use his bank accounts to finance his sex trafficking operation, but the bank contends the suits don’t adequately allege that it had knowledge of its client’s illegal activity.

The Doe suit alleged that Staley “personally observed” Epstein’s sexual abuse on a number of occasions. Unsavory …read more

Source:: Time – Business


JPMorgan Sues Former Executive Jes Staley Over Ties With Sex Trafficker Jeffrey Epstein

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