JPMorgan is suing former manager Jes Staley over his ties to accused sex trafficker Jeffrey Epstein
JPMorgan Chase & Co. is suing Jes Staley to hold the former executive responsible for any damages arising from lawsuits accusing the bank of aiding Jeffrey Epstein’s sex trade.
The bank filed a third-party lawsuit against Staley in federal court in Manhattan on Wednesday, arguing that if allegations about his relationship with Epstein prove true, he should be held liable.
JPMorgan also made separate claims against Staley for breach of his duty to the bank. Because of his “faithful service,” the bank said it was entitled to recover any compensation paid to Staley between 2006 and 2013.
Staley’s attorney did not immediately respond to a request for comment. Staley has previously denied any involvement in Epstein’s sex trafficking.
The close ties between Staley, once JPMorgan’s head of private banking, and Epstein were at the heart of two lawsuits alleging the bank knew, or should have known, of Epstein’s crimes and still kept him as a client. But Staley himself was not named as a defendant in either lawsuit.
JPMorgan emphasized in its filing that it still denies claims in a proposed class action lawsuit brought by Epstein victims and a separate US Virgin Islands lawsuit. The bank has moved to dismiss both lawsuits and will file its motions on Monday.
In its filing, JPMorgan said Staley failed to report his conduct towards Epstein and gave misleading vouch for Epstein’s good character.
Staley had a duty of loyalty and “must act in good faith” in the best interests of financial institutions, the bank said. “If the allegations by Doe and the USVI are true, Staley has instead repeatedly abandoned JPMC’s interests and served his own and Epstein’s interests.”
Staley worked in various positions at the bank between 1979 and 2013 before joining Barclays Plc as Chief Executive in 2015. He resigned as CEO of Barclays in 2021 due to his ties to Epstein.
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