JPMorgan sues ex-executive Jes Staley over ties to accused sex trafficker Jeffrey Epstein

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

The bank filed on Wednesday a complaint from a third party against Staley in Manhattan federal court, arguing that he should be held accountable if the allegations about his relationship with Epstein turn out to be true.

JPMorgan also filed separate lawsuits against Staley for breach of duty to the bank. Due to his “unfaithful service”, the bank said it was entitled to recover all 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 head of private banking at JPMorgan, and Epstein have been at the heart of two lawsuits claiming the bank knew or should have known of Epstein’s crimes and still kept him as customer. But Staley himself has not been named as a defendant in either lawsuit.

JPMorgan stressed in its filing that it still denies allegations of a class action lawsuit proposed by Epstein’s victims and a separate action by the US Virgin Islands. The bank has decided to dismiss both lawsuits and is expected to plead its claims on Monday.

In its filing, JPMorgan said Staley failed to report his conduct with Epstein and deceptively vouched for Epstein’s good character.

Staley had a duty of loyalty and “was required to act in good faith” in the interests of financial institutions, the bank said. “Instead, if the Doe and USVI allegations are true, Staley has repeatedly abandoned JPMC’s interests and served his own interests and those of Epstein.”

Staley held 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 over his links to Epstein.

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