JPMorgan sues former executive Jes Staley over his ties to accused sex trafficker Jeffrey Epstein

The financial institution on Wednesday filed a third-party criticism towards Staley in Manhattan federal courtroom, arguing he needs to be held liable if allegations about his relationship with Epstein are proven to be true. 

JPMorgan additionally introduced separate claims towards Staley for breaching his responsibility to the financial institution. Due to his “faithless service,” the financial institution stated it was entitled to get well all compensation paid to Staley between 2006 and 2013.

Staley’s lawyer didn’t instantly reply to a request for remark. Staley has beforehand denied involvement in Epstein’s sex-trafficking.

The shut ties between Staley, as soon as JPMorgan’s personal banking chief, and Epstein have been on the core of two fits claiming the financial institution knew or ought to have recognized about Epstein’s crimes and stored him on as a shopper anyway. However Staley himself was not named as a defendant in both swimsuit.

JPMorgan burdened in its submitting that it was nonetheless denying the claims in a proposed class motion by Epstein victims and a separate swimsuit by the US Virgin Islands. The financial institution has moved to dismiss each fits and is ready to argue its motions on Monday. 

In its submitting, JPMorgan stated Staley did not report his conduct with Epstein and misleadingly vouched for Epstein’s good character.

Staley had an obligation of loyalty and “was required to behave in good religion” within the monetary establishments greatest pursuits, the financial institution stated. “As an alternative, if the allegations of Doe and the USVI are true, Staley repeatedly deserted the pursuits of JPMC and served his personal and Epstein’s pursuits.”

Staley labored on the financial institution in numerous positions between 1979 and 2013, earlier than becoming a member of Barclays Plc as chief govt in 2015. He stepped down as Barclays CEO in 2021 resulting from his Epstein ties.