JP Morgan, the largest bank in the United States, has filed a civil lawsuit against former executive James Staley in connection with the so-called 'Epstein scandal,' the Wall Street Journal (WSJ) reported on the 9th (local time).
The lawsuit essentially states that if JP Morgan has to compensate Jeffrey Epstein's victims of sexual crimes, Staley must reimburse the amount. This follows a lawsuit filed by one of Epstein's victims against JP Morgan at the end of last year. Staley is accused of effectively aiding the crime by turning a blind eye to Epstein's sex trafficking, including allowing transfers, while he was at JP Morgan.
Additionally, the victim claimed that a JP Morgan executive, an acquaintance of Epstein, sexually assaulted her. At the time, the victim did not disclose the identity of the executive, but JP Morgan confirmed it was Staley when filing the lawsuit. Evidence submitted by JP Morgan to the court included emails showing a close relationship between Epstein and Staley, as well as photos of young women.
A JP Morgan spokesperson stated, "He must be held accountable for his actions," adding, "If the allegations against Staley are true, he prioritized personal interests over the company's and violated his duties." JP Morgan also announced that it closed Epstein's accounts shortly after Staley left the company in 2013.
Staley, who led the investment division at JP Morgan until 2013, was once considered a strong candidate to succeed Chairman Jamie Dimon. After leaving JP Morgan, he served as CEO of Barclays, among other roles. He resigned in November 2021 after Epstein was arrested for sex trafficking minors and subsequently died by suicide amid related investigations.
The WSJ reported, "JP Morgan's civil lawsuit signifies a break with a former executive once regarded as a leading successor to Chairman Dimon," adding, "Staley operated JP Morgan's asset management division and built a friendship with Epstein."
Staley's side has acknowledged the friendship with Epstein but has consistently denied any knowledge of sexual crime allegations. In early 2020, Staley said, "I thought I knew him well, but I did not," and expressed deep regret for his association with Epstein. Staley's legal team declined to comment on the lawsuit.
Billionaire hedge fund manager Epstein was arrested on charges of committing sexual crimes against dozens of minors and died by suicide in prison in 2019.
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