Mere weeks after JPMorgan Chase & Co. defended Jes Staley against accusations he knew about Jeffrey Epstein's sex crimes, the bank is accusing the former senior executive of deception — blaming him for its dealings with Epstein and seeking to recoup eight years of compensation.
The firm's sudden turn against its former private banking chief — who went on to run Barclays Plc — unfolded at federal court in Manhattan late Wednesday. JPMorgan accused him of concealing an "inappropriate relationship" with Epstein and vouching for the sex offender's character to keep him as a client.
The bank's court filings demand Staley hand over all of his compensation from 2006 through 2013 — a figure surpassing $80 million. They also argue he should bear the cost of any payouts in two lawsuits accusing the lender of facilitating Epstein's crimes.
"Staley's acts of disloyalty occurred repeatedly, lasted for years, and persisted despite numerous opportunities to correct them," JPMorgan wrote.
The biggest US bank noted that one of Epstein's alleged victims described "a powerful financial executive" who used aggressive force in a sexual assault of her. "Upon information and belief, Staley is this person," JPMorgan said.
His attorney declined to comment on the filing. The banker has consistently denied knowledge of Epstein's abuse.
'A Clever Mood'
Plaintiffs have been ratcheting up pressure on the firm in recent months, publicly revealing more details in their complaints and seeking more information on communications between company officials. They have even sought to question Chief Executive Officer Jamie Dimon — an effort the bank is fighting.
Pointing at Staley now is a "clever move" by JPMorgan, said Mary Dodge, a professor of criminal justice at the University of Colorado Denver School of Public Affairs. "They have decided to displace the blame and publicly fight the allegations. Staley looks terrible, and they look like the 'good guys.'"
The U.S. Virgin Islands and a group of alleged Epstein victims led by a plaintiff identified as Jane Doe 1 sued the firm last year, accusing it of financially enabling his crimes.
The bank helped manage Epstein's wealth for years, even after he pleaded guilty in 2008 to soliciting a minor for prostitution. His relationship with Staley is at the center of both suits, which claim JPMorgan knew or should have known about the sex offender's conduct but kept him as a client anyway.
A complaint filed this year alleged Staley frequently visited Epstein's properties, including his New York townhouse massage room, a "stash house" apartment on Manhattan's Upper East Side and a U.S. Virgin Islands estate. The banker allegedly met many of Epstein's trafficking victims and saw him "sexually grabbing" some, their suit claims.
Snippets of the pair's alleged correspondence were included in a filing unsealed last month, containing references that have become fodder for conjecture. For example, the USVI alleges that in July 2010, Staley and Epstein discussed Disney princesses:
"That was fun," Staley allegedly wrote. "Say hi to Snow White."
"[W]hat character would you like next?" Epstein allegedly responded.
"Beauty and the Beast," Staley wrote back.
