JPMorgan CEO Jamie Dimon ‘knew in 2008’ that Epstein was a intercourse trafficker, lawyer argues

An legal professional for the U.S. Virgin Islands argued in federal courtroom that JPMorgan Chase CEO Jamie Dimon and ex-top financial institution government Jes Staley had been conscious of intercourse trafficking by the financial institution’s infamous shopper Jeffrey Epstein.

The lawyer’s argument pushed again at JPMorgan’s transfer earlier this month to shift any obligation for its enterprise relationship with the late Epstein onto Staley alone.

“Jamie Dimon knew in 2008 that his billionaire shopper was a intercourse trafficker,” legal professional Mimi Liu instructed Manhattan U.S. District Choose Jed Rakoff at a listening to late Thursday, referring to the yr Epstein was first criminally charged with intercourse crimes.

“If Staley is a rogue worker, why is not Jamie Dimon?” Liu mentioned on the listening to, which handled JPMorgan’s efforts to dismiss the Virgin Islands’ lawsuit towards the financial institution over its relationship with Epstein.

The lawyer continued: “Staley knew, Dimon knew, JPMorgan Chase knew” about Epstein’s prison conduct.

Liu mentioned there have been a number of money transactions and wire transfers by Epstein, together with sending a whole bunch of hundreds of {dollars} to a number of ladies, which ought to have been formally flagged as suspicious.

“They broke each rule to facilitate his intercourse trafficking in change for Epstein’s wealth, connections and referrals,” Liu argued

“This case was not simply Jes Staley … there shall be quite a few paperwork that go far past his workplace to the manager suite,” she mentioned. 

A lawyer for JPMorgan disputed these arguments, “specifically the purpose about Jamie Dimon having any particular information.”

Dimon just isn’t a named defendant within the swimsuit towards the financial institution.

JPMorgan spokeswoman Patricia Wexler in an announcement mentioned, “It’s unfair for CNBC to report legal professionals’ unsubstantiated arguments as information.”

Wexler additionally mentioned, “Jamie Dimon has no recollection of reviewing the Epstein accounts.”

Staley has denied figuring out about Epstein’s unlawful conduct. He was CEO of Barclays from 2015 till late 2021, when he give up after a probe by British monetary regulators into his ties to Epstein.

Attorneys for the Virgin Islands beforehand have highlighted an August 2008 inner e mail at JPMorgan which prompt that Epstein’s account can be closed that yr due to considerations over his conduct.

“I might depend Epstein’s belongings as a possible outflow for ’08 ($120mm or so?) as I can not think about it would keep (pending Dimon overview),” an unidentified worker wrote in that e mail, talked about within the Virgin Islands’ lawsuit.

That e mail got here two years after JPMorgan’s International Company Safety Division discovered a number of newspaper articles “that element the indictment of Jeffrey Epstein in Florida on felony prices of soliciting underage prostitutes,” the lawsuit famous.

The Virgin Islands’ lawsuit towards the financial institution alleges that Epstein’s 15-year buyer relationship with the financial institution helped him transport younger ladies, whom he and others then sexually abused at his property within the Virgin Islands.

The swimsuit was filed three years after Epstein, who was a former buddy of ex-Presidents Donald Trump and Invoice Clinton, died by suicide in a Manhattan jail whereas awaiting trial on federal little one intercourse trafficking prices.

JPMorgan has mentioned Dimon was not concerned in choices associated to Epstein’s account on the financial institution.

Final week, the financial institution sued Staley, its former chief of funding banking, alleging that he’s legally liable for lawsuits from the Virgin Islands and Epstein’s victims associated to Epstein’s relationship with JPMorgan. The swimsuit seeks to claw again greater than $80 million in compensation Staley acquired.

In arguments Thursday, a lawyer for the financial institution mentioned “all roads go to Mr. Staley.”

“He shall be on the heart of this case whether or not there may be one or two” trials for every lawsuit, the lawyer mentioned.

Epstein was a non-public wealth shopper of the financial institution till 2013, at the very least partly as a result of Staley had vouched for him.

However in 2008, Epstein pleaded responsible to a Florida state cost of procuring an underage prostitute, a criminal offense that was extensively reported on the time. He later served 13 months in jail.

“In 2013 — the yr that JP Morgan terminated its relationship with Epstein — JPMorgan flagged in Epstein’s historical past that ‘[p]er financial institution coverage, felons [like Epstein] are thought of excessive threat and require extra approval,'” the Virgin Islands’ swimsuit notes.

Rakoff, the choose, didn’t rule on the movement to dismiss the swimsuit Thursday. He mentioned he would rule on that query by the tip of March.

However Rakoff did rule towards JPMorgan on one other challenge, discovering that the Virgin Islands has the correct to file a lawsuit on behalf of anybody who was a resident of the territory.

— Further reporting by Eamon Javers