Jamie Dimon to be Deposed as JPMorgan Faces Reckoning for Epstein Ties

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Jeffrey Epstein was galore things: a intersexual predator, a person to the affluent and almighty and, for galore years, a lucrative lawsuit of the nation’s largest bank.

Now the bank, JPMorgan Chase, faces a reckoning for its astir 15-year narration with the disgraced financier, 1 that could outgo it a large payout successful 2 civilian lawsuits that assertion the slope ignored warnings that helium was trafficking teenage girls for enactment due to the fact that it was profiting from its narration with him.

New disclosures resulting from the cases suggest that employees of the slope had flagged Mr. Epstein’s enactment arsenic suspicious connected a fig of occasions, portion different documents amusement the familiarity with and casual entree Mr. Epstein had to apical executives astatine the bank, adjacent aft his 2008 blameworthy plea successful Florida for soliciting prostitution from a teenage girl.

Filed precocious past twelvemonth successful national tribunal successful Manhattan, the lawsuits — 1 brought by lawyers representing Mr. Epstein’s victims and the different by the authorities of the U.S. Virgin Islands — are proceeding connected a accelerated track, with dozens of depositions taken of victims, Virgin Islands officials and radical who had worked for the slope and Mr. Epstein.

The proceedings volition instrumentality connected a caller urgency connected Friday with Jamie Dimon, JPMorgan’s main executive, scheduled to beryllium deposed astatine the bank’s office successful Manhattan.

Mr. Epstein died 3 years agone of an evident termination portion being held successful national custody connected enactment trafficking charges. JPMorgan dropped him arsenic a lawsuit a decennary ago. Many of the documents and exhibits filed successful the litigation are nether seal.

One papers prepared by the bank, an grounds successful a tribunal filing past week, suggests employees of JPMorgan had filed galore suspicious enactment reports, oregon SARs, astir immoderate of Mr. Epstein’s transactions. The names of immoderate 4 twelve employees who the slope said were “involved successful reporting SARs relating to Epstein Accounts betwixt 2000 and 2019,” are redacted.

Banks indispensable record a SAR with national regulators erstwhile they fishy that a transaction whitethorn impact wealth laundering oregon fraud. The reports are kept confidential due to the fact that the transactions could beryllium to beryllium legitimate, though they tin supply investigative leads to authorities.

A JPMorgan spokeswoman said the slope did not cognize of thing that indicated Mr. Epstein was progressive successful enactment trafficking. In filings related to the case, the slope has besides disclosed that it asked national prosecutors successful Florida successful 2011 if determination was immoderate progressive probe of Mr. Epstein. The slope said the prosecutors did not disclose immoderate investigation.

A abstracted cache of emails and partial calendar entries reviewed by The New York Times shows that apical executives astatine the slope had a level of familiarity with Mr. Epstein.

“Still waiting for your call,” Mr. Epstein wrote successful October 2011 to Mary C. Erdoes, the existent caput of the bank’s large plus and wealthiness absorption division.

Ms. Erdoes replied: “Seriously. It is 1 a.m. your time. I would accidental get a beingness … but you are astatine the Ritz and we aren’t.” Ms. Erdoes added that she had conscionable landed successful California and would speech to Mr. Epstein the pursuing day.

The emails, and calender kept entries for Mr. Epstein portion helium was staying astatine his Manhattan mansion, were obtained done a nationalist records petition to the lawyer wide for the U.S. Virgin Islands. JPMorgan’s spokeswoman has said interaction betwixt affluent clients and slope executives is not uncommon.

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Jamie Dimon, wearing a suit   and a reddish  and bluish  striped tie, stands extracurricular  connected  a pavement extracurricular  the U.S. Capitol building. Behind him, others basal   successful  beforehand   of stairs.
Jamie Dimon, the main enforcement of JPMorgan, is scheduled to to beryllium deposed connected Friday astatine the bank’s office successful Manhattan.Credit...Evelyn Hockstein/Reuters

The emails provided to The Times by the Virgin Islands besides see exchanges betwixt Mr. Epstein and James E. Staley, the JPMorgan enforcement with the closest ties to him.

A fewer are of a idiosyncratic nature: In 1 speech from 2015, Mr. Staley asked Mr. Epstein if helium would conscionable with his girl to sermon her post-college plans. In a 2011 email exchange, determination was a treatment astir arranging a meal with Mr. Epstein and Mr. Staley’s family.

Other emails betwixt Mr. Epstein, Ms. Erdoes and Mr. Staley progressive imaginable concern deals. A bid of exchanges focused connected Mr. Epstein’s effort to found a charitable concern betwixt the bank, the Bill & Melinda Gates Foundation and others. He besides inquired astir gathering with Mr. Dimon to sermon the plan.

The bank’s spokeswoman said Mr. Epstein ne'er met with Mr. Dimon. Mr. Epstein’s projected charitable money with the Gates Foundation and JPMorgan never advanced overmuch beyond the talking signifier successful 2011 erstwhile Mr. Gates first met Mr. Epstein.

JPMorgan chopped ties with Mr. Epstein successful 2013, though that was years aft immoderate members of the bank’s compliance section had raised alarms astir doing business with him. And it dropped him lone aft Mr. Staley had near for different job.

Mr. Staley and Ms. Erdoes, The Times antecedently reported, favored keeping Mr. Epstein arsenic a lawsuit aft his 2008 blameworthy plea, successful portion due to the fact that helium helped bring affluent clients to JPMorgan’s private-banking division.

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James E. Staley, the erstwhile JPMorgan enforcement with the closest ties to Mr. Epstein. Credit...Anthony Behar/Sipa, via Associated Press Images

The narration betwixt Mr. Epstein and Mr. Staley, who is known arsenic Jes, is simply a cardinal question successful the litigation. Lawyers for the Virgin Islands person claimed that the 2 men shared sexually suggestive emails astir young women and sometimes Mr. Epstein sent Mr. Staley “photos of young women successful seductive poses.”

The Virgin Islands has said the slope should person been alert of the emails. Mr. Staley near JPMorgan successful 2013 and successful 2015 became the main enforcement of Barclays. He resigned that presumption successful 2021 due to the fact that of the fallout from an investigation by British regulators into however helium had characterized his narration with Mr. Epstein.

JPMorgan has said that it was not alert of immoderate inappropriate behaviour involving Mr. Staley. But the slope has named him arsenic a defendant successful a 3rd enactment lawsuit, truthful that if it is determined that Mr. Staley engaged successful improper activity, helium tin beryllium held liable for immoderate damages it whitethorn person to pay. A national justice this week rejected Mr. Staley’s effort to beryllium dismissed from the litigation.

Neither Mr. Staley nor his lawyers responded to requests for comment, but successful tribunal papers, helium has denied immoderate wrongdoing and has said helium was unaware of immoderate enactment trafficking operation.

The lawyers for Mr. Epstein’s victims scored a large triumph successful a akin lawsuit past week, erstwhile Deutsche Bank, which succeeded JPMorgan arsenic Mr. Epstein’s superior banker, agreed to wage $75 million to settee a projected class-action suit filed successful national tribunal past year. The German slope previously paid a $150 million punishment to New York regulators.

The projected colony with Deutsche Bank could go a template for immoderate woody with JPMorgan. JPMorgan had managed 40 accounts for Mr. Epstein and handled astir of his ligament transfers, which included payments to women believed to beryllium victims, radical briefed connected the substance said.

“JPM was his existent partner,” said Bradley Edwards, who, on with David Boies, is portion of the ineligible squad representing the victims of Mr. Epstein successful the lawsuit. “There is nary existent examination betwixt the 2 cases.”

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Properties connected the seashore of Little Saint James, successful 2019, 1 of the backstage islands formerly owned by Jeffery Epstein.Credit...Gabriella N. Baez for The New York Times

To date, Mr. Epstein’s property — erstwhile valued astatine $600 cardinal — has paid retired implicit $150 cardinal successful settlements to much than 125 victims. Those victims could beryllium eligible to get immoderate of the wealth from the projected woody with Deutsche Bank.

The Virgin Islands suit against JPMorgan arose from accusation the territory had gathered during litigation with Mr. Epstein’s estate. The Islands had sued to recoup tens of millions successful taxation benefits it had awarded to Mr. Epstein’s businesses that were based successful St. Thomas, reaching a $105 cardinal colony successful November.

The Virgin Islands’ own dealings with Mr. Epstein besides person raised controversy implicit the years. Not lone did it grant lucrative taxation breaks to his businesses but successful 2012, the authorities eased question restrictions for Mr. Epstein aft a petition from his lawyers, according to documents obtained by The Times done a nationalist records request.

Because of his presumption arsenic a enactment offender, Mr. Epstein was required to notify authorities of immoderate question plans, but that beforehand announcement was chopped to 1 time from astir 3 weeks by the Virgin Islands’ lawyer wide astatine the time, the documents show.

JPMorgan has seized connected immoderate of these criticisms of the Virgin Islands authorities to reason the territory is successful nary presumption to writer for damages. The bank, successful a tribunal filing connected Tuesday, said officials successful the U.S. territory had a agelong past of cozying up to Mr. Epstein and looked “the different mode erstwhile helium walked done U.S.V.I. airports accompanied by girls and young women.”

The slope besides noted Mr. Epstein made predominant run donations to section politicians, and it has sought accusation astir Cecile de Jongh, the woman of a erstwhile politician of the Virgin Islands, who was a longtime bureau manager for Mr. Epstein’s companies. It is besides acceptable to depose Albert Bryan Jr., the existent governor, who was the president of the bureau that awarded Mr. Epstein’s businesses the big taxation breaks.

Matthew Goldstein covers Wall Street and white-collar transgression and lodging issues. @mattgoldstein26

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