Former JPMorgan Chase investment banking chief Jes Staley is being sued by the bank for his ties to disgraced financier Jeffrey Epstein, seeking to hold him responsible for any legal fallout from two lawsuits against the bank. On Wednesday, the company filed a lawsuit against Staley to recoup his last eight years of pay at JPMorgan and make him responsible for potential payouts in lawsuits the company faces. Over 80 million dollars have been paid in compensation alone. The legal maneuver is the latest development in a series of cases that have involved the largest U.S. bank by assets. The U.S. Virgin Islands and a group of alleged Epstein victims sued the bank late last year, accusing it of facilitating the sex offender’s crimes. JPMorgan kept Epstein as a private wealth client until 2013, partly because Staley vouched for him, despite internal concerns after Epstein’s 2008 conviction on sex crimes.
Over the past few weeks, JPMorgan has gone from defending its former executive to blaming him for any Epstein fallout. The recent lawsuits revealed internal emails referencing a review of the Epstein account to be conducted by JPMorgan CEO Jamie Dimon. The bank denied it had seen any evidence the review took place. Plaintiffs have sought to question Dimon in the case, an effort the bank is resisting. “To the extent that Staley knew of, participated in, or witnessed sexual abuse associated with Epstein and did not report it to, or actively concealed it from JPMorgan,” it is Staley, and not the bank, who is responsible for injuries Epstein caused, JPMorgan said in its Wednesday filing. ‘Powerful exec’ JPMorgan also identified Staley as the “powerful financial executive” accused of sexually assaulting one of Epstein’s alleged victims in one of the suits it faces.
