JPMorgan Chase & Co. is suing Jes Staley to hold the former executive responsible for any damages resulting from a lawsuit accusing the bank of facilitating Jeffrey Epstein’s sex trafficking.
The bank on Wednesday filed a third-party complaint against Staley in Manhattan federal court, arguing that he should be held accountable if the allegations about his relationship with Epstein turn out to be true.
JPMorgan also brought a separate claim against Staley for breach of duty to the bank. Because of his “bad faith service,” the bank said it has the right to recover all compensation paid to Staley between 2006 and 2013.
Staley’s attorney did not immediately respond to a request for comment. Staley previously denied involvement in Epstein’s sex trade.
The close relationship between Staley, then head of JPMorgan’s private banking, and Epstein has been at the heart of two suits alleging the bank knew or should have known about Epstein’s crimes and kept him as a client. But Staley himself was not named as a defendant in either suit.
JPMorgan confirmed in the filing that it still rejects the claims in the class action proposed by Epstein’s victims and a separate suit by the US Virgin Islands. The bank has moved to dismiss both suits and is set to argue its motions there.
In the filing, JPMorgan said Staley failed to report his dealings with Epstein and falsely vouched for Epstein’s good character.
Staley has a duty of loyalty and is “required to act in good faith” at the best financial institution, the bank said. “However, if Doe’s and USVI’s allegations are true, Staley repeatedly abandoned JPMC’s interests and served his own and Epstein’s interests.”
Staley worked at the bank in various positions between 1979 and 2013, before joining Barclays Plc as chief executive in 2015. He resigned as CEO of Barclays in 2021 due to his relationship with Epstein.
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