JPMorgan Chase & Co. was accused of exploiting a claim of sexual assault against former private banking chief Jes Staley to intimidate a victim suing the bank over its ties to Jeffrey Epstein.
(Bloomberg) — JPMorgan Chase & Co. was accused of exploiting a claim of sexual assault against former private banking chief Jes Staley to intimidate a victim suing the bank over its ties to Jeffrey Epstein.
An Epstein victim leading a proposed class action against the bank on Thursday asked a Manhattan federal judge to separate JPMorgan’s March lawsuit against Staley from her case and a similar one brought by the US Virgin Islands. Both allege JPMorgan knowingly benefited from Epstein’s sex-trafficking.
In her court filing, the Epstein victim, identified only as Jane Doe, took aim at one of the most striking claims in JPMorgan’s suit — that the bank believed Staley was the person described in her suit as a “powerful financial executive” who “used aggressive force in his sexual assault of her.”
Doe’s lawyer, Brad Edwards, said in the Thursday filing that Staley was indeed that person. But he accused JPMorgan of cynically identifying the executive to force Doe to produce “intrusive discovery” in the course of litigation and possibly be subject to a deposition by Staley himself.
“The effect of adding him to the suit is to force her to share private medical records and her most intimate communications with one of her abusers,” Edwards wrote. “It also sends a message to other victims that (JPMorgan) will exploit all vulnerabilities of each victim who dares come forward to hold the bank accountable.”
Staley’s First Filing
Doe said she wants the suits separated so that JPMorgan can’t force “her sexual abuser” back into her life.
A JPMorgan spokesman said in a statement that the bank opposed separating the cases.
“Jane Doe herself has directly accused him of horrific sexual misconduct and, if true, he must be held accountable,” the spokesman said of Staley. “He’s inextricably linked to these cases – it makes no sense to separate him.”
Staley on Thursday also asked US District Judge Jed Rakoff to separate his suit, but for very different reasons. He called allegations about his relationship with Epstein “baseless but serious” in his first legal filing since JPMorgan sued him, but he said he needed more time to prepare his defense.
‘Astronomical’ Damages
In Staley’s filing, his lawyer, Brendan Sullivan, stressed the high stakes for his client, saying he would need to go through tens of thousands of pages of discovery. “Disproving these false and highly-publicized allegations is of paramount importance to him,” Sullivan wrote.
“The allegations against him are slanderous, and the potential damages are astronomical”, Sullivan added. “Mr. Staley is accused of aiding and abetting Jeffrey Epstein, one of the most notorious criminals in recent American history.”
JPMorgan sued Staley via a third-party complaint, which would see its claims heard at the same time as those of Doe and the USVI. The bank accused Staley of concealing his inappropriate relationship with the sex offender and said he should be responsible for any damages it may incur from the suits. It is also attempting to claw back tens of millions paid in compensation.
Bloomberg News reported earlier on Thursday that JPMorgan had sent a subpoena to the hedge fund where Staley worked between leaving the US bank in 2013 and becoming chief executive officer of Barclays Plc two years later.
Read More: JPMorgan Subpoenas Staley’s Former Hedge Fund in Epstein Dispute
The sprawling litigation against JPMorgan, and now Staley, has aired new allegations about the relationship with Epstein and how the bank managed his accounts. Former and current executives have been deposed, including Mary Erdoes. CEO Jamie Dimon has also agreed to be deposed, but lawyers for the bank say he had no involvement in decisions about Epstein’s accounts.
JPMorgan contends it did not know about Epstein’s sex-trafficking. Lawyers for the bank previously argued it provided routine banking services to Epstein and that Staley misleadingly vouched for Epstein’s character.
The content of some of the 1,200 emails Staley and Epstein exchanged over the years have been disclosed in the litigation, airing intimate conversations between the two about Disney princesses, Epstein’s private USVI retreat and their reunion after Epstein was released from prison in 2008.
The cases are USVI v. JPMorgan Chase Bank, 22-cv-10904-UA, US District Court, Southern District of New York (Manhattan) and Jane Doe 1 v. JPMorgan Chase Bank, 22-cv-10019, US District Court, Southern District of New York (Manhattan)
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