Warner told Staley, “He’s one of the most connected people I know in New York.” documents Filed in Manhattan federal court on Monday.
The documents showed Epstein would go on to generate more than $8 million in revenue for JPMorgan’s private investment banking business. The financier has referred the roll call of US billionaires to the bank, including Google co-founder Sergey Brin.
But the relationship would also become one of the most controversial at JPMorgan. The US Virgin Islands, where Epstein had a private retreat and brought some of his victims before his death in 2019, is suing the bank for allegedly enabling sex trafficking. The area seeks at least $190 million from JPMorgan, accusing the company of putting the revenue it generated from Epstein’s business and connections before acting on warning signs.
In a lawsuit Monday, USVI filed its case against the bank several months after the discovery and turned over hundreds of thousands of pages of internal bank documents and led to deposits by current and former bank employees. She is seeking a partial summary judgment in a lawsuit she filed last year alleging that JPMorgan ignored signs that Epstein was using his bank accounts to finance the trafficking of girls for sex.
The bank denied any knowledge of Epstein’s crimes and regretted having kept him as a client.
JPMorgan, in a separate file filing On Monday seeking partial summary judgment, he argued the USVI suit was flawed. The bank said the district enabled Epstein’s crimes by waiving requirements for probation for sex offenders, organizing visas for his victims and looking the other way when he arrived at local airports with girls and girls.
JPMorgan also denies the suggestion that it allowed Epstein to fly under the radar, noting that it filed about 150 currency transaction reports related to Epstein between 2002 and 2013.
Spokespersons for JPMorgan and Alphabet Inc. did not respond. Google Inc., the parent company, immediately responded to requests for comment.
USVI, in its court filing, referred to emails between compliance officials and executives about Epstein to claim that the bank knew or should have known he was involved in sex trafficking. While compliance officers paid in 2011 to have Epstein fired, internal emails showed his interest in young women was also the subject of jokes.
In one case recounted in the USVI filing, former CFO of JPMorgan Asset and Wealth Management David Brigstocke compared another client’s home to Epstein’s: “It reminded me of JE’s house, except it was tasteful and less nymphs.” The email was sent to Marie Erdos, the current director of Asset and Wealth Management, in 2012. Erdos fired Epstein as a client a year later, after Staley, his chief supporter, left JPMorgan.
However, JPMorgan continued to deal with Epstein behind the scenes in the years until his death, according to the USVI.
The district alleged that the bank relied on him for potential customer referrals. A former JPMorgan private banker met with Epstein on as many as 10 occasions, including about business with private equity tycoon Leon Black, who was once Epstein client.
The USVI also brought to light dozens of telegraphic payments Epstein made between his and the young women’s accounts. Everyone publicly identified in police or press reports as a victim of Epstein or as responsible for his recruitment of young women with JPMorgan, according to the USVI.
“JP Morgan willfully handled every financial transaction Epstein needed to operate his sex trafficking business,” the district said in the filing. “From millions in cash withdrawals and payments to conspirators, recruits, and victims, to millions in payments to attorneys and advertisers for continued coverage.”
Epstein’s banking relationship centered around Staley, the former head of private banking.
When Epstein was indicted on charges of soliciting a minor to prostitution in 2006, Staley, who was impeached as part of a USVI lawsuit in June, claimed he raised the “very public” issue with JPMorgan CEO Jamie Dimon.
Dimon has denied any involvement in Epstein’s accounts, claiming to have never known or met him. Damon testified that he never spoke to Staley about Epstein.
The lawsuit, and another class-action lawsuit the bank recently settled with one of Epstein’s victims, has revealed new details about the depths of the relationship between Staley and Epstein.
In addition to sanctions and distrust, the USVI is seeking reforms at JPMorgan to protect against human trafficking. DM