Two of the highest-ranking executives at JPMorgan Chase pointed fingers elsewhere and denied having had data of Jeffrey Epstein’s lengthy historical past of sexually abusing teenage women and younger girls, as they sought to deflect accusations that the financial institution ignored a number of warnings concerning the disgraced financier.
Testimony launched in latest days from Jamie Dimon, JPMorgan’s longtime chief government, and Mary Erdoes, head of the asset and wealth administration group, has painted an image of company leaders who not often communicated with each other a couple of man who would develop into one of many financial institution’s most infamous prospects. The feedback had been made in depositions associated to 2 lawsuits towards the financial institution.
JPMorgan has repeatedly denied having any data of Mr. Epstein’s illicit exercise. The lawsuits introduced by Mr. Epstein’s victims and the federal government of the U.S. Virgin Islands declare that for almost 15 years, the nation’s largest lender largely appeared previous warning indicators that Mr. Epstein was financing illicit sexual actions at his palatial residences in New York, Florida and the Virgin Islands.
These indicators, most notably massive money withdrawals, raised warnings inside the financial institution. The fits, filed in Manhattan federal court docket, contend that JPMorgan selected to maintain Mr. Epstein as a shopper for thus lengthy as a result of he was bringing enterprise to the financial institution.
Mr. Dimon’s deposition was taken Friday, however a redacted transcript was launched on Wednesday and reviewed by The New York Instances. It exhibits he repeatedly denied assembly or speaking with Mr. Epstein. He additionally stated he had no recollection of being briefed by any of his high lieutenants on any points with Mr. Epstein, together with his 2008 conviction in Florida on a cost of soliciting prostitution from a teenage lady — an offense that compelled him to register as a intercourse offender.
Extensively thought to be one of the crucial highly effective executives on Wall Avenue, Mr. Dimon stated he had barely heard of Mr. Epstein earlier than his July 2019 arrest on federal intercourse trafficking expenses, although Mr. Epstein — who was value some $600 million when he died — was typically tabloid fodder due to his friendship with Prince Andrew and the rich males who related to him, together with Invoice Gates, the investor Leon Black and the tech billionaire Peter Thiel. .
“I don’t recall figuring out something about Jeffrey Epstein till the tales broke someday in 2019, and I used to be stunned that I didn’t even — had by no means even heard of the man, just about. And the way concerned he was with so many individuals,” Mr. Dimon stated through the all-day deposition taken at JPMorgan’s headquarters in Manhattan.
The financial institution stopped doing enterprise with Mr. Epstein in 2013.
Ms. Erdoes, in a deposition taken in March that was additionally reviewed by The Instances, stated the choice to dismiss Mr. Epstein as a buyer was made following an annual evaluation of his accounts as a result of he had been deemed a “excessive danger shopper” by the financial institution. The evaluation passed off a number of months after James E. Staley, who had been a high personal banker at JPMorgan, left the financial institution in January 2013.
Ms. Erdoes stated the choice to cease doing enterprise with Mr. Epstein was made simpler with Mr. Staley gone from the financial institution.
“Mr. Staley was Mr. Epstein’s advocate within the financial institution and was the senior relationship supervisor for Mr. Epstein,” Ms. Erdoes stated. “And with out somebody there advocating for Mr. Epstein and the scenario that I considered, I used to be exiting Mr. Epstein.”
The depositions replicate one thing of a blame recreation at JPMorgan, with some suggesting that Mr. Staley ought to have identified about Mr. Epstein’s intercourse trafficking, and that he had the obligation to let others know. JPMorgan has individually sued Mr. Staley in a bid to carry him chargeable for any damages it could should pay.
Mr. Staley, who’s scheduled to be deposed as quickly as subsequent week, has argued in court docket papers that he did nothing improper or inappropriate. His legal professionals didn’t return requests for remark
In an announcement on Wednesday, JPMorgan stated it regretted having Mr. Epstein as a shopper.
“Had the agency believed he was engaged in an ongoing intercourse trafficking operation, Epstein wouldn’t have been retained as a shopper,” the assertion stated.
David Boies, a lawyer for Mr. Epstein’s victims suing the financial institution, stated Ms. Erdoes and others at JPMorgan, “had been absolutely conscious of Epstein’s massive money withdrawals and Epstein’s intercourse trafficking. If, as he claims, Mr. Dimon was the one individual in New York who by no means heard of Epstein earlier than July 2019, that’s an indictment, not a protection.”
Up to now, dozens of depositions have been taken within the litigation. Decide Jed S. Rakoff of Federal District Courtroom in Manhattan has put them on a quick monitor, with Mr. Dimon’s among the many final to be taken of financial institution workers.
In Ms. Erdoes’s deposition, parts of which had been earlier reported by The Washington Put up, she stated she personally knowledgeable Mr. Epstein that she was dismissing him as a shopper in summer season 2013, throughout a go to to his Manhattan dwelling. She stated it was solely the second time she had met him in individual.
Ms. Erdoes stated she was not glad with Mr. Epstein’s clarification that enormous money withdrawals had been related solely along with his air journey. However when legal professionals for the victims requested her whether or not the withdrawals could have been for funds to “girls and women,” Ms. Erdoes stated she wasn’t positive what Mr. Epstein did with the funds.
When requested why related money withdrawals by Mr. Epstein had not led to his dismissal earlier, Ms. Erdoes stated she wasn’t “aware of these discussions.” Mr. Dimon stated he was by no means knowledgeable that some inside the financial institution had been involved about Mr. Epstein’s money withdrawals going again so far as 2006.
Mr. Dimon additionally stated Stephen Cutler, the financial institution’s normal counsel from 2007 to 2015, by no means raised any considerations with him about Mr. Epstein. He stated that he believed Ms. Erdoes and Mr. Cutler “had been each making an attempt to do the appropriate factor” with the data they’d on the time.
However a court docket doc filed within the litigation suggests Mr. Epstein’s transactions had raised warning indicators inside the financial institution for a few years. Within the doc — initially filed publicly however now underneath seal — JPMorgan stated dozens of financial institution workers had been concerned in figuring out whether or not suspicious exercise stories, or SARs, must be filed about a few of Mr. Epstein’s transactions from 2000 to 2019.
The doc provided no particulars on these transactions. Banks file SARs with U.S. regulators to alert them to attainable cash laundering, fraud or different criminal activity.
The identical doc additionally reported that in fall 2019 the financial institution’s board of administrators held two conferences to debate “Epstein-related points.” The doc didn’t present any info on these conferences, which occurred shortly after Mr. Epstein’s loss of life. The doc famous that through the 15 years the financial institution did enterprise with Mr. Epstein, the board by no means met to debate the financial institution’s dealings with him.
The board conferences got here across the time that quite a few information organizations, together with The Instances, had been reporting on the financial institution’s relationship with Mr. Epstein and his shut ties with Mr. Staley.
Mr. Dimon stated on reflection that he wished he and others had identified extra about Mr. Epstein’s crimes. He stated that the financial institution’s involvement with the intercourse offender ranks as certainly one of its greater reputational hits however that the financial institution shouldn’t be held chargeable for Mr. Epstein’s sins.
“I feel what occurred to those girls is atrocious,” he stated. “I wouldn’t thoughts personally apologizing to them, not as a result of we dedicated the crime. We didn’t. And never as a result of we imagine we’re accountable, however that any potential factor, what little position that we may have eased it or helped catch it faster or one thing like that.”
