Jeffrey Epstein: banks face complaints about the case – 03/21/2023 – Market

JPMorgan Chase and Deutsche Bank will be forced to face court allegations that they benefited from the crimes of late sex offender Jeffrey Epstein, although a New York judge has rejected several other related charges against creditors.

The banks – both of which had Epstein as a client for several years – were sued separately last year by women who said they were sexually assaulted by Epstein. JPMorgan also faces a lawsuit from the US Virgin Islands, where the perpetrator had a home. The cases were consolidated for pre-trial proceedings.

After hearings last week, Judge Jed Rakoff on Monday dismissed six civil lawsuits from an Epstein accuser, identified as Jane Doe. [anônima]against JPMorgan and eight other actions against Deutsche Bank.

However, the judge allowed several claims from the Jane Doe cases to be pursued against each creditor, including allegations that the banks “knowingly benefited from participation in a sex trafficking scheme”, as well as a similar complaint in the US Virgin Islands against the JPMorgan.

Rakoff wrote that he would explain the reasons for the decisions “in due course”, but did not elaborate. The trial date has been tentatively set for October.

JPMorgan’s lawyers have long argued that the allegations are “without merit”, while Deutsche Bank’s lawyer has characterized them as “fabricated allegations”.

The related lawsuits and filings provided the most complete picture to date of JPMorgan’s relationship with Epstein, who was a client of its private bank for wealthy clients from 1998 to 2013. Internal bank communications raising concerns about Epstein, who was first arrested for sex crimes in 2006 were disclosed in court records.

Earlier this month, JPMorgan sued former executive Jes Staley after testimony from Epstein’s alleged victim revealed what the bank’s lawyers said were unknown allegations against the 66-year-old American.

JPMorgan pointed to allegations that Staley, who managed the US creditor bank’s relationship with Epstein, had witnessed and even participated in sex crimes at Epstein’s residences and did not disclose the fact, “despite having a fiduciary duty” to tell his employers and despite the bank “asking your opinion on whether to keep Epstein as a client,” the lender said.

Staley has previously denied any involvement in Epstein’s crimes.

JPMorgan asked the court to rule that Staley, who later became the head of British bank Barclays, should be liable if any damages are awarded to Epstein’s victim or the US Virgin Islands. The bank also tried to recoup more than $80 million of his salary.

Staley will be questioned under oath by lawyers as part of the litigation, as well as senior JPMorgan executives.

Carol Thomas-Jacob, Acting Attorney General of the US Virgin Islands, said she was pleased with the court’s decision: “We look forward to discovering additional facts about the depth and scope of JPMorgan’s conduct in the discovery process and ultimately proving our case in court”.

Brad Edwards, a partner at Edwards Pottinger and an attorney for the anonymous survivors of Jeffrey Epstein, said it was “a monumental victory for the hundreds of survivors of Jeffrey Epstein’s sex trafficking ring and survivors of sexual abuse in general, all of whom can peace of mind knowing that no individual or institution is exempt from accountability”.

JPMorgan and Deutsche Bank declined to comment.

Epstein pleaded guilty in 2008 in state court to the charge of soliciting prostitution from a minor. He committed suicide in 2019 while awaiting trial on federal charges of sex trafficking underage girls. Ghislaine Maxwell, Epstein’s former girlfriend, was convicted in 2021 of facilitating his abuse and sentenced to 20 years in prison.

Translated by Luiz Roberto M. Gonçalves