A New York federal decide warned JPMorgan Chase that he would possibly discover the financial institution in contempt of courtroom if it doesn’t velocity up in producing proof associated to late sexual offender and cash supervisor Jeffrey Epstein for lawsuits by an Epstein accuser and the federal government of the U.S. Virgin Islands, CNBC has realized.
Decide Jed Rakoff urged in a discover that JPMorgan and two regulation corporations representing the financial institution have been slow-walking in turning over paperwork and different proof to plaintiffs within the case, underneath a course of generally known as discovery, in response to a supply accustomed to the discover.
The discover comes two weeks earlier than JPMorgan CEO Jamie Dimon is scheduled to be questioned underneath oath by plaintiffs’ legal professionals for the civil fits, which accuse his financial institution of enabling and benefiting from Epstein’s alleged intercourse trafficking of younger girls.
“The Court docket additionally needs to notice that it’s involved that JPMorgan just isn’t shifting extra expeditiously to supply responsive paperwork,” Rakoff wrote within the discover, which has but to look on the general public docket within the case in U.S. District Court docket in Manhattan.
“Whereas the Court docket appreciates the big quantity of discovery that’s to be accomplished on this case, an organization as massive as JPMorgan and counsel as skilled as WilmerHale and Massey & Gail ought to be capable to transfer with better velocity than what was revealed by this incident,” the decide wrote, referring to the financial institution’s two regulation corporations.
“So JPMorgan is placed on discover that additional expedition will probably be wanted on ache of being put in contempt of Court docket,” Rakoff wrote.
A JPMorgan spokesperson had no touch upon the discover.
Jeffrey Epstein attends Launch of RADAR MAGAZINE at Resort QT on Could 18, 2005.
Patrick McMullan | Getty Pictures
Epstein, who died from a jailhouse suicide in 2019 shortly after being arrested on federal baby intercourse trafficking prices, was a long-time buyer of the financial institution till 2013.
The lawsuits allege the financial institution allowed Epstein to stay a consumer regardless of proof he was utilizing tens of millions of {dollars} he saved on deposit to facilitate his trafficking of ladies and younger girls to his non-public island within the Virgin Islands and elsewhere.
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5 years earlier than JPMorgan ended its buyer relationship with Epstein, he pleaded responsible in Florida state courtroom to soliciting intercourse for cash from an underage lady and served 13 months in jail.
Earlier than his conviction, Epstein was buddies with former presidents Donald Trump and Invoice Clinton, in addition to Prince Andrew of Britain.
JPMorgan denies any wrongdoing, and in its personal civil grievance the corporate has mentioned former financial institution govt Jes Staley could be legally chargeable for any legal responsibility arising from its relationship with Epstein.
Staley spent three a long time at JPMorgan and had shut contact with Epstein — whom he thought of a good friend — through the years when Epstein was a buyer.
Rakoff, in a courtroom ruling revealed in early Could, famous that “plaintiffs allege that Mr. Staley had first-hand data of Jeffrey Epstein’s sex-trafficking operation.”
“Mr. Staley is alleged to have visited Epstein’s residences a number of occasions whereas that operation was ongoing, and, throughout these visits, noticed [the Epstein accuser suing JPMorgan] ‘as a sexual trafficking and abuse sufferer,'” Rakoff famous.
“Plaintiffs additional allege that Mr. Staley himself abused a few of Epstein’s victims, together with” the girl suing the financial institution, the decide wrote. That lady claims that “‘one in all Epstein’s buddies’ — whom she later recognized as Mr. Staley — ‘used aggressive drive in his sexual assault of her and knowledgeable [her] that he had Epstein’s permission to do what he wished to her.'”
In his personal courtroom submitting, Staley referred to as the accusations towards him “baseless,” and he has denied data of Epstein’s intercourse trafficking.
Staley stepped down as CEO of British banking large Barclays in late 2021 after an inquiry by a United Kingdom regulator into how he had characterised his relationship with Epstein to Barclays.
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