Decide warns JPMorgan Chase in Jeffrey Epstein proof situation

A New York federal choose 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 steered in a discover that JPMorgan and two regulation companies representing the financial institution have been slow-walking in turning over paperwork and different proof to plaintiffs within the case, below a course of often known as discovery, in line with a supply conversant in the discover.

The discover comes two weeks earlier than JPMorgan CEO Jamie Dimon is scheduled to be questioned below 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 ladies.

“The Courtroom additionally needs to notice that it’s involved that JPMorgan is just not shifting extra expeditiously to provide responsive paperwork,” Rakoff wrote within the discover, which has but to look on the general public docket within the case in U.S. District Courtroom in Manhattan.

“Whereas the Courtroom appreciates the massive quantity of discovery that’s to be accomplished on this case, an organization as giant as JPMorgan and counsel as skilled as WilmerHale and Massey & Gail ought to be capable to transfer with higher velocity than what was revealed by this incident,” the choose wrote, referring to the financial institution’s two regulation companies.

“So JPMorgan is placed on discover that additional expedition can be wanted on ache of being put in contempt of Courtroom,” Rakoff wrote.

A JPMorgan spokesperson had no touch upon the discover.

Epstein, who died from a jailhouse suicide in 2019 shortly after being arrested on federal baby intercourse trafficking expenses, was a long-time buyer of the financial institution till 2013.

The lawsuits allege the financial institution allowed Epstein to stay a shopper regardless of proof he was utilizing tens of millions of {dollars} he saved on deposit to facilitate his trafficking of women and younger ladies to his personal island within the Virgin Islands and elsewhere.

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 woman and served 13 months in jail.

Earlier than his conviction, Epstein was pals with former presidents Donald Trump and Invoice Clinton, in addition to Prince Andrew of Britain.

JPMorgan denies any wrongdoing, and in its personal civil criticism the corporate has mentioned former financial institution government Jes Staley can 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 pal — over time when Epstein was a buyer.

Rakoff, in a courtroom ruling revealed in early Might, famous that “plaintiffs allege that Mr. Staley had first-hand information 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 lady suing the financial institution, the choose wrote. That lady claims that “‘one in every of Epstein’s pals’ — 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 needed to her.'”

In his personal courtroom submitting, Staley referred to as the accusations towards him “baseless,” and he has denied information of Epstein’s intercourse trafficking.

Staley stepped down as CEO of British banking big 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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