A New York federal decide warned JPMorgan Chase that he would possibly discover the financial institution in contempt of court docket if it doesn’t pace 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 discovered.
Choose Jed Rakoff recommended 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, beneath a course of often called 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 beneath 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 Court docket additionally needs to notice that it’s involved that JPMorgan 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 higher pace 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 might 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 Photographs
Epstein, who died from a jailhouse suicide in 2019 shortly after being arrested on federal baby intercourse trafficking fees, 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 stored on deposit to facilitate his trafficking of ladies and younger ladies 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 court docket 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 grievance the corporate has mentioned former financial institution government Jes Staley can be legally accountable 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-about a good friend — through the years when Epstein was a buyer.
Rakoff, in a court docket ruling revealed in early Could, 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 girl suing the financial institution, the decide wrote. That lady claims that “‘one in all Epstein’s pals’ — whom she later recognized as Mr. Staley — ‘used aggressive pressure 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 court docket submitting, Staley known as the accusations in opposition to 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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