‘Ultimate decider’ on Jeffrey Epstein was JPMorgan’s ex-top lawyer, says Jamie Dimon

Jamie Dimon has recognized JPMorgan Chase’s former common counsel because the “final decider” who had the authority to axe Jeffrey Epstein as a shopper, in keeping with sworn testimony by the financial institution’s chief govt.

Even when different executives reminiscent of Mary Erdoes, one of many financial institution’s most senior managers, had been vouching for the intercourse offender, the financial institution’s prime lawyer was the one who “had the flexibility to override” their choices, Dimon stated.

Dimon made the assertion throughout a seven-hour deposition final week, a transcript of which has been seen by the Monetary Occasions. He was responding to strategies that the choice to retain Epstein had been made by Erdoes and Jes Staley, the disgraced financier’s former personal banker.

In keeping with the transcript, legal professionals for the US Virgin Islands — which is bringing certainly one of two instances in opposition to JPMorgan — indicated that Steve Cutler, the financial institution’s prime lawyer from 2007 to 2016, had named Erdoes and Staley because the executives accountable for conserving Epstein on after his first arrest for intercourse crimes in 2006.

“If [Cutler] allowed them to make that judgment, it’s as a result of he didn’t step in and say, you must go,” Dimon stated. “However he might have completed that.”

Dimon’s deposition was taken in relation to 2 instances by which JPMorgan is accused of ignoring pink flags referring to Epstein and benefiting from human trafficking. One has been introduced by a girl who stated she was abused by Epstein, and the opposite by the US Virgin Islands, the place the late intercourse offender had a house.

Court docket filings within the two instances have detailed how Erdoes, who now runs the financial institution’s $4tn asset and wealth administration division, and Staley, had been concerned in a number of inside conversations about whether or not Epstein needs to be dropped as a shopper, and that they personally visited his residences.

In 2011, Cutler despatched an electronic mail that learn: “I wish to put it and [Epstein] behind us. Not an individual we should always do enterprise with, interval.” He additionally wrote “This isn’t an honourable particular person in any approach. He shouldn’t be a shopper.”

Epstein pleaded responsible in 2008 to a state cost in Florida of soliciting a minor for prostitution. He remained a shopper of JPMorgan till 2013.

“Mr Cutler had the last word authority to kick him out if he thought it had gone that far,” Dimon stated in his testimony. “I believe the last word decider would have been the final counsel of the corporate.”

Cutler, a former director of enforcement on the US Securities and Trade Fee who subsequently left JPMorgan to enter personal follow at Simpson Thacher, didn’t instantly reply to a request for remark.

JPMorgan stated: “Had the agency believed he was engaged in an ongoing intercourse trafficking operation, Epstein wouldn’t have been retained as shopper. In hindsight, we remorse he was ever a shopper.”

In his deposition, the 67-year-old Dimon stated he first realized that Epstein had held accounts at JPMorgan for 15 years about 4 years in the past, when the disgraced financier was arrested on federal intercourse crime prices.

“I don’t recall realizing something about Jeffrey Epstein till the tales broke someday in 2019,” Dimon stated. “I used to be shocked that I . . . had by no means even heard of the man, just about, and the way concerned he was with so many individuals.”

David Boies, a lawyer for the unnamed Epstein accuser suing JPMorgan, stated on Wednesday that Dimon had admitted the financial institution’s “prime executives knew for years that Epstein was a convicted intercourse offender who continued to focus on younger ladies”.

“Epstein withdrew lots of of hundreds of thousands of {dollars} a yr in money to fund what he was doing, and . . . used his net of JPMorgan accounts,” stated Boies.

He added: “If, as he claims, Mr Dimon was the one particular person in New York who by no means heard of Epstein earlier than July 2019, that’s an indictment, not a defence.”

Dimon additionally denied ever being knowledgeable about Epstein’s accounts or behaviour by Staley, whom the financial institution is suing for allegedly withholding details about Epstein and for vouching for him internally.

Earlier on Wednesday, The Wall Avenue Journal reported that Staley claimed to have spoken to Dimon in particular person in regards to the account on a number of events — an allegation JPMorgan described as “false”.

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