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

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

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

Even when different executives equivalent to Mary Erdoes, one of many financial institution’s most senior managers, had been vouching for the intercourse offender, the financial institution’s high lawyer was the one that “had the flexibility to override” their selections, Dimon mentioned.

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

In line with the transcript, legal professionals for the US Virgin Islands — which is bringing one among two circumstances in opposition to JPMorgan — indicated that Steve Cutler, the financial institution’s high lawyer from 2007 to 2016, had named Erdoes and Staley because the executives answerable for holding 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, it’s important to go,” Dimon mentioned. “However he might have accomplished that.”

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

Courtroom filings within the two circumstances have detailed how Erdoes, who now runs the financial institution’s $4tn asset and wealth administration division, and Staley, have 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 want to put it and [Epstein] behind us. Not an individual we must always do enterprise with, interval.” He additionally wrote “This isn’t an honourable particular person in any means. 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 final word authority to kick him out if he thought it had gone that far,” Dimon mentioned in his testimony. “I feel the final word decider would have been the final counsel of the corporate.”

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

JPMorgan mentioned: “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 mentioned 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 fees.

“I don’t recall figuring out something about Jeffrey Epstein till the tales broke someday in 2019,” Dimon mentioned. “I used to be stunned 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, mentioned on Wednesday that Dimon had admitted the financial institution’s “high executives knew for years that Epstein was a convicted intercourse offender who continued to focus on younger ladies”.

“Epstein withdrew a whole bunch of tens of millions of {dollars} a 12 months in money to fund what he was doing, and . . . used his internet of JPMorgan accounts,” mentioned 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 Road 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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