JPMorgan Chase JPM is suing a former top executive, Jes Staley, in order to make him responsible for any penalties that might arise out of two lawsuits related to the sex trafficking crimes of Jeffrey Epstein.
What Happened: Staley allegedly “personally observed” Epstein abusing women and is said to have “spent time” with young girls at the latter’s homes — he did not inform the bank about this, said JPMorgan in a court filing submitted to a Manhattan federal court, reported The Financial Times.
The former executive did not make these disclosures “despite having a fiduciary duty” to tell the New York-based bank and despite JPMorgan “asking him to offer his views as to whether [it] should retain Epstein as a client,” said the filing, according to the report.
“Staley repeatedly abandoned the interests of [the bank] in pursuit of his own personal interests and benefits and those of Epstein,” the JPMorgan complaint said.
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Why It Matters: JPMorgan wants Staley to be held accountable for damages should the bank be found liable, reported FT.
“At the time, we could not have imagined any of our employees would engage in the type of conduct alleged.”
In addition to Staley being made liable for any damages, JPMorgan reportedly also wants the court to order Staley to return his compensation for the “time period of his disloyalty,” which the bank said was at least between 2006 and 2013.
Price Action: On Wednesday, JPMorgan shares closed 0.6% lower at $137.79 in the regular session and fell 0.25% in the after-hours trading, according to data from Benzinga Pro.
Read Next: Jamie Dimon Not 'Relevant' To Decisions On Epstein's Account, Says JPMorgan
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