An lawyer for the U.S. Virgin Islands argued in federal courtroom that JPMorgan Chase CEO Jamie Dimon and ex-top financial institution government Jes Staley had been conscious of intercourse trafficking by the financial institution’s infamous consumer Jeffrey Epstein.

The lawyer’s argument pushed again at JPMorgan’s transfer earlier this month to shift any obligation for its enterprise relationship with the late Epstein onto Staley alone.

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“Jamie Dimon knew in 2008 that his billionaire consumer was a intercourse trafficker,” lawyer Mimi Liu instructed Manhattan U.S. District Choose Jed Rakoff at a listening to late Thursday, referring to the 12 months Epstein was first criminally charged with intercourse crimes.

“If Staley is a rogue worker, why is not Jamie Dimon?” Liu stated on the listening to, which handled JPMorgan’s efforts to dismiss the Virgin Islands’ lawsuit towards the financial institution over its relationship with Epstein.

The lawyer continued: “Staley knew, Dimon knew, JPMorgan Chase knew” about Epstein’s prison conduct.

Liu stated there have been a number of money transactions and wire transfers by Epstein, together with sending lots of of 1000’s of {dollars} to a number of girls, which ought to have been formally flagged as suspicious.

“They broke each rule to facilitate his intercourse trafficking in trade for Epstein’s wealth, connections and referrals,” Liu argued

“This case was not simply Jes Staley … there will probably be quite a few paperwork that go far past his workplace to the manager suite,” she stated. 

A lawyer for JPMorgan disputed these arguments, “specifically the purpose about Jamie Dimon having any particular information.”

Dimon just isn’t a named defendant within the go well with towards the financial institution.

JPMorgan spokeswoman Patricia Wexler in a press release stated, “It’s unfair for CNBC to report attorneys’ unsubstantiated arguments as details.”

Wexler additionally stated, “Jamie Dimon has no recollection of reviewing the Epstein accounts.”

Staley has denied understanding about Epstein’s unlawful conduct. He was CEO of Barclays from 2015 till late 2021, when he give up after a probe by British monetary regulators into his ties to Epstein.

Attorneys for the Virgin Islands beforehand have highlighted an August 2008 inner e-mail at JPMorgan which recommended that Epstein’s account could be closed that 12 months due to issues over his conduct.

“I might rely Epstein’s belongings as a possible outflow for ’08 ($120mm or so?) as I am unable to think about it is going to keep (pending Dimon evaluate),” an unidentified worker wrote in that e-mail, talked about within the Virgin Islands’ lawsuit.

That e-mail got here two years after JPMorgan’s World Company Safety Division discovered a number of newspaper articles “that element the indictment of Jeffrey Epstein in Florida on felony costs of soliciting underage prostitutes,” the lawsuit famous.

The Virgin Islands’ lawsuit towards the financial institution alleges that Epstein’s 15-year buyer relationship with the financial institution helped him transport younger girls, whom he and others then sexually abused at his property within the Virgin Islands.

The go well with was filed three years after Epstein, who was a former pal of ex-Presidents Donald Trump and Invoice Clinton, died by suicide in a Manhattan jail whereas awaiting trial on federal baby intercourse trafficking costs.

JPMorgan has stated Dimon was not concerned in choices associated to Epstein’s account on the financial institution.

Final week, the financial institution sued Staley, its former chief of funding banking, alleging that he’s legally answerable for lawsuits from the Virgin Islands and Epstein’s victims associated to Epstein’s relationship with JPMorgan. The go well with seeks to claw again greater than $80 million in compensation Staley acquired.

In arguments Thursday, a lawyer for the financial institution stated “all roads go to Mr. Staley.”

“He will probably be on the middle of this case whether or not there may be one or two” trials for every lawsuit, the lawyer stated.

Epstein was a personal wealth consumer of the financial institution till 2013, a minimum of partly as a result of Staley had vouched for him.

However in 2008, Epstein pleaded responsible to a Florida state cost of procuring an underage prostitute, a criminal offense that was extensively reported on the time. He later served 13 months in jail.

“In 2013 — the 12 months that JP Morgan terminated its relationship with Epstein — JPMorgan flagged in Epstein’s historical past that ‘[p]er financial institution coverage, felons [like Epstein] are thought of excessive danger and require further approval,'” the Virgin Islands’ go well with notes.

Rakoff, the decide, didn’t rule on the movement to dismiss the go well with Thursday. He stated he would rule on that query by the tip of March.

However Rakoff did rule towards JPMorgan on one other subject, discovering that the Virgin Islands has the suitable to file a lawsuit on behalf of anybody who was a resident of the territory.

— Further reporting by Eamon Javers