By Sam Tobin
LONDON (Reuters) – Ex-Barclays boss Jes Staley on Tuesday insisted he was shocked by serial paedophile Jeffrey Epstein’s 2019 arrest for sex trafficking, though Britain’s Financial Conduct Authority (FCA) said that contradicted his evidence in a separate case.
Staley began his second day in the witness box at his appeal against a proposed ban and 1.8 million pound ($2.3 million) fine by the FCA, saying he had no idea about late financier Epstein’s “monstrous activities”.
The 68-year-old, who is fighting the ban at London’s Upper Tribunal, said in his witness statement that he was “shocked and surprised” by Epstein’s 2019 arrest for sex trafficking minors.
But lawyers representing the FCA said allegations against Epstein were known within JPMorgan, where Staley was previously head of the private bank and had Epstein as a client, which undermined Staley’s stance.
The FCA’s lawyer Leigh-Ann Mulcahy also cited Staley’s own evidence in a lawsuit brought against him by JPMorgan in the U.S. Virgin Islands, which was settled in 2023.
Staley said in a deposition that he stopped speaking to Epstein in 2015 as he realised he had lied about his “terrible past”, and Staley “was not that surprised” by Epstein’s arrest.
Mulcahy said that was “inconsistent with your statement in these proceedings”, to which Staley replied: “You have found two testimonies where there seems to be an inconsistency.”
Staley also said in relation to the 2023 case in the U.S. Virgin Islands: “I paid nothing.”
Staley’s high-stakes appeal has revealed details of Barclays’ handling of the FCA probe into Staley, who left the bank in 2021, and also sheds light on his ties to Epstein.
Epstein’s arrest and death in custody also brought scrutiny on the financier’s other high-profile associates, including Britain’s Prince Andrew and Microsoft founder Bill Gates.
‘SHOULDER TO SHOULDER’
The FCA’s lawyer Mulcahy asked Staley about Epstein’s 2008 conviction for soliciting a minor for prostitution, after which Staley visited him while Epstein was on work release.
Staley said in his witness statement that he had understood it to be “an isolated transgression”, adding in the witness box: “If I was aware of his monstrous activities, I would not have maintained a relationship.”
Staley was asked about an email Epstein sent to Staley and three others on the day he was released from prison in 2009, to which Staley replied: “I toast your courage!!!!!”
Mulcahy also referred to internal JP Morgan correspondence documenting concerns about Epstein before the bank ended the relationship in 2013.
In September 2014, Staley’s friend Michael Ovitz, who co-founded Creative Artists Agency, emailed Staley a link to a story which referred to multiple civil lawsuits brought against Epstein by young women and girls.
Three months later, Staley emailed Epstein: “The strength of a Greek army was that its core held shoulder to shoulder, and would not flee or break, no matter the threat. That is us.”
Mulcahy asked whether that was a reference to “the legal trouble that Mr Epstein was facing”, which Staley denied.
Staley’s appeal centres on a 2019 letter sent by Barclays Chair Nigel Higgins to the FCA, which approached the British bank shortly after Epstein’s arrest.
The FCA says the letter contained two misleading statements: that Staley “did not have a close relationship” with Epstein and their last contact was “well before he joined Barclays in 2015”. Staley says both statements were accurate.
Staley is expected to be in the witness box for the rest of the week, with closing arguments to be made in April.
(This story has been corrected to remove the reference of JP Morgan paying Staley in US lawsuit in paragraph 8)
(Reporting by Sam Tobin; editing by Barbara Lewis and Joe Bavier)
