Jamie Dimon, the CEO of JP Morgan, has officially responded to two lawsuits regarding connections between the biggest US bank and Jeffrey Epstein, a convicted sex offender.
Five years after the billionaire pleaded guilty to exploiting a minor for prostitution, the almost 15-year connection spanned from 1998 to 2013.
The bank allegedly ignored warning flags regarding its profitable client and continued to benefit from him, according to the prosecution.
Both Mr. Dimon and his business have rejected all accusations of fraud and responsibility.
JP Morgan reported on Friday night that Mr. Dimon said he had never spoken to or met Epstein and couldn't recall anybody else at the bank bringing up Epstein's accounts to him.
The bank's New York headquarters hosted a hearing earlier in the day where Mr. Dimon provided his testimony.
Before being dismissed as a client, Epstein, who committed suicide in 2019, maintained hundreds of millions of dollars in more than 50 accounts with the bank.
Despite internal concerns being raised about his legal issues and the underlying behavior, according to two complaints made late last year and filed in federal court, JP Morgan continued to do business with him.
Two parties filed the lawsuits: one on behalf of Epstein's victims and the other on behalf of the US Virgin Islands government (where he had a private island).
Attorneys in the Virgin Islands lawsuit said that the bank "knowingly facilitated, sustained, and concealed" Epstein's repeated cash withdrawals for the young women he trafficked while profiting from the transactions and clients he brought in.
According to court records made available to the public last week, roughly 40 workers raised questions about Epstein's business dealings.
The head of the bank's asset and wealth management division, Mary Erdoes, said in a March deposition that she was repeatedly informed of Epstein's actions but did not feel it was her obligation to kick him out as a customer. The Washington Post broke the story on Friday.
According to other records obtained by the New York Times, Epstein was well acquainted with JP Morgan executives and had easy access to them.
JP Morgan, which previously failed in its attempt to have the two lawsuits dismissed, has stated that any civil accountability in the matter lies with former executive Jes Staley, an associate of Epstein and Mrs. Erdoes' boss.
This week, Mr. Staley was unsuccessful in his attempt to have the complaint against him dismissed; nonetheless, he claims that his former company is attempting to "deflect blame" by using him as a "public relations shield" for their shortcomings.
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