JPMorgan sues former exec over ties to Epstein sex abuse

NEW YORK –

JPMorgan Chase sued its former executive Jess Staley on Wednesday, alleging he helped cover up years of sexual assault and trafficking by Jeffrey Epstein to keep the financier as a client.

The New York bank is seeking to hold Staley personally liable for any financial penalties JPMorgan may pay in the two related cases. It also seeks to force Staley to return any wages he earned while he was allegedly aware of the abuse.

“Given Staley’s willful and egregious conduct in failing to disclose relevant information and abandoning (JPMorgan’s) interests in favor of his own and Epstein’s personal interests, (the bank) is entitled to punitive damages,” the bank’s lawsuit said.

Staley’s attorney had no comment on JPMorgan’s lawsuit.

JPMorgan’s lawsuit comes after the bank was sued by the government of the US Virgin Islands, as well as a woman named Jane Doe who was allegedly abused by Epstein. Those lawsuits allege that JPMorgan should have seen evidence of Epstein’s sex trafficking and knowingly benefited from it. The bank denies the allegations.

Staley left JPMorgan in 2013. Last year, he resigned as chief executive of London-based Barclays following a report by British regulators into his past ties to Epstein.

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AP Business writer Barbara Ortutay contributed to this report from San Francisco.