Jess Staley, former Barclays CEO, is trying to convince the High Court that when the pair sent a letter to financial regulators claiming they had “no close relationship,” the bank knew the extent of their relationship with child sexual abuse offender Jeffrey Epstein.
The debate forms part of Staley's attempt to challenge the Financial Conduct Authority (FCA) decision to ban him from senior roles in the UK's financial sector in 2023.
The former Barclays boss, who resigned in 2021, was also fined £1.8 million, and later lost £18 million in wages and bonuses from the bank.
The two-week hearing on the matter at London's Upper Court began with Staley attendance on Monday. It is expected to continue until at least March 14th.
The opening statement shows Staley's legal team disputing the true purpose of the letter Barclays sent to the FCA in October 2019, claiming that the bank's board of directors had been explained to the extent of their relationship with the late investor who passed away in August 2019.
“Barclays knew that Staley had a “close” professional relationship with Epstein, which has been extended for many years… [and] There was an aspect of that relationship that was not limited to business,” the opening statement said.
A letter to the Barclays FCA said “Jess confirmed with us that he had no close relationship with Mr. Epstein,” and said “the last contact with Mr. Epstein came before he joined Barclays in 2015.”
After Watchdog received more information from Staley's former employer, JP Morgan, an official FCA investigation launched in December 2019 found Staley in contact with Epstein. The day leading up to his appointment, announced in the fall of 2015.
The pair also claimed they later used Staley's eldest daughter as a “middle” to stay in touch with her ever since becoming CEO of Barclays until at least February 2017.
The broader case of the FCA outlines the depth of their alleged relationship, including the allegations that Epstein sends messages to Staley about sex, women and foreign holidays, and that he works behind the scenes to strengthen Staley's career by communicating with government officials, business leaders and loyalties.
Staley's lawyers will argue that the FCA only guaranteed that Staley or Barclays “is knowledge or involvement of Mr. Epstein's misconduct” rather than the scope and nature of the relationship. The lawyers argue that the letter was “drawn and approved in very different terms.”
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The opening statement by Staley's lawyers stated: [Financial Conduct] The authority said that neither Staley, Barclays nor Barclays were involved in Epstein's illegal activities.
“It was not intended to define the relationship between Staley and Epstein, and the language adopted was not drafted or approved for that purpose.”
Staley resigned four years ago after the FCA reached a preliminary decision on an investigation into its relationship with Epstein. The investigation began several months after Epstein's death in 2019. The financier died in prison while awaiting trial on charges of trafficking a girl who was trafficked for sex.
