Former Barclays boss Jess Staley did not mislead the UK's financial watchdog about his relationship with dishonorable investor Jeffrey Epstein, Staley's lawyer said Monday at the start of a London lawsuit in which the former banker attempts to restore his reputation.
Staley began in the Upper Court in London, appearing next to his lawyers for the Financial Conduct Authority's intentions to ban indefinitely working jobs in the UK's finance industry and fine £1.8 million ($2.3 million);
The 68-year-old was cross-examined about his relationship with Epstein next week, and in 2019 he was arrested for a sex trafficking minor, and his subsequent deaths in detention were scrutinized by many well-known associates of the late investor.
Epstein's crimes also prompted a lawsuit against JPMorgan, where Staley was previously the head of a private bank and had Epstein as his primary client.
Staley has fought to clear his name since 2021 when he left Barclays in response to the FCA's initial decision over a 2019 letter sent to Watchdog by the Barclays.
The FCA said in 2023 it intended to ban Staley as the letter contained two misleading statements. Staley “had no close relationships” with Epstein and his final contact was “before he joined Barclays in 2015.”
Staley claims that both statements are accurate, and that the pair only have “close professional relationships,” and that Epstein's visit to private islands and the use of private jets is not inconsistent with that.
His lawyer, Robert Smith, said Monday that the letter to the FCA was “not intended to provide a definitive explanation of the relationship.”
FCA lawyer Leigh-Ann Mulcahy said the previous Watchdog did not argue that Staley was unaware of Epstein's crimes after his 2008 conviction that he sought prostitution for minors.
However, in her court application, she said Staley “consistently misrepresents the nature of her relationship with Mr. Epstein, particularly underestimating the intimacy and scope of their connection.”
The FCA case focuses on a cache of over 1,000 emails between Staley and Epstein. Staley describes their friendship as “deep” and calls Epstein “family.”
The email also features references to other well-known Epstein peers previously reported. For example, there have been references to famous peers before, such as the UK ambassador in Washington, Microsoft founder Bill Gates, and billionaire investor Leon Black.
“Many people would have created the stigma of having to explain why they have had such close relationships with Mr. Epstein over the years,” Staley's attorney Smith said in a court filing. “Mr. Staley is not in a unique position in this regard.”
According to the FCA, the email said Staley handed out private information to Epstein while he was at JPMorgan, and updated Epstein on his application for Barclays CEO job.
Further emails from the US Virgin Islands lawsuit suggest that Staley's daughter acted as a “middle” in 2016 and 2017, the FCA alleges.
Epstein emailed Alexa Staley in November 2016, “Please ask your dad if he wants the Treasury to consider it,” he emailed Alexa Staley in November 2016, weeks after Donald Trump's victory in the US presidential election.
However, Staley's lawyers say the fact that Epstein has launched all five email chains with Staley's daughter indicates that Staley is no longer in contact with Epstein.
The appeal will hear evidence later this week from Bank of England Governor Andrew Bailey, who was FCA's CEO between 2016 and 2020. Barclays Chair's Nigel Higgins is expected to enter the witness box just before Staley next week.
