Former Barclays boss Jes Staley didn’t mislead the UK’s monetary watchdog over his relationship with disgraced financier Jeffrey Epstein, Staley’s legal professionals mentioned on Monday at the beginning of a London court docket case wherein the previous banker seeks to revive his popularity.
Staley appeared in court docket flanked by his legal professionals as his attraction towards the Monetary Conduct Authority’s intention to ban him from working within the UK finance business indefinitely, and fantastic him 1.8 million kilos ($2.3 million), started at London’s Higher Tribunal.
The 68-year-old will subsequent week be cross-examined over his relationship with Epstein, whose 2019 arrest for intercourse trafficking minors and subsequent dying in custody introduced scrutiny on the late financier’s many high-profile associates.
Epstein’s crimes have additionally prompted lawsuits towards JPMorgan, the place Staley was beforehand head of the non-public financial institution and had Epstein as a serious shopper, and public figures like Britain’s Prince Andrew in addition to towards Staley himself.
Staley has fought to clear his identify since 2021 when he left Barclays, in response to the FCA’s preliminary resolution to take disciplinary motion over a 2019 letter despatched to the watchdog by Barclays.
The FCA mentioned in 2023 that it meant to ban Staley because the letter contained two deceptive statements: that Staley “did not have a close relationship” with Epstein and their final contact was “well before he joined Barclays in 2015.”
Staley says each statements have been correct and that the pair had solely a “close professional relationship,” arguing his occasional visits to Epstein’s non-public island or use of his non-public jet don’t contradict that.
His lawyer, Robert Smith, mentioned on Monday that the letter to the FCA “was never intended to provide a definitive description of the relationship.”
FCA lawyer Leigh-Ann Mulcahy earlier mentioned the watchdog doesn’t allege Staley was conscious of Epstein’s crimes after the latter’s 2008 conviction for soliciting a minor for prostitution.
She mentioned in court docket filings, nonetheless, that Staley has “consistently mis-stated the nature of his relationship with Mr Epstein, in particular downplaying the closeness and extent of their connection”.
The FCA’s case facilities on a cache of over 1,000 emails between Staley and Epstein, wherein Staley described their friendship as “profound” and referred to Epstein as “family.”
The emails additionally characteristic beforehand reported references to a few of Epstein’s different well-known associates, comparable to Peter Mandelson, now British ambassador in Washington, Microsoft founder Invoice Gates and billionaire investor Leon Black.
“Many people will have born the stigma of having to explain why they had a long standing and close association with Mr. Epstein,” Staley’s lawyer Smith mentioned in court docket filings. “Mr. Staley does not stand in some unique position in this regard.”
The FCA says the emails present Staley handed private info to Epstein whereas at JPMorgan and up to date Epstein on his utility for the Barclays CEO job.
Additional emails obtained from litigation within the U.S. Virgin Islands means that Staley’s daughter acted as an “intermediary” in 2016 and 2017, the FCA argues.
“Could you ask your dad if he would like to be considered for Treasury,” Epstein emailed Alexa Staley in November 2016, weeks after Donald Trump’s victory within the U.S. presidential election.
Staley’s legal professionals, nonetheless, say the actual fact Epstein initiated all 5 electronic mail chains with Staley’s daughter demonstrates that Staley was now not involved with Epstein.
The attraction will hear proof from Financial institution of England Governor Andrew Bailey, who was FCA chief govt between 2016 and 2020, later this week. Barclays Chair Nigel Higgins is predicted to enter the witness field subsequent week, shortly earlier than Staley.
