Latest / Beyond The Horizon / Mega Edition: Jes Staley And The Transcripts From His Epstein Related Trip To Congress (Part 11-13) (11/3/26)

Transcript

Mega Edition: Jes Staley And The Transcripts From His Epstein Related Trip To Congress (Part 11-13) (11/3/26) · Beyond The Horizon

• 0:00
  Speaker 1: What's up, everyone, and welcome to another episode of the
• 0:03
  Speaker 1: Epstein Chronicles. In this episode, we're going to pick up
• 0:06
  Speaker 1: where we left off with Jess Daly and the transcript
• 0:09
  Speaker 1: from his trip to Congress. Question, could I just follow
• 0:13
  Speaker 1: up really quickly? You said he deserved it. But then,
• 0:16
  Speaker 1: in a previous email we had looked at, you also said,
• 0:19
  Speaker 1: from what I see, it's so unfair. Do you know
• 0:23
  Speaker 1: what you were referring to there? Sullivan jumps in. Look
• 0:26
  Speaker 1: at the email, please. Question, page eight of the first exhibit.
• 0:29
  Speaker 1: I introduced the packet, the last page. Answer, so this
• 0:33
  Speaker 1: is not 2011? We're talking about 2008 now? Question, yes. Answer,
• 0:38
  Speaker 1: so three years before? Question, two years before, I believe.
• 0:42
  Speaker 1: We were talking 2010. Answer, okay, sorry, two years before.
• 0:46
  Speaker 1: This is when I guess he was going to jail, right? Question,
• 0:50
  Speaker 1: he had already been there for about three months, I believe,
• 0:52
  Speaker 1: at the time. Answer, thank you. Yeah, I don't know
• 0:56
  Speaker 1: what happened on that day, why that day was particularly tough. Question,
• 1:00
  Speaker 1: do you believe you were saying it's unfair that he
• 1:02
  Speaker 1: was serving time? Answer, I don't recall if I was
• 1:05
  Speaker 1: referring to that. Question, Mr. Staley, do you believe Mr.
• 1:09
  Speaker 1: Epstein's guilty plea is supported by the merits, by the facts? Answer,
• 1:13
  Speaker 1: he pleaded guilty. Question, that's not my question, sir. Do
• 1:17
  Speaker 1: you believe that it's supported by the facts? Answer, I
• 1:20
  Speaker 1: have no reason to say it wouldn't be. Question, okay. Mr. Staley,
• 1:25
  Speaker 1: I'd like to ask you some questions about your time
• 1:27
  Speaker 1: at J.P. Morgan. Before I do, a quick point of clarification.
• 1:31
  Speaker 1: You gestured at me when you said that I read
• 1:33
  Speaker 1: a list of names of referrals. That was not me.
• 1:36
  Speaker 1: That was my colleague on the majority, who is also
• 1:39
  Speaker 1: a woman with brown hair. Answer, sorry. Question, you were
• 1:43
  Speaker 1: head of JP Morgan's private bank from 1999 to 2001, correct? Answer, correct. Question,
• 1:51
  Speaker 1: and when you were promoted to CEO of JP Morgan's
• 1:54
  Speaker 1: asset management division in 2001, correct? Answer, correct. Question, and
• 1:59
  Speaker 1: you ran J.P. Morgan's Asset Management Division until 2009, at
• 2:04
  Speaker 1: which point you were appointed as CEO of the Investment
• 2:07
  Speaker 1: Banking Division, correct? Answer, correct. Question, and you left J.P.
• 2:12
  Speaker 1: Morgan in early 2013, correct? Answer, correct. Question, is it
• 2:17
  Speaker 1: accurate to say during the time that you were at
• 2:19
  Speaker 1: the company that in addition to banking services, J.P. Morgan
• 2:23
  Speaker 1: Private Bank offered clients customized lending services, investment advice, portfolio management,
• 2:30
  Speaker 1: and wealth planning? Answer, yes. Question, are there other services
• 2:35
  Speaker 1: that the private bank offered that I've left out? Answer,
• 2:38
  Speaker 1: can you read that again? Question, other than banking services,
• 2:42
  Speaker 1: customized lending services, investment advice, portfolio management, and wealth planning? Answer, that,
• 2:49
  Speaker 1: and I would add things like custody, was brokerage in there? Question,
• 2:53
  Speaker 1: brokerage was not in there. Answer, so I would include brokerage.
• 2:57
  Speaker 1: So those are the two that I would add. Question,
• 3:00
  Speaker 1: thank you. Is it also accurate to say that JP
• 3:03
  Speaker 1: Morgan's private bank would have worked in conjunction with the
• 3:06
  Speaker 1: asset management division in offering some of those services? Answer, yes. Question,
• 3:12
  Speaker 1: when you were head of the private bank, who did
• 3:14
  Speaker 1: you report to? Answer, I think it changed over time,
• 3:18
  Speaker 1: but ultimately, I reported to Jamie Dimon. Question, so when
• 3:22
  Speaker 1: you were the head of the private bank, you reported
• 3:24
  Speaker 1: to the CEO directly? There wasn't someone in between you? Answer, yeah.
• 3:28
  Speaker 1: I think it was initially Sandy Warner, then I believe
• 3:30
  Speaker 1: it was Bill Harrison, and then I believe it was
• 3:32
  Speaker 1: Jamie Dimon. Question, and when you became CEO of Asset Management,
• 3:37
  Speaker 1: did the head of the private bank then report to you? Answer, yes. Question,
• 3:42
  Speaker 1: and when you were CEO of Asset Management, you continued
• 3:45
  Speaker 1: to report to the CEO? Answer, yes. Question, and when
• 3:50
  Speaker 1: you were CEO of Investment Banking, the same was true?
• 3:53
  Speaker 1: You reported directly to the CEO? Answer, yes. Question, I'd
• 3:57
  Speaker 1: like to ask you a few high-level questions about J.P.
• 3:59
  Speaker 1: Morgan's due diligence reports. First, what is a due diligence report? Answer,
• 4:05
  Speaker 1: it's a report the bank has studied a certain topic
• 4:08
  Speaker 1: and has done its due diligence, whether it's know your client,
• 4:12
  Speaker 1: whether it's AML, anti-money laundering. There are activities that a
• 4:16
  Speaker 1: due diligence report might be part of. Question, what action
• 4:19
  Speaker 1: would trigger the creation of a due diligence report? Answer,
• 4:23
  Speaker 1: I don't know specifically. Question, do you know what action
• 4:26
  Speaker 1: would trigger an update? Answer, I mean, opening an account,
• 4:31
  Speaker 1: extending a loan, I think those activities would trigger a
• 4:34
  Speaker 1: due diligence report. Question, okay, so opening an account triggers
• 4:38
  Speaker 1: a due diligence report. In the context of the accounts,
• 4:41
  Speaker 1: excuse me, in the context of an account, what would
• 4:45
  Speaker 1: trigger an update to a due diligence report? Answer, change
• 4:48
  Speaker 1: in assets, change in direction of the account, any concern
• 4:52
  Speaker 1: that the bank might have, about the account or the
• 4:54
  Speaker 1: holder of the account, that sort of thing. Question, who
• 4:58
  Speaker 1: would typically create an update or due diligence report? Answer again,
• 5:01
  Speaker 1: I would think someone in risk, someone in compliance, someone
• 5:05
  Speaker 1: in legal, that type of thing. Question, would due diligence
• 5:09
  Speaker 1: reports be shared with individuals in the private bank or
• 5:13
  Speaker 1: the asset management division? Answer, sure. Question, would anyone at J.P.
• 5:17
  Speaker 1: Morgan need to sign off on a due diligence report? Answer,
• 5:20
  Speaker 1: I imagine someone in risk or credit or compliance, yeah.
• 5:24
  Speaker 1: Would need to sign off on a due diligence report. Question,
• 5:28
  Speaker 1: could it be someone in the private bank or the
• 5:30
  Speaker 1: asset management division? Answer, well, there were people in asset
• 5:34
  Speaker 1: management and the private bank that were part of compliance,
• 5:37
  Speaker 1: part of legal, part of risk. So in that sense, yes. Question,
• 5:42
  Speaker 1: got it, okay. I'd like to get a better sense
• 5:44
  Speaker 1: of Mr. Epstein's relationship with JP Morgan. Mr. Epstein became
• 5:48
  Speaker 1: a JP Morgan client In 1998, correct? Answer, that's my understanding. Question,
• 5:54
  Speaker 1: and he was still a J.P. Morgan client until 2013, correct? Answer,
• 5:59
  Speaker 1: that's my understanding, yes. Question, we understand that Mr. Epstein
• 6:03
  Speaker 1: had personal accounts and business accounts at J.P. Morgan, is
• 6:07
  Speaker 1: that correct? Answer, I believe so. Question, we also understand
• 6:12
  Speaker 1: that Mr. Epstein set up J.P. Morgan accounts for his staff,
• 6:15
  Speaker 1: is that correct? Answer, I was not aware of that,
• 6:17
  Speaker 1: but very possible. I was not involved in his account, so... Question.
• 6:22
  Speaker 1: We also understand that Mr. Epstein set up a J.P.
• 6:25
  Speaker 1: Morgan account for women that he was connected to. Are
• 6:27
  Speaker 1: you aware of that? Answer, no. Question. Who at J.P.
• 6:31
  Speaker 1: Morgan was responsible for servicing Mr. Epstein's accounts? Answer. He
• 6:36
  Speaker 1: had a banking team that I think was led by
• 6:38
  Speaker 1: a gentleman by the name of Paul Morris. Question. Do
• 6:41
  Speaker 1: you remember who else was on the team? Answer, no. Question.
• 6:45
  Speaker 1: What about Justin Nelson, who you referred to earlier? Answer, yeah,
• 6:48
  Speaker 1: I think he was earlier than I think it was
• 6:51
  Speaker 1: Paul Morris. That's my recollection. Question, anyone else? Answer, that's
• 6:55
  Speaker 1: all I recall. Question, what would Paul Barrett's role have
• 6:59
  Speaker 1: been in servicing Mr. Epstein's accounts? Answer, I don't know
• 7:03
  Speaker 1: who Paul Barrett is. Mr. Sullivan, do you mean Morris?
• 7:06
  Speaker 1: Are you thinking Morris? Question, that's my mistake, thank you.
• 7:10
  Speaker 1: What was Paul Morris's role in servicing Mr. Epstein's accounts? Answer,
• 7:14
  Speaker 1: I think he was lead banker for Jeffrey Epstein's accounts. Question,
• 7:17
  Speaker 1: and you said Justin Nelson came before Paul Morris. Is
• 7:20
  Speaker 1: that right? Answer, yeah. Again, I'm not sure. Question, was
• 7:24
  Speaker 1: he also lead banker in servicing Mr. Epstein's accounts? Answer,
• 7:28
  Speaker 1: I believe at one point he was, yes. Question, and
• 7:31
  Speaker 1: you said you don't know who Paul Barrett is. Is
• 7:34
  Speaker 1: that correct? Answer, that's correct. Question, what about Marcus Sheridan? Answer,
• 7:38
  Speaker 1: Mark Sheridan? I recognize the name. Question, but would you know,
• 7:43
  Speaker 1: you don't know what the role would have been? Answer,
• 7:45
  Speaker 1: it was a long time ago. Question, what about Mary Casey? Answer,
• 7:49
  Speaker 1: I think Mary Casey ran one of the banking groups
• 7:52
  Speaker 1: for which Paul Morris was one of the bankers. We
• 7:55
  Speaker 1: were divided by geography, so I wonder, I think Mary
• 7:58
  Speaker 1: Casey ran one of the geographic groups that included Epstein's account. Question,
• 8:04
  Speaker 1: what about Lisa Waters? Answer, my recollection is that Lisa
• 8:07
  Speaker 1: Waters was in compliance, but I'm not sure. Question, when
• 8:12
  Speaker 1: did you first learn that J.P. Morgan had concerns with Mr.
• 8:15
  Speaker 1: Epstein's accounts? Answer, I think there were concerns in 2008, 2006, 2008. Question,
• 8:21
  Speaker 1: 2006 or 2008 is when you first learned that J.P.
• 8:25
  Speaker 1: Morgan had concerns with Epstein's accounts. Answer, well, there was
• 8:29
  Speaker 1: a rapid response meeting, and there was, you can line
• 8:32
  Speaker 1: it up with the date, and I think it was 2006. Question,
• 8:35
  Speaker 1: do you remember whose concern that was? Answer, he was,
• 8:39
  Speaker 1: he was indicted. Question, in 2003, Vanity Fair, published an
• 8:45
  Speaker 1: article on Mr. Epstein titled, The Talented Mr. Epstein. It
• 8:49
  Speaker 1: included the following lines, quote, one young woman recalls being
• 8:52
  Speaker 1: summoned by Ghislaine Maxwell to a concert at Epstein's house,
• 8:56
  Speaker 1: where the woman seemed to outnumber the men by far.
• 9:00
  Speaker 1: These were not women you'd see at Upper East Side dinners,
• 9:03
  Speaker 1: the woman recalls. Many seemed foreign and dressed a little bizarrely.
• 9:08
  Speaker 1: The same guest also attended a cocktail party thrown by
• 9:11
  Speaker 1: Maxwell that Prince Andrew attended in which was filled, she says,
• 9:15
  Speaker 1: with young Russian models. Some of the guests were horrified,
• 9:18
  Speaker 1: the woman says. Do you remember this article being published? Answer, no. Question,
• 9:24
  Speaker 1: I would think that Vanity Fair piece on a client
• 9:25
  Speaker 1: and a friend would be memorable, no? Answer, I mean,
• 9:29
  Speaker 1: you're asking whether I remember the article now. I may
• 9:31
  Speaker 1: have recognized the article then. Question, do you know if
• 9:35
  Speaker 1: anyone at J.P. Morgan was aware of that article? Answer,
• 9:38
  Speaker 1: I don't know. Mr. Sullivan, excuse me, is this 03
• 9:41
  Speaker 1: you said? Redacted, I'm sorry, Mr. Sullivan. Sullivan, 2003. Answer, correct. Question,
• 9:50
  Speaker 1: I would like to introduce as Minority Exhibit M an
• 9:53
  Speaker 1: email between two J.P. Morgan employees, Mary Reith, who is
• 9:58
  Speaker 1: later Mary Casey, and Paul Lahiff, dated May 21, 2003.
• 10:02
  Speaker 1: The bait's number is EFTA 02810792. Question in the email, Ms.
• 10:09
  Speaker 1: Reith tells Mr. Lahiff that she just got the due
• 10:13
  Speaker 1: diligence report on one of Mr. Epstein's companies and notes
• 10:16
  Speaker 1: that she, quote, was waiting to pull everything together before
• 10:20
  Speaker 1: sending down the Vanity Fair article. Why do you think
• 10:23
  Speaker 1: that these J.P. Morgan employees were tracking the Vanity Fair
• 10:26
  Speaker 1: article in the context of a due diligence report? Answer, well,
• 10:30
  Speaker 1: I'd like to read the Vanity Fair article. This was
• 10:32
  Speaker 1: 23 years ago, no, 24 years ago. If there was
• 10:36
  Speaker 1: something negative in that article, then, you know, the bank
• 10:38
  Speaker 1: would want to review it and review the account to
• 10:41
  Speaker 1: make sure that they're comfortable with the client. Question, did J.P.
• 10:45
  Speaker 1: Morgan suspect Mr. Epstein was engaging in sex trafficking as
• 10:48
  Speaker 1: early as 2003? Answer, I don't know. I would doubt it,
• 10:52
  Speaker 1: but I don't know. Question, you would doubt it? Answer,
• 10:56
  Speaker 1: I'm not going to speculate. Question, I would like to
• 10:59
  Speaker 1: introduce as Minority Exhibit N a due diligence report for
• 11:03
  Speaker 1: a checking account that Mr. Epstein asked J.P. Morgan to
• 11:06
  Speaker 1: set up for an unknown woman in 2004. Question, the
• 11:12
  Speaker 1: due diligence report does not list the date of birth
• 11:14
  Speaker 1: for this woman and notes that no government documentation has
• 11:18
  Speaker 1: been provided. The report also states that the social security
• 11:21
  Speaker 1: given could not be confirmed as belonging to the woman.
• 11:25
  Speaker 1: The report acknowledges that no one at J.P. Morgan actually
• 11:28
  Speaker 1: met with this woman and that all the information about
• 11:30
  Speaker 1: her provided by one of Mr. Epstein's advisors, a man
• 11:34
  Speaker 1: named Eric Ganey. Finally, the report notes that the woman
• 11:37
  Speaker 1: is in the U.S. for a modeling work and states, quote,
• 11:40
  Speaker 1: Jeffrey Epstein knows the model personally. Epstein's a longstanding client
• 11:45
  Speaker 1: of J.P.M.P.B. The report also quotes Jeffrey Epstein, often provides
• 11:51
  Speaker 1: support to emerging models. In this case, Redacted has arrived
• 11:54
  Speaker 1: from the Slovak Republic, and Epstein asks us the favor
• 11:58
  Speaker 1: of opening a checking account for her. Would you agree
• 12:01
  Speaker 1: that there are a number of indicators of sex trafficking here? Answer,
• 12:04
  Speaker 1: I think the bank should not be opening an account
• 12:07
  Speaker 1: without doing proper due diligence. Question, what would proper due
• 12:11
  Speaker 1: diligence have looked like here? Answer, knowing who the client is, KYC, AML,
• 12:17
  Speaker 1: anti-money laundering, knowing where the client's origination of wealth comes from,
• 12:21
  Speaker 1: all sorts of issues. But if you have an invalid
• 12:24
  Speaker 1: social security number, that would be a red flag. Question,
• 12:27
  Speaker 1: would you agree? Would you agree that opening this account,
• 12:30
  Speaker 1: strike that, did you ever see this due diligence report? Answer, no. Question,
• 12:34
  Speaker 1: were its contents communicated to you? Answer, no. Question, would
• 12:39
  Speaker 1: you agree that opening this account without the information we discussed?
• 12:43
  Speaker 1: Was a significant failure on J.P. Morgan's part? Answer, it
• 12:47
  Speaker 1: seems noncompliant, yes. All right, folks, we're going to wrap
• 12:51
  Speaker 1: up right here. And in the next episode dealing with
• 12:53
  Speaker 1: the topic, we're going to pick up with that same year, 2004.
• 12:57
  Speaker 1: All the information that goes with this episode can be
• 12:59
  Speaker 1: found in the description box. What's up, everyone? And welcome
• 13:03
  Speaker 1: to another episode of the Epstein Chronicles. In this episode,
• 13:07
  Speaker 1: we're going to get right back to that idiot, Jeff Staley,
• 13:10
  Speaker 1: and his transcript from his trip to Congress. Question, that
• 13:16
  Speaker 1: same year, 2004, J.P. Morgan noted $ 840, 000 in cash transactions
• 13:22
  Speaker 1: in Mr. Epstein's J.P. Morgan account. The next year, 2005, J.P.
• 13:28
  Speaker 1: Morgan identified over $ 900, 000 in cash transactions from Mr. Epstein's
• 13:33
  Speaker 1: personal J.P. Morgan account. Earlier today, you said that significant
• 13:37
  Speaker 1: cash withdrawals are a red light. You have also previously
• 13:41
  Speaker 1: testified in the class action against J.P. Morgan that significant
• 13:44
  Speaker 1: cash withdrawals or a smoking gun. Would you agree that J.P.
• 13:48
  Speaker 1: Morgan sat on a red light or a smoking gun
• 13:50
  Speaker 1: for nine years? Answer, it seems like it. Question, as
• 13:54
  Speaker 1: you know, Mr. Epstein was arrested on July 23, 2006,
• 13:57
  Speaker 1: on a single count of soliciting prostitution from a minor.
• 14:02
  Speaker 1: I'd like to introduce you as Minority Exhibit O, an
• 14:05
  Speaker 1: email exchange between you and Mary Erdos on July 26, 2006,
• 14:09
  Speaker 1: three days after Mr. Epstein was arrested. Bates number is
• 14:13
  Speaker 1: EFTA 021 818597. Question by redacted. In the exchange, Ms. Erdos,
• 14:23
  Speaker 1: who was head of J.P. Morgan's private bank at the time,
• 14:26
  Speaker 1: forwards you an email from another J.P. Morgan employee, Philip Schlachman.
• 14:30
  Speaker 1: In that email, Mr. Schlachman links to an article in
• 14:33
  Speaker 1: the Palm Beach Post and writes, quote, it gets worse.
• 14:37
  Speaker 1: In her email to you, Ms. Erdos comments, quote, so
• 14:40
  Speaker 1: painful to read. To which you reply, quote, went and
• 14:43
  Speaker 1: saw him last night. I've never seen him so shaken.
• 14:46
  Speaker 1: He also adamantly denies the ages. First, do you remember
• 14:50
  Speaker 1: if you read the article in the Palm Beach Post? Answer,
• 14:53
  Speaker 1: I don't get the Palm Beach Post, but I imagine
• 14:55
  Speaker 1: at some point I read the article. Question, I'll share
• 14:58
  Speaker 1: two statements from it with you. Quote, a Palm Beach
• 15:01
  Speaker 1: Community College student said she gave Epstein a massage in
• 15:06
  Speaker 1: the nude, then brought him six girls ages 14 to
• 15:09
  Speaker 1: 16 to massage and sex tinge sessions at his home.
• 15:13
  Speaker 1: End quote, Epstein. Said he'd pay her to bring him
• 15:16
  Speaker 1: more girls. The younger, the better. Do you remember learning
• 15:19
  Speaker 1: about these allegations? Answer. I don't remember that quote, which
• 15:24
  Speaker 1: is horrendous. That was implied. But I knew that he
• 15:27
  Speaker 1: had been. You know, the article suggested that he was
• 15:30
  Speaker 1: involved with inappropriate young women. And it was terrible, terrible accusation. Question.
• 15:36
  Speaker 1: What did you understand Mr. Schlockman to mean by, quote,
• 15:39
  Speaker 1: it gets worse? Answer. just that the article is commenting
• 15:43
  Speaker 1: on his, his activities that were terrible. Question, were there
• 15:47
  Speaker 1: statements in the article that were new information to JP Morgan?
• 15:51
  Speaker 1: Answer again, I didn't read the article, and so was
• 15:53
  Speaker 1: not aware of what was new or not new to
• 15:56
  Speaker 1: JP Morgan. But this implies that, yeah, because as it
• 15:59
  Speaker 1: gets worse, the implication is that Phil Schlackman is learning
• 16:03
  Speaker 1: something more. Question, the article makes repeated mention of Mr.
• 16:08
  Speaker 1: Epstein's sexual abuse and molestation of girls. as young as 14.
• 16:12
  Speaker 1: Could that have been what Mr. Schlachman was referring to? Answer,
• 16:15
  Speaker 1: that's just, it's a horrible, horrible thing. And I imagine
• 16:19
  Speaker 1: that's what he was referring to. Question, you visited Mr.
• 16:22
  Speaker 1: Epstein the night of July 25th, 2006, correct? Answer, yes. Question,
• 16:28
  Speaker 1: why did you visit him? Answer, because this article had
• 16:30
  Speaker 1: come out making these horrible accusations and the bank was
• 16:33
  Speaker 1: trying to decide what to do with his accounts. So
• 16:36
  Speaker 1: I thought that I would hear what he had to say. Question,
• 16:39
  Speaker 1: did someone ask you to do this, or did you
• 16:41
  Speaker 1: do it on your own accord? Answer, I believe I
• 16:44
  Speaker 1: did it on my own accord. Question, where did this
• 16:47
  Speaker 1: visit take place? Answer, in his office, I believe. Question,
• 16:51
  Speaker 1: and what did you ask Mr. Epstein? Answer, what's going on? Question,
• 16:54
  Speaker 1: and what did he say? Answer, I think he denied
• 16:57
  Speaker 1: the ages, which you know, looking back, is an admission
• 17:00
  Speaker 1: of guilt. Question, what do you mean, looking back, is
• 17:04
  Speaker 1: an admission of guilt? Answer, I mean, I said I'd
• 17:07
  Speaker 1: never seen him so shaken. He denied the ages, but
• 17:09
  Speaker 1: I think he was accepting that he was soliciting prostitutes.
• 17:13
  Speaker 1: Question right. He admitted the conduct, but denied the ages.
• 17:16
  Speaker 1: Answer right. Question, did you believe Mr. Epstein when he
• 17:19
  Speaker 1: denied the ages? Answer, I think I gave him the
• 17:22
  Speaker 1: benefit of the doubt. Question, do you really think that Mr.
• 17:25
  Speaker 1: Epstein could mistake a 14-year-old for an adult? Answer again.
• 17:29
  Speaker 1: I don't think you know. No, he shouldn't have. Question,
• 17:32
  Speaker 1: but you did. Answer, no. I'm just reporting what he said. Question, well,
• 17:37
  Speaker 1: I'm asking you if you believed him at the time.
• 17:40
  Speaker 1: You said you shouldn't have, and then I said, but
• 17:43
  Speaker 1: you did, correct? You believed him at the time? Answer,
• 17:46
  Speaker 1: that he was unaware of the ages? I think I
• 17:48
  Speaker 1: gave him the benefit of the doubt. Question, is it
• 17:51
  Speaker 1: fair to say that you are taking these allegations seriously? Answer, yes. Question,
• 17:57
  Speaker 1: I'd like to introduce as Minority Exhibit P, an email
• 18:00
  Speaker 1: exchange between you and Mary Erdos. On August 27th, 2007,
• 18:05
  Speaker 1: about a month after Mr. Epstein was arrested. The Bates
• 18:08
  Speaker 1: number is EFTA 02811410. Question. In the email you write, quote,
• 18:15
  Speaker 1: last night went to Huggy Bear concert. The age difference
• 18:18
  Speaker 1: between husbands and wives would have fit in well with Jeffrey.
• 18:21
  Speaker 1: What a joke. What did you mean when you said, quote,
• 18:24
  Speaker 1: the age difference between husbands and wives would have fit
• 18:27
  Speaker 1: well with Jeffrey? Answer. I think I was, you know, referring.
• 18:33
  Speaker 1: That at that party in the Hamptons, the age difference
• 18:35
  Speaker 1: between the men and women was significant. Question, and when
• 18:38
  Speaker 1: you say party in Hamptons, you're referring to the Huggy
• 18:41
  Speaker 1: Bear concert? Answer, it looks like that, yes. Question, what
• 18:45
  Speaker 1: did you mean when you said, quote, what a joke? Answer,
• 18:48
  Speaker 1: I find it awkward to see such an age difference
• 18:50
  Speaker 1: between men and women. Question, but that's not what you say.
• 18:54
  Speaker 1: You don't say the age difference was significant. It was
• 18:57
  Speaker 1: uncomfortable or awkward. You say, what a joke. Answer, yeah,
• 19:01
  Speaker 1: I think that's similar. Question, so you're not commenting on Mr.
• 19:04
  Speaker 1: Epstein's conduct? Answer in this email. Question, when you say,
• 19:08
  Speaker 1: what a joke. Answer, nonverbal response. Question, when Ms. Erdos
• 19:14
  Speaker 1: responds to you, she says, quote, what I mean to
• 19:16
  Speaker 1: tell you about last night was there were a few
• 19:19
  Speaker 1: people laughing about Jeffrey. She goes on to talk about
• 19:22
  Speaker 1: someone in particular and then says, quote, anyway, lots of
• 19:25
  Speaker 1: comparisons to J.E. It would appear that the two of
• 19:28
  Speaker 1: you thought that this was funny. answer no I don't
• 19:31
  Speaker 1: think what I'm saying what a joke I'm saying in
• 19:34
  Speaker 1: the context of is it funny I think again I
• 19:37
  Speaker 1: think I'm saying the irony that I think we correctly
• 19:40
  Speaker 1: believe the age difference between Jeffrey and what he was
• 19:43
  Speaker 1: doing was wrong but you go to a party like
• 19:45
  Speaker 1: this in the Hamptons and you see similar age differences
• 19:49
  Speaker 1: question and so what's the joke? Answer, I think that
• 19:52
  Speaker 1: that's the irony. Again, I don't think it's joking in
• 19:55
  Speaker 1: a sense of humor. I think it's sad. Question, I'd
• 19:58
  Speaker 1: like to introduce as Minority Exhibit Q, an internal J.P.
• 20:02
  Speaker 1: Morgan document with the heading, Rapid Response Team, October 17th, 2006.
• 20:07
  Speaker 1: Existing Client, Jeffrey Epstein. The Bates number is EFTA 02812987. Question,
• 20:16
  Speaker 1: the document states that Mr. Epstein has banking, asset, and
• 20:19
  Speaker 1: credit accounts with J.P. Morgan with balances totaling approximately $ 32 million.
• 20:24
  Speaker 1: It further states that, quote, cash withdrawals are routinely made
• 20:28
  Speaker 1: and amounts for $ 40, 000 to $ 80, 000 several times a month. Finally,
• 20:33
  Speaker 1: under derogatory information reported by security services, it states, quote,
• 20:37
  Speaker 1: Several newspaper articles were found that details the indictment of
• 20:41
  Speaker 1: Jeffrey Epstein in Florida on felony charges of soliciting underage prostitutes.
• 20:47
  Speaker 1: Had J.P. Morgan connected Mr. Epstein's frequent cash withdrawals with
• 20:51
  Speaker 1: his sexual abuse of minors at this point? Answer again.
• 20:54
  Speaker 1: The cash withdrawals of this size are very unusual, and
• 20:58
  Speaker 1: as I've said before, it's a red light. It should
• 21:01
  Speaker 1: have been reported to the federal authorities, and the federal
• 21:03
  Speaker 1: authorities should have looked at it as well. And given
• 21:06
  Speaker 1: Epstein's given, well again, this is 2006, I just think
• 21:10
  Speaker 1: this should have been a red light for the bank. Question,
• 21:13
  Speaker 1: but had J.P. Morgan connected those two things? Because this is,
• 21:17
  Speaker 1: as you can see, a fairly short document. Answer, I
• 21:21
  Speaker 1: think the bank, I think the bank was concerned, and
• 21:23
  Speaker 1: as such, decided to move the nature of its relationship
• 21:26
  Speaker 1: with Jeffrey Epstein and cut off the most significant parts
• 21:30
  Speaker 1: of the general of a normal private banking client, which
• 21:33
  Speaker 1: is managing assets, and reduce the relationship to simply his
• 21:37
  Speaker 1: checking account. Question, under bank recommendations, the document states, quote,
• 21:43
  Speaker 1: After internal discussion with Jess Daly, Mary Erdos, Catherine Keating,
• 21:47
  Speaker 1: John Duffy, and Mary Redacted, it was decided that we'll
• 21:50
  Speaker 1: keep Mr. Epstein solely as a banking client and on
• 21:53
  Speaker 1: reactive client service basis. We will not proactively solicit new
• 21:57
  Speaker 1: investment business from him. First, you said earlier today that
• 22:00
  Speaker 1: you were not part of a rapid response meeting. Answer,
• 22:03
  Speaker 1: that's correct. Question, but this is a memorandum entitled Rapid
• 22:06
  Speaker 1: Response Team that explicitly refers to internal discussion with Jess Daly. Answer,
• 22:12
  Speaker 1: but I was not a member of the Rapid Response Team. Question,
• 22:15
  Speaker 1: so what were these internal discussions? Answer, no, I think
• 22:19
  Speaker 1: it looks like they talked with myself, Mary, Catherine, John Duffy,
• 22:23
  Speaker 1: and I imagine this is Mary Casey, came back, had
• 22:26
  Speaker 1: a meeting of the Rapid Response Team as a group,
• 22:28
  Speaker 1: and then made the decision to pull back the bank's
• 22:30
  Speaker 1: activity with Mr. Epstein. Question, so that was not your decision,
• 22:35
  Speaker 1: but was based on discussions with you, is that correct? Answer,
• 22:38
  Speaker 1: it was based on discussions with myself, Mary Erdos, Catherine Keating,
• 22:42
  Speaker 1: John Duffy, and I believe Mary Casey. Question, can you
• 22:46
  Speaker 1: explain how this banking-only relationship was different from the one
• 22:49
  Speaker 1: that Mr. Epstein previously had with J.P. Morgan? Answer again,
• 22:53
  Speaker 1: the principal activity of the bank was to manage assets,
• 22:56
  Speaker 1: provide brokerage, all sorts, you know, investing, in the broadest sense.
• 23:01
  Speaker 1: And I think that was what was withdrawn as a
• 23:03
  Speaker 1: banking service for Epstein. And was only left with essentially
• 23:07
  Speaker 1: his checking account. So the bank would have seen that
• 23:10
  Speaker 1: as a major move against a client. Question, but he
• 23:13
  Speaker 1: still had that account, correct? Answer, he still had a
• 23:15
  Speaker 1: checking account. Question, and he could open up other accounts, correct?
• 23:20
  Speaker 1: Answer again, I don't know. That would surprise me. Question,
• 23:23
  Speaker 1: it would surprise you if he could open up checking accounts? Answer, no.
• 23:28
  Speaker 1: I think you'd be allowed, well, allowed to have checking accounts.
• 23:31
  Speaker 1: I don't know, you know, I'm not sure. I think
• 23:33
  Speaker 1: it depended. Question, the documents dated October 17th, 2006. Is
• 23:38
  Speaker 1: that when the decision was made? Answer, that's what it
• 23:41
  Speaker 1: seems like, yes. Question, why did it take so long
• 23:44
  Speaker 1: to make this decision? Answer, I don't know. Question, as
• 23:48
  Speaker 1: you know, in 2008, Mr. Epstein pleaded guilty to one
• 23:52
  Speaker 1: count of soliciting prostitution and one count of soliciting prostitution
• 23:55
  Speaker 1: from a minor. and was sentenced to 18 months in
• 23:58
  Speaker 1: the Palm Beach Stockade. When did you learn of Mr.
• 24:01
  Speaker 1: Epstein and that he had pleaded guilty to these counts? Answer,
• 24:05
  Speaker 1: when he pled guilty. Question, and how did you learn it?
• 24:07
  Speaker 1: Did he tell you? Answer, no. I think it was
• 24:09
  Speaker 1: in the press. Question, did you talk to anyone at J.P.
• 24:12
  Speaker 1: Morgan about the fact that he pleaded guilty to these counts? Answer,
• 24:16
  Speaker 1: I'm sure I did, yes. Question, do you remember who? Answer, again.
• 24:20
  Speaker 1: I think I talked with Jamie Dimon about it. I
• 24:24
  Speaker 1: imagine I talked with Mary Erdos about it. Question, I'd
• 24:27
  Speaker 1: like to introduce as Minority Exhibit R, an email exchange
• 24:30
  Speaker 1: between two J.P. Morgan employees, Kevin McCleary and Ann Verdon,
• 24:35
  Speaker 1: from July 15, 2008. Question, it appears to be in
• 24:39
  Speaker 1: reference to a meeting regarding Mr. Epstein. In the first exchange, Mr.
• 24:43
  Speaker 1: McCleary writes to Ms. Verdon, quote, FYI, just spoke to
• 24:46
  Speaker 1: Lisa Waters and told her he wants to keep his accounts.
• 24:50
  Speaker 1: This was shortly after Mr. Epstein started his sentence at
• 24:53
  Speaker 1: the Palm Beach Stockade. Why did you want JP Morgan
• 24:56
  Speaker 1: to keep Mr. Epstein's accounts? Answer, again, I think at
• 24:59
  Speaker 1: the time, the only activity he had at the bank
• 25:02
  Speaker 1: was his checking account. And the move against his relationship
• 25:05
  Speaker 1: with the bank had already occurred. And it seemed to
• 25:08
  Speaker 1: me closing a checking account is a tough move. Question,
• 25:12
  Speaker 1: but weren't those checking accounts facilitating his sex trafficking? Answer,
• 25:16
  Speaker 1: I was completely unaware of that. Question, you weren't aware
• 25:18
  Speaker 1: of cast withdrawals at this point? Answer, I was unaware
• 25:21
  Speaker 1: that his checking account was involved in a legal activity. Question,
• 25:25
  Speaker 1: but you were a part of internal discussions that informed
• 25:28
  Speaker 1: the decision to make him a banking-only client, correct? Answer, yes,
• 25:32
  Speaker 1: but I wasn't on the rapid response team, but I
• 25:34
  Speaker 1: was part of that decision. Question, I understand you weren't
• 25:37
  Speaker 1: on the team, but you were a part of discussions
• 25:40
  Speaker 1: that informed that decision. And in that document we looked
• 25:43
  Speaker 1: at earlier, it says cash withdrawals are routinely made in
• 25:47
  Speaker 1: amounts of $ 40, 000 to $ 80, 000 several times a month. Answer, no.
• 25:54
  Speaker 1: That was in the report in the rapid response team.
• 25:56
  Speaker 1: That was not communicated to me. Question, you did not
• 25:59
  Speaker 1: know about the significant cash withdrawals in 2006? Answer, I
• 26:04
  Speaker 1: don't believe I did, no. Question, and you did not
• 26:07
  Speaker 1: know about them in 2008? Answer, I learned at some point,
• 26:11
  Speaker 1: but I need to think about what year I learned.
• 26:13
  Speaker 1: But it was again cash withdrawals of that are a
• 26:16
  Speaker 1: huge red flag and should be going. In fact, you
• 26:18
  Speaker 1: need to technically, you should be informing the federal authorities,
• 26:22
  Speaker 1: I think on a quarterly basis. All right, folks, we're
• 26:25
  Speaker 1: going to wrap up right here. And in the next episode,
• 26:27
  Speaker 1: we're going to pick up with another person doing the questioning, redacted.
• 26:32
  Speaker 1: And the question is, sure, but here you were saying,
• 26:35
  Speaker 1: or rather, here two employees are talking about how you
• 26:38
  Speaker 1: want JP Morgan to keep Mr. Epstein's accounts in July
• 26:41
  Speaker 1: of 2008. All the information that goes with this episode
• 26:44
  Speaker 1: can be found in the description box. What's up, everyone?
• 26:48
  Speaker 1: And welcome to another episode of the Epstein Chronicles. In
• 26:52
  Speaker 1: this episode, we're picking up where he left off. with
• 26:54
  Speaker 1: Jeff Staley and his conversation with Congress. Question, sure. But
• 26:59
  Speaker 1: here you're saying, or rather, here two employees are talking
• 27:02
  Speaker 1: about how you want JP Morgan to keep Jeffrey Epstein's
• 27:05
  Speaker 1: accounts in July of 2008. So shortly after he started
• 27:09
  Speaker 1: serving his sentence. And those cash accounts are the things
• 27:12
  Speaker 1: that are allowing him to facilitate the sex trafficking. Answer, yeah,
• 27:17
  Speaker 1: I was saying allowed to keep, well, because you're making
• 27:19
  Speaker 1: the implication that I knew the continuum. All I was
• 27:23
  Speaker 1: suggesting was that To keep his checking account. I was
• 27:26
  Speaker 1: not aware of the cash payments and what he was
• 27:29
  Speaker 1: doing with that amount of cash. Question. So to be clear,
• 27:33
  Speaker 1: your testimony is that you had no awareness of the
• 27:36
  Speaker 1: cash payments in July of 2008? Answer again. I don't
• 27:40
  Speaker 1: know the exact timing when I learned about the cash. Question. Right.
• 27:45
  Speaker 1: But the timing is relevant because you were advocating for
• 27:48
  Speaker 1: JP Morgan to keep his cash accounts. Answer. To keep
• 27:51
  Speaker 1: his checking account. Question. Correct. Thank you. So you were
• 27:54
  Speaker 1: aware of the significant cash withdrawals in July of 2008? Answer,
• 28:00
  Speaker 1: I'm saying I don't know exactly what the date I
• 28:02
  Speaker 1: became aware of it was. Question, so you may have
• 28:05
  Speaker 1: been aware of them then and still may have been
• 28:08
  Speaker 1: advocating for JP Morgan to keep his accounts? Answer, I
• 28:11
  Speaker 1: may or may not have. Now we have Ms. Stansberry
• 28:15
  Speaker 1: asking the questions. Hello, Staley. Hello. Question, it's been a
• 28:19
  Speaker 1: long day. My questions are a little more narrative and
• 28:22
  Speaker 1: broad in scope. then the specificity of interactions trying to
• 28:26
  Speaker 1: really piece together some of the stories and timeline. But
• 28:29
  Speaker 1: my opening question is really, I'm curious about your relationship
• 28:32
  Speaker 1: with Epstein's trusts. Staley, his trusts? Stanbury, his trusts? Are
• 28:37
  Speaker 1: you affiliated with any trusts currently, or have you been
• 28:40
  Speaker 1: over the past 10 years? Staley, currently no. And at
• 28:44
  Speaker 1: the time of? Stansbury, or I'm sorry, since 2019, since
• 28:48
  Speaker 1: he died. Staley, I believe that there was a time
• 28:52
  Speaker 1: when I was a signator. where I signed as either
• 28:55
  Speaker 1: an executor or a trustee to his trust. Stansberry, and
• 28:59
  Speaker 1: is that his personal estate trust? Answer, I believe it was. Question, okay.
• 29:04
  Speaker 1: And so you were one of the three executors of
• 29:06
  Speaker 1: that trust? Staley, at one point in time. Question, okay. Answer,
• 29:11
  Speaker 1: but then I declined it. So I declined it and
• 29:15
  Speaker 1: ultimately was not and am not an executor or trustee,
• 29:18
  Speaker 1: nor have I ever received compensation as such. Question, so
• 29:23
  Speaker 1: that's my next question. Have you ever received compensation from
• 29:26
  Speaker 1: his estate since 2019? Answer, no. Question, okay. Going back
• 29:31
  Speaker 1: to questions about J.P. Morgan, and just to reiterate, so J.P.
• 29:35
  Speaker 1: Morgan began its relationship with Mr. Epstein several years before
• 29:38
  Speaker 1: you took over that account. correct? Answer, yes. Question, okay.
• 29:42
  Speaker 1: And just trying to understand your management of Mr. Epstein's account.
• 29:46
  Speaker 1: I understand that you were an executive as opposed to
• 29:49
  Speaker 1: kind of a day-to-day account manager. So what was the
• 29:51
  Speaker 1: nature of your management of that relationship? Or what did
• 29:55
  Speaker 1: it entail? Answer, I was introduced to J.P. Morgan by,
• 29:59
  Speaker 1: or to, Jeffrey Epstein, by then-CEO of J.P. Morgan, with
• 30:03
  Speaker 1: the idea that Jeffrey had a network of ultra-high-net-worth individuals,
• 30:07
  Speaker 1: particularly in New York, that might benefit the private bank.
• 30:11
  Speaker 1: So it was around those contacts, and we went through
• 30:14
  Speaker 1: a list of wealthy, influential people that he introduced us to. Question,
• 30:18
  Speaker 1: do you not oversee or manage in any way the
• 30:21
  Speaker 1: transactions of Epstein's personal business accounts? Answer, no. Question, did
• 30:25
  Speaker 1: you ever... Have any knowledge of how those accounts were
• 30:29
  Speaker 1: being financially managed, the source of the wealth, how the
• 30:32
  Speaker 1: wealth was being moved? Answer, no. I always had a
• 30:36
  Speaker 1: question about how his wealth came from. The only thing
• 30:39
  Speaker 1: I was aware of was that he had a close
• 30:41
  Speaker 1: relationship with Les Wexner. Question, and so your management of
• 30:45
  Speaker 1: the relationship with Epstein was more of a kind of
• 30:48
  Speaker 1: glad handling, business management, client management kind of relationship? Is
• 30:52
  Speaker 1: that what you would say? Or how would you describe it? Answer,
• 30:55
  Speaker 1: just knowing or having a relationship with a client of
• 30:58
  Speaker 1: the private bank who had an incredible network and was
• 31:00
  Speaker 1: willing to share that network with the bank. And then,
• 31:03
  Speaker 1: as I said earlier, he was instrumental in a very
• 31:06
  Speaker 1: important transaction for J.P. Morgan and for my career in
• 31:09
  Speaker 1: about 2004. Question, what transaction was that? Answer, which is
• 31:15
  Speaker 1: the acquisition of Highbridge Capital Corporation. Question, okay. Answer, so
• 31:21
  Speaker 1: Morgan was a traditional asset management firm. Back then, tradition
• 31:25
  Speaker 1: asset managers like Fidelity and Capital would not mix with
• 31:28
  Speaker 1: alternative asset managers. And this was really the first time
• 31:31
  Speaker 1: in the industry that that happened, and it changed dramatically
• 31:34
  Speaker 1: the trajectory of Morgan's asset management business. Stansberry, okay. And
• 31:39
  Speaker 1: in terms of your relationship, I mean, whether it was
• 31:41
  Speaker 1: personal or not personal, whether it was a business, you
• 31:45
  Speaker 1: did travel to Mr. Epstein's Island on several occasions, correct? Staley,
• 31:49
  Speaker 1: I went there once with my family. I stopped there
• 31:51
  Speaker 1: once for a couple of hours for a lunch. And
• 31:53
  Speaker 1: then I transited from, I used this island as a
• 31:56
  Speaker 1: transit to St. Thomas on a helicopter. Stansbury, and was Mr.
• 32:00
  Speaker 1: Epstein present during any of these visits? Staley, so in
• 32:04
  Speaker 1: terms of the visit per se, I would say only once. Stansbury, okay, sorry.
• 32:09
  Speaker 1: Was Mr. Epstein present during those visits? Staley, during the
• 32:12
  Speaker 1: visit with my family, yes, he was there. And when
• 32:14
  Speaker 1: we stopped by for lunch, he was there. Question, and
• 32:18
  Speaker 1: you visited Mr. Epstein's townhouse a number of times, correct? Answer, correct. Question,
• 32:22
  Speaker 1: did you ever attend any social functions at his house
• 32:25
  Speaker 1: that might be characterized as parties or dinners or anything
• 32:28
  Speaker 1: like that? Staley, lunches or dinners? Yes, parties. I wouldn't
• 32:32
  Speaker 1: characterize them as parties. Question, did you ever witness any
• 32:36
  Speaker 1: women there in a social capacity during your time at
• 32:39
  Speaker 1: the island or at the townhouse in New York? Staley, no.
• 32:43
  Speaker 1: Some of his guests, like at lunch, would be women
• 32:45
  Speaker 1: from academia or the media. I can give you names. Question,
• 32:50
  Speaker 1: And then I just want to get back to the
• 32:51
  Speaker 1: peculiar exchange via email in 2010. Why were you emailing
• 32:55
  Speaker 1: Epstein about women and referring to these women by Disney characters? Staley,
• 33:00
  Speaker 1: by what? Question, by Disney character names like Snow White.
• 33:03
  Speaker 1: Just why? I mean, just to help us understand why. Staley, yeah, again,
• 33:09
  Speaker 1: I don't recall Snow White. It's over a 15 year
• 33:11
  Speaker 1: period of thousands of emails. There's one email I don't recall. Question,
• 33:16
  Speaker 1: just give us a little insight. Why would you have
• 33:18
  Speaker 1: been emailing Mr. Epstein about women and calling them these
• 33:22
  Speaker 1: kinds of nicknames? Staley, again, I may have happened on
• 33:25
  Speaker 1: one or two occasions. I don't think I made a
• 33:27
  Speaker 1: practice of doing that. Question, I'm sorry, say that again. Staley,
• 33:32
  Speaker 1: I don't think I made that a practice. Stansberry, well,
• 33:36
  Speaker 1: we have the emails that we just presented to you.
• 33:39
  Speaker 1: You're not going to answer the question? Staley, I think
• 33:41
  Speaker 1: I did answer the question. Stansberry, what's your answer? Staley,
• 33:46
  Speaker 1: and again, I think it happened. I don't remember Snow White.
• 33:48
  Speaker 1: I don't remember the email. And over the span of
• 33:51
  Speaker 1: my relationship with him, 2,000 emails and whatnot, I don't
• 33:54
  Speaker 1: think so. That's my answer. Question, thank you. That concludes
• 33:59
  Speaker 1: the second round of the minorities question. We'll go off
• 34:02
  Speaker 1: the record. Now they come back on and it's Ms.
• 34:05
  Speaker 1: Toland doing the questioning. Question, just a few follow-up questions
• 34:08
  Speaker 1: on something we were discussing earlier. Were you not aware
• 34:12
  Speaker 1: that Redacted was a victim of Jeffrey Epstein's? Answer, no,
• 34:15
  Speaker 1: I was not. Question, did you ever become aware? Answer, no. Question,
• 34:19
  Speaker 1: the committee has reviewed documents that show redacted was emotionally
• 34:22
  Speaker 1: and physically abused by Jeffrey Epstein for many years. Did
• 34:26
  Speaker 1: she ever mention anything to you that caused you concern
• 34:29
  Speaker 1: about her working for Mr. Epstein? Answer, no, she did not. Question,
• 34:33
  Speaker 1: did she ever mention to you that Mr. Epstein would
• 34:35
  Speaker 1: instruct her on how to dress and where she could
• 34:37
  Speaker 1: go or other restrictions? Answer, no, she did not. Question,
• 34:42
  Speaker 1: were there any other red flags that she might have
• 34:43
  Speaker 1: mentioned to you or that you might have saw? Answer, no. Question,
• 34:48
  Speaker 1: do you know if Jeffrey Epstein was involved in securing
• 34:50
  Speaker 1: her apartment lease at East 301 66th Street? Answer, I
• 34:55
  Speaker 1: was aware that the apartment was owned by his, or
• 34:57
  Speaker 1: the apartment building was owned by his brother, and so
• 35:00
  Speaker 1: there was that connection. Question, but do you know if Mr.
• 35:03
  Speaker 1: Epstein was directly involved in Redacted's lease at that building? Answer,
• 35:07
  Speaker 1: I don't know. Question, do you know if he paid
• 35:09
  Speaker 1: her rent? Answer, I don't know. Question, did he direct
• 35:12
  Speaker 1: her to live there? Answer, I don't know. Question, that's all.
• 35:16
  Speaker 1: Now it's Ms. Brignac again doing the questioning. Question, Mr. Staley,
• 35:19
  Speaker 1: bear with me. If I ask any repetitive questions to
• 35:22
  Speaker 1: make sure the record is clear. You mentioned that Mr.
• 35:25
  Speaker 1: Epstein explained he would use cash withdrawals for flight fuel.
• 35:29
  Speaker 1: Did you ever alert him? That his cash withdrawals were
• 35:31
  Speaker 1: flagged by the bank as suspicious? Answer, I think Paul
• 35:34
  Speaker 1: Morris did. Question, did you? Answer, I don't know if
• 35:39
  Speaker 1: I had a conversation with Jeffrey about cash withdrawals. I
• 35:42
  Speaker 1: think that they were a red flag and the bank
• 35:44
  Speaker 1: should notice it, so I probably did. Question, did you
• 35:48
  Speaker 1: ever alert Mr. Epstein that he was categorized as high-risk client? Answer,
• 35:52
  Speaker 1: I believe so, yes. Question, when would that have been? Answer,
• 35:57
  Speaker 1: after 2006, I think. Question, what was his response? Answer,
• 36:01
  Speaker 1: I don't recall. Question, did he ask you to give
• 36:03
  Speaker 1: any input with the bank in their consideration of his categorization? Answer, no. Question,
• 36:09
  Speaker 1: did you ever advise Mr. Epstein on how to structure...
• 36:11
  Speaker 1: Cash withdrawals? Answer, never. Question, did you ever advise Mr.
• 36:15
  Speaker 1: Epstein on how to avoid flags by J.P. Morgan? Answer, never. Question,
• 36:20
  Speaker 1: did you ever advise Mr. Epstein on how to change
• 36:23
  Speaker 1: his categorization as a high-risk client? Answer, never. Question, is
• 36:27
  Speaker 1: there any appeal process at J.P. Morgan for a client
• 36:30
  Speaker 1: who's flagged as high-risk? Answer, an appeal process? Question, uh-huh. Answer,
• 36:35
  Speaker 1: I imagine someone can go to the compliance department or
• 36:37
  Speaker 1: legal department and ask for it to be reviewed. but
• 36:40
  Speaker 1: I don't know that there's a formal appeal process. Question,
• 36:44
  Speaker 1: have you ever asked Mr. Cutler to hear out any
• 36:46
  Speaker 1: other client who was at risk of losing their membership
• 36:49
  Speaker 1: at J.P. Morgan? Answer, not that I recall. Question, why'd
• 36:52
  Speaker 1: you do this for Mr. Epstein? Answer, I knew him.
• 36:55
  Speaker 1: You know, again, he made important referrals to the bank.
• 36:58
  Speaker 1: And so I asked Steve Cutler to get involved. And
• 37:00
  Speaker 1: also Epstein, I think, hired some very high-profile lawyers, and
• 37:03
  Speaker 1: I thought they could connect with Steve Cutler and get
• 37:06
  Speaker 1: to the right conclusion. Question, do you think the fact
• 37:09
  Speaker 1: that Mr. Cutler met with Mr. Epstein on this swayed
• 37:12
  Speaker 1: the bank's decision to retain Mr. Epstein as a client? Answer,
• 37:16
  Speaker 1: I think Steve Cutler would have the authority to change
• 37:18
  Speaker 1: the bank's position if he felt that was necessary. Question,
• 37:21
  Speaker 1: did you ever hear about the conversation between Epstein and Cutler? Answer,
• 37:26
  Speaker 1: not that I recall. Question, did you ever hear about
• 37:28
  Speaker 1: the meeting? Answer, I believe they met, yes. Question, was Mr.
• 37:31
  Speaker 1: Epstein always with Private Bank of J.P. Morgan? Answer, as
• 37:34
  Speaker 1: opposed to. Question. Any other division at J.P. Morgan? Answer, yes,
• 37:39
  Speaker 1: it was always the private bank. Question, have you ever
• 37:42
  Speaker 1: interacted with Mr. Indyke, Richard Indyke? Answer, I think I
• 37:45
  Speaker 1: met him, but I wouldn't say I interacted with him. Question,
• 37:48
  Speaker 1: I apologize, have you ever interacted with Darren Indyke? Answer, oh,
• 37:53
  Speaker 1: I wouldn't say I interacted with him. I crossed him
• 37:55
  Speaker 1: in Mr. Epstein's office once or twice, but didn't interact
• 37:59
  Speaker 1: with him. Question, have you ever interacted with Richard Kahn? Answer, no. Question,
• 38:04
  Speaker 1: did you ever work with Darren Indyke on a transaction
• 38:06
  Speaker 1: for Mr. Epstein? Answer, no. Question, were you ever trained
• 38:10
  Speaker 1: on suspicious activity report requirements? Answer, you know, I had
• 38:14
  Speaker 1: to pass things like Series 7 exams and other exams
• 38:17
  Speaker 1: and whatnot, but I don't know if I had a
• 38:18
  Speaker 1: specific course. Question, did you ever discuss requirements with Mr. Epstein? Answer, no. Question,
• 38:24
  Speaker 1: do you still do bank with JP Morgan? Answer, no. Question,
• 38:28
  Speaker 1: why did you change banks? Answer, I was asked to
• 38:31
  Speaker 1: withdraw my accounts. Question, by who? Answer, by JP Morgan. Question,
• 38:35
  Speaker 1: by who at JP Morgan? Answer, I don't recall. Question,
• 38:39
  Speaker 1: why'd they ask you to withdraw your accounts? Answer, I
• 38:41
  Speaker 1: think because of the issues around Epstein. Question, does JP
• 38:44
  Speaker 1: Morgan blame you for the reputational damage caused by Mr. Epstein? Answer,
• 38:49
  Speaker 1: I believe they have, yes. Question, do you agree with
• 38:51
  Speaker 1: them on that? Answer, no. Question, what do you think
• 38:54
  Speaker 1: JP Morgan could have done differently? Answer, I think as
• 38:57
  Speaker 1: I said, everything from rapid response teams to compliance to
• 39:00
  Speaker 1: legal to credit to have this enormous infrastructure in the bank.
• 39:04
  Speaker 1: The banking team itself, they were responsible for his accounts,
• 39:08
  Speaker 1: knowing what's going on in accounts, monitoring his accounts. I
• 39:11
  Speaker 1: was a senior executive for most of the time running
• 39:14
  Speaker 1: the investment bank, and yet the bank places a responsibility
• 39:17
  Speaker 1: on my shoulders as opposed to what clearly was the
• 39:20
  Speaker 1: responsibility of the bank. Question, did you ever tell anyone
• 39:24
  Speaker 1: at the bank that they should react differently? Answer again,
• 39:27
  Speaker 1: I was running the investment bank, but clearly encouraged the
• 39:29
  Speaker 1: bank to do its investigation, to manage the account properly,
• 39:33
  Speaker 1: to file the proper reports with authorities, and to do
• 39:35
  Speaker 1: the right thing. Question, who did you make those requests to? Answer,
• 39:40
  Speaker 1: I think it would have been in the conversations with
• 39:43
  Speaker 1: people like Steve Cutler, like Langford, like Mary, and others.
• 39:47
  Speaker 1: All right, folks, we're going to wrap up right here.
• 39:49
  Speaker 1: And in the next episode dealing with the topic, we're
• 39:51
  Speaker 1: going to pick up with question, why then ask Steve
• 39:55
  Speaker 1: Cutler to hear Mr. Epstein out if you think they
• 39:57
  Speaker 1: should have acted differently in retaining him as a client?
• 40:01
  Speaker 1: All the information that goes with this episode can be
• 40:03
  Speaker 1: found in the description box.