On July 6, 2019, the finance here. Jeffrey Epstein arrived to a private airport in New Jersey flying his private jet. Upon his arrival, he was greeted by FBI agents who arrested him on sex trafficking charges Epstein was accused of running a massive sex trafficking Reign affecting dozens if not hundreds of victims out of his multi-million dollar Private Island as well as his luxury residences in New York and Florida With Epstein Behind Bars, prosecutors were hoping to extract valuable information about his alleged co-conspirators and use this as a basis for further prosecutions. However, just three weeks later, Epstein died in his New York prison cell.

Epstein's demise doesn't mean that the investigations into his sex trafficking Network are over. In fact, we may just be at the beginning. On November 24th, 2022, an anonymous Jeffrey Epstein victim filed a lawsuit against JP Morgan relating to the bank's alleged involvement with the now deceased financier. JP Morgan is also being sued by the U.S Virgin Islands which accuses the bank of having known about in facilitating Epstein's illicit activities.

These lawsuits are still in their early stages and there could be years of legal battles until these cases are resolved, but either way, it's not a good look for the largest bank in America JP Morgan's legal team has been working overtime and on March 8th, they came up with a preemptive defense strategy. Between 2015 and 2021, a man by the name of Jess Stalley served as the CEO of Barclays which is one of the largest investment banks in the UK. Before taking the top drop at Barclays. He spent more than 30 years at JP Morgan where he worked his way up to becoming head of the investment banking division during the 2000s and early 2010s.

Jeffrey Epstein was a client of JP Morgan and had a close relationship with Staley. The two men exchanged as many as 1 200 emails according to the anonymous accuser Staley knew about Jeffrey Epstein's sex trafficking activities and used his clout as a powerful JP Morgan executive to make his client Untouchable according to JP Morgan to the extent that these allegations are true, Staley concealed everything from his employer. He even went so far as to advocate in favor of Epstein when the bank was considering ending their relationship with him after his 2008 prostitution conviction. While JP Morgan is not admitting any guilt, they are apprehensively suing Staley arguing that if the bank is found responsible for any wrongdoing, Staley should be personally liable for any wrongdoing.

Not JP Morgan In this video, we'll take a deep dive into Jess Staley's alleged involvement with Jeffrey Epstein and what this could potentially expose about corruption at the highest levels of the financial industry. Keep in mind that the allegations against JP Morgan and Staley are just allegations, nothing more just Staley denies any wrongdoing and needless to say, he is innocent until proven guilty. The purpose of this video is purely to explain the recent lawsuit as well as other publicly reported information foreign to the lawsuit. Epstein Started his sex trafficking operation in the early 1990s.

The primary purpose of his Enterprise was to lure young girls into a position where Jeffrey Epstein and his co-conspirators could coerce them to engaging commercial sex acts and commit sexual offenses against them. Epstein funded his operation via the payments from his wealthy co-conspirators in the late 1990s. Epstein realized that he needed a bank to help him store his money and make hush money payments to his victims. With these payments collectively adding up to millions of dollars to make his operation viable, he needed a bank to help him store and transfer large amounts of money.

The problem was banks are required to follow a strict anti-money laundering and know your customer regulations. If someone is making millions of dollars worth of payments from a bank account, the bank is required to inquire as to the purpose of these payments. This would risk exposing his entire operation. Epstein needed a bank that would turn a Blind Eye in or around the year 2000.

Epstein got to know Jess Staley a high-ranking executive at JP Moore Getting according to the lawsuit, Epstein and Staley came to a quid pro quo. Staley would use his clout within JP Morgan to make sure that his illicit transactions would flow under the radar. He would also help Epstein set up various shell companies with no plausible business purpose other than to conceal his illicit payments to his victims and co-conspirators. In return, Epstein would refer his wealthy friends to become clients of JP Morgan's Private Bank Allegedly one of these wealthy friends was billionaire retail Mogul Leslie Wexner who deposited over 1 billion dollars to JP Morgan Staley took credit for bringing on these new ultra high net worth clients which was extremely profitable for the bank.

Perhaps the biggest benefit Epstein allegedly provided to JP Morgan was his relationship with a billionaire named Glenn Dubin Glenn was a founder of High Bridge Capital Management a highly successful hedge fund he was also married to Eva Anderson Duvin, a former model who had previously dated Epstein in the 1990s. In 2004, Epstein arranged for JP Morgan to acquire a 55 stake in Hybrid, which turned out to be a highly profitable deal for the bank. Staley took credit for all the deals and clients that Epstein helped achieve. This success allowed Staley to rise the ranks, being promoted to Head of Asset Management in 2001 and promoted it again to head of the entire Investment Banking division in 2009.

over the years, Epstein and his Shell companies made millions of dollars of suspicious withdrawals that, according to the U.S Virgin Islands prosecutors should have raised red flags. For example, Epstein paid six hundred thousand dollars from a JP Morgan Bank account to a female who listed Epstein's apartment as her address. Epstein also set up a supposed charity Foundation which made suspicious payments to young women. In 2005, a Florida resident called the local police reporting that her 14 year old stepdaughter had been taken to Epstein's Palm Beach mansion and paid to perform inappropriate acts.

Local police in conjunction with FBI agents, conducted a year-long investigation where they found several girls who were allegedly paid to perform sexual acts with. Epstein in 2008 Epstein pled guilty to procuring prostitution with a girl below the age of 18. he was sentenced to 18 months in prison, but for most of his prison sentence, he was allowed to leave jail on work release for up to 12 hours a day for 6 days a week during his work release Epstein worked at a non-profit Foundation that he created right be for the sentencing. He shut down the foundation right after he was released from prison.

as part of the plea deal, prosecutors agreed to shut down the FBI investigation, which could have uncovered additional victims and co-conspirators. Many critics argue that the plea deal was unusually lenient given the severity of his crimes, but either way, Epstein was put on the official sex offender registry and his charges were widely publicized in the media. According to the lawsuit, Staley maintained contact with Upscene while he was incarcerated in Florida In fact, he personally flew down to Florida to visit him while he was out on work release during his time at. JP Morgan Staley allegedly emailed Epstein a total of 1 200 times from his official JP Morgan email address.

The emails exposed a shockingly close relationship between the two men, which seemed to go well beyond what you would expect between a banker and a client in November of 2009 while Epstein was incarcerated in Florida Staley apparently traveled to Epstein's Private Island It's not clear what he was doing there, but he sent Epstein the following email saying quote: so when all hell breaks loose and the world is crumbling I will come here and be at peace presently I'm in the hot tub with a glass of white wine This is an amazing place. Truly amazing. Next time we're here together I owe you much and I deeply appreciate our friendship I have few so profound unglow A few months earlier Staley told Epstein that he'd be traveling to London Epstein asks daily if you need anything while in London to which Staley replied yes a few days later Epstein wired three thousand dollars from his JPMorgan account to an undisclosed woman with an Eastern European surname. Following Epstein's prostitution conviction, an internal debate started within the upper ranks of JP Morgan many Executives felt that the bank should sever all ties with Epstein for PR and possible legal concerns.

according to an investigative report published by The Financial Times, Staley argued that Epstein had served his sentence and paid his debt to society. He ultimately convinced his colleagues to keep Epstein as a client in 2013. Jess Staley quit his job at JP Morgan to join a private Equity Firm called Blue Mountain Capital as a managing partner with Staley no longer working at the bank Epstein no longer had anyone to advocate for him Within months of Staley resigning, JP Morgan severed ties with Epstein Soon thereafter, Epstein opened an account with the German Bank Deutsche Bank in 2020 Deutsche Bank paid 150 million dollars to settle lawsuits in relation to their dealings with Epstein In 2015, the Uk-based Investment Bank Barclays wasn't doing terribly well. Their profitability ratios were consistently lagging their larger American peers such as JP Morgan In an effort to turn things around, they hired just Staley Staley had an impressive track record as he more than doubled JP Morgan's Asset Management business while he was at the helm.

Who better to help restructure it than the man who had so much success at JP Morgan From 2015 through 2021, Staley embarked on an ambitious restructuring plan aimed at reducing costs and improving profitability. After Jeffrey Epstein's second arrest and death in 2019, the media gained renewed interests around the disgrace Finance here. Staley told Berkeley's board of directors that his prior relationship with Epstein was purely professional in nature and that he had no knowledge of the alleged crimes. Soon afterwards, the British Financial conduct Authority gained access to the 1 200 emails sent between Staley and Epstein during his time at JP Morgan As we discussed earlier, these emails seem to show a relationship between the two men which far exceeded what would reasonably be expected.

While Staley has not admitted to any wrongdoing, in November of 2021, he agreed to step down as CEO foreign. much of Jeffrey Epstein's dealings remain murky. One thing we know for a fact is that he was an extremely wealthy man and has been for a long period of time. In 1998, he bought little Saint James island in the Caribbean for the equivalent of 15 million dollars adjusted for inflation.

He also owned luxury property in New York, Florida and Ohio. At the time of his demise in 2019, the total value of his estate was estimated to Total 636 million dollars. The upkeep in property taxes associated with his properties added up to more than 10 million dollars per year. That doesn't even include the millions of dollars of expenses related to the operation of his Boeing 727 private jet or the millions of dollars to be paid to his victims and co-conspirators who helped him recruit the victims.

It's almost certain that Epstein made well in excess of a billion dollars over the course of his career and developed contacts with a whole host of rich and powerful people, including but not limited to prince Andrew, the Duke of York former U.S President Bill Clinton real estate Mogul and eventual US president, Donald Trump Microsoft founder, Bill Gates and many other rich and Powerful individuals. To be clear, having made contact with Jeffrey Epstein is not in and of itself an indication of knowledge or involvement in his criminal activities. With Epstein being such a wealthy man, it's natural that he would have rubbed elbows with members of the political and financial. Elite at New York dinner parties and the like.

But this raises the question of how Epstein made his fortune. He was not a hedge fund manager or a high-profile investment banker. He was a College Dropout who lied about his credentials to become a high school math teacher at a fancy private school in New York He was then fired for poor performance within two years. One of his students was a son of the CEO of Bear Stearns one of the largest investment banks at the time.

Through his connection Epstein secured a job as a Trader at the bank, but a few years later he was fired for regulatory violations. When he left Bear Stearns in 1981, his resume became murkier. He appears to have made hundreds of millions of dollars working as a money manager for the billionaire retail. Mogul In Victoria's Secret owner Leslie Wexner Wexner's Associates were perplexed as to why he would put so much trust into Epstein given his apparent lack of qualifications not even possessing a college degree Leon Black, the billionaire founder of the private Equity Giant Apollo Paid Epstein 158 million dollars between 2012 and 2017 for tax advice black employed Epstein despite having knowledge of his child prostitution conviction in 2008.

It's all fine to want tax advice, but a convicted sex offender with no professional qualifications seems like an odd Choice. The fact of the matter is that Jeffrey Epstein has obscene amounts of money moving through his various JP Morgan accounts without a reasonable explanation as to how he obtained such wealth. The Crux of the current legal cases is whether or not JP Morgan and Staley were negligent, insofar as ascertaining the sources and uses of Epson's funds. The U.S Virgin Islands complaint alleges multiple systemic failures at JP Morgan which make the bank legally liable.

However, these failures were redacted in the publicly available document. It's important to note that the German banking giant Deutsche Bank also had a relationship with Epstein. In 2020, they paid a 150 million dollar settlement on similar claims. So it wouldn't be particularly surprising if JP Morgan ends up paying a similarly massive settlement on the issue of JP Morgan trying to deflect all the blame on Staley himself.

This could be a tough sell. It may very well be true that Staley had more knowledge of Epson's suspicious transactions than anyone else at the bank, and he actively worked to cover them up, but after the 2008 conviction, Epstein was clearly a high-risk client and other senior Executives knew that the bank had a relationship with him. Despite this, they continued to allow Staley to take responsibility for the Epson relationship with the other Executives, apparently oblivious to the close personal relationship between the two men. Also, the 1 200 emails between Staley and Epstein were made using his official JP Morgan email address.

It's unclear to what extent compliance officers at the bank could have accessed these emails. To investigate the extent of these two men's interactions, to what extent a large corporation can blame its alleged transgressions on a single Rogue executive is likely something that will be debated by the relevant lawyers over the coming years, but either way, it's not a great look for America's largest bank. All right guys, that wraps it up for this video. What do you think about JP Morgan's relationship with Jeffrey Epstein Let us know in the comments section below.

As always, thank you so much for watching and we'll see you in the next one. Wall Street Millennial Signing out.