Former Barclays CEO Jes Staley misled Britain’s financial regulator about his relationship with late disgraced financier Jeffrey Epstein, lawyers for the Financial Conduct Authority alleged Monday.
The FCA alleged Staley “recklessly approved” a 2019 letter from Barclays to the regulator that had misleading statements regarding both his relationship to Epstein and their last contact, according to Reuters.
FCA attorney Leigh-Ann Mulcahy alleged that Staley had “dishonestly and recklessly” misled the FCA between 2019 and 2021 in three different interviews, the wire service reported. He had reportedly told the FCA that he’d had “zero contact, any relationship at all, with Jeffrey” during his tenure as Barclays CEO from December 2015 to 2021.
But Epstein and Staley allegedly communicated with Staley’s adult daughter Alexa as a go-between in 2016 and 2017, according to court documents seen by Bloomberg.
Staley, who is challenging the FCA’s October 2023 decision to ban him from the banking industry and pay a £1.8 million ($2.27 million) fine, continues to assert that he had no direct contact with Epstein after becoming Barclays CEO, according to Bloomberg. He also said the emails with Alexa Staley were each initiated by Epstein, Bloomberg reported.
Alexa Staley’s correspondence with Epstein included an inquiry from Epstein in 2016 as to whether her father would be interested in being considered for U.S. Treasury Secretary under then-President-elect Donald Trump. Epstein was not involved in Trump’s transition team, and Staley declined.
Staley’s previous employer, JPMorgan Chase, provided documents to the FCA that showed a relationship between Staley and Epstein, Reuters reported.
“This is what kicked everything off,” Judge Timothy Herrington said of the JPMorgan documents on Monday, according to the wire service.
JPMorgan sued Staley, but ended its legal pursuit of him last year following a wider settlement with Epstein victims. The bank agreed to pay $290 million to nearly 200 victims, and $75 million to the U.S. Virgin Islands, without admitting any wrongdoing.
Staley’s appeal of the FCA decision is expected to be heard by London’s Upper Tribunal in March 2025.
Bank of England Governor Andrew Bailey, who was the FCA’s chief executive from 2016 to 2020, and Barclays Chair Nigel Higgins are both set to testify in the case, according to documents seen by Bloomberg.
The FCA did not return a request for comment from Banking Dive. A representative for Staley and a JPMorgan spokesperson declined to comment to Bloomberg.
