Ex-Barclays CEO Staley Misled FCA on Epstein Links

LONDON (Reuters) – Ex-Barclays CEO Jes Staley gave misleading answers to Britain's Financial Conduct Authority (FCA) regarding his dealings with Jeffrey Epstein, according to the FCA's lawyers on Monday.

The FCA announced in October 2023 its intent to ban Staley from senior roles and fine him £1.8 million ($2.27 million) related to a 2019 letter sent by Barclays to the financial watchdog.

Staley expressed his disappointment with the FCA decision and is challenging it; his appeal will be heard by London’s Upper Tribunal in March next year.

The FCA found Staley, a former JP Morgan executive, had “recklessly approved” a letter with misleading statements about his relationship with Epstein and their last contact.

At a preliminary hearing on Monday, the FCA revealed that Bank of England Governor Andrew Bailey and Barclays chairman Nigel Higgins provided witness statements for the case.

The FCA also argued in court that information from a lawsuit by the U.S. Virgin Islands against JP Morgan indicated Staley misled the FCA in interviews and in response to the tribunal case.

Staley's legal team contended that the FCA's attempts to present a new case and amend its allegations would be prejudicial.

Last year, JP Morgan settled the U.S. Virgin Islands' claim for $75 million, asserting the bank aided Epstein’s sex trafficking and reached a confidential settlement with Staley, whom it blamed for maintaining Epstein as a client.

Epstein committed suicide in a New York jail in 2019 while awaiting trial on sex-trafficking charges.

The FCA's lawyer, Leigh-Ann Mulcahy, argued that based on evidence from the U.S. lawsuit, Staley had “dishonestly or recklessly” misled the watchdog in interviews from 2019 to 2021.

Staley claimed he had “zero contact” with Epstein during his tenure at Barclays from December 2015 to 2021.

Judge Tim Herrington will issue a ruling on whether the FCA can amend its case at a later date.