Business

Jeffrey Epstein referred Obama White House counsel to JPMorgan

Kathy Ruemmler, previous White House Counsel, appears on “Meet the Press” in Washington, D.C., June 29, 2014.

William B. Plowman | NBCUniversal | Getty Images

Sex predator Jeffrey Epstein was associated with developing a customer relationship in between Obama White House counsel Kathryn Ruemmler and JPMorgan Chase in February 2019, 4 months prior to he was jailed on federal kid sex trafficking charges, a bombshell court filing exposed Tuesday.

Ruemmler, who is now basic counsel for Goldman Sachs, was promoted by Epstein’s individual assistant to JPMorgan as a perfect client, the filing reveals.

The tip that JPMorgan take Ruemmler on as a customer — which the bank warmly welcomed — came practically 6 years after JPMorgan stated it had actually successfully fired Epstein as a customer after internal controls consistently raised warnings about him.

And it came 5 months prior to Epstein eliminated himself in August 2019 in a Manhattan federal prison, where he was being held without bail pending trial.

Ruemmler decreased to comment through a Goldman Sachs representative.

CNBC independently emailed her to ask how she understood Epstein, and what understanding she had of his history of being founded guilty in 2008 of a sex criminal offense in Florida.

The Manhattan federal court filing detailing her connection to Epstein was submitted by the federal government of the U.S. Virgin Islands, which is taking legal action against JPMorgan.

The American area declares that JPMorgan made it possible for and took advantage of Epstein’s sex trafficking of girls to the Virgin Islands, where he had a house, throughout the years he kept accounts at the bank, from 1998 through 2013., declaring the bank made it possible for and took advantage of sex trafficking of girls by Epstein.

JPMorgan rejects any misdeed in the event, where the area is looking for a minimum of $190 million in damages.

The bank last month consented to settle a comparable claim in the very same court by an Epstein accuser, paying $290 million to her and other Epstein victims.

The case is arranged to go to trial in late October.

“Even after his exit right up until his arrest in 2019, JPMorgan continued to work with Epstein,” the Virgin Islands stated in its filing.

The filing states that JPMorgan admits “Epstein was involved in the establishment of a customer relationship with Kathryn Ruemmler,” who was the longest-serving White House basic counsel under previous President Barack Obama

The filing states that in February 2019, Epstein’s assistant Leslie Groff provided to present Mary Erdoes, a leading JPMorgan executive, to Ruemmler, since she wished to open an account with JPMorgan and Epstein believed the 2 of them “would bond.”

“Erdoes escalated the referral to Stacey Friedman, JPMorgan’s General Counsel, who
responded ‘she is a rock star litigator at Latham. . . . I would think she would be a great client,’ ” the Virgin Island stated in its filing.

Ruemmler at the time operated at the law office Latham & Watkins.

In 2020 she signed up with Goldman Sachs as a partner, and now is Goldman’s primary legal officer and basic counsel. 

The filing likewise stated that Epstein at one time referred as a possible JPMorgan customer Nicholas Ribis, a video gaming consultant who for years ran gambling establishments for previous President Donald Trump.

Ribis did not right away react to ask for remark.

JPMorgan declares in court filings that the Virgin Islands was itself “complicit in the crimes of Jeffrey Epstein,” arguing that he provided high-ranking federal government authorities there cash, suggestions and prefers in exchange for looking the other method when he trafficked girls.

JPMorgan likewise argues that its previous executive Jes Staley, who was pals with Epstein when he patronized of the bank, is accountable for any civil liability of the bank due to its company relationship with the sex wrongdoer.

On Tuesday, recently unsealed court filings by the bank reveal that Epstein was asked by previous U.S. Virgin Islands Gov. John de Jongh Jr. for a loan of $215,000 after de Jongh was jailed on embezzlement charges that were later on dismissed.

Epstein’s business likewise paid de Jongh’s spouse Cecile a $300,000 swelling amount severance payment after Epstein eliminated himself in a federal prison while waiting for trial on kid sex trafficking charges in August 2019, JPMorgan’s files state. Cecile had actually worked for Epstein at his Southern Trust Company.

The files likewise state that another Epstein worker who worked for him in the Virgin Islands was given a U.S. Customs and Border Protection security seal, which enabled that employee to “escort passengers through” Customs and Border screening locations.

The bank in other court filings has actually stated that Epstein spent for the school tuitions of the kids of John and Cecile de Jongh, which Cecile had actually made efforts to get trainee visas and a work license for girls linked to Epstein.

A spokesperson for the Virgin Islands’ Attorney General’s Office informed CNBC that Epstein’s loan to previous Gov. de Jongh happened after he left workplace in 2015. The charges versus de Jongh were dropped in early 2016 by the Virgin Islands Department of Justice after he consented to a different financial settlement.

CNBC has actually connected to comment from John de Jongh by means of a property management business where he is a director.

The Virgin Islands representative likewise stated that “it was the federal government and not the Virgin Islands government that granted the ‘U.S. Customs and Border Protection Security Seal.’ “

The Virgin Islands has actually stated that JPMorgan’s management kept Epstein as a customer for many years in spite of numerous cautions about him being raised internally at the bank, that included payments to girls, and a 2008 sex criminal offense conviction in Florida which resulted in a prison term.

In its brand-new court filing on Tuesday, the Virgin Islands pointed out a July 2011 e-mail in between Epstein and Erdoes, after JPMorgan’s quick reaction group chose that Epstein must be offboarded as a customer, and after JPMorgan’s basic counsel informed Erdoes that Epstein was “not a person we should do business with — period.”

Erdoes and Epstein emailed after he and the bank consented to settle his claim versus JPMorgan associated to cash he stated he was owed by Bear Sterns, the financial investment bank taken control of by JPMorgan.

“On July 26, 2011, Epstein wrote to Erdoes, ‘lets [sic] move on , [sic] and make some real money,’ ” the filing stated.

“Erdoes responded, ‘Onwards and upwards, on so many fronts,’ ” the filing stated.

Epstein was not severed as a JPMorgan customer for another 2 years.

The brand-new Virgin Islands filing stated that Staley, in his deposition for the claim, revealed the names of individuals and business that Epstein had actually described the bank as possible customers. An unsealed part of Staley’s deposition was revealed Tuesday.

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Among the high-powered names noted in the court filing are Google co-founder Sergey Brin, the Sultan of Dubai, Sultan Ahmed bin Sulayem, previous Microsoft CEO Bill Gates, previous Treasury Department Secretary Larry Summers, and tv reporter Katie Couric.

Staley, who had actually been head of the bank’s property and wealth management department, affirmed that he fulfilled all those individuals at Epstein’s townhouse on the Upper East Side of Manhattan.

The deposition likewise reveals that Staley stated he had actually spoken with JPMorgan CEO Jamie Dimon in 2006 when Epstein was jailed on Florida state charges of obtaining a small for prostitution, and solicitation of a woman of the street.

JPMorgan has actually rejected that claim. “Staley admits that in 2006 Jamie Dimon communicated with him regarding Epstein’s arrest,” the Virgin Islands stated in the court filing.

“Staley also testified that on or about July 26, 2006, he spoke to Dimon about Epstein’s indictment because Dimon was his boss and the indictment of Epstein, a client of the bank, ‘was a very public event.’ “

Elsewhere in the deposition, Staley responded to concerns about visiting Epstein after a post was released in 2006 that stated, “Jeffrey Epstein craved big homes, elite friends – and, investigators say, underage girls.”

The short article likewise specified that 2 of “Epstein’s former employees told investigators that young looking girls showed up to perform massages two or three times a day when Epstein was in town.”

The Virgin Islands filing stated, “On July 25, 2006, Staley met with Epstein in person at Epstein’s home. In that visit, Epstein admitted to the alleged “conduct of taking part in sex for cash with girls”—only denying the ‘ages.’ “

Staley later composed Erdoes.

“I went and saw him last night. I’ve never seen him so shaken. He also adamantly denies the ages,” Staley composed Erdoes, the filing notes.

In his deposition, Staley was asked: “The conduct that he was being accused of, he was admitting that he did it.  He was just denying that he knew the ages of the victims, right?”

Staley responded, “Correct.”

“And you were reporting that back to the bank, that what was being denied is the ages, right?,” a legal representative for the Virgin Islands asked.

Staley responded to, “Right.”

He then yielded that the bank understood that Epstein had actually confessed to taking part in sex for cash with girls, while rejecting they were underage.

The legal representative then asked, “And so when the bank is receiving that information, they now know what you know, which is, this is the type of conduct that our client is engaging in, and the only dispute that he has about the allegations are the ages of the victims, right?”

Staley responded, “That’s correct.”

Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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