Former Barclays CEO Jes Staley has been unsuccessful in his attempt to overturn a decision banning him from top financial positions in the UK due to his association with convicted sex offender Jeffrey Epstein.
Mr Staley was forced to resign in November 2021 after the UK’s Financial Conduct Authority (FCA) found that he had not accurately disclosed the nature and duration of his relationship with Epstein to both the Barclays board and the FCA in 2019.
He had sought to challenge the FCA’s 2023 ruling to ban him and impose a fine of £1.8m, arguing that he had never tried to hide his relationship with Epstein.
The Upper Tribunal in London dismissed his appeal on Thursday, but reduced the fine to £1.1m.
During the hearing, Mr Staley, who led Barclays from 2015 to 2021, stated that he had a close professional connection with Epstein, but not a personal friendship.
Epstein was found dead in his prison cell in 2019 while awaiting trial for sex trafficking. He had previously been convicted in 2008 for soliciting sex from a minor and was sentenced to 13 months in jail.
Mr Staley told the tribunal that he had no knowledge of Epstein’s “heinous activities.”
He expressed disappointment with the ruling but was pleased that the tribunal acknowledged he had not been dishonest.
“I have dedicated my entire career to my previous employers,” he said.
“I am proud of the support I provided to many individuals during my career and the strategy I developed to assist Barclays in the face of significant challenges.”
The case revolved around a 2019 letter sent by Barclays chairman Nigel Higgins to the FCA, which the regulator claimed contained two misleading statements: that Staley did not have a close relationship with Epstein and that their last contact was “well before he joined Barclays in 2015.”
The FCA stated that while Mr Staley did not personally draft the letter, he had “recklessly” approved it.
However, Mr Staley told the tribunal that both statements were accurate and that his “close business relationship” with Epstein had diminished after he left his previous employer JPMorgan, where Epstein had been a client.
Mr Staley had spent three decades at the American investment bank, including serving as head of its asset and wealth management division.
He stated that the last time he physically met Epstein was in April 2015.
Despite Mr Staley’s claim that his relationship with Epstein was not close, a series of emails released by JPMorgan suggested otherwise.
The emails described time spent together at Epstein’s properties in New York and on his private island in the US Virgin Islands, and showed that Mr Staley had referred to Epstein as one of his “closest” and “most cherished” friends.
In one email exchange, Mr Staley told Epstein: “That was fun, say ‘Hi’ to Snow White.” To which Epstein replied, “What character would you like next?” Mr Staley responded, “Beauty and the beast!”
In addition, the emails revealed that Mr Staley had been in contact with Epstein in the days leading up to the announcement of his appointment as Barclays CEO on October 28, 2015.
Mr Staley has consistently denied any knowledge of Epstein’s crimes.