Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/238..pdf

EXHIBIT 35 Case 1:22-cv-10904-JSR Document 238-10 Filed 07/25/23 Page 1 of 6 Kevin McCleerey - Highly Confidential Golkow Litigation Services Page 1 1 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 2 - - - 3 GOVERNMENT OF THE UNITED : Case Number: STATES VIRGIN ISLANDS : 1:22-cv- 4 Plaintiff, : 10904-JSR v. : 5 JPMORGAN CHASE BANK, N.A. : Defendant/Third-Party : 6 Plaintiff. : _________________________________________ 7 JPMORGAN CHASE BANK, N.A. : Third-Party Plaintiff, : 8 v. : JAMES EDWARD STALEY : 9 Third-Party Defendant. : 10 - - - 11 APRIL 28, 2023 HIGHLY CONFIDENTIAL 12 - - - 13 Videotaped deposition of 14 KEVIN McCLEEREY, taken pursuant to 15 notice, was held at the law offices of 16 Porzio, Bromberg & Newman, P.C., 100 17 Southgate Parkway, 3rd Floor, Morristown, 18 New Jersey 07960, commencing at 19 9:13 a.m., on the above date, before 20 Amanda Dee Maslynsky-Miller, a Certified 21 Realtime Reporter and Notary Public in 22 and for the State of New York. 23 - - - GOLKOW LITIGATION SERVICES, INC. 24 877.370.3377 ph| 917.591.5672 fax Case 1:22-cv-10904-JSR Document 238-10 Filed 07/25/23 Page 2 of 6 Kevin McCleerey - Highly Confidential Golkow Litigation Services Page 119 1 A. No. No. No securities. 2 Q. Did limiting Mr. Epstein to 3 banking and custody only mitigate the 4 risk presented by Mr. Epstein? 5 MR. BUTTS: Objection to 6 form. 7 You may answer. 8 THE WITNESS: I think 9 Jeffrey Epstein -- yes, I would 10 say yes, it did. 11 BY MS. OLIVER: 12 Q. How? 13 A. We were not expanding the 14 relationship based on the reputational 15 risk that we knew of at the time in 16 October of 2006. 17 Q. Did limiting him to being a 18 banking-only client in any way limit the 19 risk presented by Mr. Epstein? 20 MR. BUTTS: Objection. 21 You may answer. 22 THE WITNESS: It should 23 have. 24 BY MS. OLIVER: Case 1:22-cv-10904-JSR Document 238-10 Filed 07/25/23 Page 3 of 6 Kevin McCleerey - Highly Confidential Golkow Litigation Services Page 120 1 Q. How so? 2 A. We would have less accounts, 3 or a -- we would cap the number of 4 accounts and relationships with him. 5 Q. Did it limit his ability to 6 make cash withdrawals in amounts for 7 $40,000 to $80,000 several times a month? 8 A. No. 9 Q. Did it limit his ability to 10 send wires to women? 11 A. There were no limitations, 12 no. 13 Q. Did it limit his ability to 14 send wires to girls? 15 A. I don't recall what 16 Mr. Epstein did with those accounts. But 17 there were no limitations on his banking 18 accounts, just from what I remember. 19 Q. At the time of the rapid 20 response meeting in 2006, what was the 21 risk posed by Mr. Epstein to JPMorgan? 22 A. Reputational risk. 23 Q. What was the nature of the 24 reputational risk posed by Mr. Epstein to Case 1:22-cv-10904-JSR Document 238-10 Filed 07/25/23 Page 4 of 6 Kevin McCleerey - Highly Confidential Golkow Litigation Services Page 340 1 alerts? 2 A. No. 3 Q. So we talked about -- we 4 talked about the tools that you could use 5 to do your job. 6 I take it from some of the 7 prior e-mails, did your team's task 8 include searching for negative news 9 articles about Private Bank clients? 10 A. That was a separate group in 11 the bank, the global security services 12 group. So any time a DDR was sent 13 through the process, it went to global 14 security services. 15 And they would -- they had 16 different databases, and it would trigger 17 any negative news for clients, they would 18 send that back to the banker, and to 19 somebody on my team, to indicate there 20 was some negative news about the client. 21 And it's certain if we saw 22 an article in a local paper, we would 23 escalate that. 24 Q. So there was a sort of Case 1:22-cv-10904-JSR Document 238-10 Filed 07/25/23 Page 5 of 6 Kevin McCleerey - Highly Confidential Golkow Litigation Services Page 341 1 automated process that sent you or a 2 member of your team an alert about a 3 negative news article on a client? 4 A. Yes. 5 Q. And were those negative 6 articles stored anywhere upon receipt? 7 A. It would always be retained 8 by global security services. And the 9 reference to the article should have been 10 attached or made part of the KYC form. 11 They were called Red Dots, for some 12 reason. 13 Q. And this is the Red Dot 14 memo? 15 A. Yeah. That's the Red Dots, 16 yeah. 17 Q. And I take it that the head 18 of the asset management business didn't 19 receive Red Dot memos? 20 A. No. 21 Q. And either did the head of 22 the investment bank? 23 A. No. 24 Q. You testified that you did Case 1:22-cv-10904-JSR Document 238-10 Filed 07/25/23 Page 6 of 6