Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/238-07.pdf

EXHIBIT 32 Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 1 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 1 1 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 2 GOVERNMENT OF THE UNITED ) 3 STATES VIRGIN ISLANDS ) ) 4 Plaintiff, ) ) 5 vs. ) 1:22-cv-10904-JSR ) 6 JPMORGAN CHASE BANK, N.A., ) ) 7 Defendant/Third- ) Party Plaintiff. ) 8 _________________________ ) JPMORGAN CHASE BANK, N.A. ) 9 ) Third-Party ) 10 Plaintiff, ) ) 11 vs. ) ) 12 JAMES EDWARD STALEY, ) ) 13 Third-Party ) Defendant. ) 14 15 FRIDAY, APRIL 7, 2023 16 CONFIDENTIAL - ATTORNEYS' EYES ONLY 17 – – – 18 Videotaped deposition of Mary Casey, held at the offices of Boies Schiller 19 & Flexner, 100 SE 2nd Street, Suite 2800, Miami, Florida, commencing at 9:23 a.m. 20 Eastern, on the above date, before Carrie A. Campbell, Registered Diplomate Reporter, 21 Certified Realtime Reporter, Illinois, California & Texas Certified Shorthand 22 Reporter, Missouri, Kansas, Louisiana & New Jersey Certified Court Reporter. 23 – – – 24 GOLKOW LITIGATION SERVICES 877.370.DEPS 25 deps@golkow.com Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 2 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 42 1 includes understanding source of wealth, 2 understanding activities within an account, 3 and ensuring that it's in keeping with your 4 understanding of the client. 5 Q. And ensuring that it's in 6 keeping with your understanding of the 7 client's line of business or businesses, 8 correct? 9 MR. BUTTS: Objection. 10 You may answer. 11 THE WITNESS: That is correct. 12 QUESTIONS BY MS. LIU: 13 Q. And as part of due diligence, 14 you reviewed news reports or news 15 publications that come out with respect to 16 the client or the client's businesses, 17 correct? 18 A. They would be included within 19 the due diligence review, yes. 20 Q. And you also review any civil 21 or any other form of lawsuits that may be 22 filed by or against the client, correct? 23 A. They are included within the 24 due diligence review, yes. 25 Q. How many Jane Doe victim Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 3 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 97 1 grappling with how Jeffrey should be covered 2 in PB." 3 And PB is private bank, 4 correct? 5 A. That is correct. 6 Q. "My product partners and I have 7 expressed a reluctance to proactively cover 8 him, as every transaction becomes 9 problematic." 10 Do you see that? 11 A. I do. 12 Q. And you wrote that on August 7, 13 2006, correct? 14 A. That is correct. 15 Q. "My sense is that it should 16 evolve into a banking and client service-only 17 relationship." 18 Do you see that? 19 A. I do. 20 Q. "Would you agree." 21 Do you see that? 22 A. I do. 23 Q. And again, you wrote those 24 words to Jes Staley and Mary Erdoes on 25 August 7, 2006, correct? Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 4 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 98 1 A. That is correct. 2 Q. And Jes Staley responds to you 3 and Ms. Erdoes, and he says, "I agree with 4 your second point." 5 Do you see that? 6 A. I do. 7 Q. And your second point was "to 8 evolve it into a banking and client 9 service-only relationship," correct? 10 A. That is correct. 11 Q. Does this refresh your 12 recollection at all about having a discussion 13 by phone with Mr. Staley? 14 A. I spoke to Mr. Staley on the 15 phone. I can't tell you exactly when. 16 Q. Do you recall what you and 17 Mr. Staley discussed on that phone call? 18 A. For this particular phone 19 call -- 20 Q. Yes. 21 A. -- that is referenced in point 22 2, we were discussing the challenges of 23 covering Jeffrey because he was a difficult 24 investment client. 25 Q. So it had nothing to do with Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 5 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 99 1 the Palm Beach Post news article related to 2 his indictment for child sex offenses that 3 you forwarded to Mr. Staley approximately a 4 week and a half earlier and asked him to give 5 you a ring? 6 A. This particular phone call 7 cited in this e-mail, we are discussing an 8 investment-related concern. We had... 9 Q. So your reluctance -- your 10 testimony here today under penalty of 11 perjury, Ms. Casey -- 12 A. Yes. 13 Q. -- your reluctance "to 14 proactively cover him, as every transaction 15 becomes problematic," had nothing to do with 16 the news reports related to the child sex 17 offenses? 18 A. This particular -- this 19 particular e-mail and that particular 20 conversation referenced here relates to the 21 challenges of Mr. Epstein as being a very 22 difficult client from an investment point of 23 view. 24 We had separate conversations 25 with respect to the reputational risk of Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 6 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 100 1 Mr. Epstein. 2 Q. And what were those separate 3 conversations? 4 A. We have a process for 5 escalation of reputational risk issues, and 6 in the course of that process, we had 7 meetings related to that. 8 Q. And who were your product 9 partners who also expressed a reluctance to 10 proactively cover him? 11 A. At this point in time, I 12 believe my investment partner was Phil 13 Schlakman. 14 And it also relates -- if you 15 look at the paragraph 1, we had a portfolio 16 manager also involved on that relationship 17 and, again, not getting paid for the fees for 18 the account. 19 Q. And your reluctance to 20 proactively cover Jeffrey Epstein, your 21 testimony is that that had -- your reluctance 22 had nothing to do with the reports related to 23 Jeffrey Epstein being indicted for child sex 24 offenses? 25 MR. BUTTS: Objection. Case 1:22-cv-10904-JSR Document 238-7 Filed 07/25/23 Page 7 of 17 Mary Casey - Confidential, Attorneys' Eyes Only Golkow Litigation Services Page 264 1 QUESTIONS BY MS. LIU: 2 Q. And so even the head of global 3 credit, I think you said, is concerned. The 4 credit team. 5 Are you aware whether or not 6 Mary Erdoes was concerned at that time? 7 MR. BUTTS: Objection to form. 8 Is the question, are you aware 9 Mary Erdoes was concerned? 10 MS. LIU: Yes. 11 THE WITNESS: I don't know. 12 QUESTIONS BY MS. LIU: 13 Q. Okay. So you see that's 14 10/25/07, right? 15 A. Correct. 16 (Casey Exhibit 23 marked for 17 identification.) 18 QUESTIONS BY MS. LIU: 19 Q. Okay. I'm about to show you an 20 e-mail chain on the same date and the next