Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/285-21.pdf

EXHIBIT 88 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 1 of 12 Confidential - Pursuant to Protective Order 1 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 2 GOVERNMENT OF THE : 3 UNITED STATES VIRGIN : ISLANDS, : CASE NO. 4 : 1:22-CV-10904 Plaintiff, : -JSR 5 : v. : 6 : JPMORGAN CHASE BANK, : 7 N.A., : : 8 Defendant/Third Party : Plaintiff. : 9 ______________________ : JPMORGAN CHASE BANK, : 10 N.A., : : 11 Third Party Plaintiff, : : 12 v. : : 13 JAMES EDWARD STALEY, : : 14 Third Party Defendant. : 15 CONFIDENTIAL - PURSUANT TO PROTECTIVE ORDER - - - 16 July 13, 2023 - - - 17 Videotaped deposition of 18 JOHN R. DUFFY, taken pursuant to notice, was held at Wilmer Hale, Seven World 19 Trade Center, New York, New York, beginning at 9:17 a.m., on the above 20 date, before Michelle L. Gray, a Registered Professional Reporter, 21 Certified Shorthand Reporter, Certified Realtime Reporter, and Notary Public. 22 GOLKOW LITIGATION SERVICES 23 877.370.3377 ph | 917.591.5672 fax deps@golkow.com 24 Golkow Litigation Services Page 1 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 2 of 12 Confidential - Pursuant to Protective Order 1 those subsequent checkpoint meetings 2 prior to this August 4, 2011, meeting? 3 A. Not that I recall. 4 Q. Okay. Skipping down to the 5 section, "Excerpts From the Press." 6 The first sentence there 7 says, "Committee members reviewed recent 8 press releases, summarized below," right? 9 A. Yes. 10 Q. And going to the next page, 11 at the very end, if you see, it says, 12 "Conclusion: The client will remain 13 flagged as high risk and we will proceed 14 with business as usual. The client will 15 remain a 'banking' client only." 16 Correct? 17 A. That's what it says. 18 Q. Is that your understanding 19 of the conclusion of the rapid response 20 meeting? 21 A. It is. It is. What's -- 22 what's different from this, from the 23 documents we were just looking at, is 24 that the reviewed press releases were Golkow Litigation Services Page 168 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 3 of 12 Confidential - Pursuant to Protective Order 1 different than some of the documents that 2 you walked me through previously. 3 Q. But you don't have any 4 reason to think that those documents that 5 were e-mailed to you weren't provided to 6 you? 7 A. I -- like I said, don't have 8 a recollection of it. Don't doubt that 9 they were provided by the Morgan system. 10 But as it relates to the 11 reputational risk meeting, these are the 12 excerpts that we reviewed, obviously, 13 from. 14 Q. It says those were the ones 15 that were reviewed during the meeting, 16 right? 17 A. Yeah. Correct. 18 Q. It doesn't say that other 19 documents weren't circulated previously, 20 right? 21 A. It does not. 22 Q. Okay. And -- so at the end 23 of the August 4, 2011, reputational risk 24 committee meeting, the decision was made Golkow Litigation Services Page 169 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 4 of 12 Confidential - Pursuant to Protective Order 1 who take out cash regularly, we 2 look for it to be consistent with 3 what was expected for that 4 account. And the DDR is the 5 mechanism for setting the 6 expectation of activity in an 7 account. And Mr. Epstein's cash 8 withdrawals were consistent with 9 the expectations as set by his 10 DDR. 11 BY MR. SCHIFFMANN: 12 Q. So to answer my question, 13 you did not -- you were not concerned 14 about any aspect of his cash usage while 15 you were CEO of the U.S. Private Bank? 16 A. I was curious about it. I 17 asked him about it. 18 Q. But you were not concerned 19 about it? 20 A. No. We spoke about it. He 21 gave me an answer, which was it was for 22 jet fuel. I took him at his word and 23 felt like I covered that with him. 24 Q. And when he told you that, Golkow Litigation Services Page 176 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 5 of 12 Confidential - Pursuant to Protective Order 1 you believed him? 2 A. I did. 3 Q. Did you ever think he was 4 being dishonest with you? 5 A. No, I did not. 6 Q. So did you always take 7 Mr. Epstein at his word? 8 A. We didn't talk that often. 9 But on that -- on that matter in 10 particular, yes. 11 Q. Do you remember ever not 12 taking him at his word during any of your 13 conversations? 14 A. They were limited, so no. 15 Q. Did you ever discuss your 16 concerns -- well, withdrawn. 17 Did you ever discuss 18 Mr. Epstein's use of cash with Mary 19 Erdoes? 20 A. Yes. 21 Q. And what do you remember 22 about -- well, when was that 23 conversation? 24 A. I don't recall. Golkow Litigation Services Page 177 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 6 of 12 Confidential - Pursuant to Protective Order 1 A. What I agree to is I had 2 reputational issues with Mr. Epstein as a 3 result of he being a felon and a sex 4 offender. 5 Q. And would you agree that 6 being a felon and a sex offender and 7 somebody who pled guilty to the 8 solicitation of a 14-year-old for 9 commercial sex does not necessarily 10 affect Mr. Epstein's willingness or 11 ability to pay? 12 MR. JOHNSON: Objection. 13 THE WITNESS: I don't know. 14 BY MS. LIU: 15 Q. You recall that you were 16 asked a number of questions about, I 17 think, what we can now refer to as the 18 cash or fuel explanation that was given 19 by Mr. Epstein? 20 A. Yes. 21 Q. Do you recall when you got 22 that explanation? 23 A. I don't recall exact date, 24 no. Golkow Litigation Services Page 336 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 7 of 12 Confidential - Pursuant to Protective Order 1 Q. And you recall you testified 2 that the explanation was that he needed 3 cash to pay for fuel when he was 4 traveling to foreign countries, correct? 5 A. That's correct. 6 Q. And then I think there was 7 some discussion about potentially there 8 being some OFAC countries; do you recall 9 that? 10 A. That was mentioned, yes. 11 Q. And what is an OFAC country? 12 A. I'm not going to remember 13 the actual words behind that. But I 14 think it's the Office of Foreign Accounts 15 and Currency Control, something like 16 that. 17 Q. And what does it mean to say 18 that Mr. Epstein travels to foreign 19 countries, including certain OFAC 20 countries? What does that mean? 21 A. In -- I will give you my 22 recollection. 23 To my recollection, 24 countries on the OFAC list are prohibited Golkow Litigation Services Page 337 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 8 of 12 Confidential - Pursuant to Protective Order 1 from -- for U.S. banking institutions to 2 do business there and U.S. corporations 3 to do business there. 4 Q. And at the time you received 5 this explanation, did you ask him 6 specifically what countries are you 7 traveling to? 8 A. I don't recall. 9 Q. And is it fair to say, then, 10 that you did not also ask him what 11 OFAC -- what countries on the OFAC list 12 are you traveling to? 13 A. I don't recall. 14 Q. And are you aware of what 15 countries in Eastern Europe are on the 16 OFAC list or were on the OFAC list at 17 that time? 18 A. I don't recall. 19 Q. So you do recall that there 20 was derogatory information reported 21 within the bank that Mr. Epstein was 22 known to fly women for trafficking 23 purposes from Eastern Europe to the 24 United States, correct? Golkow Litigation Services Page 338 Case 1:22-cv-10904-JSR Document 285-21 Filed 08/15/23 Page 9 of 12 Confidential - Pursuant to Protective Order 1 line, it says, "Mr. Epstein will continue 2 to be a banking-only client," correct? 3 A. It says that. 4 Q. He was not exited from the 5 bank a