Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/263-24.pdf

EXHIBIT 77 FILED UNDER SEAL Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 1 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 1 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 Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 2 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 125 1 A. Rephrase that, please. 2 Q. At the end of your 3 conversation with Mr. Staley, you still 4 thought Mr. Epstein should be exited. 5 A. I was of the opinion his 6 reputational risk was not worth having 7 him as an account, that's correct. 8 Q. And, nevertheless, you 9 signed the DDR allowing him to remain. 10 A. I did. 11 Q. And if you had declined to 12 sign that, a widening of the circle would 13 have occurred, at which more people would 14 have discussed what to do with this 15 business, right? 16 A. The -- I felt like that had 17 already happened. 18 Q. Did you involve the CEO of 19 the entire Private Bank in that 20 conversation? 21 A. I don't recall. 22 Q. Did you involve Phil 23 Di Iorio in that conversation? 24 A. They are one and the same. Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 3 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 174 1 A F T E R N O O N S E S S I O N 2 - - - 3 THE VIDEOGRAPHER: The time 4 right now is 12:37 p.m. We're 5 back on the record. 6 - - - 7 CONTINUED EXAMINATION 8 - - - 9 BY MR. SCHIFFMANN: 10 Q. Mr. Duffy, at any point 11 during your time as CEO of the U.S. 12 Private Bank, did you become concerned by 13 Mr. Epstein's use of cash from his 14 JPMorgan accounts? 15 A. I wasn't concerned about his 16 use of cash. Large clients use cash in 17 different ways. They are different than, 18 you know, the average person on Main 19 Street. 20 But I did speak with 21 Mr. Epstein about his use of cash and 22 what it was for and made suggestions to 23 him as it related to his response, which 24 was for aviation fuel, to use his Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 4 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 175 1 aviation account. 2 Q. So your answer is no, you 3 were not concerned about his use of cash? 4 A. It wasn't -- it wasn't 5 outsized in relation to what clients of 6 Mr. Epstein's net worth or asset base 7 has. And it wasn't unusual, as it 8 related to what was expected in that 9 account, and he was pretty consistent in 10 the use of that. 11 So we are always concerned 12 about people who use cash and might be 13 carrying cash around, because it's a 14 liability for them. 15 Q. So other than the size of -- 16 well, strike that. 17 So you've just testified 18 that you weren't concerned about the size 19 of the withdrawals. Did anything else 20 about the cash withdrawals concern you 21 while you were CEO of the U.S. Private 22 Bank? 23 MR. JOHNSON: Objection. 24 THE WITNESS: We -- clients Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 5 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 176 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, Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 6 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 177 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. Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 7 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 207 1 didn't think that it was appropriate? 2 A. If I thought there was 3 something inappropriate that Mr. Epstein 4 was doing, then I wouldn't have approved 5 it. 6 Q. If it was your 7 responsibility to continue the 8 relationship, why did you initially 9 decline to approve the account? 10 A. In this review? 11 Q. Yes. 12 A. More information, from my 13 perspective, since we had -- I had a 14 discussion with Mr. Epstein about his use 15 of cash to pay for fuel out of a Hyperion 16 account. I was looking for consistency. 17 Q. And if you found out more 18 information that made you think that 19 approving Mr. Epstein's account was 20 inappropriate, you would have declined to 21 approve it, right? 22 A. If I thought there was 23 anything he was doing that was wrong, a 24 crime, illicit, I would not have approved Case 1:22-cv-10904-JSR Document 263-24 Filed 08/07/23 Page 8 of 16 Confidential - Pursuant to Protective Order Golkow Litigation ServicesPage 212 1 e-mail, do you remember between -- 2 whether between 6:03 p.m. on March 27th 3 and 6:25 p.m. on March 27th you had a 4 conversation with Mr. Epstein about this 5 particular cash withdrawal? 6 MR. JOHNSON: Objection. 7 THE WITNESS: I did not have 8 a conversation with h