Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/238-08.pdf

EXHIBIT 33 Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 1 of 7 Confidential - Francis Pearn Golkow Litigation Services Page 1 00001 2 UNITED STATES DISTRICT COURT FOR THE 3 SOUTHERN DISTRICT OF NEW YORK 4 5 Case No. 1:22-cv-10019 (JSR) - - - - - - - - - - - - - - - - - -X 6 JANE DOE 1, Individually : and on behalf of all others : 7 similarly situated, : Plaintiffs : 8 : VS : 9 : JPMORGAN CHASE BANK, N.A., : 10 Defendant : - - - - - - - - - - - - - - - - - -X 11 Case No. 1:22-cv-10904 (JSR) - - - - - - - - - - - - - - - - - -X 12 GOVERNMENT OF THE UNITED STATES : VIRGIN ISLANDS : 13 Plaintiffs : : 14 VS : : 15 JPMORGAN CHASE BANK, N.A., : Defendant : 16 - - - - - - - - - - - - - - - - - -X 17 CONFIDENTIAL 18 19 Videotaped deposition of FRANCIS PEARN taken at the offices of 20 Boies Schiller Flexner LLP, 55 Hudson Yards, New York, New York 10001, before 21 Clifford Edwards, Certified Shorthand Reporter, and Notary Public in and for the 22 State of New York, on March 29, 2023, at 9:47 a.m. EDT. 23 24 25 Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 2 of 7 Confidential - Francis Pearn Golkow Litigation Services Page 53 1 2 A Yes. 3 Q What is the relationship between a 4 background investigation and a DDR, a due 5 diligence report? 6 A The due diligence report is completed 7 at the time by the -- the banker responsible for 8 the relationship, leverages information obtained 9 through searches of those systems for changes in 10 the client from a negative media PEP OFAC 11 perspective. 12 Q Would a due diligence report during 13 this period include all of the information that 14 was a part of the background investigation? 15 A The background investigation was done 16 at client on-boarding and then ongoing monitoring 17 of systems for negative media, OFAC designation, 18 PEPs, was done as part of ongoing client 19 screening, client -- know your client. 20 Q What does "know your client" refer to 21 in your answer? 22 A The -- the formal process that we have 23 at the bank as part of our BSA/AML program. 24 When clients are new to the bank and/or 25 changes in the products and services that the Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 3 of 7 Confidential - Francis Pearn Golkow Litigation Services Page 54 1 2 clients are utilizing, that may trigger updates to 3 the Know Your Customer record. 4 Q As part of the Know Your Customer 5 process that you just described in this time 6 period, did JPMorgan also look at internal 7 JPMorgan records on its customers for private 8 bank? 9 MR. BUTTS: Objection to form. 10 You may answer if you are able. 11 A If it's an existing client or customer 12 of the bank, there would be records and they 13 would be looked at. 14 BY MR. ARNOLD: 15 Q What would those internal records 16 include? 17 A It would include the history of the 18 products and services used by that existing 19 client. It would include any -- any information 20 that was identified as part of the ongoing 21 transaction monitoring, there would be a history, 22 record of that, and that would be generally what 23 was looked at. 24 Q Is there anything else you can think of 25 that would have been looked at in terms of -- as Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 4 of 7 Confidential - Francis Pearn Golkow Litigation Services Page 60 1 2 Q Is that a written document? 3 A Yes. 4 Q Were clients who were assigned a high 5 risk rating subject to annual Know Your Customer 6 or KYC relationship reviews? 7 A Yes, they were. 8 Q What was involved in an annual Know 9 Your Customer relationship review? 10 A An update to the information that's 11 filed -- that's already included in the KYC file. 12 It will include searches for any change in status 13 of -- from an OFAC sanction perspective, it 14 will -- it will search for if they are now 15 considered a PEP, there will be the ongoing 16 negative media screening that is part of that. 17 And then also a general documentation of 18 has there been any change in the customer's 19 activity with the client or their -- the nature of 20 their products and services used at the bank. 21 Q What was the purpose of the annual KYC 22 relationship review? 23 A It -- it's part of our procedures to 24 ensure that we are current in our understanding 25 of the client, the relationships they have with Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 5 of 7 Confidential - Francis Pearn Golkow Litigation Services Page 191 1 2 A Yes. 3 BY MS. BOGGS: 4 Q If a customer has a crime related to a 5 sexual offense against a minor, are they a higher 6 risk for -- for human trafficking? 7 MR. BUTTS: Objection to form. 8 And you may answer as a 30(b)(1) 9 witness. 10 A Yes. 11 BY MS. BOGGS: 12 Q If a customer is a registered sex 13 offender, are they a higher risk for human 14 trafficking? 15 MR. BUTTS: Same objections. 16 A Yes. 17 BY MS. BOGGS: 18 Q The second bucket is, "Demographic 19 links to online adult advertising and services." 20 And this is the category that we talked 21 about before; right? 22 A Yes, it is. 23 Q The third bucket is, "Previous AML 24 history." 25 This states, "Previous AML history, Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 6 of 7 Confidential - Francis Pearn Golkow Litigation Services Page 192 1 2 while not necessarily HT-related, may be 3 associated with an investigation related to 4 suspicious activity, such as interstate, 5 excessive, or structured cash activity." 6 Do you see that? 7 A Yes. 8 Q So does this mean if a consumer has a 9 prior history of excessive or structured cash 10 activity that they would be a higher risk for 11 human trafficking? 12 MR. BUTTS: Same objections. 13 A Yes. 14 BY MS. BOGGS: 15 Q Other than the documents that you and I 16 have looked at today, have you seen any other 17 JPMorgan documents related to human trafficking? 18 MR. BUTTS: Objection. Form. 19 You may answer. 20 A No. 21 BY MS. BOGGS: 22 Q Other than William Langford and 23 Mr. DeLuca, are there any other individuals at 24 JPMorgan that would have more knowledge about the 25 human trafficking initiatives at JPMorgan? Case 1:22-cv-10904-JSR Document 238-8 Filed 07/25/23 Page 7 of 7