The former chief executive of Barclays, Jes Staley, has admitted to having sex with a member of Jeffrey Epstein’s staff in an apartment owned by the child sex offender’s brother in New York, a court has heard.
Staley made the admission at the end of a testy day of cross-examination at the upper tribunal, but maintained that his friendship with Epstein was not personal and had always been based on business.
The former Barclays boss, who resigned in 2021, is trying to overturn the regulator’s decision to ban him from taking any senior roles in the UK financial sector for allegedly lying about the depth of his relationship with Epstein. Barclays declared to the Financial Conduct Authority (FCA) in a letter in 2019 that the two men “did not have a close relationship”.
The FCA’s lawyer Leigh-Ann Mulcahy KC handed documents to Staley and tribunal judges without presenting them to the public, before asking Staley: “Do you accept that you had sexual intercourse with a woman at Mr Epstein’s brother’s apartment?”
“Yes,” Staley said. The former CEO, who is married and has two daughters, acknowledged he met the woman through Epstein, but while he told the court “she was part of his staff”, he claimed Epstein did not know they had sex.
“How did it come about that you had sexual intercourse with a woman who worked for him at an apartment, owned by his brother, without him knowing?” Mulcahy asked.
Staley said: “Oftentimes I would go to Epstein’s apartment and he would be late, and she and I got the chance to know each other.” This led to sexual intercourse, he said, “much to my embarrassment today”.
The ex-banker agreed with Mulcahy that he would describe the intercourse as “consensual”. The date of the encounter and the age of the woman were not disclosed in court. The FCA stated that the property was owned by Epstein’s brother.
Mulcahy also put to Staley that the staff member “appeared to have carved you out of a settlement with the Epstein estate”. Staley replied he was “not aware of that”.
The ex-Barclays boss also maintained that he did not remember the context for a separate, and now notorious, exchange with Epstein in 2010 referring to Disney princesses.
The set of emails, the FCA said, included Staley saying: “Maybe they’re tracking you,” later followed by another email to Epstein, saying: “That was fun. Say hi to Snow White.” “What character would you like next?” Epstein asked, to which Staley replied: “Beauty and the Beast.” Epstein responded: “Well one side is availble [sic].”
Mulcahy noted that Staley had failed to provide any explanation for the emails in two interviews by the FCA, as well as a US deposition. “You’ve had a lot of time to consider this email … are you able now to explain?”
“No,” Staley said.
It rounded off a combative day of at the tribunal, which marked Staley’s third day in the witness box. It involved discussions about how Epstein supported Staley’s daughter’s academic career, as well as how the late financier described Staley as “like family” to high-profile contacts, including Prince Andrew.
One message, sent by Epstein to Prince Andrew in May 2010, said: “I know you are seeing Jes Staley this morning, he is like family and can be trusted 100%.” Andrew has faced fierce criticism over his ties to Epstein, who died in August 2019 while awaiting trial over charges on trafficking underage girls for sex.
Mulcahy put to Staley that it was unrealistic that Epstein “would tell multiple people that you were a close friend and like a brother if you weren’t that close”. However, Staley denied this, saying that he believed Epstein “would willingly mislead and lie about our relationship”.
Weeks later, in June 2010, Staley emailed Epstein to say: “Andrew just sat next to me at dinner. Any word on M? This is fun.” Staley speculated in the hearing that this was likely another reference to the prince, and that “M” likely referred to the former business secretary Lord Mandelson.
Staley went on to ask Epstein that same day: “Is she free tonight?” Staley told the court he did not remember who “she” might be.
Mulcahy said Staley’s “lack of recollection seems surprising”.
Staley appeared angry and agitated as attention turned to Epstein’s relationship with Staley’s daughter, particularly after the FCA showed emails suggesting the financier had been “pulling strings” to support her through her academic career and PhD.
Staley twice asked the judge for a break – though retracted the first of those requests – and said that the FCA’s line of questioning was “completely unnecessary”, adding that his daughter “accomplished what she did … on the back of her own skill”.
Mulcahy said: “You’re the one that said your relationship was professional and based on the assistance to your daughter … I need to explore it to get to the connection of you and Mr Epstein.”
The former Barclays boss will continue giving evidence until the end of the hearing, which is scheduled to last until Friday.
