UT (Tax & Chancery) UT-2023-000064 - [2025] UKUT 00203 (TCC)

The evidence shows that Mr Staley was keen to continue their relationship after Mr Staley had left JPM and continued to pursue business opportunities together. The Authority provided numerous examples of this in their closing submissions, as detailed at [156] to [188] below.

On New Year’s Eve 2012, Mr Staley sent Mr Epstein the following email:

“I’ve tried calling a few times, even though the service in Bahia is pretty spotty.

thanks for all the friendship this year. You were enormously kind and supportive.

All looks good for next year. More freedom, more deals, more building, more things we can do together.

Say hi to everyone.

Happy New Year

Jes”

The two men appear to have remained in close contact throughout 2013 as described at [158] to [162] below.

When Mr Staley started at Blue Mountain in January 2013, he sent Mr Epstein his new email address as soon as his new role commenced. Mr Epstein wished him luck on his first day.

In mid-January 2013, he suggested to Mr Epstein that the latter might like to meet and fly Mr Staley back to New York. He emailed: “Why not stay one more day in PB. Then fly Tues morning to Fort Mayers and fly me back Tuesday morning with you.” A few days later, Mr Staley and Mr Epstein appear to have arranged to have dinner together. They remained in close contact throughout January, Mr Staley at one point emailing: “This waiting is agony”, and a few days later asking Mr Epstein: “U [sic]free for a visit around 5?” On 14 February 2013, Mr Staley seems to have again visited Mr Epstein’s house. He was separately invited to dinner (although it appears he was unable to make it).

In February and March 2013, Mr Staley made efforts to onboard Mr Epstein as a client of Blue Mountain. He sent Mr Epstein the subscription documents and added: “You’re my first client!!” Mr Epstein responded: “Privledhed” (presumably “Privileged”). Although Mr Epstein does not appear to have ended up completing the subscription, Mr Staley chased this a number of times.

At some point around this time, Mr Epstein also sought for Mr Staley to become a trustee of his estate. Although Mr Staley declined, he accepted that this was a position of extreme trust and confidence.

Support for Ms Staley from Mr Epstein also continued. In late March 2013, Mr Staley sent a lengthy email to Mr Epstein proudly describing his daughter’s achievements to Mr Epstein. It concluded: “But more importantly, I write this because Alexa and I know what you did to allow her to follow her dreams. Thanks J. Best, Jes.”

Ms Staley started to be in direct contact with Mr Epstein and sought his advice. She invited him to her MA convocation in May 2013 (although Mr Epstein was not able to attend). Mr Epstein seems to have stayed abreast of Ms Staley’s progress during her PhD, advising Mr Staley at one point that he should go to a fundraising event for her university, and that Mr Staley should “make a real donation as her advisor has done well for her”, suggesting a sum of $100,000 per year for 5 years. In March 2014, Mr Epstein also helped to make arrangements for Ms Staley for a trip to Vancouver, where a science event was taking place. Mr Staley afterwards thanked Mr Epstein for his help. In November 2014, Ms Staley sent Mr Epstein a paper she had written and said: “You’ve already seen the draft, but it’s nice to finally see it online. Thanks for getting me here.”

Likewise, Mr Staley told Mr Epstein in respect of a further achievement in her academic career in December 2014: “Would not have happened without you.” In a further email in March 2015, Mr Staley told Mr Epstein that his daughter wanted to sit down with Mr Epstein to talk about her future. He then invited Mr Epstein to his daughter’s graduation (due to happen in July 2015), adding: “please [save] the date. You need to be there.” It does not appear that Mr Staley invited anyone else to his daughter’s graduation other than his own brothers, which is a further indication of the personal relationship between the two men even though Mr Epstein did not attend. Mr Staley also sent Mr Epstein news of his daughter’s successful defence of her dissertation and added:

“Alexa and I know you [sic] [how] much of a role you had in arriving at this very big day. The counsel you have given Alexa over the years has been a gift of great friendship.

Thanks my friend.”

In April 2013, Mr Staley again seems to have had dinner with Mr Epstein. He again visited Mr Epstein’s house in May; Mr Epstein’s assistant emailed Mr Epstein stating: “Jes Staley is asking if you are in NY tonight and if he could come and see you…please advise”.

Following another meeting in June 2013, Mr Epstein appears also to have offered Mr Staley the use of his car in Paris. Mr Staley accepted in cross-examination that it seemed they were still on terms where Mr Epstein was offering him the use of his car, and Mr Staley was taking him up on it.

Mr Epstein continued to be Mr Staley’s confidant in relation to business related issues, as Mr Staley admitted in cross-examination. In July 2013, there was an exchange between the two of them about RBS. Mr Epstein emailed on 5 July: “i plan on being in florida for the 12 ^th want to visit for the day?” Mr Staley then replied that he needed to fly that evening to Washington State, but added: “I am wrestling with Deb about RBS, so it might be a good break to figure out what I want to do.” Mr Staley was not certain in cross-examination of what this related to but noted “at this time I was sought out by banks”. The next day, Mr Epstein said: “Lets talk tomorrow about RBS.” Mr Epstein, accordingly, appears still to have been offering his counsel to Mr Staley.

In October 2013, Mr Staley made a transatlantic sailing trip. He had an email group of friends and family which he used to send updates of his travels, which included Mr Epstein. Mr Epstein appears to have followed Mr Staley’s progress.As soon as the trip was completed Mr Staley asked Mr Epstein for a lift back from the Caribbean. Mr Epstein therefore appears to have been one of the first people Mr Staley contacted after two weeks at sea.

The same month (November), Mr Staley wished Mr Epstein a Happy Thanksgiving and arranged to meet Mr Epstein later that week.

Contact also continued throughout 2014.

In January 2014, Mr Staley – who was on his boat in the Caribbean – suggested to Mr Epstein that they might have dinner that evening. Mr Epstein responded that he could not do it because of the short notice but he then asked: “what was jamies reaction.?” This, as Mr Staley explained, was in relation to Mr Dimon’s reaction to Mr Staley joining the board of UBS.This seems to have been something Mr Staley and Mr Epstein had already talked about, given Mr Epstein’s question. Mr Staley accepted that he was still keeping Mr Epstein closely involved in what he was doing in his professional life. Also in January 2014, Mr Staley appeared on a guest list with others for a dinner in Ristorante Morini organised by Mr Epstein.

Mr Staley and Mr Epstein continued to be regularly in one another’s company. A few weeks later, at the start of February 2014, they arranged to go for a walk; days after that, Mr Staley asked Mr Epstein: “U [sic] free for dinner tomorrow night in NY?” It appears on that occasion Mr Epstein was in Paris, but Mr Epstein invited Mr Staley for dinner at his house in March.

March 2014 was when Ms Staley travelled to Vancouver with Mr Epstein. In May 2014, Mr Epstein arranged a film screening for Mr Staley’s family.At the end of May, Mr Staley again appears to have gone to Mr Epstein’s house for a dinner party.

Mr Staley accepted that they were still in regular contact in 2014. Mr Epstein tended to keep Mr Staley’s favourite wine on hand. An exchange between the respective assistants in September 2014 had Mr Epstein’s assistant stating: “Hi Rosa…we have ran [sic] out of the wine Jes likes and unfortunately it is out of stock everywhere (even called the Stephen Vincent winery)…is there perhaps another sauvignon blanc that we could keep on hand for Jes?” In October 2014, Mr Staley and Mr Epstein appeared to have had dinner together again, just the two of them. In November 2014, Mr Staley was in contact with Mr Epstein asking for assistance with finding dock space in Mr Epstein’s harbour, and suggesting that he and his wife visit Mr Epstein’s island in January 2015.

On 31 January 2015, there was another email exchange which indicates the strength of the relationship between Mr Staley and Mr Epstein and its personal nature.

It began with Mr Staley asking: “Are u on the island?” and Mr Epstein responding that he was in Palm Beach, with a phone number.It is to be inferred that the two subsequently spoke, because sometime later Mr Staley sent a follow up email:

“The strength of a Greek army was that its core held shoulder to shoulder, and would not flee or break, no matter the threat. That is us.”

As the Authority submitted, what this email appears to show is Mr Staley stating in strong terms that he would stand by Mr Epstein’s side whatever the circumstances – a clear sign of a close personal relationship.

Mr Epstein and Mr Staley appear to have remained in close contact in the following months. There is evidence of a number of calls in February and March.In March 2015, as set out above, Mr Staley invited Mr Epstein to his daughter’s graduation, stating: “You need to be there”.

In April 2015, Mr Staley and his family travelled on Mr Epstein’s plane to the Caribbean and thereafter sailed to Mr Epstein’s island, stopping there for lunch. Afterwards Mr Staley sent Mr Epstein an email which said:

“Thanks for the flight and thanks for the lunch. Your place is crazy, and special. It has a warmth and silliness that makes it yours.

I count u as a deep friend. The girls seemed to enjoy the sail.

All the best.

Jes”

As with 2014, Mr Staley accepted in cross-examination that he was regularly in contact with Mr Epstein throughout 2015 to October 2015.

Mr Epstein and Mr Staley were in close contact during Barclays’ recruitment process in 2015 which ultimately led to Mr Staley’s appointment as CEO.

On 11 July 2015, Mr Staley emailed Mr Epstein with the subject “B”, stating: “A member of the board just reached out.” Mr Epstein sent a telephone number in response. On 21 July 2015, in another email with subject “B” Mr Staley told Mr Epstein: “The CEO wants to meet.” In another email on 23 July 2015, again entitled “B”, Mr Staley wrote to Mr Epstein: “SS got hired tonight. It begins.”SS were Spencer Stewart, the recruitment consultants used by Barclays. In an email the next day, Mr Epstein advised Mr Staley: “better if you not email me . phone only”.

Mr Staley stated in cross-examination that he did not know why Mr Epstein made that suggestion. However, it is clear to us that Mr Epstein was suggesting they moved to phone rather than email because of the confidential nature of the subject under discussion.

We also infer that Mr Staley was aware that the information was confidential. That is apparent from an email Mr Staley sent on 18 September 2015 to John McFarlane (the then Chairman of Barclays):

“First, I truly enjoyed our meeting the other day. I liked the nature of the exchange and appreciate your willingness to share your thoughts about Barclay's [sic] next steps.

Second, I spoke with Axel Weber and told him that you and I had a first meeting. He is comfortable that I still attend the UBS board meeting next week in Hong Kong, and he fully appreciates the need to keep all this very confidential. He went so far as to offer to speak with you at the right time. He was a gentleman through and through.”

Mr Staley accepted that Mr Weber was aware of the need to keep the information confidential. When it was put to him in cross-examination that this was because it was confidential information Mr Staley replied: “It was not in the public [domain], that's correct”.He did appear belatedly, however, to accept that it was indeed confidential, accepting also that the information was “reasonably market sensitive”.

This conclusion is reinforced by the fact that by 10 October 2015, discussions were underway to restrict Blue Mountain from trading in Barclays shares. Mr Staley accepted that news that he was about to join Barclays was commercially sensitive information, such that it would be inappropriate for Blue Mountain (and indeed Barclays) to trade based on it before any announcement had been made, because, in his words: “it would give the impression that Barclays – that Blue Mountain was trying to make money on the back of my potential [sic] joining Barclays”.

Nevertheless, the extent to which Mr Staley confided in and trusted Mr Epstein is demonstrated by the fact that Mr Staley had already shared the news with Mr Epstein in an email chain that began on 3 October 2015. In that email chain, Mr Staley stated: “You never wavered in our friendship these last three years. That means a lot too [sic] me. Thanks Jeffery. Cross your toes!!!” When Mr Epstein enquired about the “schedule”, Mr Staley replied: “Nominating com approved. Friday, full board votes. I should have the contract by the weekend. We're very close”.

As the Authority submitted, the reference to the “last three years” is to the time since Mr Staley had left JPM. The clear implication was that their relationship had remained strong over all that time. Mr Epstein’s response was: “more than 10 years”. Mr Staley accepted in cross-examination that Mr Epstein’s response reflected that they had, in fact, been there for one another for more than a decade. He accepted that they had had a close relationship over all that time. As the Authority submitted, the fact that Mr Staley was keeping Mr Epstein abreast of developments at all is, by itself, informative. He conveyed to Mr Epstein information of a commercially and market sensitive nature which demonstrates that he trusted Mr Epstein implicitly and he was one of his trusted confidants. Mr Staley accepted that he wanted Mr Epstein’s counsel, and he shared it because they had a “professionally”close relationship. The fact that Mr Staley was confiding in Mr Epstein regarding a matter as significant and confidential as his imminent appointment to Barclays in October 2015 demonstrates that their relationship remained close at that time. Mr Staley himself said in his witness statement that Mr Epsteinwas aware of the application that he had made to Barclays and, to some extent, of the progress of the application because he had seen fit to inform him in the event that he had information or advice to offer.