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Jeffrey Epstein deployed a consultant to push for Jes Staley to become Barclays’ chief executive in 2012, a court was told on Tuesday, with the ultimately failed campaign – called “Project Jes” – having targeted high-profile figures including chancellor George Osborne and Bank of England governor Mervyn King.
The campaign’s efforts were detailed as part of a landmark legal case launched by Staley against UK regulator the Financial Conduct Authority (FCA). Staley is trying to overturn its 2023 decision to ban him from taking senior roles in the UK’s financial sector for having allegedly misled the regulator over the depth of his relationship with convicted sex offender Epstein.
Epstein killed himself in August 2019 while in prison and awaiting trial on charges of trafficking underage girls for sex.
Staley resigned as Barclays chief executive in November 2021 over the FCA’s investigation, and ultimately lost £18m in pay and bonuses from Barclays. He was also fined £1.8m by the regulator.
The FCA has made no allegations that Staley was either involved in or witnessed the kind of conduct that led to Epstein’s arrest in 2019.
Evidence presented to the upper tribunal in London showed that Epstein began emailing a man named Ian Osborne in summer 2012 with the subject heading “Project Jes”, seemingly in an effort to promote Staley’s prospects of becoming chief executive of Barclays. Barclays was searching for a replacement for Bob Diamond, who had been forced out by the Libor fixing scandal.
One of the emails sent by Ian Osborne – who ran a press relations and business development consultancy – to Epstein explained how he had access to the then chancellor George Osborne and hoped to influence top level officials at the Bank of England.
“Let me know how you want to proceed and I will get on it, calls can happen anytime and I can see people back in London after Tuesday,” the email said. “Rupert and George are both very close to Mervyn King and top BoE [Bank of England] staff. I am seeing the chancellor anyway next Thursday.”
Previous evidence outlined by the FCA showed that Epstein and Ian Osborne also discussed contacting Barclays deputy chair Mike Rake as part of their efforts. “I won’t do anything before hearing back from you but I’m ready to go into bat for our friend,” Osborne said.
Epstein responded by email, passing judgment on the rival candidates for the position of Barclays CEO, saying: “Fleming is only brokerage, tossed from Merrill, Cohn is a jerk, gs [Goldman Sachs] culture vile”.
Barclays ultimately chose its own head of retail and business banking, Antony Jenkins, as chief executive in August 2012. Staley would go on to secure the role three years later in 2015.
The current legal case at the upper tribunal centres on a letter that Barclays sent to the regulator in October 2019, which stated that Staley “did not have a close relationship with Mr Epstein” and that his “last contact with Mr Epstein was well before he joined Barclays in 2015”.
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However, the FCA investigation discovered Staley was in contact with Epstein in the days leading up to his appointment, and that the pair had a close personal relationship, allegedly illustrated by the fact that Epstein messaged Staley about sex, women and foreign holidays, and worked behind the scenes to bolster Staley’s career by liaising with government officials, business leaders and royalty.
The regulator is also alleging the pair used Staley’s eldest daughter as an “intermediary” to stay in touch long after he became Barclays’ chief executive, until at least February 2017.
Staley’s lawyers argue that the FCA had only asked for assurances over whether Staley or Barclays “had any knowledge of, or involvement in, Mr Epstein’s unlawful conduct” and that it would otherwise have been “drafted and approved in very different terms”.
They also claim that Barclays was well aware of the extent of Staley’s ties to Epstein, and say that while it was “professionally close” the former executive did not consider it to be a close personal friendship.
