## EXHIBIT 7
1 2 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK GOVERNMENT OF THE UNITED 3 STATES VIRGIN ISLANDS 4 Plaintiff, 5 VS. 6 JPMORGAN CHASE BANK, N.A., 7 8 9 Defendant/Third-Party Plaintiff. JPMORGAN CHASE BANK, N.A. 10 11 vs. 12 JAMES EDWARD STALEY, Third-Party Plaintiff, 13 Third-Party Defendant. 1:22-cv-10904-JSR
14
15 CONFIDENTIAL - PURSUANT TO PROTECTIVE ORDER 16 17 Videotaped deposition of Catherine Keating, held at the offices of 18 Case LLP, 1221 Avenue of the Americas, New York, New York, commencing at 10:38 a.m. 19 Eastern, on the above date, before Carrie A. , Registered Diplomate Reporter, 20 Certified Realtime Reporter, Illinois, California & Texas Certified Shorthand 21 Reporter, Missouri, Kansas, Louisiana & New Jersey Certified Court Reporter. 22 23 GOLKOW LITIGATION SERVICES 877.370.DEPS 24 deps@golkow.com 25
TUESDAY, JULY 18, 2023
1 Epstein at the time that you were the head of 2 the US private bank?
3 MR. : Objection to form.
4 QUESTIONS BY MR. WOHLGEMUTH:
5 Q. You can answer unless he 6 instructs you not to answer.
7 MR. : Yeah, that's -- 8 that's -- just so the ground rules are 9 clear, you can answer any question 10 unless I instruct you not to.
11 THE WITNESS: Okay.
12 MR. : Not because he says 13 it, because I say it. But he's still 14 right.
15 THE WITNESS: All right.
16 QUESTIONS BY MR. WOHLGEMUTH:
17 Q. So I'll just reask the 18 question, and he can object again if he 19 wants.
20 While you were the head of the 21 US private bank, did you understand 22 Mr. Staley to have a relationship with 23 Jeffrey Epstein?
24 A. I did.
1 that relationship to be?
A. I understood that he had a, you know, professional business relationship with him.
Q. Did you ever have any concerns about the relationship that Mr. Staley appeared to have with Mr. Epstein?
A. I don't recall being concerned about the nature of the relationship.
Q. Did Mr. Staley have other relationships with private banking clients?
MR. : Objection to form.
QUESTIONS BY MR. WOHLGEMUTH:
Q. You can answer.
A. Yes.
Q. Did you have other relationships where Mr. Staley was the primary point of contact for the private banking client?
A. I can't recall. It could have been the case. I can't recall.
Q. Would you agree with me that 23 while you were the head of the US private bank, Mr. Staley was the closest JPMorgan 25 executive with Mr. Epstein?
1 Q. And what did Steve Cutler --
2 A. I met with him.
Q. II, sorry.
A. In person.
Q. I appreciate that.
What did Steve Cutler say in this meeting about Epstein?
A. I recall Steve listening to me and telling me he was going to engage with Jes and Mary.
Q. And did he ever engage with Jes and Mary, to your knowledge?
13 A. I believe that he did.
Q. And how do you know that?
A. I just believe that he did.
Q. I take it then you were not firsthand part of these conversations?
A. I was not present, huh-uh.
Q. And when you say "Mary," are you talking about Mary Erdoes or Mary
A. Mary Erdoes.
Q. So we covered this 2011 conversation with Mr. Staley about Epstein.
Can you remember any other
1 concern about retaining Mr. Epstein as a client, those conversations would occur within the private bank team, and conversations would also be had with Jes.
Q. Do you recall what Mr. Staley said in those conversations?
7 A. I can't specifically recall what he said, but I do recall from time to time when there were concerns and more information was desired, that Jes would talk to him.
Q. "Him" being Epstein?
A. Yes.
Q. And then report back what Epstein said?
A. Yes, through the -- through the chain in the process.
Q. So he would -- Mr. Staley's job would be to obtain information from Mr. Epstein and report it back to the team that the team could then use to make its 22 decision; is that fair?
MR. : Objection.
QUESTIONS BY MR. WOHLGEMUTH:
1 have the right to object, so you can answer.
A. Can you ask the question again?
Q. Sure.
I want to make sure I
understand your testimony.
It sounds like what Mr. Staley
was doing was obtaining information from
Epstein and reporting it back to the team.
A. He may -- I'm not sure that I would call it obtaining information. It may have been asking questions to hear what his response was.
Q. So he would ask Epstein questions and then report back what Epstein's response was; is that fair?
16 A. I think so.
Q. Isn't that what you would expect Mr. Staley to do?
MR. : Objection to form.
THE WITNESS: What would I expect him to do?
22 QUESTIONS BY MR. WOHLGEMUTH:
Q. I said, isn't that what you would expect Mr. Staley to do? If you have a 25 question, he goes and asks Epstein and then
1 tells you what Epstein said?
A. He talked to Jeffrey Epstein and so did the client team.
Q. But that process of Mr. Staley taking questions, asking them of Mr. Epstein and then reporting back what Epstein says, that's not inappropriate, correct?
A. It's not inappropriate.
Q. You had the authority while you 10 were the head of the US private bank to exit 11 a private banking client, fair?
A. I did. We employed a process 13 to do that.
Q. The head of asset and wealth 15 management was not a part of that process; is 16 that fair?
A. That actually depends. That 16 depends.
Q. Did the head of the investment bank have the authority to terminate a US private banking client?
22 A. No.
Q. Are you aware of any US -- strike that.
1 Q. Is that a pretty significant source of new business for the bank, referrals from existing clients?
4 A. It was a relevant source of new business.
Q. Did Epstein, to your knowledge, serve as a referral source for private banking clients?
A. I recall that he served another lo private banking client for a period of time.
11 Q. Is that Les Wexner?
A. Yes.
Q. So I understand that he served Les Wexner for a period of time. But do you have any recollection about whether he served as a referral source for additional private banking clients, setting aside Wexner?
A. I don't know. I don't recall that he referred other people that became clients. I don't recall that.
Q. Do you recall Mr. Epstein 22 referring other people who were just prospective clients?
A. There may have been occasions like that.
1 Q. Who were the prospective 2 clients?
3 A. I do think at one point he may 4 have tried to refer as 5 prospective clients.
6 I don't think that they became 7 clients with him.
8 Q. When you say "with him," are 9 you saying you don't think they became 10 clients of Epstein's?
11 A. Correct.
12 Q. They did, though, become 13 clients of the private bank, correct?
14 A. I believe -- II.
15 MR. BOUCHOUX: Sorry.
16 THE WITNESS: My general 17 recollection is that they were already 18 clients of the private bank.
19 QUESTIONS BY MR. WOHLGEMUTH:
20 Q. Other than 21 can you think any other prospective clients 22 that Epstein referred to the private bank?
23 A. I can't.
24 Q. I'm going to show you, Tab 7, 25 what I'm going to mark as the first exhibit, 1 Q. Do you recall -- do you recall 2 anything about Mr. Epstein as a personality? 3 As a client? Was he tough?
4 MR. : Objection to form.
5 THE WITNESS: I don't know.
6 QUESTIONS BY MR. WOHLGEMUTH:
7Q. You don't recall, like, Mary
8 or someone who talked with him
9 frequently saying this guy is a jerk?
10 MR. : Objection to form.
11 THE WITNESS: No.
12 QUESTIONS BY MR. WOHLGEMUTH:
13Q. Okay. Whose idea was it to
14 limit Mr. Epstein as a client?
15 MR. : Objection to form.
16 THE WITNESS: I don't recall
17 whose idea it was.
18 QUESTIONS BY MR. WOHLGEMUTH:
19Q. Do you recall Mr. Staley being 20 involved in those discussions?
21 A. I know that Jes was involved in 22 the discussions.
23 Q. Do you recall Mr. Staley 24 objecting to the limitations being placed on 25 Mr. Epstein at the private bank?
1 A. I recall saying that I thought 2 there was significant reputation risk to the 3 bank if we continued to work with 4 Mr. Epstein, and that I was not supportive of 5 it and was not going to make the case to 6 Steve Cutler.
7 Q. And what did Ms. Erdoes say in 8 response?
9 A. I don't recall. 10 I know that she discussed it 11 with Jes I believe at the time she 12 reported to Jes in 2008. That's what I 13 recall.
14 Q. Did she ever tell you about 15 that conversation she had with Jes or
16 A. I don't recall. 17 Q. I'm going to ask an 18 organizational question just to make sure I 19 have it straight.
20 In 2009, Ms. Erdoes gets 21 promoted to the head of asset and wealth 22 management, correct?
23 A. Yes. 24 Q. And she had been the head of 25 the private bank before that, correct?
1 "from" or "cc" e-mail accounts, correct?
A. Correct.
Q. Do you have any recollection of
Mr. Staley attending the rapid response
meeting in July of 2008?
6 A. I don't.
Q. Do you recall the result of the
meeting, other than the process had to play
out with Cutler?
A. I recall that people in the
meeting were uncomfortable retaining him as a
client. I was one of them.
We would escalate it to Mary,
and we would use the process that we used
when we were considering exiting a client,
which was to involve the senior risk officer
and the general counsel.
Q. And Mr. Epstein was not exited
in July of 2008, correct?
A. No.
Q. Do you have any understanding
as to why he was not exited at that time?
A. What I generally recall is that
when we initiated that process -- and again,
1 him -- that there were, I think, a number of conversations with Mary, Jes, risk, perhaps others and Steve, and that we were waiting for a while for a decision.
5 Q. "Steve" is Steve Cutler?
6 A. Correct.
7 Q. "Mary" is Mary Erdoes?
8 A. Correct.
9 (Keating Exhibit TX227 marked 10 for identification.)
11 QUESTIONS BY MR. WOHLGEMUTH:
12 Q. Tab 19. I've handed what I've 13 marked as TX227.
14 Do you have it in front of you?
15 A. Yes.
16 Q. And TX227 is an e-mail string 17 with the top e-mail from Mary Erdoes to you 18 in August of 2008, correct?
19 A. Yes.
Q. And you can see that the e-mail string begins with an e-mail from you to 22 Ms. Erdoes in August of 2008, and it says the subject line is, on my ME list.
24 Do you see that?
1 A. I don't recall him being referred to as his friend. I recall that we all knew that Jes had the strongest relationship with Jeffrey Epstein.
Q. Did you have any details about what the -- well, strike that.
How did you know that it was a strong relationship between Mr. Staley and Mr. Epstein?
A. He had known him for a long time. I think Mr. Epstein viewed him as his relationship manager. Jes would raise our questions with him.
Q. And eventually someone did meet with Mr. Staley to discuss the HT project, correct?
A. I -- yes.
Q. The HT is the human trafficking project?
A. Yes.
Q. Can you just describe for me in your own words what you remember that project to be?
A. What I remember is it was you know, from time to time the bank would do 1 Epstein in 2006?
2 MR. : Objection to form.
3 MR. BOUCHOUX: Objection to
4 form.
5 QUESTIONS BY MR. WOHLGEMUTH:
6Q. Strike that.
7 Why did you approve Jeffrey
8 Epstein's due diligence report in 2006?
9 MR. : Objection to form.
10 THE WITNESS: I don't recall
11 when in 2006 I approved it.
12 QUESTIONS BY MR. WOHLGEMUTH:
13Q. Why did you approve
14 Mr. Epstein's due diligence report in 2007?
15 MR. : Objection to form.
16 THE WITNESS: In 2007, I would
17 have approved it because we retained
18 him as a client.
19 QUESTIONS BY MR. WOHLGEMUTH:
20Q. But if you had not approved
21 him, that would have began the process of him
22 no longer being a client, correct?
23 A. Not --
24 MR. BOUCHOUX: Objection to
1 THE WITNESS: Not approving a
2 DDR isn't how you exit a client.
3 Right?
4 QUESTIONS BY MR. WOHLGEMUTH:
5 Q. Okay. But you are the head of 6 the US private bank and had the authority to 7 exit private banking customers, correct?
8 A. Yes.
9 MR. : Objection to form.
10 THE WITNESS: Yes.
11 QUESTIONS BY MR. WOHLGEMUTH:
12 Q. Okay. So then why didn't you 13 exit Mr. Epstein in 2007?
14 MR. : Objection to form.
15 THE WITNESS: In what year?
16 QUESTIONS BY MR. WOHLGEMUTH:
17 Q. '07.
18 A. '07.
19 I don't specifically recall. I 20 recall that after he was charged, that the 21 collective decision was to retain him as a 22 client, treat him as high risk. So that 23 would be why I approved it.
24 Q. And why did you approve
after he was convicted?
A. I don't recall when in 2008 I approved it. I recall that after he was convicted we -- because he was a felon, we followed our process, we widened the circle and escalated the issue. But I don't recall when during the year I would have approved that DDR.
Q. And why didn't you exit Mr. Epstein after you heard about the conviction?
MR. : Objection to form.
THE WITNESS: Because we met in the private bank, concluded that we were uncomfortable retaining him, and then began the process of escalating it and widening the circle, including Mary Erdoes, Jes Staley, Steve Cutler and the head of risk.
QUESTIONS BY MR. WOHLGEMUTH:
Q. Who was the head of risk that 22 you're referring to?
A. I can't recall who it was at the time.
1 roughly the same for why you didn't exit
2 Mr. Epstein?
3 MR. : Objection to form.
4 THE WITNESS: Yes.
5 QUESTIONS BY MR. WOHLGEMUTH:
6 Q. And in 2010 and 2011?
7 MR. : Objection.
8 MR. BOUCHOUX: Objection to 9 form.
10 THE WITNESS: Yes.
11 QUESTIONS BY MR. WOHLGEMUTH:
Q. You don't dispute, though, that you had the authority as the head of the private bank to exit a client that you would have thought was bad for the client -- for 16 the private bank, correct?
17 MR. BOUCHOUX: Objection to the 18 form.
19 THE WITNESS: The reality is,
20 it was never a unilateral decision to 21 exit a client. It's a serious
22 decision. Clients are inclined to
23 escalate it if they don't like what
24 they're hearing, and so it was never a 25 unilateral decision to exit a client.
1 testimony, Mr. Wohlgemuth asked you about
Mr. Staley speaking to Jeffrey Epstein,
correct?
Just part of this retriggered
examination, I think was what you called it;
is that right?
A. Yes.
MR. BOUCHOUX: Objection to
form.
THE WITNESS: II, yes.
QUESTIONS BY
Q. Okay. And do you recall why
the decision was made that Mr. Staley should
have that conversation rather than, for
instance, somebody in risk management or
compliance?
A. Jes was the sort of de facto
primary relationship person with Jeffrey
Epstein.
Q. Did you expect that Jeffrey
Epstein would be forthcoming if -- when
Mr. Staley asked him about allegations of
trafficking?
A. I don't -- I never met Jeffrey
1 A. Yes.
Q. Okay. And I think you
testified that there were circumstances under which the bank should -- could certainly consider continuing to bank convicted felons, correct?
7 A. That's correct.
Q. But it's also the case that whether -- that continuing to bank a convicted felon required JPMorgan to make it an exception to its policies, correct?
MR. BOUCHOUX: Objection.
THE WITNESS: Our general policy was not to have, you know, a bank full of convicted felons. That was our policy.
QUESTIONS BY
Q. Okay. And Mr. Wohlgemuth also asked you some questions about who had the authority to terminate Jeffrey Epstein as a customer.
22 Do you remember that?
A. I do.
Q. And I think you acknowledged that as CEO of the private bank, you had the 1 authority to exit Jeffrey Epstein, correct?
2 MR. : Objection to form.
3 MR. BOUCHOUX: Object.
4 THE WITNESS: We never acted --
5 you know, the decision to exit a
6 client is a serious one. They are
7 it's generally not welcomed to them,
8 and we -- it was a process. It was
9 never a unilateral decision by one
lo person.
11 QUESTIONS BY
12 Q. So would it surprise you that
13 Steve Cutler testified that you had the
14 authority to exit Jeffrey Epstein as a
15 customer?
16 MR. : Objection to form.
17 THE WITNESS: I don't know if
18 it would surprise me. That wasn't the
19 process that we followed.
20 QUESTIONS BY
21Q. And do you also disagree
22 with -- then with the testimony of JPMorgan's
23 30(b)(6) or its corporate representative,
24 Francis Pearn, that you were among the list