Adds lawmaker comments in paragraphs 8 and 9

By Saeed Azhar and Pete Schroeder

NEW YORK/WASHINGTON, July 15 (Reuters) - Goldman Sachs GS.N senior counsel Kathryn Ruemmler told members of Congress in a closed-door hearing on Wednesday that if she had known Jeffrey Epstein was abusing women or girls, she would have reported him to law enforcement.

Ruemmler stepped down as Goldman's chief legal officer and general counsel at the end of June, pending a replacement, after documents published by the U.S. Justice Department showed she had extensive communications with Epstein and had also accepted gifts from him.

The House Committee on Oversight and Government Reform hearing is part of its investigation into Epstein and his associate Ghislaine Maxwell. It has pushed Goldman back into the spotlight over its decision to keep Ruemmler, despite her links to the convicted sex offender.

"First, I did not see any evidence of ongoing criminal conduct or misconduct of any kind by Epstein during the time I dealt with him," she said in her opening statement, which she released publicly.

"Second, if I had seen or heard any evidence suggesting that he was abusing women or girls, I would have immediately reported him to law enforcement."

She agreed to continue in an advisory role as senior counsel until the company appointed a new chief legal officer, Goldman CEO David Solomon said in June, a decision that has been criticized by some lawmakers.

Democratic Congressman Raja Krishnamoorthi, who is on the House panel, and Elizabeth Warren, Democratic Senator from Massachusetts, sent a second letter to Solomon and Ruemmler raising concerns regarding her continued employment with Goldman.

Several hours into her private testimony, Democrats on the committee told reporters they believed she was not being completely forthright, and noted that she was not giving answers under oath.

"It is difficult to see how she is being completely truthful in there with the answers she’s giving the committee," said Representative Robert Garcia, the senior Democrat on the panel. “She's unwilling to take any responsibility for her relationship with Jeffrey Epstein."

Goldman Sachs declined to comment.

Epstein, who died in a Manhattan prison in 2019 while awaiting trial on federal sex trafficking charges, had extensive ties to many prominent people in politics, finance, academia and business, including President Donald Trump. His death was ruled a suicide.

"Although Epstein was never my client, I got to know him when he referred a financial institution client to me for which he was a primary advisor," Ruemmler said on Wednesday.

"If I knew then what I know now about who Epstein really was, I never would have accepted an initial meeting with him. It was a mistake to deal with him, and I regret it," she added.

Ruemmler said the gifts she accepted weren't requested or needed, and that she didn’t view them as particularly personal or consequential.

"I accepted them graciously, as I saw no reason not to. But the gifts weren’t important to me, and I declined to accept some of them. In any event, nothing he gave me caused me to deal with him any differently than I otherwise would have."

Ruemmler called the late sex offender "a masterful liar," saying she could see how he used people to boost his own standing.

"I know now that he often exaggerated his relationship with me to others," she said.

She said her communication with Epstein ended in July 2019 after he was indicted for sex trafficking minors.

"Those horrific allegations — which covered conduct that had occurred almost 10 years before I met Epstein — contradicted what I had understood about the nature and scope of that prior conduct," Ruemmler said.

Ruemmler, who worked at Latham & Watkins LLP before joining Goldman, also previously served in the White House as counsel to President Barack Obama.

"Many of my emails with Epstein have been taken out of context or do not mean what some have speculated or suggested," she said in the statement.

The oversight panel has interviewed political leaders such as former President Bill Clinton, current Commerce Secretary and former Cantor Fitzgerald CEO Howard Lutnick and Microsoft founder Bill Gates.