Key Takeaways
- JPMorgan Chase seeks to stop paying legal fees for convicted Frank founder Charlie Javice
- Bank calls $60+ million in legal fees “patently excessive and egregious”
- Javice was found guilty of defrauding JPMorgan of $175 million in acquisition deal
JPMorgan Chase is fighting to stop funding the legal defense of Charlie Javice, the 32-year-old Frank founder convicted of defrauding the bank of $175 million. The banking giant claims Javice’s legal fees have become “patently excessive and egregious” as she appeals her guilty verdict before serving a seven-year prison sentence.
In a recent court filing, JPMorgan requested an end to its obligation to cover Javice’s legal bills, revealing it has already advanced $60.1 million for her criminal defense. The bank argued Javice has “unreasonably” hired five law firms, including one that received $35.6 million, calling the arrangement “overlapping, duplicative, and excessive.”
Pablo Rodriguez, a JPMorgan spokesperson, told Business Insider: “The legal fees sought by Charlie Javice and Olivier Amar are an abuse, and we look forward to sharing details with the court in coming weeks.” The bank’s lawyers warned that without court intervention, JPMorgan faces “irreparable injury” from what they described as Javice’s legal team treating the fee arrangement as a “blank check.”
Javice’s high-profile defense team includes Alex Spiro of Quinn Emanuel, known for representing clients like Elon Musk and Kim Kardashian, with an hourly rate reportedly reaching $3,000.
The $175 Million Fraud Case
In March, a federal jury in Manhattan found Charlie Javice guilty of defrauding JPMorgan Chase. Prosecutors said she tricked the bank into believing her fintech startup Frank had data for over 4 million students, significantly inflating the company’s value.
JPMorgan’s latest move comes as the bank seeks to limit its financial exposure tied to the controversial acquisition of Frank. The acquisition occurred in summer 2021 when Javice was 27 years old and JPMorgan executives agreed to acquire her student aid website.
