JPMorgan Refuses to Pay Legal Bills for Frank Founder Charlie Javice

JPMorgan Chase Reports Legal Costs in Frank Case

JPMorgan Chase has disclosed incurring $142 million in legal fees related to the defense of Charlie Javice and Olivier Amar.

Javice, the founder of financial aid startup Frank, and Amar, its former chief marketing officer, were the subjects of these legal expenses.

Frank Acquisition and Subsequent Fraud Charges

JPMorgan initially acquired Frank in 2021 for a sum of $175 million.

However, both Javice and Amar were later convicted of defrauding the bank by falsely increasing the reported number of Frank’s users.

Javice received a seven-year prison sentence following the guilty verdict.

Dispute Over Legal Fee Reimbursement

Currently, JPMorgan is attempting to reverse a court order that would obligate the bank to cover the legal fees incurred by Javice and Amar.

This effort is being reported by The Wall Street Journal.

Allegations of Excessive Billing

Michael Pittinger, legal counsel for JPMorgan, has raised concerns about the billing practices of Javice’s legal team.

He alleges that the submitted expenses included costs for luxury hotel room upgrades, billing for 24-hour workdays, and even purchases of cellulite butter – a type of moisturizer.

“To my knowledge, a case exhibiting such significant abuses has never been encountered,” stated Pittinger.

Response from Javice’s Spokesperson

A representative for Charlie Javice asserted that she adhered to JPMorgan’s established policies.

The spokesperson stated that Javice “did not charge or receive any unauthorized expenses.”

“While employed, she did make purchases of items like ice cream, complying with JPMorgan’s code of conduct.

Furthermore, she never requested reimbursement for any expense not explicitly allowed under the provided guidelines,” the spokesperson added.