JPMorgan Chase wants out of paying $115M legal tab for convicted fraudsters
NEW YORK (AP) — JPMorgan Chase is handling the legal account of Charlie Javice and Olivier Amar, two convicted fraudsters who sold financial aid startup Frank to the bank for nearly three years.
But the bank said in a lawsuit filed with the court late Friday that the duo had drawn up an astronomical, nine-figure legal bill that far exceeded the reasonable amount they would need for their defense. The bank argued that Chase should not have to pay and that the agreement to assume costs as part of the initial purchase should end.
According to the filing, Javice’s team of lawyers at five law firms billed JPMorgan for approximately $60.1 million in legal fees and expenses, while Amar’s attorneys billed the bank for approximately $55.2 million in fees.
The bank claims that Javice and Amar’s lawyers collected legal fees totaling $115 million, while a law firm received reimbursements of only $35.6 million. In contrast, Elizabeth Holmes, who was found guilty of defrauding investors in the Theranos case, reportedly faced a legal bill of approximately $30 million.
The bank said it would be “irreparably injured” if the court did not put an end to “malicious billing.” Chase said Javice and his lawyers handled the process “like a blank check.”
Javice, 33, was convicted in March. Deceiving the banking giant When he acquired his company Frank in the summer of 2021. He faked records making it appear that Frank had over 4 million customers when he had fewer than 300,000. Amar was also convicted of the same charges.
Early in the case, a Delaware court ruled that the bank must advance any legal fees to Javice and Amar; this was part of the bank’s deal when Frank was acquired in 2021.
Part of Javice’s legal team is Alex Spiro of Quinn Emanuel, who is also the attorney who previously represented Elon Musk. Spiro did not immediately respond to an email request for comment.
A law firm representing Amar did not immediately respond to a request for comment.
“The legal fees requested by Charlie Javice and Olivier Amar are clearly excessive and egregious. We look forward to sharing details about this misconduct with the court in the coming weeks,” bank spokesman Pablo Rodriguez said.
