JPMorgan Refuses to Cover Legal Expenses for Frank Founder Charlie Javice

JPMorgan Chase Faces $142 Million Legal Fees for Frank Founders’ Defense

JPMorgan Chase has revealed that it has incurred a staggering $142 million in legal fees for defending Charlie Javice and Olivier Amar, the founder and chief marketing officer of financial aid startup Frank.

In 2021, JPMorgan acquired Frank for $175 million. However, earlier that year, Javice and Amar were convicted of defrauding the bank by inflating Frank’s customer count. Javice was sentenced to seven years in prison. The bank is now challenging a court order that mandates it to cover the duo’s legal expenses, as per The Wall Street Journal.

According to Michael Pittinger, a JPMorgan lawyer, Javice’s legal team submitted invoices that included charges for luxury hotel upgrades, 24 hours of work in a single day, and even cellulite butter, a type of moisturizer.

Pittinger remarked, “I have never encountered a case with such egregious abuses.”

A spokesperson for Javice informed the WSJ that she strictly followed JPMorgan’s policies and did not request reimbursement for any expenses.

The spokesperson added, “As an employee, she adhered to JPMorgan’s code of conduct and only made purchases such as ice cream that were explicitly allowed within the guidelines she was provided.”