, who was convicted of defrauding , called the bank “hypocritical” for objecting to paying her legal bills, pointing out that it hired dozens of lawyers itself.
JPMorgan has asked a Delaware court to end its obligation to cover legal costs for Javice and her co-defendant, Olivier Amar, saying the $115 million in defense costs they amassed showed that they abused the arrangement, treating it as a “blank check.”
In a Monday in Delaware Chancery Court, lawyers with Javice’s lead firm, , called JPMorgan’s complaints “pure hypocrisy” in light of the bank’s hiring of more than 50 lawyers from six firms.
Though Javice’s prosecution was handled by the Manhattan US attorney’s office, the bank hired lawyers for a civil lawsuit against her and also had a legal team coordinating document disclosures for the criminal case. Quinn Emanuel said JPMorgan’s delays in turning over evidence were the “principal cause” of Javice’s defense costs.
In a statement, JPMorgan spokesperson Pablo Rodriguez said: “We continue to believe the legal fees sought by Charlie Javice and Olivier Amar are patently excessive and egregious.”
A New York jury both Javice and Amar in March, finding that they faked user data to mislead the nation’s biggest bank into believing their student-finance site, Frank, had more than 4.25 million users when it actually had fewer than 300,000. JPMorgan said it acquired Frank for $175 million in 2021 believing it would be able gain millions of new customers.
The Delaware court ruled in 2023 that JPMorgan was required to cover legal costs for Javice and Amar as part of the Frank merger deal.
Javice, Frank’s founder and chief executive officer, was to seven years in prison in September. Amar, who was the startup’s chief growth officer, got behind bars on Wednesday.
Quinn Emanuel said in the filing that JPMorgan was refusing to pay for a large percentage of Javice’s legal costs relating to her sentencing, as well as for her appeal. It asked the Delaware court to act quickly to reject the bank’s “baseless and unwarranted” objections to her legal bills.
“Continued uncertainty in light of these sweeping objections will prejudice Ms. Javice’s ability to retain her preferred appellate counsel, Shapiro Arato,” her lawyers said. For her appeal, Javice has retained Alexandra Shapiro, who is also representing Sam Bankman-Fried and Bill Hwang in their fraud convictions.
Javice legal costs dwarfed the $30 million spent by Theranos Inc. founder Elizabeth Holmes, whose trial was several times longer. Holmes was also convicted and sentenced to 11 years in prison. Quinn Emanuel suggested in its filing that Javice’s sentence should be considered a success.
“Counsel’s work in connection with Ms. Javice’s sentencing was life-changing — resulting in a 7-year sentence, less than the ‘life’ suggested by the Sentencing Guidelines, and far below the 12-year sentence requested by the government,” Javice’s lawyers said.
Though Javice was ordered to repay her legal costs as part of her sentence, JPMorgan says she will never be able to repay that amount.
The cases are Javice v. JPMorgan, No. 2022-1179, and Amar v. JPMorgan, No. 2023-0040, Delaware Chancery Court (Wilmington).
Top Photo: Charlie Javice. Photographer: Christian Monterrosa/Bloomberg.
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