JP Morgan doesn’t want to pay Frank founder Charlie Javis’s legal bills

JPMorgan Chase says a total of $142 million has been paid in legal fees to defend Charlie Javis and Olivier Ammar, respectively, founder and chief marketing officer of financial aid startup Frank.

JPMorgan acquired Frank for $175 million in 2021, but earlier in the Thai year, Javice and Amar were previously convicted of defrauding the bank by inflating the number of Frank’s clients, with Javice being sentenced to seven years in prison. JPMorgan is now seeking to overturn a judge’s order requiring the bank to pay the husband’s legal fees, as reported in the Wall Street Journal.

Michael Pittenger, the lawyer representing JPMorgan, said Javis’s legal team paid costs including luxury hotel upgrades, 24-hour workdays, and cellulite butter (a moisturizer).

“There has never been a case, to my knowledge, involving such extreme abuse,” Pettinger said.

A spokesperson for Javice told the Wall Street Journal that it adhered to JPMorgan policies and “did not charge any fees or see any expenses.”

“As an employee, she purchased ice cream and other items in accordance with JPMorgan’s Code of Conduct, and never sought compensation for anything not expressly permitted under the guidelines she was provided with,” a Javis spokesperson said.