A federal judge has ruled that JPMorgan Chase must continue to pay the legal defense costs for Charlie Javice, the founder of the fintech startup Frank. Javice was convicted in October of defrauding the bank over her company's customer base.
U.S. District Judge Jesse M. Furman stated in his ruling that a prior agreement obligating JPMorgan to cover Javice's legal expenses remained in effect. The judge noted that the bank had already paid millions of dollars toward these costs before attempting to halt payments following Javice's indictment.
Javice's legal bills have reportedly amounted to millions of dollars. According to court filings and reports, some of the expenses submitted for reimbursement have included seemingly unusual items such as gummy bears and cellulite butter, alongside more standard legal services. The total amount JPMorgan may be required to pay remains a significant question.
Javice founded Frank, a platform designed to help students manage their finances and search for student bank accounts, in 2017. JPMorgan acquired Frank in 2021 for approximately $175 million, with Javice receiving a substantial portion of that sum. Prosecutors alleged that Javice misrepresented the number of customers Frank had to inflate the company's value, providing the bank with falsified data to support her claims.
The fraud trial concluded with Javice's conviction on multiple counts, including wire fraud, bank fraud, and securities fraud. Her sentencing is pending.
The ongoing legal battle over defense fund payments highlights the complex financial entanglements that can arise in high-profile fraud cases involving corporate acquisitions and subsequent legal proceedings.