NEW YORK / LONDON (IT BOLTWISE) – JPMorgan Chase has had enough of the exorbitant legal fees incurred defending convicted fraudsters Charlie Javice and Olivier Amar. The two had sold the startup Frank to the bank and provided false information. Now the bank is demanding an end to the payments, which amount to over $115 million.
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JPMorgan Chase is facing a huge financial burden resulting from legal defense costs for Charlie Javice and Olivier Amar. The two founders of startup Frank were convicted of fraud after making false statements about their company’s customer base to facilitate sales to the bank. For almost three years, JPMorgan has been covering the couple’s legal fees, which now total more than $115 million.
In a recent court filing, the bank argues that legal fees go far beyond what would be necessary for an adequate defense. JPMorgan is therefore demanding an end to the payments that were originally part of Frank’s acquisition agreement in 2021. The bank emphasizes that Javice and Amar’s law firms treated the situation like a carte blanche, which led to a disproportionate cost explosion.
What’s particularly striking is that Javice and Amar’s legal fees far exceed those of Elizabeth Holmes, the former CEO of Theranos. Holmes, who was also convicted of fraud, ended up with approximately $30 million in defense costs. In comparison, the $115 million for Javice and Amar seems exorbitant.
The bank argues that it would be irreparably harmed if the court does not stop the “abusive billing.” A Delaware court had ruled earlier in the case that JPMorgan was required to pay the couple’s legal fees, which was part of the acquisition agreement. But in view of current developments, the bank is now calling for this decision to be reassessed.
Part of Javice’s legal team is Alex Spiro of Quinn Emanuel, who also represented Elon Musk. Neither Spiro nor Amar’s law firm have yet responded to requests for comment. However, JPMorgan remains committed to resolving the matter in court and disclosing the details of the “abusive billing.”
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