NEW YORK (AP) — For nearly three years, JPMorgan Chase has footed the legal bill for Charlie Javice and Olivier Amar, the two convicted fraudsters who sold their financial aid startup Frank to the bank.
But the two have racked up an astronomical nine-figure legal bill that far exceeds any reasonable amount the two could have needed for their defense, the bank said in a court filing late Friday. Chase should not have to pay and its agreement as part of the initial purchase to bear the costs should end, the bank argued.
According to the filing, Javice’s team of lawyers at five law firms has billed JPMorgan approximately $60.1 million in legal fees and expenses, while Amar’s attorneys have billed the bank approximately $55.2 million in fees.
In total, the bank alleges that lawyers for Javice and Amar have racked up legal fees of $115 million, and one law firm received $35.6 million in refunds alone. By comparison, Elizabeth Holmes, who was convicted of defrauding investors in the Theranos case, reportedly ended up with a legal bill of approximately $30 million.
The bank would suffer “irreparable harm” if the court does not put an end to the “abusive billing,” the bank said. Javice and his attorneys have treated the process “like a blank check,” Chase said.
Javice, 33, was convicted in March of deceiving the banking giant when it bought her company, called Frank, in the summer of 2021. She made false records that made it appear that Frank had more than 4 million customers when he had fewer than 300,000. Amar was found guilty of the same charges.
Early in the case, a Delaware court ruled that the bank must advance Javice and Amar legal fees, which was part of the bank’s agreement when Frank was acquired in 2021.
Part of Javice’s legal team is Quinn Emanuel’s Alex Spiro, who is also the lawyer who previously represented Elon Musk. Spiro did not immediately respond to an email request for comment.
A law firm representing Amar did not immediately respond to a request for comment.
“The legal fees requested by Charlie Javice and Olivier Amar are evidently excessive and egregious. We look forward to sharing details of this abuse with the court in the coming weeks,” said bank spokesman Pablo Rodríguez.