JPMorgan Seeks Court Approval to End $115M Legal Fee Payments for Convicted Fraudsters Javice Amar

JPMorgan Chase has asked a court to end its obligation to pay the extensive legal fees of Charlie Javice and Olivier Amar, executives convicted of defrauding the bank in connection with its 2021 acquisition of their fintech startup Frank. The bank contends that the legal costs, totaling approximately $115 million, are excessive and far exceed reasonable defense expenses, highlighting that Javice's legal team alone, comprising five law firms, billed about $60.1 million. JPMorgan argues that these fees represent "abusive billing" and that continuing to cover them would cause "irreparable injury" to the bank. Javice was convicted of inflating Frank's user numbers from under 300,000 to over 4 million, leading to a seven-year prison sentence and a restitution order exceeding $288 million. The original acquisition agreement required JPMorgan to advance legal fees for Javice and Amar, but the bank now seeks to terminate this obligation due to the disproportionate costs and ongoing legal proceedings. The case has drawn comparisons to other high-profile fraud cases, with Javice and Amar's legal bills significantly surpassing those of Elizabeth Holmes in the Theranos scandal.