JPMorgan Battles $142M Legal Fees for Convicted Startup Founders

In a surprising turn of events, JPMorgan Chase is embroiled in a legal battle over the hefty legal fees incurred by the founders of a startup it acquired. According to reports, the bank has been billed a total of $142 million for the defense of Charlie Javice and Olivier Amar, the founder and chief marketing officer of financial aid startup Frank.

JPMorgan acquired Frank for $175 million in 2021, but earlier this year, Javice and Amar were found guilty of defrauding the bank by inflating Frank's customer count. Javice was sentenced to seven years in prison for her role in the scheme.

Now, JPMorgan is seeking to overturn a judge's order requiring the bank to pay the pair's legal fees. The bank's lawyer, Michael Pittinger, has criticized the exorbitant charges, which include expenses such as luxury hotel upgrades, 24 hours of work in a single day, and even cellulite butter (a moisturizer).

"There's never been a case, to my knowledge, with such extreme abuses," Pittinger said. However, a spokesman for Javice has defended her actions, stating that she abided by JPMorgan's policies and "didn't charge or see any expenses" that were not expressly permitted.

This legal battle highlights the ongoing fallout from the fraud case and the significant financial burden it has placed on JPMorgan. As the bank continues to fight the court's decision, the outcome of this case will undoubtedly have far-reaching implications for both the bank and the convicted founders.