Home / Crime and Justice / Bank Slams Ex-CEO's 'Abusive' Defense Fees
Bank Slams Ex-CEO's 'Abusive' Defense Fees
1 Jan
Summary
- JPMorgan Chase alleges Charlie Javice's legal fees are unconscionable.
- Millions charged for trial attendance even on non-court days.
- Disputed charges total $10.2 million, seeking to end future payments.
JPMorgan Chase has heavily criticized the legal fees totaling $74 million incurred by Charlie Javice, the convicted founder of the student-finance startup Frank. The bank alleges these fees are "unconscionable" and represent a clear abuse of a 2023 court order requiring JPMorgan to cover her defense costs. The filing details excessive charges, including over $5 million for lawyers attending her fraud trial, even on days the court was not in session.
The bank disputes $10.2 million in charges and seeks to end its obligation to pay future legal bills. JPMorgan contends that Javice's five law firms billed for unnecessary work and inappropriate expenses, operating under the assumption that "someone else is paying her bills." This dispute highlights the high cost of top-tier criminal defense, with Javice's legal expenses significantly exceeding those of Elizabeth Holmes.
Javice was found guilty in March of defrauding JPMorgan in a $175 million deal involving Frank. She was sentenced to seven years in prison but is currently free on bail pending her appeal. The bank is also questioning the transition of lead counsel roles to larger firms, alleging their fees "skyrocketed" with peripheral involvement during the trial. The case is ongoing in Delaware Chancery Court.
