JPMorgan Disputes $115 Million Legal Fees for Convicted Frank Founders
JPMorgan Chase has asked a court to stop paying the massive legal bills of Charlie Javice and Olivier Amar, convicted of defrauding the bank through their startup, Frank.
For nearly three years, the bank has covered their defense costs, as required under its 2021 acquisition agreement. But JPMorgan now argues that the two have abused the arrangement, generating an excessive $115 million in combined legal fees.
According to the bank’s court filing on Friday, Javice’s lawyers from five firms billed about $60.1 million, while Amar’s team charged $55.2 million. One firm alone received $35.6 million in reimbursements. JPMorgan said these figures are far beyond reasonable, comparing them to Theranos founder Elizabeth Holmes’s reported $30 million legal costs.
The bank stated it would be “irreparably injured” if the court does not stop what it calls “abusive billing.” It accused Javice’s legal team of treating the arrangement “like a blank check.”
Javice, 33, was found guilty in March of fabricating customer data to make Frank appear to have over 4 million users, when it had fewer than 300,000. Amar was convicted on the same charges.
A Delaware court had earlier ruled that JPMorgan must advance their legal expenses, honoring the acquisition terms. But the bank now seeks relief, arguing the lawyers’ fees have spiraled far beyond the deal’s intent.
Alex Spiro, a member of Javice’s legal team and known for representing Elon Musk, did not respond to media requests. A law firm representing Amar also declined comment.
Pablo Rodriguez, JPMorgan’s spokesperson, said, “The legal fees sought by Charlie Javice and Olivier Amar are patently excessive and egregious. We look forward to sharing details of this abuse with the court in coming weeks.”
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