Fraudster Allegedly Charged JPMorgan $74M for Cellulite Cream, Luxury Goods
Charlie Javice, the founder of a now-discredited startup, has made headlines for allegedly defrauding banking giant JPMorgan Chase. The fraud charges stem from her startup, Frank, which claimed to serve millions of student users but was found to have significantly inflated numbers.
Background of the Fraud Case
In 2021, JPMorgan acquired Frank for $175 million, believing it to be a valuable asset in the financial technology sector. However, investigations revealed that Javice fabricated data to mislead the bank during the acquisition process.
Details of the Allegations
Recent court proceedings have unveiled alarming claims regarding Javice’s legal expenditures. Reports indicate that JPMorgan has been billed for:
- Cellulite cream
- Luxury hotel upgrades
- Exorbitant lawyer fees
In particular, legal teams allegedly claimed to have worked over 24 hours in a single day, raising eyebrows about the authenticity of the fees.
Financial Implications for JPMorgan
As of 2023, JPMorgan is grappling with hefty legal fees amounting to over $142 million. This includes $74 million specifically attributed to Javice. The excessive charges have resulted in JPMorgan filing challenges against a judge’s order requiring them to cover these costs.
Current Legal Status
Javice was convicted on four counts of fraud in March and sentenced to more than seven years in prison. Despite her legal troubles, she continues to invoice JPMorgan for her appeal expenses. As noted by a court representative, this situation raises questions about potential abuses of the legal advancement provision.
Response from JPMorgan and Legal Teams
JPMorgan has vehemently criticized the billing practices of Javice and her co-executive, Olivier Amar. A spokesperson stated that the fees claimed by Javice are “patently excessive and egregious.” Meanwhile, legal representatives for both individuals argue that all billed expenses are related to their necessary defense.
Future Proceedings
Delaware Magistrate Christian Wright is overseeing the ongoing legal matter and has expressed a willingness to reconsider the fee payments if evidence of clear abuse is presented. The potential for JPMorgan to recover funds remains, though it is complicated given the substantial amounts Javice and Amar already owe in restitution.
