JPMorgan Reveals Javice Firms Charged Millions for Mere Attendance
JPMorgan Chase & Co. has publicly criticized Charlie Javice for her exorbitant legal fees, totaling $74 million. This figure includes over $5 million charged for attorneys and staff simply attending her fraud trial, including on days when court was not in session. A Delaware court filing made public recently provides insight into JPMorgan’s claims against Javice.
Background on the Fraud Case
In March, Javice was convicted of defrauding JPMorgan in a $175 million deal related to her student-finance startup, Frank. As part of her sentencing in September, she received a seven-year prison term but is currently out on bail pending an appeal. Javice’s financial responsibility includes repaying the legal costs covered by JPMorgan.
Disputed Legal Fees
JPMorgan is contesting $10.2 million in charges it considers unnecessary. The bank argues that Javice’s five law firms have inflated their bills under the notion that “someone else is paying.” Her legal expenses have drawn comparisons to those of Elizabeth Holmes, founder of Theranos, whose defense costs were significantly lower at $30 million.
Excessive Billing Practices
JPMorgan has been particularly critical of Javice’s two main law firms, Quinn Emanuel Urquhart & Sullivan and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo. According to JPMorgan, these firms have accumulated tens of millions in what it deems unreasonable fees. By August 2024, the two large firms had already billed more than $22 million.
- Javice reportedly had between 16 and 29 legal professionals present in court each day.
- The average daily billing amounted to $360,000 during the trial’s six-week duration.
- Only four lawyers had speaking roles in the courtroom.
Questionable Expenses
JPMorgan has highlighted questionable expenses on the invoices submitted by Javice’s legal team. Among the 2,377 pages of receipts were:
- A Cookie Monster toddler’s toy
- Lavender and jasmine sachets
- 57 hotel room upgrades costing $300 each per night
- A $900 meal at Koloman, a renowned New York restaurant
Future Legal Obligations
While Javice is currently obliged to repay the legal fees JPMorgan has incurred, the bank may only recover a fraction of the total costs. Once she leaves prison, she is required to pay 10% of her income in restitution. Additionally, this repayment order expires in 20 years, complicating JPMorgan’s prospects for recovering its funds.
This ongoing dispute raises significant questions about the limits of legal expenses in high-profile criminal defense cases, particularly in the context of corporate fraud.
Case Reference
The case is officially recorded as Javice v. JPMorgan, 2022-1179, in the Delaware Chancery Court located in Wilmington.
