JPMorgan Disputes Legal Bills from Frank Founder

JPMorgan Chase is currently embroiled in a legal dispute over whether it should cover legal expenses for Charlie Javice, the founder of the now-acquired financial aid startup, Frank. According to TechCrunch, the bank has been billed a staggering total of $142 million in legal fees for the defense of both Javice and Olivier Amar, who served as the chief marketing officer.

This situation arose following their conviction earlier this year for defrauding JPMorgan by inflating Frank's customer count. Javice received a sentence of seven years in prison for her role in this fraud.

The legal bills in question are under scrutiny as JPMorgan seeks to overturn a judge's order mandating that the bank pay these fees. Michael Pittinger, a lawyer representing JPMorgan, has claimed that the billing practices of Javice's legal team have included questionable expenses.

These reportedly encompass luxury hotel upgrades, exorbitant hours billed for work, including as much as 24 hours in a single day, and even charges for cellulite butter, a type of moisturizer. Pittinger characterized these charges as unprecedented in their extremes, stating, 'There's never been a case, to my knowledge, with such extreme abuses.' On the other hand, a spokesman for Javice has countered these claims by asserting that she adhered to JPMorgan's policies and did not seek reimbursement for any expenses outside those specifically permitted under the guidelines provided to her.

The spokesman emphasized that Javice only purchased items such as ice cream in accordance with JPMorgan's code of conduct, denying any wrongdoing in her expense reporting. This dispute highlights ongoing tensions within the banking sector regarding accountability and financial practices, particularly in the wake of significant legal controversies.