JPMorgan Chase has asked a US court to terminate its obligation to pay the legal fees of Charlie Javice and Olivier Amar, executives convicted of defrauding the bank, highlighting a lingering complication from its 2021 acquisition of their fintech start-up, Frank, according to a filing reported by the Financial Times.
In the filing submitted on Friday, JPMorgan described Javice and Amar’s claims for defence costs as “clear abuse” and “unreasonable,” noting that the total sums advanced by the bank amount to roughly $115 million — $60.1 million for Javice and $55.2 million for Amar. The bank highlighted that Javice employed five separate law firms for her defence, a legal team that JPMorgan claims remained in place even after her March conviction. One firm representing Amar reportedly received $53.9 million in fees and expenses.
Javice was sentenced last month to seven years in prison and ordered to pay $288 million in restitution to JPMorgan, covering both fraud losses and legal costs, along with an additional $22 million in forfeiture. Amar was also convicted of fraud, though his sentencing has not yet occurred. Javice has requested a reduction in the restitution award, a move opposed by both JPMorgan and the Department of Justice.
The bank’s obligation to fund their legal costs stems from its purchase agreement for Frank, which JPMorgan acquired for $175 million. The deal later proved problematic when the bank discovered that the company had far fewer users than the 4 million claimed by Javice, with allegations that she and Amar hired a data scientist to fabricate millions of users during the sale process.
JPMorgan argued that Javice’s continued use of all five law firms for post-conviction proceedings had far exceeded any reasonable costs for defending the case. “The fees and expenses to fund Javice’s criminal defence have far exceeded any reasonable amount for defence of the entire case,” the bank stated in court documents.
While the sums involved are small relative to JPMorgan’s profits — the bank generated more than $1 billion per week in 2024 — the dispute underscores the legal and financial complications arising from the bank’s troubled acquisition of Frank. Representatives for Javice and Amar did not immediately respond to requests for comment.
