Charlie Javice, a convicted startup founder, is facing allegations of billing JPMorgan Chase & Co. (NYSE:JPM) for personal expenses as part of a $74 million legal claim.
What Happened: Javice, who was convicted for defrauding JPMorgan, is believed to have charged the bank for personal items such as cellulite butter and luxury hotel upgrades. The bank has already been billed over $142 million in legal fees for Javice and her co-executive Olivier Amar to fight federal fraud charges.
JPMorgan is now attempting to revise a judge’s order to halt any further fees. Michael Pittinger, the bank’s lawyer, described the case as having “extreme abuses” in a Delaware court, reports The Wall Street Journal.
Javice’s spokesperson, Juda Engelmayer, denied the allegations, asserting that the expenses were not billed by Javice but by her legal team. The legal team is accused of submitting bills claiming they worked hours that were “humanly impossible.”
Javice was found guilty on four fraud counts in March and sentenced to over seven years in prison. Despite her conviction, she continues to bill JPMorgan for legal expenses related to her appeal.
Also Read: After $175 Million Scam, JPMorgan Battles $115M in Legal Fees: ‘Patently Excessive and Egregious’
JPMorgan acquired Javice’s fintech startup Frank for $175 million in 2021. However, she was arrested two years later when it was revealed that the startup’s value was based on falsified subscription numbers.
Pablo Rodriguez, a spokesperson for JPMorgan, stated, “We continue to believe the legal fees sought by Charlie Javice and Olivier Amar are patently excessive and egregious.”
Why It Matters: This case underlines the potential risks and challenges associated with corporate acquisitions. JPMorgan’s purchase of Frank in 2021 turned sour when it was discovered that the startup’s value was inflated due to falsified subscription numbers.
The ongoing legal battle and the associated costs further exacerbate the situation for the bank. The outcome of this case could potentially influence future acquisition strategies and due diligence processes for corporations.
Read Next
Frank’s Founder Charlie Javice Accepts Responsibility For $175M Fraud Ahead Of Sentencing
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This article Charlie Javice Faces Accusations Of Billing JPMorgan For Personal Expenses Amid $74M Legal Claim originally appeared on Benzinga.com
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