JPMorgan Chase & Co. is trying to avoid a staggering $115 million legal bill linked to two convicted fraudsters who deceived the bank, causing a loss of $175 million.
In a court filing on Friday, JPMorgan contested a prior ruling that required it to cover the legal costs of its former business associates, Charlie Javice and Olivier Amar, who were found guilty of defrauding the bank of a substantial sum.
The legal representatives of Javice and Amar have reportedly invoiced JPMorgan approximately $60.1 million and $55.2 million respectively, amounting to the disputed $115 million.
As per the report by Insider, a spokesperson for the bank described the legal charges as “patently excessive and egregious,” and expressed readiness to present the specifics of this alleged exploitation to the court in the forthcoming weeks.
Javice and Amar were convicted of manipulating data to dupe the bank into disbursing a nine-figure sum. JPMorgan’s merger agreement with student-loan startup Frank, co-founded by Javice and Amar, necessitated JPMorgan to forward legal costs for the founders.
Also Read: Frank’s Founder Charlie Javice Accepts Responsibility For $175M Fraud Ahead Of Sentencing
Despite the founders’ conviction and dismissal, a Delaware court upheld the clause, obliging the bank to fund their defense in criminal, civil, and SEC cases.
JPMorgan is currently endeavoring to recoup these expenses as part of a $287.5 million restitution order, which also covers other merger-related losses.
The ongoing legal battle underscores the potential risks and liabilities that financial institutions like JPMorgan may face when entering into business partnerships.
The case also highlights the importance of thorough due diligence and robust legal safeguards to protect against potential fraud.
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This article After $175 Million Scam, JPMorgan Battles $115M in Legal Fees: ‘Patently Excessive and Egregious’ originally appeared on Benzinga.com
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