JPMorgan Disputes $74m Legal Fees Sought by Frank Founder
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A recent filing by JPMorgan revealed that the bank is asking the court to block $10.2 million in disputed charges in the case against Frank founder, Charlie Javice.
The filing, submitted on December 29, shows that JPMorgan wants the court to block the amount and relieve it of any obligation tocover additional legal expenses moving forward, claiming that Javice’s “bloated advancement demands reflect clear abuse.”
The case revolves around the student financial aid assistance company, Frank. In 2023, JPMorgan Chase sued the company’s founder, Charlie Javice, on charges of defrauding the bank in its $175 million acquisition.
The acquisition itself took place in 2021, and two years later, JPMorgan accused Javice of fabricating a list of millions of fake users to push the deal through. At the time, Javice’s actions were described as a scheme to defraud by the prosecutors, and she was arrested in April 2023 on charges of conspiracy, wire fraud, and bank fraud. She was released on a $2 million bond while attempting to negotiate a solution with the bank.
JPMorgan Now Battles The Requirement To Pay Javice’s Legal Fees
Apart from the criminal case, Javice also faced separate fraud charges from the US Securities and Exchange Commission (SEC), and additional criminal charges filed by the Manhattan federal prosecutors. She was convicted of fraud in March 2025 and was sentenced to spend seven years in prison in September of the same year.
On top of that, she was forced to pay $22.36 million in forfeiture and another $287 million in restitution to JPMorgan.
However, Javice also counter-sued JPMorgan in 2023, arguing that the bank was contractually obligated to cover her legal defence costs, as the acquisition made her an employee of JPMorgan. The court ruled that the bank was required to advance her legal fees, and now, JPMorgan is still battling this requirement. The tab is $73.9 million “and counting,” which the bank considers “unconscionable.”
In a previously sealed Delaware court filing, Javice’s lawyers have billed millions for attorneys and staff to attend her fraud trial. This included the days when the court was not in session, based on the filing. In addition to this, JPMorgan cited that some of the expenses include luxury hotel room upgrades, $900 and $710 meals, as well as alcohol purchases.
In light of this, the bank is asking the court to block $10.2 million in disputed charges and relieve it of any obligation to cover additional legal expenses going forward, as mentioned.
