JPMorgan foots $115M tab of legal bills for scammer… who scammed bank out of $175M
In this DML Report…
Charlie Javice, founder of the student-finance startup Frank, and her former colleague Olivier Amar were convicted in March 2025 of defrauding JPMorgan Chase out of $175 million by fabricating customer data to inflate the company's value during its 2021 acquisition. They created records falsely claiming 4.25 million student accounts when the actual number was under 300,000, with Amar paying a data scientist $18,000 to generate a list of fake customers. Prosecutors described the scheme as driven by greed, estimating JPMorgan's total losses at over $300 million, including the purchase price, salaries, and legal expenses. The trial involved 19 lawyers for Javice and 16 for Amar, with the merger agreement requiring the bank to cover their legal costs even after termination for the fraud. Javice was 28 at the time of the fraud and founded Frank as a fintech focused on student finance.
On September 29, 2025, U.S. District Judge Alvin K. Hellerstein sentenced Javice, now 33, to 85 months in prison in Manhattan federal court, rejecting prosecutors' request for 12 years as excessive and her bid for no incarceration. Sobbing during the hearing, Javice apologized to JPMorgan shareholders, employees, and investors, stating, “At 28 I did something that goes against my grain. I let down those who trusted me. These errors, this complete collapse of character, is its own sentence,” and added, “I am no longer a source of pride for my family. Brokenness is the end and grace is within reach. I ask Your Honor to temper justice with mercy.” In a pre-sentencing letter invoking her Holocaust survivor grandmother, she took “full responsibility” and wrote, “There are no excuses, only regret — I am truly sorry.” The judge called her words “very moving” but emphasized, “Markets require honesty. It’s biblical. Yours was not an honest measure.” Prosecutors deemed the apology “hollow,” and Amar awaits sentencing. Javice's defense included attorney Alex Spiro of Quinn Emanuel, charging over $2,000 per hour.
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A Delaware court ruled that JPMorgan must pay $115 million in legal bills for Javice and Amar, nearly two-thirds of the acquisition cost, covering the criminal case, civil suits by the bank, and paused SEC actions. Former prosecutor Kevin O’Brien noted the “huge, huge number” from “high-priced legal talent” with “the sky... the limit” when costs are covered by others. Judge Hellerstein ordered $287.5 million in restitution, including the defense fees, though Javice will owe only 10 percent of post-prison income for 20 years, making full recovery unlikely; her attorneys asked to reconsider including advanced fees and expect continued bank funding for her appeal. By comparison, Elizabeth Holmes spent around $30 million on Theranos-related attorney fees before sentencing. JPMorgan fired Javice and Amar after discovering the fraud and confirmed the payments in filings; a spokesperson declined comment.