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JPMorgan claims “extreme abuses” in legal billing as convicted founder continues to charge the bank millions during her appeal
Charlie Javice — the disgraced founder convicted of defrauding JPMorgan Chase through her student financial aid startup Frank — is once again at the center of explosive controversy. In a Delaware courtroom on Friday, JPMorgan accused Javice and her legal team of billing the bank for highly questionable expenses, including cellulite butter, luxury hotel upgrades, personal hygiene items, and even attorney invoices claiming 24 hours of work in a single day.
The allegations add yet another layer to a financial saga that has already cost JPMorgan over $142 million in legal fees for Javice and her co-executive Olivier Amar — nearly the same amount as the $175 million the bank paid to acquire her fraudulent startup.
JPMorgan attorney Michael Pittinger did not hold back in court, calling the alleged billing behavior “unprecedented” and evidence of “extreme abuses.” Among the charges submitted to the bank:
Javice’s spokesperson, Juda Engelmayer, rejected the claims outright, insisting Javice never submitted such expenses and suggesting the items may have belonged to outside counsel:
“It’s obvious she never purchased the so-called ‘cellulite cream.’ The item wasn’t hers.”
He added that many expenses JPMorgan cited were part of larger receipts where only certain line items were charged.
JPMorgan was court-ordered in 2023 to advance Javice’s legal fees — a common protection for corporate officers — but the bank argues that Javice and Amar are abusing the arrangement as a “blank check.”
So far, the totals are staggering:
The bank has already begun aggressively cutting payments, sometimes covering as little as 10–20% of what Javice’s attorneys bill.
Javice’s legal team claims the cuts are an attempt to weaken her defense and prevent her from pursuing her appeal.
Javice’s downfall remains one of the most dramatic in recent fintech history. Prosecutors revealed that she fabricated subscriber data for Frank, claiming 4.25 million users when the platform had fewer than 300,000. Using synthetic data tools, she created fake customer lists that fooled JPMorgan’s due diligence process.
The bank purchased Frank for $175 million in 2021.
By 2023, the acquisition unraveled into federal charges.
Javice was convicted on four counts of fraud and sentenced to more than seven years in prison. Amar was also convicted. Both owe massive restitution to the bank and the government — far beyond their ability to pay.
Delaware Magistrate Christian Wright signaled that he may consider terminating the fee advancement entirely if JPMorgan can prove “clear abuse.”
However, even if the bank is granted the right to claw back expenses, it may be too late — given the defendants’ limited financial resources.
JPMorgan maintains that the billing misconduct is undeniable.
Spokesperson Pablo Rodriguez stated:
“We continue to believe the legal fees sought by Charlie Javice and Olivier Amar are patently excessive and egregious.”
With fraud appeals, SEC complaints, and a growing legal tab still ahead, the scandal surrounding Javice shows no sign of slowing — leaving JPMorgan once again paying the price for believing in a founder who sold them a fantasy.
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