After acquiring Frank in 2021, JPMorgan accused Javice of fabricating a list of millions of fake customers to push the $175 million deal through. At the time, prosecutors described Javice's actions as a scheme to defraud. She was arrested in April 2023 on charges of conspiracy, wire fraud and bank fraud, and released on a $2 million bond while attempting to negotiate a resolution. Alongside the criminal case, Javice also faced separate fraud charges from the SEC and further criminal charges filed by Manhattan federal prosecutors. Javice was convicted of fraud in March 2025, was sentenced to spend seven years in prison in September 2025, and forced to pay $22.36 million in forfeiture and $287 million in restitution to JPMorgan. In 2023, Javice counter‑sued JPMorgan, arguing that the bank was contractually obligated to cover her legal defence costs because the acquisition made Javice an employee of JPMorgan. A court ruled in May 2023 that the bank was required to advance her legal fees. Today, the battle around the legal fees JPMorgan is required to pay under the 2023 court order is ongoing. The tab is $73.9 million "and countng", which the bank considers to be "unconscionable". According to the previously sealed Delaware court filing, Javice's lawyers have billed "millions" for attorneys and staff to attend her fraud trial, including on days when court was not in session. Alongside this, "luxury hotel room upgrades, $900 and $710 meals, and alcohol purchases," were also expensed. The filing reveals that JPMorgan is asking the court to block $10.2 million in disputed charges and to relieve it of any obligation to cover additional legal expenses going forward. "Javice’s bloated advancement demands reflect clear abuse," the filing reads. The fight over nearly $74 million in legal fees shows how indemnification clauses can become a costly headache long after a deal closes. For banks buying fast‑growth fintech firms, this is a reminder that post‑acquisition risk can be both unpredictable, and extremely expensive. Further, with JPMorgan seeking to block over $10 million in disputed charges, the court’s next move could shape how far advancement rights stretch in future fintech deals. What began as a fraud case may now set a precedent for the entire industry.
By on 2026-01-02 08:00:00
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