JPMorgan Chase is footing a staggering $115 million bill for the army of lawyers who defended convicted fraudster Charlie Javice and her former colleague Olivier Amar — a sum nearly two-thirds of what the bank paid for their ill-fated student-finance startup Frank.
At trial, 19 lawyers appeared for Javice and 16 for Amar, an extraordinary show of legal firepower that helped drive the cost of their defense to a nine-figure sum.
By comparison, Theranos fraudster Elizabeth Holmes spent around $30 million on attorneys before she was sentenced to years behind bars for orchestrating her scheme.
Javice was sentenced to seven years in prison last week.
The payments — mandated under the Frank merger agreement — were confirmed in filings after a Delaware court ruled JPMorgan must advance the pair’s legal costs, even though the bank later fired them for orchestrating the $175 million fraud.
Former prosecutor Kevin O’Brien called the bill a “huge, huge number,” noting Javice “had a lot of high-priced legal talent.”
“It helps if someone else is picking up the bill,” O’Brien told Bloomberg.
“If you’re a defendant and you’ve got the backing of a board or an insurance company, you want to leave no stone unturned. The sky is the limit.”
O’Brien’s comment pointed to how Javice’s access to JPMorgan’s checkbook allowed her to mount one of the most expensive white-collar defenses in recent memory — an irony not lost on observers given the bank was also her fraud victim.
The bank’s payout also highlights the significant expenses associated with defending complex white-collar cases when using elite law firms.
A JPMorgan spokesperson declined to comment.
Javice’s legal team included Alex Spiro, the Quinn Emanuel partner known for representing Elon Musk, who charged more than $2,000 an hour, according to court filings.
JPMorgan had argued it shouldn’t have to pay, but the Delaware court found the merger terms required it to cover the defense costs.
The bank is now seeking to recoup the money as part of $287.5 million in restitution ordered by US District Judge Alvin K. Hellerstein, who included the defense expenses in the total.
Javice’s attorneys have since asked the judge to reconsider, claiming the bank isn’t entitled to repayment for fees it voluntarily advanced when it acquired Frank.
Even if the restitution order stands, JPMorgan is unlikely to recover much: Javice will owe only 10% of her post-prison income for 20 years.
The $115 million tab also covers costs for civil suits filed by JPMorgan and the Securities and Exchange Commission, both on hold until the criminal case concludes.
Javice’s lawyers said this week they expect the bank to continue covering her legal expenses during her appeal.
In a letter to Hellerstein before sentencing, Javice, 33, took “full responsibility” and invoked her grandmother — a Holocaust survivor — while pleading for mercy.
“There are no excuses, only regret — I am truly sorry,” she wrote.
Prosecutors dismissed the apology as “hollow,” calling her scheme “audacious” and driven by greed.
They said Javice and Amar fabricated records to make it appear that Frank had 4.25 million student accounts when it had fewer than 300,000.
The government estimates JPMorgan’s total losses to be over $300 million, encompassing the purchase price, salaries and legal expenses.
During her sentencing in Manhattan federal court on Sept. 29, Javice sobbed as she apologized to JPMorgan shareholders, employees and investors.
“At 28 I did something that goes against my grain,” she said.
“I let down those who trusted me. These errors, this complete collapse of character, is its own sentence.”
Judge Hellerstein said her words were “very moving” but added, “Markets require honesty. It’s biblical. Yours was not an honest measure.”
He sentenced Javice to an 85-month prison term, rejecting prosecutors’ call for 12 years as “too high.” Javice had sought to stay out of prison entirely.
Her co-defendant Amar, who was convicted alongside her in March, is awaiting sentencing. Prosecutors said both lied and faked data to trick JPMorgan into believing Frank’s user base was genuine.
Javice told the court at her sentencing last week that she was haunted by the damage she caused. “I am no longer a source of pride for my family,” she said through tears.
“Brokenness is the end and grace is within reach. I ask Your Honor to temper justice with mercy.”
The Post has sought comment from Spiro and other attorneys who represented Javice.
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