JPMorgan Chase has sent a formal request to a Delaware judge asking the court to remove the bank from paying a $115 million bill that was generated by the lawyers for two former partners who were found guilty of stealing $175 million from the lender.
The filing says the attorneys for former chief executive Charlie Javice and co‑conspirator Olivier Amar billed JPMorgan about $60 million and $55 million, respectively, for criminal and civil defense work. One law firm alone collected $35.6 million in reimbursements. The sums far exceed the roughly $30 million that Elizabeth Holmes, the former Theranos CEO, had to pay for her attorneys.
JPMorgan’s spokesman called the costs “patently excessive and egregious” and said the bank would present more evidence to the court in the coming weeks. The company is hoping to recover the money under a $287.5 million restitution order that also covers other losses from the 2021 merger with student‑loan firm Frank.
Javice was convicted in March, sentenced to seven years in federal prison last month after the judge rejected a 12‑year sentence, and has already pled full responsibility. Prosecutors slammed her apology as “hollow.” The court had previously upheld a clause in the merger agreement that required JPMorgan to advance legal fees for José and Amar, even after they were fired and found guilty of fraud.
Amar, also convicted of the same charges, has not yet been sentenced. While the bank expects to keep collecting defense costs during Javice’s appeal, the restitution plan limits her ability to repay JPMorgan, as she must only pay 10 % of her post‑prison income for 20 years.
The fight continues over whether JPMorgan can avoid paying the $115 million in legal fees. The case highlights the financial risks banks face when they provide legal support to executives who later commit fraud.
Source: New York Post
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