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The alleged close relationship between JPmorgan Chase with the public prosecutor will be a major focus on the defense strategy of a young entrepreneur, Charlie Javice, who will be brought to court this week for criminal prosecution, which she fraudulently prompted the US bank to buy her company.
Javice’s defense team claims that the lender essentially felt the remorse of the buyer and exploited the government in order to transform a commercial dispute into criminal proceedings. Javica31, was arrested two years ago for fraud due to the indictment against the $ 175 million sale to JPmorganan In 2021 of her company Frank, who supported students who apply for financial help.
Your legal team has accused JPmorgan of practicing enormous power over prosecutors in her investigation and claimed that such coordination before the bank’s own complaint against Javice for fraud was.
“Despite the bank’s reputation share, the government worked closely together on the result of the case as a purchaser,” said Javice’s team last month.
In a refutation, the public prosecutor argued that “in this case it carried out a comprehensive, independent examination of the allegations” and accused Javice’s team to “assert a Smorgasbord of the government’s misconduct”.
The public prosecutors in New York accuse Javice and her co -accused Olivier Amar, Frank’s former Chief Growth Officer, a data scientist for the production of accounts for 4.25 million users when Frank’s number was 90 percent less. The process is scheduled to begin on February 18.
A lawyer of Amar who contested all misconduct did not answer on inquiries about comments.
“There will be a strong defense and some surprises,” said a spokesman for Javices Legal Team under the direction of Jose Baez, who previously represented Harvey Weinstein.
“Give a Google search and focus on the time frame July 2021 and I think you will find all kinds of two dozen articles of all kinds about Frank and Charlie who talk about their signed users in the several hundreds of thousands of thousands. It was out there in public. “
The defense of Javice can depend on an award, as a student was defined as “registered” – Business Insider reported in July 2021 that she said to the publication of Frank, “serves more than 5 million households”.
The case will train one of the most embarrassing episodes in the recent history of JPMorgan – while the deal for a bank that was almost $ 60 billion last year was irrelevant, Chief Executive Jamie Dimon, who is partly for his deal making acumen made a name, it described it as a “big mistake”.
It also renewed the attention of charismatic founders who promised revolutionary companies according to top -class fraud against Elizabeth Holmes, Sam Bankman and Trevor Milton. All were later convicted and sentenced to several years in prison.
The prosecutors found texts between Javice and Amar, who discussed the conviction of Holmes, the founder of the Blood Testing Company Theranos. Javice wrote to Amar von Holmes: “Hopefully it is a slight conviction. . . Investors should be held responsible to let a 19 -year -old Rogue go. “
Javice started what became known in 2017 than Frank, four years after graduating from the University of Pennsylvania. The website offered College students when applying for financial help.
Frank finally attracted the funds of Aleph, an Israeli risk capital company, and the billionaire investor Marc Rowan from Apollo Global Management, also Penn Alumnus. Javice appeared in podcasts to advertise Frank for families with medium and lower incomes who wanted to send their children to college.
JPmorgan searched Frank for his relationship with younger Americans who could put together with banking products. The public prosecutor claimed that Javice had carried out a program to get its company to have a critical mass in order to give a potential buyer.
In 2021, the Lionre investment bank carried out an auction for Frank in the middle of public and private market reviews. JPMorgan’s executives stated that the assessment of the company was underpinned by Franks users, of whom JPMorgan believed they were in the millions.
“What we buy is a team, a brand, an algorithm that together and without millions of customer relationships, a small fraction of the purchase price would be assigned” bank to Frank.
JPMorgan paid Javice $ 21 million for their open share, with the offer of another 20 million. -Dollar bonus that was never paid.
Since his arrest in April 2023, Javice has been free against a deposit of $ 2 million, which is secured against her apartment in Miami. The court approved her request to remove a ankle monitor so that she could use a job as a fitness teacher.
JPmorgan has submitted a separate civil lawsuit against Javice. The attempt is expected to take four weeks.
