By Joseph De Avila
JPMorgan is still on the hook for Charlie Javice's legal fees, which have covered high-profile attorneys as well as expenses for hundreds of dollars of gummy bears and a seafood tower, a Delaware court ruled.
Javice, the entrepreneur who was convicted of defrauding the bank in March 2025, is still entitled to fee advancement that requires the bank to pay her legal bills in the event of a dispute, the Delaware Court of Chancery said Thursday. JPMorgan said she and a co-executive have now racked up $144.2 million in bills, almost as much as the bank paid for her startup in the first place.
"We respectfully disagree with the Delaware decision about the bounds of reasonableness and are considering next steps," said Pablo Rodriguez, a spokesman for JPMorgan.
JPMorgan has been arguing that Javice's legal bills have become so large it should no longer have to honor the agreement requiring it to advance her legal fees, a spokesperson for Javice said.
"Today, the Delaware Chancery Court rejected that argument and held JPMorgan to the contract it signed," the spokesperson said. "It's unfortunate that the sensational allegations about Charlie's legal expenses received far more attention than the court's straightforward decision enforcing the parties' agreement."
JPMorgan bought Javice's startup, Frank, in the summer of 2021 for $175 million. Later the bank found that Javice lied about how many customers Frank had, leading to her arrest and conviction on four counts of fraud. She was sentenced to more than seven years in prison. She is appealing the verdict and she has been seeking a presidential pardon, The Wall Street Journal reported last month.
JPMorgan has been paying all of Javice's legal fees following a judge's 2023 order that cited a clause in the original deal contract, designed to protect the startup's executives in the event of a dispute over the transaction. The bank also has been covering legal expenses for Javice's convicted colleague, Olivier Amar. An attorney for Amar didn't immediately respond to a request for comment.
The bank has been attempting to end the arrangement before Javice racks up more charges during her appeal, calling the expenses that had piled up "patently excessive and egregious."
JPMorgan said last year that Javice, Amar and their legal teams have billed the bank for fees that included payments for 147 different legal professionals, some of whom billed as high as $2,700 an hour. They also charged $25,800 for hotel-room upgrades, $530 on gummy bears and a $581 dinner for two that included a $161 seafood tower.
Javice's legal team for her criminal trial and appeal included Alex Spiro, who has represented Elon Musk and former New York City Mayor Eric Adams. She was also represented by José Baez and Ronald Sullivan, who defended Harvey Weinstein. Her appeal is being handled by Alexandra Shapiro, who has previously represented Sam Bankman-Fried.
JPMorgan could recoup the legal fees if it proves it has been defrauded. Lawyers for the bank have said Javice and Amar will never be able to pay back such large amounts.
Javice's spokesperson previously said she "didn't charge or see any expenses" and has followed the written policies during her time as a JPMorgan employee, after the bank acquired her business, and under the legal rules.
Write to Joseph De Avila at joseph.deavila@wsj.com