Alleged fraudster Charlie Javice loses bid to have JPMorgan pay for counterclaims as authorized battle continues

Decide Kathaleen St. Jude McCormick mentioned Wednesday that JPMorgan Chase doesn’t must pay for the charges related to six counterclaims filed by Charlie Javice, according to a Feb. 14 ruling. McCormick had beforehand ruled in May that the financial institution was legally obligated to cowl Javice’s authorized payments related together with her protection in its fraud swimsuit towards her. On Wednesday, McCormick mentioned Javice can not use that ruling to additionally “shoehorn” a declare for cost of charges for the counterclaims, in accordance with the ruling.

Javice is the 30-something founder who bought her fintech startup Frank to JPMorgan Chase in September 2021 for $175 million. That month, she joined the financial institution as a managing director, head of scholar options, however was positioned on administrative go away in September 2022, and was fired the next November, in accordance with JPMorgan Chase and Javice authorized paperwork. In December 2022, Javice sued the financial institution in Delaware Chancery Court docket, claiming JPMorgan Chase terminated her employment at Frank with out trigger and needs to be required to pay her authorized charges, prices, and bills, in accordance with her claim towards the financial institution. Simply days later, JPMorgan Chase sued Javice in Delaware District Court docket, alleging the entrepreneur lied concerning the variety of prospects Frank had when the financial institution acquired the corporate. 

Javice faces a felony grievance from the U.S. Division of Justice, whereas the SEC has additionally filed fees towards her. The felony trial is ready to begin in October.

However within the Delaware Chancery Court docket, McCormick mentioned Javice didn’t search authorized charges upfront for the counterclaims she made in her December 2022 grievance, so she didn’t rule on it in Could.

McCormick additionally denied Javice’s declare to have JPMorgan Chase pay for bills she incurred whereas attempting to get insurance coverage protection, noting that Javice hadn’t sought these charges upfront. Once more, the Frank founder might amend her grievance so as to add a declare for entitlement.

Javice, nevertheless, did win on her declare to get JPMorgan Chase to pay payments they’d rejected. In October, Javice claimed that JPMorgan Chase had improperly rejected $830,000 in payments from her legal professionals, amounting to twenty% of authorized prices at the moment, Bloomberg reported. Javice had requested the court docket to pressure JPMorgan Chase to pay the payments. McCormick famous that it wasn’t the correct time for a “detailed analytical review.” Attorneys had licensed that the charges incurred had been truly incurred and that they had been cheap, McCormick mentioned.