Charlie Javice, the Forbes 30-Under-30 winner accused of defrauding JPMorgan, sues the bank seeking ‘important evidence’ she says was wrongfully withheld
The one-to-watch founder of student loan startup ‘Frank’ has hit JPMorgan Chase with a subpoena after accusing the banking giant of cherry-picking evidence for prosecutors in her criminal case.
Charlie Javice, 31, was arrested in April on federal fraud charges after prosecutors said she tricked JPMorgan into paying $175 million for her company by lying about her customer base.
On Thursday, Javice’s high-powered defense team served JPMorgan with a subpoena for documents, according to court records reviewed by DailyMail.com.
A person familiar with the matter told DailyMail.com that Javice’s lead attorney, Alex Spiro, believes the subpoena could provide important evidence for the defense, which has accused the bank of improperly using its attorney -client privilege to shield data.
Spiro, who previously represented Elon Musk, Jay-Z and New England Patriots owner Robert Kraft, declined to comment, as did spokespeople for JPMorgan.
Charlie Javice is seen leaving court in Manhattan in April. On Thursday, Javice’s high-powered defense team served JPMorgan with a subpoena for documents
Prosecutors say Javice tricked JPMorgan into paying $175 million for her company by lying about her customer base. CEO Jamie Dimon (above) called the acquisition a ‘big mistake’
Speaking in court in July, Spiro predicted that previously secret communications between JPMorgan executives would ultimately support his client’s claim that she was not acting illegally.
He claimed that prosecutors were “merely regurgitating” allegations made in the bank’s massive lawsuit against Javice.
Spiro said prosecutors typically collect evidence, such as communications between bank employees, before filing criminal charges, but that was not successful in this case.
In a court filing last month, Spiro argued that the plaintiff’s case was based on JPMorgan’s “selected set of documents” produced during the grand jury trial.
The filing also accused the bank of making “demonstrably baseless claims of privilege” to protect certain documents from disclosure.
In a court response, prosecutors said the defense’s arguments “repeatedly mischaracterize the document and its state of discovery, claiming that ‘likely exculpatory’ categories of documents are missing from discovery.”
“In reality, those documents are neither missing nor exculpatory,” the government argued, insisting it had turned over all documents to the prosecution or defense.
In an order this week, U.S. District Judge Alvin K. Hellerstein largely rejected the defense’s argument that prosecutors should compel further documents from the bank.
But the judge acknowledged that the defense intended to subpoena certain JPMorgan documents that had been withheld by the bank and listed in its privilege log.
Javice’s lawyer Alex Spiro has predicted that previously secret communications between JPMorgan executives would ultimately prove her innocence
Javice and Amar also face related civil charges by the U.S. Securities and Exchange Commission. JPMorgan is also suing them in Delaware federal court
He gave the bank a December 1 deadline to file a motion against the subpoena, and plans to rule on any motions quashing it at a hearing on January 17.
The judge also set a trial date in the case for October 28, 2024.
Javice, Frank’s founder, is charged in the case along with Olivier Amar, 49, Frank’s chief growth officer.
They have both pleaded not guilty to charges including wire fraud, wire fraud, securities fraud and conspiracy.
Javice and Amar also face related civil charges by the U.S. Securities and Exchange Commission. JPMorgan is also suing them in Delaware federal court.
Prosecutors have said Javice repeatedly lied about Frank to the largest U.S. bank, including by claiming she had amassed 4.25 million student customers when she actually had only about 300,000.
The SEC alleged that Amar purchased “sham lists” of college student data from third-party vendors, which Frank falsely passed off as customers to JPMorgan.
JPMorgan has said it became aware of the fraud after it sent marketing materials to people Javice claimed were genuine and found that only 28 percent were delivered and 1.1 percent were opened, far fewer than similar campaigns.
The bank closed Frank in January, with CEO Jamie Dimon calling the acquisition a “big mistake.”
Javice is free on a $2 million personal recognizance bond pending trial.