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The alleged JPMORGAN Chase relationship with prosecutors will be a key focus on the strategy of defense of a new entrepreneur, Charlie Javice, scheduled this week for the criminal charges that it misleaded US bank to buy the company its.
Javice’s defense team holds the lender essentially felt the buyer’s remorse and used the government to turn a trade dispute into a criminal case. Javice, 31, was arrested two years ago on charges of fraud for sale of $ 175 million in JPMORGAN in 2021 of its Frank company, which supported students applying for financial aid.
Her legal team has accused JPMORgan of exercising the great power over prosecutors in his investigation, claiming that such coordination preached the bank’s own lawsuit against Javice for fraud.
“The government worked intimate with JPMC, despite the bank reputation shares in the result of the case as a buyer,” Javice’s team claimed last month.
In a report of objection, the prosecution argued that “conducted a broad, independent investigation of claims in the case” and accused Javice’s team of claiming “a smorgasbord of bad government behavior”.
New York prosecutors accuse Javice and her defendant, Olivier Amar, the former Frank’s leading leader, for paying a data scientist to produce accounts to indicate 4.25MN user when Frank’s current figure was 90 percent less. The trial will begin on February 18th.
A lawyer for Amar, who has denied all the wrongdoings, did not respond to requests for comment.
“There will be strong defense and some surprises,” said a spokesman for Javice’s legal team led by Jose Baez, who previously represented Harvey Weinstein.
“Do a Google search and focus on the July 2021 time frame and I think you will find about two dozen items of all kinds about Frank and Charlie talking to its signature users in several hundred thousand. It was there in public. “
Javice protection may depend on a difference on how a student was designated as “signed” – Business Insider reported in July 2021 that she said to the Frank publication “serves more than 5 million families”.
The matter will issue one of the most embarrassing episodes in the latest History of JPMORGAN – while the deal was useless for a bank that made nearly $ 60 billion last year, chief executive Jamie Dimon, who made his name partially for Taking his accumen has labeled him a “big mistake”.
It has also renewed its attention to charismatic founders promising revolutionary businesses, following high profile fraud trials for Elizabeth Holmes, Sam Bankman-Fried and Trevor Milton. All were later sentenced and sentenced to several years in prison.
Prosecutors found texts between Javice and Amar discussing the conviction of Holmes, the founder of the Therano blood testing company. Javice wrote to Amar of Holmes: “Hopefully it is an easy sentence. . . Investors must be blamed for allowing a 19 year old to go a deceit. “
Javice began what later became known as Frank in 2017, four years after graduating from the University of Pennsylvania. The website offered college students assisting in the application for financial aid.
Frank eventually withdrew funding from Aleph, a capital of Israeli enterprise capital, and billionaire investor Marc Rowan of Apollo Global Management, also a Penn student. Javice appeared in Podcast to promote Frank for medium and low -income families seeking to send their children to college.
JPMORGAN asked Frank for his relationship with young Americans, who could extinguish banking products. Prosecutors claimed that Javice led a scheme to make its company seem to have a more critical measure to attract a potential buyer.
Investment Bank, LionTree, conducted an auction in 2021 for Frank, amid public and private market estimates. JPMORGAN leaders indicated that the firm’s rating was supported by Frank users for whom JPMORGAN believed it was in millions.
“What we are buying is a team, a brand, a algorithm, which together and without millions of relationships with clients will apply a small portion of the purchase price,” wrote one JPMORGA executive in another regarding The Finland project, the name of the internal code The Bank designated in Frank.
JPMORGAN paid Javice $ 21m for its Frank shares, with the offer of a $ 20 million further holding bonus that was never paid.
Since her arrest in April 2023, Javice has been free on a $ 2 million condition, secured against her apartment in Miami. The court approved her request to remove a foot monitor so that she could follow a job as a fitness instructor.
JPMORGAN has filed a special civil lawsuit against Javice. The trial is expected to last four weeks.
