A federal judge has rejected Charlie Javice’s attempt to overturn her conviction for defrauding JPMorgan Chase into acquiring her education startup, Frank, for $175 million. Javice claimed two law clerks had conflicts of interest because they accepted positions at the bank’s external law firm.
U.S. District Judge Alvin Hellerstein stated that his clerks’ employment history and future roles at Davis Polk & Wardwell, including their time as summer associates before their clerkships, did not suggest any bias that would warrant a new trial for Javice and Olivier Amar, Frank’s former chief growth officer. Hellerstein also dismissed claims that he relied excessively on his clerks, including accusations that one clerk was actively involved in real-time decisions concerning critical testimony. He affirmed that a reasonable observer, familiar with the case’s entirety, would not question his impartiality.
Hellerstein emphasised the strength of the evidence presented and dismissed any concerns that an innocent individual may have been wrongly convicted. Javice, 34, founded Frank in 2017, receiving accolades for streamlining the college financial aid process for students and their families. However, prosecutors successfully argued that she misled JPMorgan by inflating Frank’s customer base. JPMorgan CEO Jamie Dimon has since described the 2021 acquisition as a “huge mistake.”
Javice was sentenced to 85 months in prison, while Amar received a 68-month sentence. Both were convicted in March on charges including bank fraud, securities fraud, wire fraud, and conspiracy to defraud. Javice has appealed her conviction, while Amar is scheduled to surrender on May 5.
