by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, March 2 – JPMorgan Chase bought a start-up called Frank, which claimed to have 4 million students signed up to file their FAFSA forms, for $175 million. Then Chase learned Frank had only 300,000 customers.
On April 4, 2023, Frank founder Ms. Charlie Javice was brought before U.S. District Court for the Southern District of New York Magistrate Judge Barbara C. Moses, represented by Quinn Emanuel.
The complaint quotes Javice messages with the engineers she hired to create the false data, and to enter in data she bought on the open market. To one of them, she is quoted, "We don't want to end up in orange jumpsuits."
In the tri-state, it is Westchester County Department of Corrections in Valhalla that dresses its inmates in orange. MDC Brooklyn uses beige; Essex County Corrections Facility in New Jersey uses yellow.
In any event, white collar defendant Javice, who took on an appropriately or strategically contrite look on Worth Street still barricaded for the nearby state court arraignment of former President Donald Trump, was freed on $2 million bond, travel restricted to SDNY and EDNY and the Southern District of Florida, where she lives.
On May 18, Javice was indicted on bank, wire and securities fraud counts, and the case assigned to District Judge Alvin K. Hellerstein.
In June the US prosecutors sought to intervene in and stay the SEC's case against Javice. Inner City Press attended and covered the oral argument and now first reports that Judge Lewis J. Liman has granted the motions to intervene and stay, noting among other things that "Javice will have access to a vast amount of material usable in the civil case through the means of Rule 16 discovery in the criminal case. That discovery will include virtually all of the SEC’s investigative file. And it will include documents from at least 30 different third parties. She has not made a convincing case that she needs more document discovery to be prepared to move quickly in this case when the criminal case is resolved and the stay is lifted."
The (stayed) civil case is Securities and Exchange Commission v. Javice et al, 23-cv-2795 (Liman)
On July 13, Javice and her co-defendant were arraigned, and Judge Hellerstein asked why JPMC didn't find the fraud in due diligence. Inner City Press was there, thread:
All rise!
Judge: How do you plead? Javice: Not guilty. Judge: How do you pronounce your name? Javace? Javice: "Jah-veese."
Judge: And Mr Amar?
Amar (takes off COVID mask still required in this courtroom) Not guilty
Judge Hellerstein: I'm puzzled, why didn't JP Morgan Chase figure this out during due diligence? AUSA: They created fake data. [Javice is shaking her head No, pink cardigan tied over her shoulders]
Judge: Defense wants a delay? Spiro: The US is just regurgitating JPM Chase's civil case. AUSA: Mr Spiro is confused about Rule 16. Judge: Can you subpoena JPMC? AUSA: We'd have to see if that complies with Rule 17. Judge to AUSA: Why don't *you* subpoena JPMC?
AUSA: We'll be getting it. Judge: We'll meet in 30 days. August 15 at 11 am. I'll sent a motion schedule at that time. Adjourned.
On July 27, the prosecutors wrote it to say they are unavailable on August 15, and that the Court said it would be available on September 20. But Javice will not consent to exclude Speedy Trial Act time until then. Letter on Patreon here.
On August 23, Inner City Press was there. Thread.
On November 7 Judge Hellerstein set a trial date of October 15, 2024.
In January, after a hearing Inner City Press attended, Javice jaunty at the defense table, Judge Hellerstein docketed: "1. JPMC is to produce all documents in the possession or control of the custodians identified in Exhibit B to the transcript of argument, in all forms of media... 2. JPMC shall file by March 29, 2024 a complete and comprehensive privilege log consistent with the requirements of Local Rule 26.2. Defendants shall submit its objections directly to JPMC by April 30, 2024, and enter into conversations with JPMC to resolve issues of privilege. JPMC shall file a modified privilege log, reflecting the results of such conversations, by May 16, 2024. The Court will hear privilege challenges, via a privilege sampling procedure outlined in the transcript, on May 30, 2024 at 2:30 pm... Final Pre-Trial Conference to be held, as previously set, on October 15, 2024 at 11 a.m.. trial, October 28, 2024."
On March 1, 2024, co-defendant Amar wrote to Judge Hellerstein asking him to order what the prosecutors have refused: an exchange of frozen cash for a security interest in Amar's home. Amar says the prosecutors told him to get a HELOC - he points to the negative publicity from JPM Chase's charges against him.
This case is US v. Javice, et al., 23-cr-251 (Hellerstein)
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