MORE TROUBLE

JPMorgan: Embattled Tech CEO Charlie Javice Hid Millions in Shell Company

In a new legal filing, JPMorgan claims it “specifically instructed” Javice not to touch her $21 million in merger proceeds while an investigation was underway.

Millennial tech CEO Charlie Javice—who is facing a civil suit and criminal charges for allegedly duping JPMorgan into buying her startup for $175 million—is now accused of transferring millions into a shell company after the bank began probing its acquisition of her firm. This week, JPMorgan asked a civil court in Delaware for permission to question Javice, the founder of Frank Financial Aid, under oath about her Nevada shell company, Chariot Holdings X. Last year, JPMorgan sued Javice and fellow exec Olivier Amar, accusing them of inflating customer data before the bank purchased their company. In a new legal filing, JPMorgan claims it notified Javice that she was being put on leave while it probed whether she and Amar hired a data science professor to falsify Frank’s user list. The bank also claims it “specifically instructed” her not to touch her $21 million in merger proceeds in the meantime. But a week later, JPMorgan claims, Javice’s accountants created Chariot X, where the 31-year-old transferred millions. In a recent letter to JPMorgan’s counsel, Javice’s attorney Alex Spiro argued the company “improperly abused its banking relationship with Ms. Javice to spy on her banking activities and try to use that information against her to create a false record of alleged ‘misconduct.’”