JPMorgan Chase wants to interrogate Frank founder Charlie Javis as part of the proceedings on the transfers of millions of dollars.
During the court case, which was drawn up because the financial institution accused Charlie Javis of involvement in the commission of fraudulent actions, JPMorgan Chase asked the judge for permission to interrogate her under oath about money transfers to the company.
The bank claims that the transactions were carried out shortly after the facts of fraud were recorded, in which, according to the financial institution, Charlie Javis was involved. The prosecution claims that the money was transferred to a corporation located in the state of Nevada.
Charlie Javis denied JPMorgan’s claims that she was involved in fraud and said she was filing a counterclaim. The founder of Frank claims that the financial institution launched an internal investigation to create a pretext for refusing to pay her a $20 million retention bonus.
JPMorgan filed the lawsuit in January. The financial institution stated that when buying Frank, the college’s financial planning platform, one of the factors in making the decision was false information about the number of clients of this firm. The prosecution claims that Charlie Javis and another executive director Olivier Amar deliberately overestimated the number of users for the transaction to take place.
Accusations were voiced that millions of fake accounts were allegedly created. The bank claims that this was done to take into account information that is more profitable for Frank when making a purchase decision.
Lawyers for Charlie Javis, in response to the lawsuit, said that JPMorgan Chase did not show due diligence and allowed haste in concluding the transaction. They also repeat the claim that the investigation is a formal reason for the dismissal of the founder of Frank and the artificial creation of a reason for refusing to pay the retention bonus.
The bank and Charlie Javis are also facing federal regulators. The Securities and Exchange Commission (SEC) has charged Charlie Javis with fraud in connection with the sale of Frank. The regulator claims that the bank received information about 4.25 million users, although their number was less than 300 thousand.
In early April, the media reported that the Office of the Comptroller of the Currency (OCC) is studying the results of the due diligence of JPMorgan Chase concerning recent acquisitions, including Frank.