NEW YORK, March 24 (Reuters) - A federal judge on
Tuesday rejected Charlie Javice's bid to throw out her
conviction for defrauding JPMorgan Chase ( JPM ) into buying her
education startup Frank for $175 million, after she said two law
clerks had conflicts of interest by accepting jobs at the bank's
outside law firm.
U.S. District Judge Alvin Hellerstein in Manhattan said his
clerks' past and future employment at Davis Polk & Wardwell,
including as summer associates prior to their clerkships, "did
not create an appearance of partiality" requiring a new trial
for Javice and co-defendant Olivier Amar, Frank's former chief
growth officer.
Hellerstein, 92, also said there was no proof he relied too
heavily on his clerks, including when the defendants accused a
clerk of "participating in real time" in decisions about
important testimony, and no reasonable person who watched the
entire case would question his impartiality.
"The evidence in this case was strong, and there is no
concern here that an innocent person may have been convicted,"
he added.
Lawyers for Javice and Amar did not immediately respond to
requests for comment after business hours.
Davis Polk has more than 1,000 lawyers according to its
website, and neither the law firm nor JPMorgan ( JPM ) was a defendant
in the criminal case.
Javice, 34, founded Frank in 2017 and won praise for
simplifying college financial aid for students and parents.
Prosecutors said she deceived JPMorgan ( JPM ) by claiming Frank had
far more customers than it actually had. JPMorgan ( JPM ) Chief
Executive Jamie Dimon has called the 2021 purchase a "huge
mistake."
Hellerstein sentenced Javice to 85 months in prison and Amar
to 68 months in prison.
Both were convicted last March of bank fraud, securities
fraud, wire fraud and conspiracy to defraud. Javice has appealed
her conviction. Amar is scheduled to surrender on May 5,
Hellerstein said.