The fraud trial of Charlie Javice and Olivier Amar resumed Tuesday after a one-day delay, following yet another juror’s illness. The court began the morning by dismissing the sick juror, who had been diagnosed with a virus but was cleared by their doctor to return to work by Thursday. However, rather than risking further delays in what is expected to be a long trial, Judge Alvin K. Hellerstein, the defense attorneys, and the prosecution agreed to seat an alternate juror and move forward immediately. Along with the 12 jurors, there are now just two alternates remaining.
Baez Challenges Key Testimony in Cross-Examination
The day’s key testimony centered on defense attorney Jose Baez’s cross-examination of Houston Cowan, a former LionTree Advisors executive, who had previously testified about Frank’s business metrics, user data, and JPMorgan’s understanding of those figures.
For over an hour and fifteen minutes, Baez systematically challenged Cowan’s claims that Frank had misrepresented its user numbers to JPMorgan. Using many of the very spreadsheets, presentations (often referred to as ‘story boards’) and internal emails that the prosecution showed, Baez argued, and arguably demonstrated that:
- Frank’s team had provided additional insight into how they categorized website users and viewers.
- The data was relatively consistent across different reports and presentations.
- LionTree Advisors was well aware of the varying definitions of “users,” including those who only started the FAFSA (Free Application for Federal Student Aid) process, those who visited Frank for other services (such as college grants and class-finding tools), and those who were active financial aid applicants.
Baez highlighted a crucial 18-month period before JPMorgan’s acquisition, during which Frank significantly expanded its services beyond just FAFSA assistance. The defense aimed to demonstrate that JPMorgan knew or should have known about these expanded offerings when it purchased the company.
Prosecutors frequently objected to Baez’s questioning, citing issues such as leading questions, speculation, and argumentative phrasing. Judge Hellerstein, staying actively engaged, sometimes interjected to clarify points for the jury or to help Baez streamline his inquiries.
A Courtroom Balancing Focus, Inquiry, and Humor
Despite the lengthy and often technical nature of the proceedings, Judge Hellerstein tried to maintain an attentive and inquisitive presence throughout the day, ensuring clarity in questioning and testimony. His sharp wit and occasional humor also helped lighten the mood during moments of dense data analysis discussions.
During cross-examination, Baez pressed witness Houston Cowan to clarify some of his prior testimony. When Baez asked Cowan to speak in regular English terms so that laypeople could understand, Judge Hellerstein quipped, “Mr. Baez, lawyers don’t do that either.” The remark drew laughter from the courtroom and provided a welcome break from the often dry and complex subject matter. Baez himself laughed and acknowledged the moment, replying, “You’re right, Judge.”
Amar’s Attorney Aims to Separate His Client from the Core Case
Following Baez’s cross-examination, Matthew Menchel, the attorney representing Olivier Amar, took a different approach in questioning Cowan. Menchel’s strategy was to create distance between Amar and the allegations by emphasizing that most of the critical discussions about user numbers and business data were led by Javice and other Frank executives—not Amar.
Menchel repeatedly asked Cowan to confirm that Amar was not directly involved in the definitions of “users” or the figures provided to JPMorgan, laying the groundwork for a defense that positions Amar as less culpable than his co-defendant.
Looking Ahead
Despite the often dense and technical nature of the testimony, the jury remained attentive throughout the day. Judge Hellerstein, though observed briefly dozing off twice, was otherwise sharp and engaged, ensuring the proceedings remained efficient and focused. His well-timed humor and incisive questioning reinforced his commitment to keeping the trial both on track and accessible to the jury and public alike.
The trial is set to resume Wednesday at 10 AM, as the prosecution continues presenting its case and the defense prepares for further cross-examinations.
