The high-profile fraud trial of Charlie Javice, the founder of college financial aid startup Frank, is off to a tumultuous start, with intense courtroom debates, early disruptions, and even a moment when the presiding judge appeared to fall asleep during testimony.
The prosecution spent several hours questioning Houston Cowan, a former executive at Liontree Advisors, about Frank’s business operations, contractual agreements, and financial statements. The testimony delved into the intricacies of data analytics, specifically the differences between online users versus viewers and “customers” versus “students”. The discussion was so detailed that it may have been too much for Judge Alvin K. Hellerstein, who was observed nodding off at one point during the proceedings.
Juror Illnesses Raise Concerns Over Trial Stability
The trial, expected to last at least four weeks, is already facing logistical concerns due to juror health issues.
On the first day, Friday, February 21st, a juror was excused after suggesting they had COVID or an illness similar to it. This morning, the second day of the trial, another juror reported chest pains, breathing issues, and other symptoms, requesting to be excused as well. While it remains unclear if the two illnesses are related, different, or purely coincidental, the sudden loss of jurors in the first two days has raised alarms for both the defense and prosecution.
With two jurors already dismissed, only two alternates remain alongside the 12-person jury. If additional jurors fall ill or are excused, the court may face serious procedural challenges.
The jurors were never physically present in the courtroom on Monday morning, as the trial proceedings were delayed due to the illness-related discussions. The court is set to resume on Tuesday, February 25, 2025, when Judge Hellerstein will reassess the health of the second juror and determine the best course of action moving forward.
Defense Motions Denied as JPMorgan’s Role Comes Under Scrutiny
Before the court was adjourned for the day, Javice’s attorney, Jose Baez, sought to introduce a motion compelling witnesses to disclose who is covering their legal fees and expenses—presumably JPMorgan Chase, the bank that acquired Frank for $175 million in 2021 and later sued Javice for fraud. Baez argued that Cowan, who was never a JPMorgan employee, appears to have his legal expenses covered by the bank, raising potential conflicts of interest.
Judge Hellerstein, however, dismissed the motion, ruling that who pays for witnesses’ legal fees is not relevant to the jury. This is the second time Javice’s defense team attempted to highlight what he claims is an improper alignment between the prosecution and JPMorgan’s interests. In an earlier motion, he argued that federal prosecutors effectively built a criminal case on the bank’s behalf—a motion that was also denied.
Javice’s team also requested that Javice’s defense be severed from that of her co-defendant, Olivier Omar, amid concerns that Omar’s legal strategy may involve shifting blame onto Javice. The judge denied this request as well, keeping the two defendants’ cases linked.
Baez was scheduled to begin his cross-examination of Houston Cowan, but with the unexpected delays and juror health concerns, that will now have to wait. The trial resumes on Tuesday, February 25, when the court will determine whether the jury remains intact and if the case can proceed without further disruptions.
With mounting procedural challenges and intense courtroom battles already shaping the case, the coming weeks are likely to be just as eventful. The fundamental question remains: Was this fraud—or just JPMorgan Chase dealing with buyer’s remorse?
