The Narrative Is that Two Women Under 30 Committed Fraud without Detection by Sophisticated Wall Street Law Firms

[Gunnar Larson]

https://wallstreetonparade.com/2023/01/the-narrative-is-that-two-women-under-30-committed-fraud-without-detection-by-sophisticated-wall-street-law-firms/


By Pam Martens and Russ Martens: January 13, 2023 ~

Women have been demanding equal opportunity on Wall Street for the past 60
years. We’re pretty sure that equal opportunity to commit crimes on a par
with the big boys on Wall Street is not what they had in mind.

Confronting women on Wall Street today are two especially disheartening
cases. In the photo on the left above is Caroline Ellison, who looks more
like the wholesome star of a Disney children’s flick than a woman who has
pled guilty to seven criminal counts for frauds she committed as CEO of Sam
Bankman-Fried’s hedge fund, Alameda Research.

On the right in the photo above is Charlie Javice, founder and former CEO
of Frank, a company that was hyped in a JPMorgan Chase press release when
it acquired it in September of 2021 for $175 million as “the fastest
growing college financial planning platform, to help millions of students
and their families navigate their financial journey to college and beyond.”
Javice joined JPMorgan Chase when it acquired her company and became a
Managing Director. The website for the Frank platform has now been shut
down and JPMorgan Chase is alleging in a lawsuit against Javice that she
created a list of millions of fake users to entice the Wall Street megabank
to buy her company.

While Javice is innocent until proven guilty, the lawsuit does include
smoking-gun emails between Javice and a professor discussing how best to
fake customer information so that it is believable.

In both the Caroline Ellison case and the Charlie Javice case, there are
details that bring anguish to the veteran women of Wall Street.

First, both women had their whole careers ahead of them. Ellison is 28
years old. Javice is 30. (Her alleged fraud occurred when she was under 30
in 2021.) Both women have prestigious education credentials. Ellison
graduated from Stanford University in 2016 with a Bachelor of Science
Degree in Mathematics. Javice indicates on her LinkedIn profile that she
attended the Wharton School at the University of Pennsylvania.

The suggestion is that both women were somehow able to outwit two of the
most sophisticated Wall Street law firms. Big Law firm, Sullivan &
Cromwell, was outside legal counsel to FTX and Alameda. Two of Sullivan &
Cromwell’s former law partners worked in key legal positions at FTX
businesses but failed to notice that Alameda was looting $8 billion from
FTX exchange customers, according to regulators.

JPMorgan Chase, which acquired Javice’s company, is the largest commercial
bank in the United States with more than 5,000 branches across America and
is one of the largest global trading houses in the world. It operates in
more than 60 countries. It is represented by many of the oldest and largest
law firms in the world that are paid extremely well to prevent JPMorgan
Chase from being ripped off to the tune of $175 million by a 20-something
woman. (Conversely, these law firms are also extremely well paid to defend
JPMorgan Chase against its own rap sheet that reads like that of an
organized crime syndicate.)

On the day that JPMorgan Chase acquired Javice’s company in 2021, she
posted a statement on her LinkedIn page which thanked Sidley Austin law
partner Idan Netser “and his team at Sidley” for being “amazing advisors in
this process.” According to the National Law Journal’s 2022 ranking of law
firms, Sidley Austin employees 1,893 attorneys.

Javice adds this in her 2021 statement at LinkedIn: “In just around four
years, Frank has become the leading and fastest growing college financial
planning platform serving over 5 million students at over 6,000 colleges.
>From day one, our approach has been clear: students always come first.”

It took 30 seconds on Google to learn that 6,000 colleges might be a tad of
an exaggeration. According to CurrentSchoolNews.com, there are only 5,300
colleges and universities in the United States — and that includes beauty
schools. So both the legions of in-house lawyers at JPMorgan Chase and the
lawyers at Sidley Austin missed the smoking gun that Javice was claiming to
have captured 113 percent of her targeted institutions.

Netser is still a partner at Sidley Austin. His bio at the firm states that
he “focuses his practice on international emerging technology companies,
venture capital, and corporate and partnership taxation issues, including
cross-border international investments, joint ventures, mergers and
acquisitions, transfer pricing, tax planning and restructurings,
international IP [Intellectual Property] planning and exploitation, and tax
controversy.” (The word “exploitation” is probably not a good word for any
law firm practice.)

As of yesterday afternoon, Netser still lists among his representative
clients, “Frank (acquired by JPMorgan Chase).” Perhaps he has yet to learn
that JPMorgan Chase is calling it a big fraud.
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