Charlie Javice Found Guilty of Defrauding JPMorgan
After a five-week trial, the jury found Charlie Javice, the founder of student loan application startup Frank, guilty of defrauding JPMorgan by greatly inflating the customer count.
The Fraudulent Scheme
When JPMorgan bought Frank in 2021, the bank thought the startup had 4 million customers. However, the bank later discovered that the actual customer count was only 300,000. This was revealed when JPMorgan sent test marketing emails to alleged Frank users and approximately 70% of those messages bounced back.
The Fabricated Customer Data
Prosecutors alleged that Javice had hired a math professor to create fake customer data, which she submitted to JPMorgan when the bank was considering buying her company.
The Defense’s Argument
Defense attorneys argued that the suit was a result of buyer’s remorse due to a government change in the way financial aid forms are filled out. Javice pleaded not guilty and didn’t take the stand during the trial.
The Verdict and Sentence
Javice was found guilty and could face up to decades in prison. The sentencing is expected to take place in August, according to a CNBC report.
About Charlie Javice
Javice founded Frank in 2017 when she was in her mid-20s. In 2019, she was named to the Forbes 30 Under 30 list.
Conclusion
The case serves as a cautionary tale about the importance of accuracy and transparency in business dealings. Javice’s actions have led to a significant loss of trust and reputation.
FAQs
What is Frank?
Frank is a student loan application startup founded by Charlie Javice in 2017.
What is the alleged customer count of Frank?
The alleged customer count of Frank was 4 million, but the actual count was only 300,000.
What is the potential sentence for Charlie Javice?
Javice could face up to decades in prison.
When is the sentencing expected to take place?
The sentencing is expected to take place in August.
