Frank Founder Charlie Javice Sentenced to Seven Years in Prison for JPMorgan Fraud
Frank Founder Charlie Javice Sentenced to Seven Years in Prison for JPMorgan Fraud
Charlie Javice, the founder of the financial aid startup Frank, has been sentenced to seven years in federal prison for orchestrating a massive fraud against JPMorgan Chase. This high-profile case concludes with a significant penalty for the entrepreneur, who was once celebrated as a Forbes ’30 Under 30′ alumnus.
The fraud came to light after JPMorgan Chase acquired Frank in 2021 for $175 million. The bank subsequently accused Javice of grossly misrepresenting her company’s user base, claiming it served 4 million customers when the actual number was closer to 300,000. This deception led to allegations that JPMorgan Chase’s due diligence process was circumvented.
Key testimony during the trial revealed how the scheme unfolded. Former Frank engineer Patrick Vovor testified that Javice requested him to create fake user data prior to the acquisition. After his refusal, Javice allegedly sought assistance from math professor and data scientist Adam Kapelner, who then provided critical evidence for the prosecution regarding the creation of synthetic data.
In addition to her prison sentence, Javice, along with co-defendant and Frank’s chief growth officer Olivier Amar, has been ordered to pay a staggering $278.5 million in restitution, reflecting the substantial financial damages incurred by the fraud.
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