Frank Founder Charlie Javice Sentenced to Over 7 Years for $175M JPMorgan Fraud
Frank Founder Charlie Javice Sentenced to Over 7 Years for $175M JPMorgan Fraud
Charlie Javice, the founder of the now-defunct financial aid startup Frank, was sentenced Monday to more than seven years in prison for orchestrating a $175 million fraud against JPMorgan Chase. Javice, 33, was convicted in March for duping the banking giant during its 2021 acquisition of Frank, falsely inflating the startup’s customer base from fewer than 300,000 to over 4 million.
Addressing the court, a tearful Javice expressed deep regret, stating she was “haunted that my failure has transformed something meaningful into something infamous.” Judge Alvin K. Hellerstein, while criticizing JPMorgan for its lack of due diligence, emphasized he was “punishing her conduct and not JPMorgan’s stupidity.”
Prosecutors argued Javice was driven by greed, seeing the opportunity to pocket $29 million from the sale. The case has drawn comparisons to other high-profile tech fraud cases, including Elizabeth Holmes of Theranos. Javice, who has been free on $2 million bail since her 2023 arrest, will remain free while she appeals the verdict on charges of conspiracy, bank fraud, and wire fraud.
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