JPMorgan Bought Charlie Javice Startup Frank for $175 Million: Accused of Brazen Fraud
The founder of the student finance startup Frank, Charlie Javice, is currently facing accusations of engaging in “brazen fraud” by inflating user numbers to sell her company to JPMorgan Chase for a whopping $175 million. Prosecutors claim that Javice misled JPMorgan by exaggerating Frank’s customer base, stating it had over 4 million users when in reality, the number was closer to 300,000.
During the trial in New York, Assistant US Attorney Nicholas Chiuchiolo urged the jury to convict Javice and a former executive of her startup on charges of conspiracy and fraud. However, Javice’s lawyer argued for her acquittal, claiming the case against her was “incredibly flawed” and lacked evidence.
Charlie Javice, a University of Pennsylvania graduate who appeared on the Forbes ’30 Under 30′ list in 2019, founded Frank to simplify the process of filling out the Free Application for Federal Student Aid. The startup was praised for helping financially struggling students navigate tuition aid rules and was seen as a trailblazer in the student finance space.
The fraud allegations against Javice involve claims that she lied to JPMorgan about Frank’s client list, stating it had over 4.25 million clients when it actually had around 400,000. Prosecutors allege that Javice went to great lengths to fabricate data to support her claims, including hiring an external data scientist for $105,000 to create a false dataset.
Javice was arrested in April 2023 and is currently out on bail. The trial, which lasted five weeks, is expected to go to the jury for deliberation soon. Stay tuned for updates on this high-profile case.
