Charlie Javice Sentenced for Defrauding JPMorgan

[johnblockbuster]

Charlie Javice, the 30-year-old founder of the student-aid startup Frank and a former Forbes “30 Under 30” star, has been sentenced to seven years in prison for fraud.

In 2021 JPMorgan Chase acquired Frank for $175 million after Javice claimed the platform had more than 4 million users. In reality it had about 300,000. During the trial, a former engineer testified that she had asked him to create fake data before the sale. When he refused, she turned to a data scientist who built synthetic records, later providing key testimony for prosecutors.

Javice and Frank’s chief growth officer Olivier Amar are also on the hook for more than $278 million in restitution. The case has become a cautionary tale about due diligence and the risks of “growth at all costs” culture in fintech.

[jacson4]

Charlie Javice’s 7-year sentence shows how fast a hyped startup story can unravel into fraud.

[EmTeam]

Faking millions of users to sell to JPMorgan turned Frank from a $175M deal into a cautionary tale.