Charlie Javice, the Queen of the Fintech now risks 30 years in prison: the fraud to JP Morgan and Frank’s parable
To convince the bank to buy his startup, Javice had assured JP Morgan that Frank had 4.25 million customers, when he actually only had 300,000
Charlie Javice was just over 25 when he founded Franka startup that promised to simplifying life to university students by helping them to obtain financial aid for their studies. The startup was purchased by JP Morgan Chase For $ 175 million, in July 2021.
To convince the bank, Javice had assured JP Morgan that Frank had 4.25 million customers, when he actually only had 300,000. Now the entrepreneur has been sentenced to fraud and risks staying in prison for thirty years, for falsifying the data.
JP Morgan’s complaint
Javice, graduated from Wharton School of the University of Pennsylvaniain 2019 she had been included by Forbes on the list of 30 Under 30 talents. JP Morgan sued her in December 2022, accusing her of lying about Frank’s number of customers. Four months later, the Manhattan prosecutor accused her of fraud and conspiracy.
The process and defense
According to public prosecutors, Javice and Olivier Amar, Frank’s former Chief Growth Officer, would have paid a data scientist to inflate Frank’s number of customers. Javice declared himself innocent and chose not to testify to the trial. His lawyer, Jose Baez, claimed that JP Morgan was aware of the number of customers of the startup before finalizing the purchase.
