Summary
Charlie Javice, the founder of the student loan start-up Frank, received a prison sentence of more than seven years for defrauding JPMorgan Chase. She was found guilty of providing false customer information when JPMorgan acquired her company for $175 million. The court also ordered her to pay over $287 million in restitution to JPMorgan and forfeit more than $22 million.
Key Facts
- Charlie Javice founded the student loan start-up called Frank in 2017.
- Javice was sentenced to over seven years in prison for fraud related to the sale of her start-up.
- She gave JPMorgan fake customer lists when they bought her company for $175 million.
- The customer list she provided claimed to have 4 million users, but it actually had about 300,000.
- Javice was also ordered to return $22 million and pay more than $287 million to JPMorgan.
- Her co-defendant, Olivier Amar, was also held responsible for the financial restitution.
- The fraud was discovered after JPMorgan acquired the start-up, which they intended to use for marketing banking products to young adults.
- Jamie Dimon, the CEO of JPMorgan, previously called the acquisition of Frank a "huge mistake."
