Who Is Charlie Javice? Frank's Founder Found Guilty Of Defrauding JPMorgan Chase

Charlie Javice, the founder of the now-defunct college financial aid company Frank, was found guilty on Friday of swindling JPMorgan Chase into acquiring her startup for $175 million.

Federal prosecutors accused the 32-year-old entrepreneur of inflating the number of her company's customers by "falsely and dramatically" exaggerating the user base to entice the banking giant into purchasing Frank.

Javice was indicted in 2023 on securities fraud, wire fraud, bank fraud, and conspiracy charges nearly two years after JPMorgan Chase's acquisition. Frank was designed to simplify the process of applying for financial aid through the Free Application for Federal Student Aid (FAFSA). However, the deal began to unravel when JPMorgan Chase discovered that the numbers Javice had provided about the company's users were far from accurate. The bank expected Frank to have 4.25 million users, but upon investigation, it was revealed that only about 300,000 users could be verified.

At the time of the acquisition in 2021, Jennifer Roberts, head of Chase's consumer banking division, explained that the purchase was aimed at expanding the bank's relationship with college students, hoping to establish "lifelong, engaged relationships" with this growing consumer base.

Assistant U.S. Attorney Nicholas Chiuchiolo told the jury that Javice took extreme measures to fabricate the data after the head of her engineering department refused to create fake consumer information. In response, Javice allegedly hired an external contractor to manufacture the data to meet the bank's expectations.

Javice's defense attorney, Jose Baez, argued that the prosecution's case was "incredibly flawed" and lacked sufficient evidence. Javice herself did not testify in the case, and her legal team worked to challenge the accusations.

Olivier Amar, Frank's chief growth officer, was also charged in connection with the fraud case. He did not testify during the trial, and his legal team attempted to distance him from Javice. Although prosecutors alleged that Amar worked alongside Javice to deceive JPMorgan Chase, his defense maintained that Javice acted independently, Bloomberg reported.

If convicted on the charges of wire fraud, bank fraud, and conspiracy, Javice could face a maximum of 30 years in prison.

Securities fraud, which carries a slightly lower maximum sentence, could result in up to 20 years in prison. The case has garnered significant attention due to its high-profile nature and the implications for both the financial and tech industries.

Originally published on HNGN