Startup Founder Charlie Javice Sentenced 85 Months for $175 Million JPMorgan Fraud

Charlie Javice, the founder of the financial aid startup Frank, was sentenced to 85 months in prison for defrauding JPMorgan Chase in a $175 million acquisition deal. She was convicted on charges including bank fraud, securities fraud, wire fraud, and conspiracy after a jury found that she fabricated millions of users to inflate the company's value. Despite prosecutors seeking a 12-year sentence, the judge considered her lack of prior criminal history and good character, imposing a sentence just over seven years and ordering her to forfeit $22.4 million. Javice apologized in court, expressing remorse and asking for forgiveness from JPMorgan, investors, and her family, while her defense argued that JPMorgan's due diligence was insufficient and the fraud allegations were an excuse for the bank's buyer's remorse. Her co-defendant and Frank's Chief Growth Officer, Olivier Amar, was also convicted and awaits sentencing. JPMorgan CEO Jamie Dimon publicly called the acquisition a "huge mistake," highlighting the bank's significant due diligence lapses in the case.