Charlie Javice Sentenced 85 Months for $175M JPMorgan Fraud

Charlie Javice, founder of the fintech startup Frank, was sentenced to over seven years in federal prison for defrauding JPMorgan Chase by exaggerating her company's customer base in a $175 million acquisition. Javice claimed Frank had over 4 million users when it actually had fewer than 300,000, fabricating synthetic data to inflate the numbers. The judge acknowledged Javice as a person who had done good deeds but emphasized the need to deter similar crimes, noting the duplicity involved in her actions. Despite Javice’s defense highlighting her company’s legitimate operations and comparing her case to Elizabeth Holmes, prosecutors sought a 12-year sentence, citing the scale of the fraud. Javice expressed profound remorse during her sentencing hearing and asked for forgiveness from JPMorgan, investors, and her family. JPMorgan CEO Jamie Dimon called the acquisition a "huge mistake," and the bank was criticized for inadequate due diligence, though the court held Javice primarily responsible for the fraud.