Charlie Javice, Fintech Prodigy, Sentenced to Over 7 Years for Defrauding JPMorgan Chase
Charlie Javice, once hailed as a Gen-Z fintech prodigy, has been sentenced to over seven years in prison. The founder of student loan startup Frank was convicted for deceiving JPMorgan Chase, inflating user data to secure a $175 million acquisition.
Javice, who graduated from the University of Pennsylvania's Wharton School of Business in 2015, founded Frank in 2016 with the aim of simplifying the student financial aid process. However, her entrepreneurial journey took a fraudulent turn. She inflated user numbers, claiming four million users when in reality, there were only around 300,000.
In 2021, Frank was acquired by JPMorgan Chase for $175 million, marking a high point for Javice and her company. But the acquisition was built on false pretenses. Javice's scheme involved fabricating data to deceive the bank into buying her startup. This led to her conviction for fraud.
Javice must now hand over $22 million in salary, stock, and bonuses tied to the sale of Frank. Alongside her co-defendant, she will jointly pay $287.5 million in restitution. Her prison sentence serves as a stark reminder of the consequences of deceit in the business world.
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