Charlie Javice is the founder of the student loan startup "Frank." She has been found guilty of deceiving JPMorgan in a $175 million acquisition deal. After a five-week trial, the jury confirmed the prosecutors' claims that Javice inflated Frank's customer list to mislead JPMorgan into acquiring the startup.
When JPMorgan acquired Frank in 2021, the bank believed the startup had 4 million customers. However, after sending test marketing emails, the bank discovered that the actual number of customers was only 300,000, and approximately 70% of the emails sent were returned. Javice allegedly hired a math professor to falsify customer data to sell her company and presented this data to JPMorgan.
The defense argues that JPMorgan's regret over the acquisition is due to changes in government requirements related to financial aid forms. Javice maintains her innocence and did not testify during the trial.
Now 32 years old, Javice could face prison time in a few years. The sentencing is expected to take place in August.
