Charlie Javice, the founder of the student loan application company Frank, has been convicted of fraud after a jury determined she misled JPMorgan Chase regarding the company’s customer base. The bank acquired Frank in 2021 for $175 million, believing it had a customer count of 4 million. However, it later discovered the actual number was only around 300,000, revealed when marketing emails were sent to supposed Frank users, with roughly 70% bouncing back.
Details of the Case
During the five-week trial, the prosecution detailed how Javice allegedly inflated Frank’s customer numbers by creating fabricated data. Reports indicate she enlisted the help of a mathematics professor to generate this false information, which she submitted to JPMorgan as part of the acquisition process.
Defense and Outcome
In her defense, attorneys argued that the lawsuit stemmed from JPMorgan’s regrets about the acquisition, especially following shifts in governmental procedures regarding financial aid applications. Javice maintained her innocence throughout the trial and chose not to testify.
Future Implications
Javice, now 32 years old, faces a potential prison sentence of several decades, with sentencing anticipated to occur in August.
Background on Charlie Javice
Javice founded Frank in 2017 while in her mid-20s and received recognition in 2019 when she was included in the Forbes 30 Under 30 list.