A major Wall Street bank just got scammed out of $175 million by a millennial entrepreneur who inflated her company’s user base by over 4 million. Charlie Javice now faces decades behind bars after her shocking fraud against JPMorgan Chase was exposed.
At a glance:
• Charlie Javice, founder of college financial aid startup Frank, was convicted of defrauding JPMorgan Chase of $175 million
• Javice claimed Frank had 4.25 million users when it actually had only 300,000
• JPMorgan CEO Jamie Dimon admitted the acquisition was “a huge mistake”
• Javice faces up to 30 years in prison on multiple fraud charges
• The case draws parallels to Elizabeth Holmes and the Theranos scandal
Banking Giant Scammed By Millennial Entrepreneur
A federal jury in New York convicted Charlie Javice, founder of college financial aid startup Frank, of defrauding JPMorgan Chase out of $175 million. The jury found Javice guilty on all counts including securities fraud, wire fraud, bank fraud, and conspiracy after a five-week trial that exposed her elaborate scheme.
Javice, who remained free on $2 million bail since her 2023 arrest, now faces a maximum of 30 years in prison for wire fraud, bank fraud, and conspiracy charges. Her Chief Growth Officer, Olivier Amar, was also convicted on all charges for his role in the massive fraud that duped one of America’s largest banks.
The case has drawn comparisons to Elizabeth Holmes and the Theranos scandal, with Javice representing another cautionary tale of startup culture gone wrong. Holmes is currently serving an 11-year prison sentence for defrauding investors through her failed blood-testing company, highlighting a troubling pattern of deception in the tech industry.
Fake Users, Real Prison Time
The fraud centered around Javice’s dramatic inflation of Frank’s user base, claiming the company had over 4.25 million users when it actually had only about 300,000. JPMorgan Chase purchased Frank in 2021 based on these fabricated numbers, aiming to build “lifelong, engaged relationships” with millions of students who would potentially become banking customers.
“While Javice and Amar may have thought that they could lie and cheat their way to a huge payday, their lies caught up with them, and they now stand convicted by a jury of their peers,” said Acting U.S. Attorney Matthew Podolsky of the Southern District of New York. The prosecution successfully proved that Javice hired someone to create fake customer data after her Chief of Engineering refused to participate in the scheme.
Patrick Vovor, Frank’s former Chief of Engineering, testified against Javice stating, “I told them I would not do anything illegal.” Instead, Javice allegedly paid a college friend to generate fake customer profiles to present to JPMorgan during the acquisition process.
Wall Street Giant Admits Costly Mistake
JPMorgan Chase CEO Jamie Dimon publicly acknowledged the acquisition failure, calling it “obviously, this thing, in one way or another, was a huge mistake.” The banking giant sued Javice in December 2022 after discovering the massive discrepancy in user numbers, leading to her arrest in April 2023.
Javice’s defense team, led by attorney Jose Baez, attempted to shift blame to JPMorgan, claiming the bank was experiencing “buyer’s remorse” due to regulatory changes affecting the value of student data. “JPMorgan is not telling the truth,” Baez argued during the trial, but the jury remained unconvinced by this defense strategy.
The case was further complicated by changes to the federal student aid application process that directly impacted Frank’s business model. Legislation signed by President Trump simplified the FAFSA process, reducing required questions and allowing tax data imports from the IRS, making Frank’s services less necessary.
Javice’s attorneys plan to appeal the verdict, arguing the trial was improper due to issues with Amar’s testimony. Sentencing dates have not yet been announced, but the maximum penalties could result in decades behind bars for the once-celebrated young entrepreneur.
