Startup Founder Charlie Javice Sentenced to 7 Years for $175M JPMorgan Fraud
Charlie Javice, the 33-year-old founder of fintech startup Frank, has been sentenced to just over seven years in federal prison after being convicted of defrauding JPMorgan Chase in its $175 million acquisition of her company.
In March, a jury found Javice and her former chief growth officer, Olivier Amar, guilty on three counts of fraud and one count of conspiracy. Prosecutors had pushed for a 12-year sentence, but the court handed down a reduced term.
Javice delivered an emotional statement before sentencing, apologizing to JPMorgan, her employees, shareholders, investors, and family. “I will spend my entire life regretting these errors,” she told the judge. “I ask with all of my heart for forgiveness.”
Founded in 2017, Frank was marketed as a platform to simplify financial aid applications for students. JPMorgan believed the company had over 5 million users when it purchased the startup in 2021. However, an internal investigation later revealed that Frank had fewer than 300,000 legitimate users, with millions of fake accounts fabricated to inflate its value.
During the trial, prosecutors argued the scheme was driven by greed, with Assistant U.S. Attorney Micah Fergenson stating, “JPMorgan didn’t acquire a functioning business — they acquired a crime scene.” Defense attorneys pushed for leniency, noting the case differed from Elizabeth Holmes’ Theranos fraud, which had life-threatening consequences.
The scandal marked an embarrassing episode for JPMorgan, known for its due diligence under CEO Jamie Dimon. Eager to compete with fintech rivals, the bank overlooked red flags in the deal — a mistake that has now become one of its most costly acquisition missteps.
