Charlie Javice, founder of the financial aid startup Frank, has been sentenced to over seven years in prison for defrauding JPMorgan Chase during her company’s sale for $175 million. Convicted of conspiracy, bank fraud, and wire fraud, Javice exaggerated Frank’s user base to secure the deal.
In court, a tearful Javice expressed regret over her actions, stating that her mistakes transformed her vision into infamy. Judge Alvin K. Hellerstein acknowledged issues with JPMorgan’s decision-making but emphasized that he punished Javice for her misconduct, not the bank’s errors.
Javice, who gained attention as a young tech innovator, faced comparisons to Elizabeth Holmes of Theranos, with prosecutors arguing that she was greedy and manipulative. They claimed she misrepresented Frank to pocket $29 million. Despite appeals that the bank was at fault for rushing into the acquisition, the prosecution maintained that JPMorgan received a “crime scene” rather than a viable business. Javice remains free on bail while appealing her conviction.
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