Charlie Javice, founder of Frank, a student loan-applying startup that JP Morgan bought for $175 million, drastically increased the number of clients on Friday to deceive banks.
After a five-week trial, the jury found Javice guilty, agreeing with prosecutors that she fabricated Frank’s overwhelming list of clients to trick JPMorgan into obtaining a startup.
When JPMorgan bought Frank in 2021, the bank believed the startup had 4 million customers. The bank found that the actual number of customers was only 300,000, and later sent test marketing emails to so-called Frank users, with about 70% of those messages rebounding.
Javice allegedly hired Mathematics professor creates fake customer datashe submitted it to JP Morgan when the bank was considering buying the company.
The defense lawyer believes that the lawsuit is the result of the buyer’s remorse due to changes in the government’s financial aid form. Javice pleaded not guilty and had no position during the trial.
Javice, 32, can be sentenced to decades in prison. The sentence is expected to be held in August According to CNBC Report.
Javice founded Frank in 2017 in her 20s. In 2019, she was appointed as Forbes Under 30 List.
