HomeTechnologyJavice found guilty of defrauding JPMorgan in $175M startup purchase

Javice found guilty of defrauding JPMorgan in $175M startup purchase

[ad_1]

Charlie Javice, the founder of student loan application startup Frank that was purchased by JPMorgan for $175 million, was found guilty on Friday of defrauding the bank by greatly inflating the customer count.

After a five-week trial, the jury found Javice guilty, agreeing with prosecutorsโ€™ claims that she fabricated the vast majority of Frankโ€™s customer list to deceive JPMorgan into acquiring her startup.

When JPMorgan bought Frank in 2021, the bank thought the startup had 4 million customers. The bank found out that the actual customer count was only 300,000 when it later sent test marketing emails to alleged Frank users and approximately 70% of those messages bounced back.

Javice allegedly hired a math professor to create fake customer data, which she submitted to JPMorgan when the bank was considering buying her company.

Defense attorneys argued that the suit was a result of buyerโ€™s remorse due to a government change in the way financial aid forms are filled out. Javice pleaded not guilty and didnโ€™t take the stand during the trial.

Javice, who is now 32, could be sentenced up to decades in prison. The sentencing is expected to take place in August, according to a CNBC report.

Javice founded Frank in 2017 when she was in her mid-20s. In 2019, she was named to the Forbes 30 Under 30 list.

[ad_2]

Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments