Charlie Javice, founder of the college financial aid startup Frank, was sentenced to just over seven years in prison on September 29 for defrauding JP Morgan Chase.

Javice, 33, was convicted in March on all four counts she faced: bank fraud, securities fraud, wire fraud, and conspiracy.

Javice, who launched Frank in 2017 to help students and parents with financial aid, was found guilty of exaggerating the company’s customer numbers before JP Morgan acquired it for US$175 million in 2021.

Prosecutors said Javice claimed Frank had 4.3 million customers, but the actual figure was closer to 300,000.

JP Morgan later said it could not reach most of Frank’s supposed customers, and CEO Jamie Dimon called buying Frank a “huge mistake.”

Javice, who has added appellate lawyer Alexandra Shapiro to her legal team, is expected to appeal the conviction.

🔗 Source: Calcalist

Recent JPMorgan developments