Overview of the Case

Charlie Javice, the founder of the student loan application platform Frank, was found guilty on Friday of committing fraud against JPMorgan Chase. The conviction resulted from allegations that she significantly overstated the number of customers her company had, misleading the bank during its acquisition process.

Details of the Fraud

During a five-week trial, prosecutors revealed that Javice had fabricated the customer base of Frank, which she claimed included 4 million users. However, following the acquisition in 2021, it was discovered that the actual number of customers was approximately 300,000, as indicated by a test marketing email campaign in which around 70% of the messages bounced back.

Evidence presented during the trial included claims that Javice enlisted the help of a mathematics professor to generate false customer data to present to JPMorgan Chase executives.

Defense and Trial Outcome

In her defense, attorneys argued that the lawsuit stemmed from JPMorgan’s buyer’s remorse, particularly in light of changes in government regulations affecting financial aid applications. Despite her not guilty plea and the decision not to testify, the jury ultimately sided with the prosecution.

Possible Sentencing

Having been convicted of fraud, Javice, who is now 32, faces a possible sentence of several decades in prison. Sentencing is anticipated to occur in August, as reported by CNBC.

Background on Charlie Javice

Javice founded Frank in 2017 while still in her mid-20s. The startup aimed to simplify the financial aid application process for students. Her efforts earned her recognition in 2019 when she was included in Forbes’ 30 Under 30 list, showcasing her impact in the tech and financial sectors.