Charlie Javice frauds JPMorgan Chase out of $175 million

In March 2025, Charlie Javice, the founder of a financial aid startup known as Frank, was found guilty of fraud after selling her company to JPMorgan Chase in 2021 for $175 million. A federal jury in New York City concluded that she had significantly exaggerated the company's customer base, claiming over 4 million clients when the actual number was around 300,000. The prosecutor's case pointed to emails and testimonies that demonstrated her calculated efforts to mislead the bank, including hiring a data scientist to create fake customer profiles. This trial drew substantial attention due to Javice's prior recognition in Forbes and the high stakes involved in the banking and startup worlds. The implications of this case extend beyond personal guilt as they raise concerns about the integrity of startups and the due diligence practices of large corporations when acquiring smaller entities. The financial repercussions for Javice could include a lengthy prison sentence, potentially serving as a deterrent to future fraudulent activities in the tech industry. Scheduled sentencing is expected to occur in July 2025 due to the severity of the fraud charges against her.