Former student aid startup founder accused of fabricating millions of users to secure JPMorgan acquisition
Charlie Javice, the founder of student aid startup Frank, faces a defining moment as jurors prepare to deliberate on fraud and conspiracy charges related to her company’s $175 million sale to JPMorgan Chase. Prosecutors allege that Javice dramatically inflated Frank’s customer base, deceiving the banking giant into an acquisition that would have personally netted her $45 million.
During closing arguments at a Manhattan federal court, Assistant U.S. Attorney Nicholas Chiuchiolo described the case as one of “brazen fraud,” claiming Javice falsely claimed Frank had over 4.25 million clients when, in reality, it had just 400,000. According to the prosecution, when JPMorgan sought verification of the customer base, Javice attempted to generate “synthetic data” to support the inflated numbers—first asking Frank’s head of engineering, who refused, and later hiring an external data scientist for $105,000 to fabricate the information.
Javice, a Miami Beach resident once celebrated as a Forbes “30 Under 30” honoree, did not testify in the five-week trial. Her defense attorney, Jose Baez, urged jurors to consider the “flawed” nature of the evidence and return a not-guilty verdict.
JPMorgan, which acquired Frank in 2021, sued Javice in 2023 after discovering the alleged fraud. The jury is expected to begin deliberations soon, with a verdict poised to have major implications for both corporate due diligence and the startup world.
