New York, NY — March 29, 2025 — Charlie Javice, the founder of the financial aid startup Frank, has been convicted of defrauding JPMorgan Chase & Co. in connection with the bank’s $175 million acquisition of her company. After a five-week trial in Manhattan federal court, a jury found Javice guilty on multiple counts, including securities fraud, wire fraud, bank fraud, and conspiracy. Her co-defendant, Olivier Amar, Frank’s Chief Growth Officer, was also convicted on similar charges.
Background of the Case
Founded in 2016 by Charlie Javice, Frank aimed to simplify the college financial aid application process for students. The platform claimed to assist millions of students in navigating the complexities of financial aid forms and securing funding for higher education. In September 2021, JPMorgan Chase acquired Frank for $175 million, with the intention of expanding its reach among college-aged clients.
Details of the Fraud
Prosecutors presented evidence that Javice and Amar significantly inflated Frank’s user base to make the company appear more valuable to potential buyers. While Frank purported to have over 4 million users, the actual number was closer to 300,000. To support these false claims, Javice and Amar hired a data science professor to create a synthetic dataset containing millions of fake customer accounts. This fabricated data was then presented to JPMorgan Chase during the due diligence process, leading the bank to proceed with the acquisition under false pretenses.
JPMorgan’s Response and Legal Actions
Following the acquisition, JPMorgan Chase launched an email marketing campaign targeting Frank’s supposed user base. The campaign’s poor performance raised red flags, prompting an internal investigation that uncovered the fabricated data. In December 2022, JPMorgan filed a lawsuit against Javice and Amar, alleging fraud and misrepresentation. The bank also shut down the Frank website in January 2023, citing the discovery of the fraudulent activity.
Trial and Conviction
The trial commenced in February 2025, with the prosecution presenting extensive evidence of the defendants’ fraudulent activities. After deliberating, the jury returned a guilty verdict on March 28, 2025. Both Javice and Amar face potential decades-long prison sentences, with sentencing dates set for July 26 and July 23, respectively.
Post-Conviction Developments
Following her conviction, Javice has contested the requirement to wear an ankle monitor prior to her sentencing, arguing that it interferes with her work as a Pilates instructor. Her attorney has filed a motion to have the monitoring device removed, citing previous instances where it caused physical discomfort and professional disruptions. The court is expected to rule on this matter in the coming weeks.
