Millennial Founder Faces Trial Over Alleged Fraud in $175 Million JPMorgan Deal

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Charlie Javice, the millennial founder of the student loan startup Frank, is set to appear in court on February 18 to contest criminal allegations of fraud against JPMorgan Chase. The charges stem from accusations that she misled the bank about her company’s customer base when JPMorgan acquired Frank for $175 million in 2021, according to court documents.

After the acquisition, JPMorgan discovered discrepancies regarding Frank's customer numbers. The bank claimed that a marketing campaign targeting 400,000 alleged Frank users revealed only a 28% email delivery rate, raising suspicions of fraud. Javice is facing multiple charges, including conspiracy to commit wire fraud, with potential sentences totaling up to 30 years in prison, as outlined by filings from the Department of Justice.

The trial, expected to last three to four weeks, will feature testimony from several witnesses, including former Frank executives. Javice has sought to separate her case from that of her codefendant, Olivier Amar, whom she anticipates may testify against her. Notably, renowned defense attorney Alex Spiro has recently withdrawn from her defense team.

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