Charlie Javice has been sentenced to seven years in prison for defrauding JP Morgan Chase in a $175 million deal related to her fintech company, Frank.
Javice received her sentence from a federal judge after a jury found her guilty in March of securities fraud, wire fraud, bank fraud, and conspiracy. In court, she expressed remorse, apologizing to her parents, boyfriend, and “the shareholders of JPMorgan,” stating, “at my core, I still believe I’m a good person,” according to the Financial Times.
JPMorgan agreed to acquire Frank, a student financial aid assistance fintech, in late 2021. However, in December 2022, the bank sued Javice, alleging she fabricated a list of millions of fake users to facilitate the deal. During the trial, acting Manhattan U.S. Attorney Matthew Podolsky accused her of misleading the bank by claiming Frank had 4.25 million customers, while the actual number was closer to 300,000.
Prosecutors described Javice’s actions as part of “a brazen scheme to defraud” JPMorgan, claiming she “lied directly to JPMC and fabricated data to support those lies” in order to profit over $45 million from the sale of her company.
In addition to her prison sentence, Javice has been ordered to pay restitution of $288 million to JPMorgan, along with forfeiting another $22 million. Despite this, she has been permitted to remain free on bail as she appeals the decision.