{"id":12567,"date":"2025-03-28T21:01:55","date_gmt":"2025-03-28T21:01:55","guid":{"rendered":"https:\/\/finderica.com\/?p=12567"},"modified":"2025-03-28T21:01:55","modified_gmt":"2025-03-28T21:01:55","slug":"founder-charlie-javice-found-guilty-of-defrauding-jpmorgan-chase","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=12567","title":{"rendered":"Founder Charlie Javice found guilty of defrauding JPMorgan Chase"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107251809\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Charlie Javice, who is charged with defrauding JPMorgan Chase &amp; Co into buying her now-shuttered college financial aid startup Frank for $175 million in 2021, arrives at United States Court in Manhattan in New York City, June 6, 2023.<\/p>\n<p>Mike Segar | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Charlie Javice, founder of a startup purchased by <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">JPMorgan Chase<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> in 2021, was convicted in federal court Friday of defrauding the bank by vastly overstating the company&#8217;s customer list.<\/p>\n<p>The jury <a href=\"https:\/\/www.nbcnews.com\/news\/us-news\/verdict-charlie-javice-jp-morgan-fraud-case-rcna198364?cid=sm_npd_nn_tw_ma&amp;amp;taid=67e6fa1faae7140001fdf7ea&amp;amp;utm_campaign=trueanthem&amp;amp;utm_medium=social&amp;amp;utm_source=twitter\" target=\"_blank\" rel=\"noopener\">decision<\/a> comes after weeks of testimony in New York over who was to blame for the flameout of a once-promising startup. Frank, founded by Javice in 2016, aimed to help users apply for college financial aid.<\/p>\n<p>JPMorgan has accused Javice, 32, of duping the bank into paying $175 million for a company that had more than 4 million customers, when in reality it had fewer than 300,000.<\/p>\n<p>The largest U.S. bank by assets sued Javice in late 2022 after attempting to send marketing emails to some of the thousands of &#8220;customers&#8221; it thought Frank had. In its suit, JPMorgan released emails in which Javice hired a data scientist to generate a fake roster of customers.<\/p>\n<p>Then, in April 2023, the Justice Department charged Javice with four crimes including wire and bank fraud, counts which carry multi-decade maximum sentences. Javice was arrested at Newark Airport on April 3 of that year and had been out on bail.<\/p>\n<p>Javice had pleaded not guilty and said she was innocent throughout the trial; her lawyers blamed JPMorgan for rushing to close the Frank acquisition because it <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-03-26\/jpmorgan-was-brazen-fraud-victim-us-says-in-javice-closings\" target=\"_blank\" rel=\"noopener\">feared<\/a> that other suitors would emerge.<\/p>\n<p>Sentencing will happen in August, CNBC&#8217;s Leslie Picker reported. <\/p>\n<p>A spokesman for New York-based JPMorgan declined to comment on Friday, while the office of a lawyer representing Javice didn&#8217;t immediately return a call seeking comment.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108123112\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108123112\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000371180\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/03\/28\/charlie-javice-found-guilty-jpmorgan-chase.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Charlie Javice, who is charged with defrauding JPMorgan Chase &amp; Co into buying her now-shuttered college financial aid startup Frank for $175 million in 2021, arrives at United States Court in Manhattan in New York City, June 6, 2023. Mike Segar | Reuters Charlie Javice, founder of a startup purchased by JPMorgan Chase in 2021,<\/p>\n","protected":false},"author":1,"featured_media":12568,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[5201,197,5202,382,461,4978,964],"class_list":{"0":"post-12567","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-charlie","9":"tag-chase","10":"tag-defrauding","11":"tag-founder","12":"tag-guilty","13":"tag-javice","14":"tag-jpmorgan"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/12567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12567"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/12567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/12568"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}