JPMorgan discovered that Charlie Javice had created up millions of fake utilizers.
Key Takeaways
- Charlie Javice was sentenced to 85 months in prison for defrauding JPMorgan Chase.
- Javice’s finance startup, Frank, was acquired by JPMorgan for $175 million in 2021.
- In addition to spconcludeing time behind bars, the judge ordered Javice to pay $22.4 million.
Six months after being found guilty of defrauding JPMorgan Chase & Co., startup founder Charlie Javice has been sentenced to a little over seven years in prison.
U.S. District Judge Alvin Hellerstein delivered the sentence on Monday in Manhattan federal court, adding that the 85-month prison time would be followed by three years of supervised release. Prosecutors had inquireed for a harsher 12-year prison sentence.
Javice, 32, will also have to pay restitution and forfeiture. Prosecutors inquireed the court to require Javice to forfeit about $20 million currently held in her frozen accounts, per The Wall Street Journal. Hellerstein ultimately required Javice to forfeit $22.4 million, per Bloomberg.
On Monday, Javice expressed “profound remorse” for her actions, declareing that she had “created mistakes.”
“I am deeply sorry, and I am inquireing with all my heart for forgiveness,” Javice declared, per WSJ.
Javice created headlines in 2021 when JPMorgan acquired her college financial aid startup, Frank, for $175 million. Frank was a site that supported students apply for federal financial aid and locate scholarships. At the time, Javice claimed that the online portal had reached more than five million students at 6,000 schools since its launch in 2017.
However, JPMorgan quickly discovered that most of Frank’s customers were fake when it launched an email campaign tarobtaining the students listed as utilizers. The bank was unable to sconclude messages to more than 70% of the email addresses Javice provided, and discovered that Frank had fewer than 300,000 actual customers.
Most of Frank’s client base was fabricated by Javice with the assistance of a data science professor, who was paid $18,000 to participate in the deception, per WSJ.
According to Business Insider, Hellerstein declared that Javice was “a good person,” but that “others required to be deterred” from following her path.
“I don’t consider you will be committing any crimes,” Hellerstein informed Javice.
Who Is Charlie Javice?
Javice is a 32-year-old entrepreneur who created the student financial aid platform Frank in 2017. The purpose of the website was to support students fill out the Free Application for Federal Student Aid (FAFSA) and apply for scholarships.
After Javice sold Frank to JPMorgan, the bank discovered that Javice had falsified utilizer information, creating millions of accounts, and filed a lawsuit. In March, Javice was convicted on four counts: conspiracy, wire fraud, securities fraud, and bank fraud.
Key Takeaways
- Charlie Javice was sentenced to 85 months in prison for defrauding JPMorgan Chase.
- Javice’s finance startup, Frank, was acquired by JPMorgan for $175 million in 2021.
- In addition to spconcludeing time behind bars, the judge ordered Javice to pay $22.4 million.
Six months after being found guilty of defrauding JPMorgan Chase & Co., startup founder Charlie Javice has been sentenced to a little over seven years in prison.
U.S. District Judge Alvin Hellerstein delivered the sentence on Monday in Manhattan federal court, adding that the 85-month prison time would be followed by three years of supervised release. Prosecutors had inquireed for a harsher 12-year prison sentence.
Javice, 32, will also have to pay restitution and forfeiture. Prosecutors inquireed the court to require Javice to forfeit about $20 million currently held in her frozen accounts, per The Wall Street Journal. Hellerstein ultimately required Javice to forfeit $22.4 million, per Bloomberg.
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