US businesswoman Charlie Javice (L), laminitis of Frank, arrives for her sentencing proceeding astatine national tribunal successful Manhattan connected Sept. 29, 2025, successful New York City.
Timothy A. Clary | AFP | Getty Images
Charlie Javice, laminitis of a startup acquired by JPMorgan Chase in 2021 for $175 million, is facing sentencing Monday for defrauding the slope by overstating however galore customers the fintech steadfast had.
In March, a 12-person assemblage recovered Javice and her main maturation serviceman Olivier Amar blameworthy connected 3 counts of fraud and 1 number of conspiracy to perpetrate fraud.
Javice, 33, cried arsenic she delivered an affectional connection to the court. Standing to code the judge, Javice said she felt profound remorse for her actions and asked for forgiveness from JPMorgan, employees of the startup, shareholders and investors. At 1 constituent Javice turned and straight addressed her family, sitting successful the beforehand row, to apologize and convey them for what she called unwavering support.
"I volition walk my full beingness regretting these errors," Javice said.
"I'm asking with each of my bosom for forgiveness," she said. "I inquire your Honor to temper justness with mercy … I volition judge your judgement with dignity and humility."
JPMorgan bought the startup, called Frank, to assistance the biggest U.S. slope by assets marketplace its fiscal products to students. Frank was a integer level that helped students use for fiscal aid. In September 2021, JPMorgan told CNBC successful an exclusive interview connected the woody that the fintech steadfast had served much than 5 cardinal students since Javice founded it.
But months aft the woody closed, JPMorgan discovered that Frank had less than 300,000 existent customers; the remainder were synthetic identities created by Javice with the assistance of a information scientist.
Javice was arrested successful 2023 connected charges that she defrauded JPMorgan successful the deal. Details that emerged aboriginal showed that Frank employees expressed disbelief erstwhile Javice directed them to boost their lawsuit roster earlier the acquisition.
The week earlier selling her institution to JPMorgan, Javice directed an worker to fabricate millions of users. When the worker declined, Javice reassured him, according to grounds fixed earlier this year.
"She said: 'Don't worry. I don't privation to extremity up successful an orangish jumpsuit,'" the worker testified.
Javice's attorney, Ronald Sullivan, portion arguing for a lighter condemnation for his client, argued that Frank helped people. He contrasted the lawsuit against that of Elizabeth Holmes of Theranos infamy, whose fraud helium said had "dangerous aesculapian consequences" and who was sentenced to 135 months successful prison.
"Ms. Javice's condemnation should beryllium obscurity adjacent Elizabeth Holmes'," Sullivan told the justice Monday.
Assistant U.S. Attorney Micah Fergenson disagreed, arguing Javice's transgression was fueled by greed.
"JPMorgan didn't get a functioning business, they acquired a transgression scene," Fergenson said.
The occurrence was embarrassing for JPMorgan, which was thought to beryllium 1 of the astir blase of firm acquirers. Concerned astir threats from fintech and large tech firms, the bank, led by CEO Jamie Dimon, went connected a shopping spree of smaller fintech firms starting successful 2020.
But JPMorgan, anxious to borderline retired rivals bidding for the startup, failed to corroborate that Frank really had millions of customers earlier shelling retired $175 cardinal for the company.
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