Charlie Javice received an 85-month prison sentence this week for fabricating customer data to dupe JPMorgan Chase into buying her financial aid startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term Frank for $175 million, capping a fraud case that exposed lapses in the bank's due diligence process.

Frank Founder Gets Seven-Year Prison Sentence for $175 Million JPMorgan Fraud

Judge Alvin Hellerstein of the U.S. District Court for the Southern District of New York handed down the sentence after a jury found Javice, 33, and her Chief Growth Officer Olivier Amar guilty in March on three fraud counts and one conspiracy charge. Federal prosecutors had pushed for a 12-year term.

Javice broke down while addressing the court, telling Hellerstein she felt profound remorse and asking forgiveness from JPMorgan, her former employees, shareholders and investors. She turned to her family in the courtroom's front row to apologize and thank them for their support.

“I will spend my entire life regretting these errors,” Javice said. “I'm asking with all of my heart for forgiveness. I ask your Honor to temper justice with mercy … I will accept your judgment with dignity and humility.”

Hellerstein acknowledged her words were moving and praised her life's work as commendable, but said he couldn't grant the forgiveness she sought. He sentenced her not because she's a bad person, but because deterrence matters.

“I don't think you'll be committing other crimes and that you'll be devoting your life to service, but others have to be deterred,” the judge told Javice.

Charlie Javice sobs in court as she’s sentenced to 7 years in prison for swindling JPMorgan out of $175 million: ‘I am no longer a source of pride for my family’ https://t.co/mb1fy0m7qS pic.twitter.com/hMSJMYYrNy

— New York Post (@nypost) September 29, 2025

Fake Accounts Masked Tiny User Base

JPMorgan bought Frank in September 2021 to reach college students with banking products. The bank told CNBC at the time that the platform had served more than five million students since Javice founded it.

That number was fiction. JPMorgan found out months after closing the deal that Frank had fewer than 300,000 actual customers. Javice created the rest using synthetic identities with help from a data scientist, according to court records.

The fraud unfolded in the week before the sale. Javice directed an employee to fabricate millions of users. When the employee refused, she tried to reassure him.

“She said: ‘Don't worry. I don't want to end up in an orange jumpsuit’,” the employee testified earlier this year.

$287 Million Tab for Failed Deal

Besides prison, Hellerstein ordered Javice to serve three years of supervised release, forfeit $22.36 million and pay JPMorgan $287 million in restitution. She'll stay out on bail while appealing.

Her attorney Ronald Sullivan argued for leniency, pointing out that Frank actually helped some customers and contrasting the case with Elizabeth Holmes's Theranos fraud, which had “dangerous medical consequences.” Holmes got 135 months.

“Ms. Javice's sentence should be nowhere near Elizabeth Holmes',” Sullivan told the judge.

Assistant U.S. Attorney Micah Fergenson disagreed, calling Javice's crime greed-driven.

“JPMorgan didn't get a functioning business, they acquired a crime scene,” Fergenson said.

Bank's Buying Spree Backfires

The episode embarrassed JPMorgan, considered among the most sophisticated corporate buyers. CEO Jamie Dimon had launched an acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term push starting in 2020, snapping up fintech companies to counter threats from tech giants and upstart competitors.

But the bank's rush to beat rival bidders for Frank meant it never verified the customer numbers before writing a $175 million check. Javice, who had been featured on Forbes's “30 under 30” list, was arrested in 2023 after JPMorgan discovered the fraud and shut down Frank.

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