Charlie Javice
Charlie J./Linkedin

Charlie Javice, once hailed as a rising star in fintech, has been convicted of defrauding JPMorgan Chase in one of the sector's most high-profile fraud cases.

The 33-year-old founder of student aid platform Frank was found guilty of fabricating user numbers to secure a $175 million sale to the banking giant, a deception that prosecutors say misled even Wall Street's most prominent players.

What Happened

On 28 March 2025, a federal jury in Manhattan found Javice guilty of securities fraud, wire fraud, bank fraud, and conspiracy. Prosecutors said she misrepresented the scale of Frank's customer base to secure JPMorgan's purchase of the company in 2021. According to trial evidence, Javice claimed Frank had more than 4 million users, when the actual number was closer to 300,000.

Court documents showed that to back up those claims, Javice and Frank's then-chief growth officer, Olivier Amar, arranged for lists of fabricated or borrowed names to be produced. Prosecutors said she worked with an outside data scientist and other vendors to generate synthetic information, creating the appearance of a much larger database of student customers.

Background and Timeline

Founded in 2016, Frank marketed itself as a tool to simplify the Free Application for Federal Student Aid (FAFSA). The startup gained investors' backing and media buzz, landing Javice on Forbes' 2019 '30 Under 30' finance list.

In September 2021, JPMorgan announced its acquisition of Frank, hoping to tap into millions of young customers. But problems surfaced almost immediately. By 2022, the bank discovered only a fraction of the claimed users existed, leading JPMorgan to sue Javice and shutter the platform.

Federal prosecutors and the Securities and Exchange Commission (SEC) launched parallel probes, culminating in Javice's indictment in 2023 and trial in early 2025. Amar was also convicted on related charges and will be sentenced in October 2025.

Amar was charged alongside Javice and convicted on related counts. His sentencing is scheduled for 20 October 2025.

Why It Matters

The case underscores the risks companies face when relying on user metrics to drive valuations. JPMorgan chief executive Jamie Dimon later called the acquisition a 'huge mistake.'

The Department of Justice said Javice's actions represented one of the most significant cases of falsified growth figures in a major corporate deal.

The trial also resonated in the broader tech and startup community, where rapid growth and inflated metrics are sometimes used to attract funding or buyers. Regulators argued that the case sends a message that misleading investors and acquirers about fundamental business data will be treated as a serious crime.

What Comes Next

Javice is scheduled to be sentenced on 29 September 2025 by US District Judge Alvin Hellerstein. Prosecutors have requested a 12-year prison term, $300.9 million in restitution, and $29.7 million in forfeiture. She also faces possible bans from serving as a company officer or director.

Her co-defendant Amar will be sentenced in October. Both face lengthy prison terms and significant financial penalties.

For investors, entrepreneurs and financial institutions, the case is a cautionary tale: rigorous due diligence is critical, and exaggerating success carries not just reputational risks but also criminal consequences.

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