CRIME & LAW

Startup Founder Sentenced for $175 Million Fraud

Charlie Javice, founder of the student financial aid startup Frank, has been sentenced to over seven years in prison for defrauding JPMorgan Chase out of $175 million. Javice exaggerated Frank's customer base from under 300,000 to over 4 million to deceive the bank into acquiring her company. Despite arguments for leniency and criticism of JPMorgan's due diligence, the judge emphasized punishing Javice's fraudulent conduct. Javice expressed regret for her actions, acknowledging the "infamous" transformation of her once-meaningful venture.

Reviewed by JQJO team

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