Charlie Javice, founder of the student‑aid startup Frank, was sentenced Monday to 85 months (just over 7 years) in prison for defrauding JPMorgan Chase in a $175 million acquisition deal.
Prosecutors proved Javice grossly overstated Frank’s user base—claiming more than 4 million users when the real number was closer to 300,000. The exaggerated numbers induced JPMorgan to acquire the startup in 2021; after the acquisition, attempts to contact purported users failed, exposing the deception.
U.S. District Judge Alvin Hellerstein imposed the sentence, ordering in addition $287.5 million in restitution, plus forfeiture of $22 million tied to salary, stock, and bonuses. Post‑prison, she will serve three years of supervised release.
In court, Javice accepted the jury’s verdict and “take full responsibility,” according to Fox Business. Her defense sought leniency by pointing to past achievements, arguing the deal’s faults also lay with JPMorgan’s failed due diligence. Judge Hellerstein noted, however, that “fraud remains fraud” regardless of a victim’s oversight.
Javice’s co‑defendant, Olivier Amar (former chief growth officer of Frank), was also convicted and is scheduled for sentencing in October.
