In a significant legal outcome, Charlie Javice, the 32-year-old founder of the startup Frank, was convicted of defrauding JPMorgan Chase. The bank had acquired Frank for $175 million in 2021, misled by claims that the company had over 4 million customers. In reality, Frank’s customer base was less than 300,000. This discrepancy represents an inflation of customer numbers by over 1,200%. The conviction followed weeks of testimony in a New York federal court. Frank, established by Javice in 2016, was designed to assist with college financial aid applications. The fraud came to light when JPMorgan attempted to reach out to the supposed customers. Further investigation revealed that Javice had hired a data scientist to fabricate a customer list. Charged with multiple counts including wire and bank fraud, Javice faces sentencing in August.
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