Charlie Javice, founder of student aid startup Frank, is going on trial for allegedly defrauding JPMorgan Chase & Co. in a $175 million buyout deal. Prosecutors say she committed “massive fraud” by claiming the company had millions of customers when it actually had only about 400,000.
Javice’s attorney claims the bank experienced “buyer’s remorse” after regulations changed and says the client was unfairly targeted for charges. However, prosecutors argue that Javice would have earned $45 million from the scheme. The trial follows an investigation into a deal where Javice allegedly purchased “off-the-shelf data on four million people” to meet the bank’s demand.
Javice, 31, faces conspiracy, wire and bank fraud charges. Her lawyer says she was hired as part of the buyout deal with plans for her to become the bank’s “face of students.” The case centers on whether Javice told lies to secure the deal, rather than targeting the bank itself.
Source: https://apnews.com/article/frank-founder-charlie-javice-charges-844589b428c50fe50ba720062bc5bc0b