Charlie Javice Found Guilty of Fraud in JPMorgan Chase Acquisition Case

Charlie Javice, the mastermind behind a bold scheme to deceive JPMorgan Chase into acquiring her now-dissolved college financial aid venture, was convicted on Friday.

Federal authorities accused 32-year-old Javice of significantly exaggerating her company’s customer base to make it appealing for JPMorgan Chase to buy. The company in question, Frank, aimed to simplify the process of applying for financial aid via the Free Application for Federal Student Aid (FAFSA).

In 2023, two years after JPMorgan Chase acquired her startup for a whopping $175 million, Javice faced allegations including securities fraud, wire fraud, bank fraud, and conspiracy.

Facing possible imprisonment for up to 30 years for charges of wire fraud, bank fraud, and conspiracy, Javice’s securities fraud charge carries a slightly lesser maximum sentence of 20 years.

Jennifer Roberts, Chase’s head of consumer banking, expressed in a 2021 CNBC report that the acquisition of Frank was designed to broaden the bank’s reach to college students and foster “lifelong, engaged relationships” with this evolving customer segment.

The scheme began to come apart when the bank tried to verify data on the supposed 4.25 million users of Frank, discovering only reliable information for approximately 300,000, according to prosecutors.

During final arguments, Assistant U.S. Attorney Nicholas Chiuchiolo asserted that Javice employed an external party to falsify user data after her head engineer refused to comply.

Javice’s lawyer, Jose Baez, criticized the prosecution’s argument as “extremely flawed” and lacking sufficient evidence. Javice did not participate in the trial as a witness.

Additionally, Olivier Amar, Javice’s chief growth officer, faced charges in the case. He remained silent during the trial, with his legal team striving to separate his actions from those of Javice.

Prosecutors claimed Amar assisted Javice in executing the fraud against JPMorgan Chase during the merger negotiations, but Amar’s defense argued that Javice acted independently.