Unlock the Digest of the editor for free
A fintech start-up founder was convicted of cheating JPMorgan Chase by exceeding the value of a student loan company that it has bought it from her, to complete a stunning fall from the grace for the Millennial Entrepreneur and an embarrassing chapter for the bank.
Charlie Javice was arrested two years ago for fraud costs about the sale of $ 175 million from her company Frank in 2021, which helped students to request financial help.
Public Prosecutors accused Javice and her fellow suspect, Olivier Amar, the former Chief growth employee of Frank, of paying a data scientist to exaggerate the size of Frank’s user file. JPMorgan claimed that Frank was told that Frank had more than 4 million customers when the company actually had only a few hundred thousand.
Javice and Amar are confronted in prison for years. Lawyers for the couple did not immediately respond to requests for comments.
During the process, which lasted six weeks, prosecutors, Javice and Amar, depicted as the use of a “fraud -spreadsheet” to show that their company had much more customers than actually did JPMorgan to buy the company. The Wall Street Bank paid Javice $ 21 million for its Frank -Belang, with the range of another $ 20 million retention bonus that was never paid.
Javice’s lawyer argued that JPMorgan was sorry about the buyer about the deal and tried to claim afterwards that it had been duped. The bank has also sued Javice in a separate civil case, which was paused during the criminal procedure.
The process was characterized by remarkable witnesses, including Apollo Global Chief Executive Marc Rowan, who was an early investor in Frank, managers of JPMorgan and Capital One, who also offered the company, and an investment banker from Liontree, who had detected Frank’s financial adviser in the sale.
JPMorgan Chase CEO Jamie Dimon, who did not testify in the process, had described the deal for Frank as a “big mistake”.