Charlie Javice, once hailed as a promising young entrepreneur, will serve more than seven years in prison after a federal judge found she deceived JPMorgan Chase into buying her startup Frank for $175 million.
The 33-year-old built Frank in 2017 as a platform to simplify college financial aid applications. The company’s early success earned her praise in the tech world and a spot on Forbes’ “30 Under 30” list. But prosecutors said she inflated Frank’s numbers by inventing millions of non-existent customers to lure JPMorgan into an acquisition in 2021.
Judge Alvin Hellerstein sentenced her to 85 months on Monday in Manhattan. He said white-collar crimes demand tough punishment because “honesty in the market is required.” According to Reuters, prosecutors argued that Javice told the bank she had more than four million users when the real figure was closer to 300,000.
Speaking tearfully in court, Javice admitted wrongdoing and expressed regret to investors, staff, and her own family. “Not a day passes that I do not feel profound remorse,” she told the judge.
Her attorneys had urged an 18-month sentence, portraying her downfall as punishment in itself. Prosecutors sought a 12-year term, pointing to what they called deliberate deception and major financial harm.
The scandal has become one of the most high-profile fraud cases in recent years. JPMorgan chief executive Jamie Dimon later described the purchase of Frank as a “huge mistake.”
Javice plans to appeal. Olivier Amar, Frank’s former growth officer convicted in the same case, is due to be sentenced in October.