Prosecutors Seek 12-Year Prison Term for Charlie Javice in $175M JPMorgan Fraud

Investor Takeaway

The Fraud Behind Frank’s Collapse

Javice founded Frank in 2017, branding it as a tool to simplify college financial aid applications. The platform rapidly gained traction, earning her a spot on Forbes’ “30 Under 30” list in 2019. By 2021, JPMorgan agreed to acquire Frank, touting access to what Javice claimed was a 4.25 million–strong customer base.

But the acquisition unraveled when JPMorgan discovered the actual customer count was closer to 300,000. Efforts to contact Frank’s users failed, leading the bank to conclude the list had been fabricated. the acquisition a “huge mistake.”

Defense Arguments for Leniency

Javice’s , describing her actions as a “lapse of judgment” rather than a pattern of criminal behavior. In a filing earlier this month, they argued the fraud’s impact was limited given JPMorgan’s size and resources. They also portrayed Javice as otherwise law-abiding, urging the court to view the case as an aberration.

In her letter to Judge Hellerstein, Javice said: “I accept the jury’s verdict and take full responsibility for my actions. There are no excuses, only regret—I am truly sorry.” Prosecutors, however, dismissed her late apology as insufficient, saying she had “utterly failed to grapple” with the seriousness of her conduct until the last moment.

Investor Takeaway

What’s Next in the Case

Alongside Javice, Olivier Amar, Frank’s former , was also convicted on the identical four counts. His sentencing is scheduled for October 20. The case, U.S. v. Javice et al, represents one of the most high-profile fraud trials involving a fintech beginup and highlights the risks of overstating traction to investors and acquirers.

If the court imposes the recommended 12-year term, Javice’s punishment will fall well below the guideline minimum of 22 years but still rank among the toughest sentences imposed on a beginup founder in recent years. The ruling could set precedent for future cases involving inflated metrics in M&A transactions, sending a strong message to the venture capital ecosystem and acquisitive financial institutions.