Charlie Javis (31), founder of the university’s financial planning platform, Frank was arrested and charged with defrauding JPMorgan Chase of $175 million in New York, The US Attorney’s Office announced yesterday.
Javice appeared on Forbes 2019 list of “30 (Successful) Under 30”. He was caught in New Jersey Monday night and was released yesterday on $ 2 million bail, it was reported New York Post.
He was a young tech entrepreneur Accused of inflating the number of customers “wrongly and dramatically” Frank urged JPMorgan Chase to acquire the startup for $175 million, authorities said. Prosecutors said Javis would earn more than $45 million from the scam, he said. patch.com.
“This arrest should warn entrepreneurs who lie to advance their business that their lies will catch up with them, and this office will hold them accountable for Put your greed above the law.” US Attorney Damien Williams said in a press release.
Javis founded the for-profit company Frank in 2017 which offered an online platform designed to streamline the process of completing Free Application for Federal Student Aid (FAFSA).
Around 2021, Javis began trying to sell Frank to a larger financial institution, and when JPMorgan and another bank showed interest and began the acquisition process, Javis He told banks over and over that he had 4.25 million customers, or “users,” though there were fewer than 300,000, the authorities said.
To help verify Frank’s user count when JPMorgan searched for more information, it seems Javis and one of the co-conspirators asked Frank’s engineering director to fabricate false statements. While emphasizing that “we don’t want to end up with prison suits.” Authorities said the engineering director was concerned about the legality of the request, which he denied.
As a backup plan, Javis contacted an outside data scientist and hired him to create the fake data, according to officials. then, Frank closed the deal with JPMorgan.
Javis was charged with fraud and conspiracy to commit bank and paper fraud against a financial institution, among other charges, some of which carry a maximum penalty of 30 years in prison.
All charges are just accusations, and the accused are innocent until proven guilty in court.