Young entrepreneur Charlie Javis, who sold her company Frank to JPMorgan Chase for $175 million, has been charged with fraud in New York federal court accused of inflating the number of her company’s users prior to the sale, according to a statement from the federation. Office of the Prosecutor General.
Javice, 31, was included by Forbes in 2019 in a list of entrepreneurs under the age of 30 in her application, which was intended to facilitate and speed up the student loan application process.
As Forbes writes, from its inception to 2019, Frank has used 300,000 users to request financial assistance.
The Attorney General’s office charged Javis with one count of conspiracy to commit bank and wire fraud, another count of financial institution wire fraud, and a third count of bank fraud.
If convicted, she could be sentenced to 30 years in prison.
According to the indictment, Javis assured the bank that his Frank platform had 4.25 million users and provided him with false information he created with an alleged co-conspirator, who was not named, backing up that data. However, in reality, Frank had fewer than 300,000 users.
The young woman was arrested last night in New Jersey and is expected to appear before a judge today who will read the charges against him.
“He directly lied to JPMorgan Chase and fabricated statements to support those falsehoods, all to gain more than $45 million from the sale of his company,” Attorney General Damian Williams said in a memo.
“This arrest should serve as a warning to businessmen who lie to advance their businesses,” Williams added.