Charlie Javice, the founder of the financial aid startup Frank, has been convicted of fraud in a $175 million scheme that deceived JPMorgan Chase. A Manhattan federal jury delivered the verdict on Friday after a five-week trial, finding Javice and her co-defendant, Olivier Amar, guilty of conspiracy, bank fraud, and wire fraud. Both face decades in prison, with sentencing scheduled for July 23.
Fraudulent Claims and JPMorgan’s Discovery
Javice, now 32, launched Frank in her mid-20s, presenting it as a tool to simplify the Free Application for Federal Student Aid (FAFSA) process for students. The startup gained significant traction, even earning her a spot on Forbes’ 30 Under 30 list. JPMorgan Chase, seeing an opportunity to tap into a vast student customer base, acquired Frank in 2021.
However, the bank later discovered that instead of the 4 million users Javice had claimed, Frank only had around 300,000 real users. Prosecutors revealed that much of the customer data provided to JPMorgan was entirely fabricated. The fraud came to light when the bank attempted to engage with Frank’s supposed users and received little to no response. 
Deception and Digital Fabrication
Prosecutors argued that Javice and Amar, who served as Frank’s chief growth and acquisition officer, intentionally misrepresented the company’s user base to inflate its value and secure the lucrative deal with JPMorgan.
“While Javice and Amar may have thought they could manipulate the system for financial gain, their lies caught up with them,” Acting Manhattan U.S. Attorney Matthew Podolsky said in a statement.
Evidence presented in court showed that when Frank’s chief software engineer, Patrick Vovor, was asked to generate synthetic data to support the exaggerated user numbers, he refused. Instead, Javice allegedly paid a college friend $18,000 to create millions of fake identities to mislead JPMorgan.
Defense Claims ‘Buyer’s Remorse’
Javice’s defense argued that JPMorgan was fully aware of what it was purchasing and later accused her of fraud due to “buyer’s remorse” when regulatory changes reduced the value of Frank’s data.
“JPMorgan is not telling the truth,” Javice’s lawyer, Jose Baez, stated. “They knew the numbers.”
Despite these claims, the jury found Javice and Amar guilty on all four charges in their indictments, with each charge carrying a maximum prison sentence of 30 years.
Awaiting Sentencing
Since her arrest in 2023, Javice has been out on a $2 million bail. Her legal team has requested the judge overturn the verdict, arguing that the evidence did not support a conviction.
Meanwhile, a separate dispute remains over whether Javice and Amar should wear ankle monitors until sentencing. Javice’s lawyers claim the device would interfere with her current work as a Pilates instructor, where she teaches three to four hours per day. Judge Alvin K. Hellerstein is expected to rule on this request next week.
With sentencing approaching, the case serves as a stark warning about the consequences of fraudulent business practices in the startup world.
