Frank’s founder, US businessman Charlie Javice (L), arrives on September 29, 2025, for a ruling hearing in Manhattan federal court in New York City.
Timothy A. Clary | AFP | Getty Images
Charlie Javice, the founder of the startup, which was acquired by JPMorgan Chase in 2021, faces a verdict on Monday for $175 million for fraudulent banks by exaggerating how many customers the fintech company has.
In March, 12 ju umpires discovered that Javice and her chief growth officer, Olivier Amar, were found guilty of three counts of fraud and one of the conspiracies to commit fraud.
Havitce, 33, cried as he sent an emotional statement to the court. Standing to deal with the judge, Havis said he felt deep regret in his actions and sought forgiveness from startup employees, shareholders and investors JPMorgan. At one point, Javice sat in the front row and spoke directly to her family, apologising, thanking her for what she called unwavering support.
“I will spend my whole life regretting these errors,” Havis said.
“I ask for forgiveness in my heart,” she said. “I ask you to temper your honor with mercy… I will accept your judgment with dignity and humility.”
JP Morgan bought a startup called Frank and helped sell the largest US bank by assets to students. Frank was a digital platform that helped students apply for financial aid. In September 2021, JPMorgan told CNBC in an exclusive interview about the agreement that the fintech company had been serving more than 5 million students since Javice was founded.
However, a few months after the deal ended, JPMorgan discovered that Frank had less than 300,000 real customers. The rest was a synthetic identity created by Javice with the help of a data scientist.
Havis was arrested in 2023 on charges that she had fraudulent JPMorgan on her contract. Details that emerged later showed that Frank’s employees expressed distrust when Javice instructed them to raise their client list prior to the acquisition.
The week before selling her company to JPMorgan, Javice instructed her employees to manufacture millions of users. Testimony earlier this year said that when the employee declined, Havis reassured him.
“She said: “Don’t worry, I don’t want to go to an orange jumpsuit,” the employee testified.
While Havis’s lawyer, Ronald Sullivan, argued that while arguing for a mild client’s sentence, Frank argued that the fraud had “dangerous medical effects” and helped people unlike Terranos Infamiy’s Elizabeth Holmes, who was sentenced to 135 months.
“Mr. Javis’ detectives should not be near Elizabeth Holmes,” Sullivan told the judge on Monday.
US lawyer Aide Mika Fergenson opposed her, claiming that Havis’ crime was fueled by greed.
“JP Morgan couldn’t get a business that would work, they got a crime scene,” Fergenson said.
This episode was embarrassing for JPMorgan. This was considered to be one of the most sophisticated acquisitions. The bank, which is concerned about the threats from fintech and large tech companies, has been shopping for small fintech companies since 2020, led by CEO Jamie Dimon.
However, JPMorgan was eager to steal a rival bid for the startup, but could not confirm that Frank actually has millions of customers.
This story is developing. Please check for updates.
