Charlie Javice, the 32-year-old founder of fintech startup Frank, has been sentenced to seven years in federal prison for defrauding JPMorgan Chase in a $175 million acquisition deal. Once celebrated on Forbes’ 30 Under 30 list, Javice now faces the consequences of one of the most high-profile fraud cases in the financial technology sector.
How the Fraud Happened
In 2021, JPMorgan acquired Frank after Javice claimed the platform had over 4 million users. In reality, Frank had fewer than 300,000. To support the inflated figures, Javice allegedly hired a data scientist to fabricate a dataset with millions of fake names, emails, and phone numbers, which was presented to auditors during due diligence.
U.S. District Judge Alvin Hellerstein, who imposed the sentence, called her actions “a great deal of duplicity” while also faulting JPMorgan for failing to conduct thorough due diligence. He stressed, however, that Javice alone was being punished for the fraud.
Who Is Charlie Javice?
Born in Westchester County, New York, Javice studied finance and legal studies at the Wharton School of the University of Pennsylvania before launching Frank in 2017. The platform aimed to simplify the federal student aid process (FAFSA). Despite early scrutiny from the U.S. Department of Education over misleading branding, Frank gained traction and attracted prominent investors.
Javice’s entrepreneurial success earned her recognition on Forbes’ 2022 30 Under 30 list. She even secured a one-on-one meeting with JPMorgan CEO Jamie Dimon ahead of the acquisition.
Legal Proceedings
Javice was arrested in 2023 and released on $2 million bail while awaiting trial. In March 2025, she was convicted of conspiracy, wire fraud, and bank fraud. Along with her prison sentence, she will serve three years of supervised release.
Why It Matters
The case highlights both the risks of startup culture’s “growth at all costs” mentality and the dangers faced by large institutions eager to invest in disruptive companies without adequate verification. For many, Javice’s fall from grace serves as a stark warning: chasing rapid success through deception can ultimately lead to ruin.
