The US businesswoman Charlie Javice (L), the founder of Frank, arrives on September 29, 2025 in New York City for her hearing before the Federal Court in Manhattan.
Timothy A. Clary | AFP | Getty pictures
Charlie Javice, founder of a startup acquired by JPmorgan Chase in 2021 for $ 175 million, was sentenced to just over seven years in prison on Monday
In March, a 12-member jury Javice and their Chief Growth Officer Olivier Amar took place because of three cases of fraud and a conspiracy to commit fraud. The public prosecutor had been looking for a 12 -year punishment.
The 33 -year -old Javice cried when she made an emotional explanation on Monday. Javice stood to speak to the judge, and she felt a profound regrence for her actions and asked for forgiveness of JPMorgan, the startup staff, shareholders and investors.
At some point Javice turned and addressed himself directly in the front row to apologize and thank them for what she described as unshakable support.
“I will spend my whole life to regret these mistakes,” said Javice.
“I ask all about forgiveness,” she said. “I ask you for your honor to alleviate justice with mercy. I will accept your judgment with dignity and humility.”
Judge Alvin Hellerstein said Javice that her words were “very moving” and that the way she devoted her life were “very commendable”, but that he could not give her the forgiveness she was looking for.
“I don't judge people because they are bad, but because they do bad things,” said Hellerstein to Javice, before they delivered the 85-month prison sentence. “I don't think they are committing other crimes and dedicating their lives for service, but others have to be deterred.”
In addition to the prison, Javice was sentenced to three years of supervision, as well as 22.36 million US dollars of decay and $ 287 million to JPmorgan. It will remain against the deposit while making an appeal against the decision.
JPM acquisition
JPMorgan bought the startup called Frank to help the largest US bank according to assets to market their financial products for students. Frank was a digital platform that helped the students apply for financial help. In September 2021, JPMorgan CNBC announced in an exclusive interview with the deal that the Fintech company had served more than five million students since Javice.
But months after completing the business, JPmorgan found that Frank had fewer than 300,000 real customers. The rest were synthetic identities that Javice created with the help of a data scientist.
Javice was arrested in 2023 for charges that she had cheated on Jpmorgan in the deal. Details that were created later showed that Frank employees put an incredulous impressing when Javice stipulates them to increase their customer list before the acquisition.
During the week before she sold her company to JPmorgan, Javice instructed an employee to produce millions of users. When the employee rejected, Javice assured him at the beginning of this year.
“She said, 'Don't worry. I don't want to end up in an orange overall,'” said the employee.
Not Theranos
On Monday, Javice's lawyer Ronald Sullivan fought for an easier prison for his client and caused Frank to help the customer. He compared the case against that of Elizabeth Holmes from Theranos Infamy, whose fraud had “dangerous medical consequences” and which was convicted of 135 months in prison.
“Ms. Javice's judgment shouldn't be in the vicinity of Elizabeth Holmes,” said Sullivan to judge Hellerstein.
The deputy US lawyer Micah Ferggenson disagreed and argued that Javice's crime was driven by greed.
“Jpmorgan has no functioning business, they have acquired a crime scene,” said Fergenson.
A Charlie Javice's courtyard sketch in her conviction in court on September 29, 2025 in New York City.
Elizabeth Williams | CNBC
The episode was embarrassing for JPMorgan, which was seen as one of the most demanding of company advertisers. The bank, which was led by CEO Jamie Dimon, concerned about threats from Fintech and Big -Tech company, drove a shopping spree of smaller fintech companies from 2020.
JPMorgan, who endeavored to offer the competitors for the startup, could not confirm that Frank actually had millions of customers before it broke out 175 million US dollars for the company.