Charlie Javice

Charlie Javice (born 1992/1993[1]) is the founder and former CEO of Frank, a student financial aid application assistance company. She was accused by the U.S. Securities and Exchange Commission of fraud relating to the sale of her company to JPMorgan Chase for $175 million in September 2021.[2][3]

Charlie Javice
Born1992/1993 (age 30–31)
CitizenshipAmerican
EducationFrench-American School of New York
Alma materWharton School of the University of Pennsylvania (2013)
Criminal statusReleased on bond
Criminal charge

Biography

Early life and education

Javice grew up in Westchester County, New York, where she rode horses.[2] She is Jewish.[4] Her father worked at a hedge fund. Her mother is a life coach and former teacher.[2] Her brother, a year younger, is chief digital officer at Popeyes.[2][5] Javice attended the French-American School of New York, a private elementary and high school. She then graduated from the Wharton School of the University of Pennsylvania after 3 years, in 2013, where she studied finance and law.[2][6] In 2011, as a freshman, she founded PoverUp, an online platform to help students learn more about starting microfinance clubs.[2]

Career

In 2016, Javice founded Frank, which assists student borrowers in obtaining loans and financial aid.[6]

In 2017, the United States Department of Education accused Frank of potentially misleading customers to believe that it was affiliated with the U.S. government and forced the company to change its website.[2]

In 2018, she was sued by Adi Omesy, a co-founder of Frank, over wage theft in Israel.[4] In 2021, she was ordered to pay $35,000.[2] Also in 2018, Javice claimed that Frank secured an average of $28,000 in financial aid for its users.[7]

In 2021, she sold the company to JPMorgan Chase for $175 million and was appointed managing director at JPMorgan, overseeing student-focused products at Chase.[6] She was suspended in September 2022 following a lawsuit by her employer, and was terminated for cause in November 2022.[1]

Lawsuit and criminal charges

In 2022, JPMorgan filed a lawsuit for fraud claiming that the data reported by Frank was largely a fabrication, and alleges that Javice paid a data science professor $18,000 for a list of more than 4 million fake student names to convince JPMorgan to purchase Frank.[8][9] Javice countersued JPMorgan claiming that she was being scapegoated for their own faulty due diligence.[10] On April 4, 2023, federal prosecutors in Manhattan charged Javice with wire fraud affecting a financial institution, securities fraud, bank fraud and conspiracy.[11] On 4 April 2023, she was also charged with fraud by the U.S. Securities and Exchange Commission.[12] She was released on a $2 million bond, on condition that she surrender her passports and restrict her travel to New York City and southern Florida, and agreeing not to contact witnesses in the case.[13][14]

Awards and recognition

Personal life

Javice lives in Miami, where she purchased a condominium for $1.4 million.[2]

References
  1. Levine, Alexandra S.; Martin, Iain (February 27, 2023). "JP Morgan Is Still Cleaning Up Its 'Disastrous' $175M Frank Acquisition". Forbes.
  2. Levine, Alexandra S.; Martin, Iain (January 19, 2023). "'Fake It 'Til You Make It': Meet Charlie Javice, The Startup Founder Who Fooled JP Morgan". Forbes.
  3. Lieber, Ron (January 21, 2023). "How Charlie Javice Got JPMorgan to Pay $175 Million for … What Exactly?". The New York Times.
  4. Siegal, Tobias (January 23, 2023). "Young entrepreneur accused of conning America's largest bank out of $175m". The Times of Israel.
  5. "Charlie and Elie Javice". American City Business Journals. December 30, 2011.
  6. Commuri, Meheer (January 16, 2023). "Wharton graduate, startup founder Charlie Javice sued by JP Morgan". The Daily Pennsylvanian.
  7. Long, Katherine; Newsham, Jack (January 22, 2023). "Charlie Javice has been fooling the world for years, long before founding Frank or allegedly defrauding JP Morgan. Here's why they bought it". Business Insider.
  8. PICCHI, AIMEE (January 13, 2023). "JPMorgan paid $175 million for a hot startup. Now it claims its CEO faked 4 million clients". CBS News.
  9. Son, Hugh (January 12, 2023). "JPMorgan shutters website it paid $175 million for, accuses founder of inventing millions of accounts". CNBC.
  10. Feeley, Jef (February 27, 2023). "JPMorgan Is Scapegoating Her With Its Fraud Suit, Frank Founder Says". Bloomberg News.
  11. Long, Katherine; Newsham, Jack (April 4, 2023). "Frank founder Charlie Javice, who allegedly defrauded JPMorgan out of $175 million, hit with federal charges". Business Insider.
  12. Levine, Alexandra S.; Martin, Iain (April 4, 2023). "SEC And DOJ Charge Frank Founder Charlie Javice With Fraud". Forbes.
  13. Neumeister, Larry (April 4, 2023). "Student aid startup founder arrested on fraud charges". Associated Press.
  14. Van Voris, Bob; Dolmetsch, Chris (April 4, 2023). "Frank Founder Javice, Who Says JPMorgan Scapegoated Her, Is Charged With Fraud". Bloomberg News.
  15. "99. Charlie Javice". Fast Company.
  16. "Charlie Javice". Forbes.
  17. "40 Under 40 - Charlie Javice". March 19, 2019.
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