From Fintech Star to Fraudster Charlie Javice

Frank Founder Found Guilty of $175M Fraud in JPMorgan Deal

By Inside the Moment Staff
March 28, 2025 | 4:30 PM EDT

NEW YORK — Charlie Javice, the once-celebrated founder of student financial aid startup Frank, was convicted Friday of defrauding JPMorgan Chase out of $175 million by falsely inflating her company’s customer base. A federal jury in Manhattan delivered the verdict after a five-week trial, concluding that Javice, 32, and her co-defendant, Olivier Amar, orchestrated a scheme to mislead the banking giant during the 2021 sale of her startup.

Javice, who gained fame as a Forbes “30 Under 30” entrepreneur, faces up to 30 years in prison on charges of conspiracy, bank fraud, and wire fraud. The case has drawn comparisons to high-profile corporate fraud scandals, including that of Theranos’ Elizabeth Holmes.

The Rise and Fall of Frank
Founded in 2016 while Javice was a recent graduate of the University of Pennsylvania’s Wharton School, Frank claimed to simplify the federal student aid application process. Javice positioned the company as a lifeline for low-income students, charging fees to help navigate the complex paperwork. Her media appearances and rapid success attracted JPMorgan, which sought to tap into Frank’s purported 4.25 million users to expand its reach among young customers.

Prosecutors revealed that Frank had only about 300,000 real users. Javice allegedly fabricated millions of fake customer profiles, even enlisting a college friend to generate synthetic data for $18,000. Testimony from Frank’s former chief software engineer, Patrick Vovor, detailed how Javice and Amar pressured him to create fraudulent lists, joking about avoiding “orange prison jumpsuits.” Vovor refused, calling the scheme “illegal.”

Defense Claims “Buyer’s Remorse”
Javice’s attorney, Jose Baez, argued that JPMorgan ignored red flags and later concocted fraud claims after regulatory changes diminished the value of Frank’s data. “They knew the numbers,” Baez insisted, accusing the bank of seeking a scapegoat.

The defense also contested a request for ankle monitors ahead of sentencing, set for July 23, citing Javice’s new career as a Pilates instructor. Judge Alvin K. Hellerstein will rule on the matter next week.

Prosecution’s Victory
Acting Manhattan U.S. Attorney Matthew Podolsky hailed the verdict, stating Javice and Amar “lied and cheated their way to a huge payday” but were “caught by their own deception.” The conviction underscores growing scrutiny of tech startups accused of prioritizing hype over honesty.

Javice, free on $2 million bail since her 2023 arrest, declined to comment as she exited the courthouse. Amar, Frank’s former chief growth officer, also faces decades in prison.

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