The Frank scandal at JPMorgan Chase explained

Ben Kaufman of the Student Borrower Protection Center explains how Charlie Javice is alleged to have defrauded JPMorgan Chase in the latest financial technology scandal with her startup that was supposed to help people applying for financial aid through FAFSA.

[doogadoogie]

We have a former neighbor, who embezzled a whole lot of money from her company. What she has in common with this woman, and Elizabeth Holmes is that they’re charming, effervescent, AND attractive, and that is all part of the scam.

[Bigwave]

As I've learned from bitter experience, beware of a girl named Charlie. Especially if she has a deep voice and a five o'clock shadow.

[blackmantravel]

Why would she leave all the emails behind. Thats the smoking gun that will lead to her down fall.

[michaelterry]

I am 60. When I was 25 I worked for a financial consultant. My boss gave me this very old very worn out speech. I suspect most of the people reading this have heard it before.
The S&P 500 has a historical return rate of around 10%. Some years it will go up higher and some years it will go lower, even down, but in the end it will give you the same return as a 10% bond. At 10% invested money doubles every 7.2 years.
With a calculator you can easily calculate compound interest.
If you invest $4, 100 a year from age 25 to age 65 you will have over $2, 000, 000 at retirement.
Why would anyone screw around with illegal financial schemes risking imprisonment when something like what I just described is 100% legal ?

[davidkess]

Good data. Popped up 1st on a google on the case

[bikedawg]

Charlie Javice is Elizabeth Holms cousin.

[KhaiFirst]

JP morgan spend hundred Million on bot email.

[saramcdonalds]

THE COLOR OF THEIR SKIN NOT THE CONTENT OF THEIR CHARACTER 😂😑 I DIDNT SEEN NO PERSON OF COLOR OR DIFFERENT NATIONALITY WHAT THAT TELLS US OKAY MARTIN LUTHER KING JR 🤣😂IS MAIN REASON WHY WE EVEN GOT HERE 😂🤣 LET ME TRY IT WOULDNT WENT VERY FAR

[gabodds]

What would you not be smart to research a startup before buying a startup. She will obviously get a huge sentence; but, chase was extremely dumb

[douglasgray]

In the Bible it says to avoid lending money at usury. I don't think this literally means all loaning money at interest is evil. But it underlies the dual nature of financial services; it is hard to draw the line between serving client's best interests and just taking advantage of them.

[tchen]

This woman may have lied and cheated, but a lot of the "investors"/"board of directors" actually benefited from this (they probably turned a blind eye even if they knew the truth)... JP /Chase is not getting money from them.... I think she got under $30M out of the deal

[jengable]

Also double check Navient Student Loans, and how is it legal for SunTech to charge students 8.25% interest rate ?!? It is higher than a mortgage, which is insane !
What was the 30 year mortgage rate in 2001?

about 6.6%

In mid 2000 thirty year fixed rate was up to about 8.5%, refinance originations was down to about $20 billion. Late 2001 thirty year rate was down to about 6.6%, refinance originations up to about $75 billion. They end 2001 with thirty year fixed rate about 7.1%, refinance originations up to about $155 billion.

[charlessmyth]

The solution is for prospective students to quit applying to college, and then the colleges will fix their application procedures :-)

[eddyavailable]

hollywood has been making women as these kick ass creatures. smarter, stronger and much better than men...

in reality, they are more cunning and ..yes physically weaker....

[designeranthony]

I think she got a case, and walked away with a huge pay day. JP Morgan failed on due diligence

[Menstral]

Women entrepreneurs don't want success, they want >99% of everything novel in this world that has ever been created or invented has been done by a man.

Let's be clear that we're not talking about an Instagram influencer as an entrepreneur, and we're not talking about somebody reselling clothes from SHEIN, and we're not really talking about the woman who owns a hair salon. All these activities require effort and diligence but not innovation. A female is not going to end up on the cover of Forbes for this achievement.

[charlessmyth]

J. P. Morgan is a "sophisticated investor" that bought a platform that has no fixed asset of a user base, that they can't operate, has no reason to exist, and they had no need to buy. Case dismissed :-)