Former Tech Entrepreneur Charlie Javice Sentenced to 7 Years for $175 Million JPMorgan Fraud

On Monday, a federal judge sentenced former tech entrepreneur Charlie Javice to over seven years in prison following her conviction in a $175 million fraud case against JPMorgan Chase.

Javice, who sold her online platform Frank to the American banking giant in 2021, was convicted by a New York jury in March. The jury found her guilty of building her business on millions of fake user accounts.

According to the Department of Justice spokesman, US District Judge Alvin Hellerstein imposed an 85-month prison sentence on Javice.

Prosecutors revealed that Javice had hired an external data scientist to create "synthetic data" after a company engineer refused her request, citing legal concerns.

Frank was marketed as a solution to simplify the US financial aid application process for higher education. JPMorgan acquired the platform hoping to use it as a channel to offer banking services to younger customers.

Micah Festa Fergenson from the US Attorney's office described Javice's actions as "an audacious and multifaceted criminal scheme" driven by "greed." The prosecution had initially sought a 12-year prison term.

While Judge Hellerstein acknowledged JPMorgan's "very poor" due diligence in the acquisition, he emphasized that Javice's actions warranted punishment, stating, "Fraud remains fraud whether you outsmart someone who is very smart or someone who is a fool." He also noted that Javice had no prior criminal record and had previously contributed to charitable organizations and supported family members.

Javice, now 33, offered an apology to JPMorgan, Frank's investors, and employees. Appearing in court wearing an ivory pantsuit, she became emotional when addressing her parents, saying, "At 28, I did something which runs against the grain of my upbringing. These errors, this complete collapse in character... not a day goes by that I do not replay my mistakes."