Charlie Javice Sentenced to Over 7 Years for Frank Student Loan Fraud
Charlie Javice, the French-American entrepreneur behind student loan startup Frank, has been sentenced to over seven years in prison for fraud. Javice, who gained recognition as a Forbes '30 Under 30' in finance, was convicted for inflating customer data during Frank's sale to JPMorgan Chase in 2021.
Investigations uncovered that Javice had misled investors and JPMorgan Chase by falsifying data. She inflated Frank's user base from around 300,000 to over four million to secure a $175 million acquisition. JPMorgan Chase believed it was buying a platform with a substantial user base, but only around 300,000 actual users were found post-acquisition.
Javice founded Frank in 2017 with the aim of simplifying the student financial aid application process. She gained recognition for her innovative approach but her actions have since tarnished her reputation. Javice will now face the consequences of her actions, with a sentence that includes forfeiting $22 million in salary, stock, and bonuses from Frank's sale, and paying $287.5 million in restitution alongside her co-defendant.
Charlie Javice's sentencing marks a significant turn in the student loan startup scene. Her actions highlight the importance of transparency and accurate data in business dealings. With her sentence, Javice must now forfeit a substantial amount and pay restitution, while also facing a lengthy prison term.
