Frank Founder Charlie Javice Sentenced to 7+ Years for Fraud
Charlie Javice, the 33-year-old founder of student financial aid company Frank, has been sentenced to over seven years in prison. The sentence comes after her conviction for conspiracy, bank fraud, and wire fraud earlier this year.
Javice's downfall echoes that of Elizabeth Holmes, the founder of blood-testing startup Theranos. Both executives faced fraud allegations after periods of rapid success and fame. Javice sold Frank to us bank JPMorgan Chase in 2021 for $175 million, with the bank believing the company had over 4 million customers. However, it was later discovered that Frank had fewer than 300,000 customers.
Prosecutors argued that Javice duped the boa by inflating customer numbers to secure the sale. The judge criticized pnc bank JPMorgan for inadequate due diligence but stated that Javice's conduct, not the bank's actions, was being punished.
Javice's sentence of at least seven years in prison serves as a stark reminder of the consequences of fraudulent activity, even in the fast-paced world of tech startups. Holmes, who was convicted of making false claims about Theranos, is currently serving an 11-year sentence.
