Charlie Javice

Charlie Javice (born March 14, 1993)[1]) is the founder and former CEO of Frank, a student financial aid application assistance company. In January 2023, she was accused of fraud relating to the sale of her company to JPMorgan Chase for $175 million.[2]Javice was charged on April 4, 2023 in Manhattan federal court with a four-count grand jury indictment for securities fraud, wire fraud, bank fraud, and conspiracy.[3]

Charlie Javice
Born (1993-03-14) March 14, 1993
CitizenshipAmerican
EducationFrench-American School of New York
Alma materWharton School of the University of Pennsylvania (2013)
Criminal statusReleased on bond with conditions
Criminal charge

Biography

Early life and education

Javice grew up in Westchester County, New York.[4] Her father worked at a hedge fund while her mother is a life coach and former teacher. Her younger brother Elie is chief digital officer of Firehouse Subs.[5] Javice attended the French-American School of New York, a private school that provides education from Nursery to the 12th grade.

In 2013, Javice graduated from the Wharton School of the University of Pennsylvania after three years with a bachelor's degree in finance and legal studies.[6] As a freshman at Wharton, she founded PoverUp, an online platform to help students learn more about starting micro-finance clubs. During her sophomore year, she became a member of the Board of Overseers for the University of Pennsylvania Hillel organization, associated with Hillel International.[7] She continued in this capacity until 2015.

Career

In 2016, Javice founded Frank, which assists student borrowers in obtaining loans and financial aid.

In 2017, the United States Department of Education accused Frank of potentially misleading customers to believe that it was affiliated with the U.S. government, forcing the company to change its website from frankfafsa.com to frank.com. Frank settled with the Department of Education in 2018.[8]

In 2018, she was sued by Adi Omesy, a co-founder of Frank, over wage theft in Israel.[9] In 2021, she was ordered to pay $35,000.[4]

In September 2021, she sold the company to JPMorgan Chase for $175 million and was appointed managing director at JPMorgan, overseeing student-focused products at Chase. She was suspended in September 2022 following a lawsuit by her employer, and was terminated for cause in November 2022.[1]

Lawsuit and criminal charges

In 2022, JPMorgan filed a lawsuit for fraud claiming that the data reported by Frank was largely a fabrication, and alleges that Javice paid a data science professor $18,000 for a list of more than four million fake student names to convince JPMorgan to purchase Frank.[10][11] Javice countersued JPMorgan claiming that she was being scapegoated for their own faulty due diligence.[12] On April 4, 2023, federal prosecutors in Manhattan charged Javice with wire fraud affecting a financial institution, securities fraud, bank fraud and conspiracy.[13] The same day, she was also charged with fraud by the U.S. Securities and Exchange Commission.[14] She was released on a two million dollar bond, on condition that she surrender her passports and restrict her travel to New York City and southern Florida, and agreeing not to contact witnesses who are involved in the case.[15][16] A four-count grand jury indictment made public on May 18, 2023, in Manhattan federal court charged Javice with securities fraud, wire fraud, bank fraud, and conspiracy.[3]

Awards and recognition

Personal life

Javice lives in Miami, where she purchased a condominium for $1.4 million.[4]

References
  1. Levine, Alexandra S.; Martin, Iain (February 27, 2023). "JP Morgan Is Still Cleaning Up Its 'Disastrous' $175M Frank Acquisition". Forbes. Archived from the original on February 28, 2023. Retrieved February 28, 2023.
  2. Lieber, Ron (January 21, 2023). "How Charlie Javice Got JPMorgan to Pay $175 Million for … What Exactly?". The New York Times. Archived from the original on January 21, 2023. Retrieved January 21, 2023.
  3. Stempel, Jonathan; Cohen, Luc (May 19, 2023). "Charlie Javice, the startup founder accused of defrauding JPMorgan, is indicted". Reuters. Archived from the original on 2023-05-19. Retrieved 2023-05-19.
  4. Levine, Alexandra S.; Martin, Iain (January 19, 2023). "'Fake It 'Til You Make It': Meet Charlie Javice, The Startup Founder Who Fooled JP Morgan". Forbes. Archived from the original on January 20, 2023. Retrieved January 20, 2023.
  5. "Charlie and Elie Javice". American City Business Journals. December 30, 2011. Archived from the original on September 22, 2021. Retrieved April 5, 2023.
  6. Commuri, Meheer (January 16, 2023). "Wharton graduate, startup founder Charlie Javice sued by JP Morgan". The Daily Pennsylvanian. Archived from the original on January 20, 2023. Retrieved January 20, 2023.
  7. Drake, Diane (2011-07-20). "Generation Microfinance: Charlie Javice Believes in the Power of Students to Alleviate Poverty". Wharton Global Youth Program. Archived from the original on 2023-04-18. Retrieved 2023-04-18.
  8. Long, Katherine (January 12, 2023). "Frank start-up founder Charlie Javice, accused of defrauding JPMorgan with fake users, previously settled with Department of Education over allegations she misled students". Business Insider. Archived from the original on April 12, 2023. Retrieved April 12, 2023.
  9. Siegal, Tobias (January 23, 2023). "Young entrepreneur accused of conning America's largest bank out of $175m". The Times of Israel. Archived from the original on April 5, 2023. Retrieved April 5, 2023.
  10. Picchi, Aimee (January 13, 2023). "JPMorgan paid $175 million for a hot startup. Now it claims its CEO faked four million clients". CBS News. Archived from the original on January 20, 2023. Retrieved January 20, 2023.
  11. Son, Hugh (January 12, 2023). "JPMorgan shutters website it paid $175 million for, accuses founder of inventing millions of accounts". CNBC. Archived from the original on January 20, 2023. Retrieved January 20, 2023.
  12. Feeley, Jef (February 27, 2023). "JPMorgan Is Scapegoating Her With Its Fraud Suit, Frank Founder Says". Bloomberg News.
  13. Long, Katherine; Newsham, Jack (April 4, 2023). "Frank founder Charlie Javice, who allegedly defrauded JPMorgan out of $175 million, hit with federal charges". Business Insider. Archived from the original on April 4, 2023. Retrieved April 4, 2023.
  14. Levine, Alexandra S.; Martin, Iain (April 4, 2023). "SEC And DOJ Charge Frank Founder Charlie Javice With Fraud". Forbes. Archived from the original on April 4, 2023. Retrieved April 4, 2023.
  15. Neumeister, Larry (April 4, 2023). "Student aid startup founder arrested on fraud charges". Associated Press. Archived from the original on April 5, 2023. Retrieved April 5, 2023.
  16. Van Voris, Bob; Dolmetsch, Chris (April 4, 2023). "Frank Founder Javice, Who Says JPMorgan Scapegoated Her, Is Charged With Fraud". Bloomberg News. Archived from the original on 2023-04-04. Retrieved 2023-04-05.
  17. "99. Charlie Javice". Fast Company. Archived from the original on 2023-04-05. Retrieved 2023-04-05.
  18. "Charlie Javice". Forbes. Archived from the original on 2023-01-20. Retrieved 2023-01-20.
  19. "40 Under 40 - Charlie Javice". March 19, 2019. Archived from the original on January 24, 2023. Retrieved January 24, 2023.
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