Title: Charlie Javice Sentenced to Over Seven Years for Fraud

Charlie Javice, the founder of the financial aid startup Frank, was sentenced to more than seven years in prison for defrauding JPMorgan Chase. The sentencing took place on Monday in Manhattan federal court. U.S. District Judge Alvin Hellerstein presided over the hearing, where Javice, 33, was convicted in March on multiple counts, including bank fraud and conspiracy.

Javice was found guilty of misleading JPMorgan into purchasing her company for $175 million by inflating the number of customers Frank had. Prosecutors stated that she falsely claimed Frank served 4.25 million customers, while the actual figure was closer to 300,000. Judge Hellerstein described her actions as a “large fraud” that deceived the bank in the summer of 2021.

During the hearing, the judge acknowledged Javice's charitable efforts, which included organizing soup kitchens and creating career programs for formerly incarcerated women. However, he emphasized the severity of her fraudulent actions. Prosecutors had sought a 12-year sentence, arguing that Javice's greed drove her to lie about her company’s success. They highlighted a text message from Javice in which she criticized the lengthy prison sentence given to Elizabeth Holmes, the founder of Theranos.

Defense attorneys argued for a shorter sentence, claiming that Javice's actions were a lapse in judgment rather than a calculated crime. They pointed out that she had faced significant public scrutiny and reputational damage since the fraud came to light. Her lawyer, Ronald Sullivan, compared her situation to that of Holmes, asserting that Javice's company was legitimate and functional, unlike Holmes's.

In court, Javice expressed remorse for her actions, stating, "I made a choice that I will spend my entire life regretting." She apologized to those affected by her actions, including JPMorgan shareholders and her family. Javice has been free on a $2 million bail since her arrest in 2023.

Javice founded Frank in 2017, aiming to simplify the financial aid application process for students. The startup gained recognition and was featured on Forbes' "30 Under 30" list in 2019. However, after JPMorgan acquired Frank in September 2021, the bank discovered discrepancies in the customer data provided by Javice, leading to the fraud investigation.

Javice's co-defendant, Olivier Amar, who served as Frank's chief growth officer, was also convicted on similar charges. His sentencing is scheduled for October 20. Prosecutors have emphasized the need for a strong message against fraud in startup acquisitions, stating that such actions will be punished accordingly. They noted an increasing trend of startup founders engaging in fraudulent practices to attract investors and buyers.