US businesswoman Charlie Javice (L), founding father of Frank, arrives for her sentencing listening to at federal courtroom in Manhattan on Sept. 29, 2025, in New York Metropolis.
Timothy A. Clary | AFP | Getty Photographs
Charlie Javice, founding father of a startup acquired by JPMorgan Chase in 2021 for $175 million, was sentenced to simply over seven years in jail Monday for defrauding the financial institution by overstating what number of clients the fintech agency had.
In March, a 12-person jury discovered Javice and her chief progress officer Olivier Amar responsible on three counts of fraud and one depend of conspiracy to commit fraud. Prosecutors had sought a sentence of 12 years.
Javice, 33, cried as she delivered an emotional assertion to the courtroom Monday. Standing to handle the decide, Javice mentioned she felt profound regret for her actions and requested for forgiveness from JPMorgan, workers of the startup, shareholders and traders.
At one level, Javice turned and instantly addressed her household, sitting within the entrance row, to apologize and thank them for what she known as unwavering assist.
“I’ll spend my total life regretting these errors,” Javice mentioned.
“I am asking with all of my coronary heart for forgiveness,” she mentioned. “I ask your Honor to mood justice with mercy … I’ll settle for your judgment with dignity and humility.”
Decide Alvin Hellerstein instructed Javice her phrases have been “very transferring” and that the way in which she’s devoted her life is “extremely commendable,” however that he could not give her the forgiveness she sought.
“I sentence folks not as a result of they’re unhealthy, however as a result of they do unhealthy issues,” Hellerstein instructed Javice earlier than delivering the 85-month jail sentence. “I do not assume you will be committing different crimes and that you will be devoting your life to service, however others should be deterred.”
Along with jail, Javice was sentenced to 3 years of supervision, together with $22.36 million in forfeiture and $287 million in restitution to JPMorgan. She is going to stay out on bail whereas she appeals the ruling.
JPM acquisition
JPMorgan purchased the startup, known as Frank, to assist the most important U.S. financial institution by belongings market its monetary merchandise to college students. Frank was a digital platform that helped college students apply for monetary assist. In September 2021, JPMorgan instructed CNBC in an unique interview on the deal that the fintech agency had served greater than 5 million college students since Javice based it.
However months after the deal closed, JPMorgan found that Frank had fewer than 300,000 actual clients; the remainder have been artificial identities created by Javice with the assistance of a knowledge scientist.
Javice was arrested in 2023 on prices that she defrauded JPMorgan within the deal. Particulars that emerged later confirmed that Frank workers expressed disbelief when Javice directed them to spice up their buyer roster earlier than the acquisition.
The week earlier than promoting her firm to JPMorgan, Javice directed an worker to manufacture hundreds of thousands of customers. When the worker declined, Javice reassured him, in keeping with testimony given earlier this 12 months.
“She mentioned: ‘Don’t be concerned. I do not wish to find yourself in an orange jumpsuit,'” the worker testified.
Not Theranos
On Monday, Javice’s legal professional Ronald Sullivan argued for a lighter sentence for his shopper, making the case that Frank helped clients. He contrasted the case in opposition to that of Elizabeth Holmes of Theranos infamy, whose fraud he mentioned had “harmful medical penalties,” and who was sentenced to 135 months in jail.
“Ms. Javice’s sentence ought to be nowhere close to Elizabeth Holmes,'” Sullivan instructed Decide Hellerstein.
Assistant U.S. Lawyer Micah Fergenson disagreed, arguing that Javice’s crime was fueled by greed.
“JPMorgan did not get a functioning enterprise, they acquired a criminal offense scene,” Fergenson mentioned.
A courtroom sketch of Charlie Javice at her sentencing at courtroom on Sept. 29, 2025 in New York Metropolis.
Elizabeth Williams | CNBC
The episode was embarrassing for JPMorgan, which was considered some of the subtle of company acquirers. Involved about threats from fintech and massive tech companies, the financial institution, led by CEO Jamie Dimon, went on a buying spree of smaller fintech companies beginning in 2020.
However JPMorgan, desperate to edge out rivals bidding for the startup, failed to substantiate that Frank really had hundreds of thousands of consumers earlier than shelling out $175 million for the corporate.