US businesswoman Charlie Javice (L), founding father of Frank, arrives for her sentencing listening to at federal court docket 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 only greater than seven years in jail Monday for defrauding the financial institution by overstating what number of prospects the fintech agency had.
In March, a 12-person jury discovered Javice and her chief development 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 court docket Monday. Standing to handle the decide, Javice stated she felt profound regret for her actions and requested for forgiveness from JPMorgan, workers of the startup, shareholders and buyers.
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 whole life regretting these errors,” Javice stated.
“I am asking with all of my coronary heart for forgiveness,” she stated. “I ask your Honor to mood justice with mercy … I’ll settle for your judgment with dignity and humility.”
Decide Alvin Hellerstein advised Javice her phrases had been “very shifting” and that the best way 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 advised Javice earlier than delivering the 85-month jail sentence. “I do not assume you may be committing different crimes and that you will be devoting your life to service, however others must be deterred.”
Along with jail, Javice was sentenced to a few 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 largest U.S. financial institution by property market its monetary merchandise to college students. Frank was a digital platform that helped college students apply for monetary help. In September 2021, JPMorgan advised 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 prospects; the remainder had been artificial identities created by Javice with the assistance of an information scientist.
Javice was arrested in 2023 on costs 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 tens of millions of customers. When the worker declined, Javice reassured him, in response to testimony given earlier this yr.
“She stated: ‘Don’t be concerned. I do not wish to find yourself in an orange jumpsuit,'” the worker testified.
Not Theranos
A courtroom sketch of Charlie Javice at her sentencing at court docket on Sept. 29, 2025 in New York Metropolis.
Elizabeth Williams | CNBC
On Monday, Javice’s lawyer Ronald Sullivan argued for a lighter sentence for his shopper, making the case that Frank helped prospects. He contrasted the case towards that of Elizabeth Holmes of Theranos infamy, whose fraud he stated had “harmful medical penalties,” and who was sentenced to 135 months in jail.
“Ms. Javice’s sentence needs to be nowhere close to Elizabeth Holmes,'” Sullivan advised 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 against the law scene,” Fergenson stated.
The episode was embarrassing for JPMorgan, which was regarded as one of the vital subtle of company acquirers. Involved about threats from fintech and large tech corporations, the financial institution, led by CEO Jamie Dimon, went on a purchasing spree of smaller fintech corporations beginning in 2020.
However JPMorgan, desirous to edge out rivals bidding for the startup, failed to verify that Frank really had tens of millions of shoppers earlier than shelling out $175 million for the corporate.