• News
  • Film and TV
  • Music
  • Tech
  • Features
  • Celebrity
  • Politics
  • Weird
  • Community
  • Advertise
  • Terms
  • Privacy & Cookies
  • LADbible Group
  • LADbible
  • SPORTbible
  • GAMINGbible
  • Tyla
  • UNILAD Tech
  • FOODbible
  • License Our Content
  • About Us & Contact
  • Jobs
  • Latest
  • Topics A-Z
  • Authors
Facebook
Instagram
X
Threads
TikTok
YouTube
Submit Your Content
Millennial app founder arrested on fraud charges after selling app for $175 million

Home> News

Published 20:52 5 Apr 2023 GMT+1

Millennial app founder arrested on fraud charges after selling app for $175 million

The founder of an app for students has been arrested on fraud charges after selling it for $175 million.

Callum Jones

Callum Jones

The founder of a millenial app has been arrested on fraud charges after selling the app for a whopping $175 million.

On Monday evening (3 April), Charlie Javice - the founder of the student financial assistance startup Frank - was arrested and charged by the US Securities and Exchange Commission for allegedly defrauding JPMorgan Chase in the massive buyout of her company.

In a complaint filed to a New York District Court, Janice apparently misled JPMorgan Chase into thinking that Frank had 4.25 million users, which would obviously make it incredibly popular.

Advert

However, in reality, Frank reportedly had fewer than 300,000 users, with JPMorgan Chase allegedly paying the price for an app more than ten times the size of that.

Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said in a statement: "Ms. Javice engaged in an old school fraud.

JP Morgan Chase were apparently misled into how many users Frank had.
Nathaniel Noir / Alamy Stock Photo

"She lied about Frank’s success in helping millions of students navigate the college financial aid process by making up data to support her claims, and then used that fake information to induce JPMC to enter into a $175 million transaction."

Advert

Meanwhile, Manhattan US Attorney Damian Williams added that Javice engaged in a 'brazen scheme to defraud' JPMorgan Chase.

"She lied directly to JPMC and fabricated data to support those lies — all in order to make over $45 million from the sale of her company," Williams stated.

Back in December, JPMorgan Chase filed a lawsuit to a Delaware court claiming that Javice lied about “Frank’s success, Frank’s size, and the depth of Frank’s market penetration."

However, Javice denied the claims and ended up counting suing in February, according to The Wall Street Journal.

Advert

Following her arrest, Javice appeared in court on Tuesday (4 April) after she was charged with with one count of conspiracy to commit banking and wire fraud, one count of wire fraud, one count of bank fraud and one count of securities fraud.

Charlie Javice appeared in court on Tuesday.
LinkedIn/Charlie J

Following proceedings, the 31-year-old was released on a $2 million bond and could face a very long time in prison if she is found guilty.

In fact, if Javice is convicted, she could face decades behind bars.

Advert

The Frank founder, who holds both US and French citizenship, has surrendered both of her passports as part of an agreement with prosecutors, according to Bloomberg.

Javice is also limited to travelling between New York City and South Florida for the duration of her bail period.

Featured Image Credit: LinkedIn/Charlie J / Alamy / Craig Stennett

Topics: US News, Crime

Callum Jones
Callum Jones

Advert

Advert

Advert

Choose your content:

2 mins ago
10 hours ago
11 hours ago
  • 2 mins ago

    Iran's foreign minister gave extremely telling response to Trump's claim cease fire deal is done

    There's been ongoing back-and-forth between Iran, Israel and the US for some time

    News
  • 10 hours ago

    Donald Trump issues surprising statement after Iran strikes US air base

    The president has issued a statement after Iran fired missiles at US air bases in Qatar and Iraq

    News
  • 11 hours ago

    'Lion whisperer' left fighting for his life after attack from same cat that killed his colleague last year

    Oleg Zubkov, the owner of the park, is said to be in a critical condition in hospital

    News
  • 11 hours ago

    Single mother, 48, diagnosed with Early-Onset Alzheimer's disease reveals first symptoms she noticed

    Rebecca Luna has also launched a fundraiser, knowing her condition will worsen

    News
  • Sean Kingston and his mom could face decades in jail amid fraud charges
  • Ugly Betty star Eric Mabius arrested on battery charges as mugshot is released
  • Ben & Jerry's co-founder Ben arrested after confronting RFK Jr. during Senate in shocking footage
  • Man arrested for murder that was initially blamed on a bear in fake 911 call