“Frank founder criminally charged with fraud over $175 million JPMorgan deal”
April 5, 2023
“The Justice Department on Tuesday criminally charged Charlie Javice, founder of college financial planning platform Frank, with defrauding JPMorgan Chase
out of $175 million.
Javice, 31, is accused of “falsely and dramatically” inflating the number of customers Frank actually had in a scheme to “fraudulently induce” the bank to acquire the startup in 2021, federal prosecutors in Manhattan said. She stood to gain more than $45 million from the alleged deception, they added.
The one-time rising tech star — who was once named as one of Forbes’ 30 Under 30 — was arrested Monday night in New Jersey and is expected in Manhattan federal court Tuesday afternoon…”
https://www.cnbc.com/2023/04/04/frank-founder-charged-with-fraud-over-175-million-jpmorgan-deal.html
Is the bank so stupid they did not ask for receipts? Also if they were going to buy the company they should have also had access to any user credit card information — to check to see if the costumers were real. This should have never been a issue to begin with.