Charlie Javice, the founder of the Student Application Start-up Frank, bought by JPMorgan for $ 175 million, was found guilty of the bank fraud on Friday by considerably inflating the customer count.
After a five -week trial, the jury recognized Javice guilty, agreeing with the allegations of prosecutors that she made the vast majority of the list of Frank’s customers to deceive JPMorgan to acquire her startup.
When JPMorgan bought Frank in 2021, the bank thought that the startup had 4 million customers. The bank discovered that the actual number of customers was only 300,000 when he later sent test marketing emails to alk Users allegedly and around 70% of these messages have rebounded.
Javice would have hired a math teacher to create false customer data, which she submitted to JPMorgan when the bank was planning to buy her business.
Defense lawyers argued that the prosecution was the result of the buyer’s remorse due to a government change in the way financial assistance forms are fulfilled. Javice pleaded not guilty and did not take a stand during the trial.
Javice, who is now 32, could be sentenced to decades in prison. The conviction should take place in August, According to a CNBC report.
Javice founded Frank in 2017 when she was in mid-Vings. In 2019, she was appointed Forbes 30 Under 30 List.
