Charlie Javice

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Charlie Javice
Charlie Javice, - via the Foreign Press Centre.
Charlie Javice, - via the Foreign Press Centre.
Born born in 1992 or 1993 >
Citizenship American
Education French-American School of New York
Alma mater Wharton School of the University of Pennsylvania (2013)

Charlie Javice is the founder and former CEO of Frank, a student financial aid application assistance company.[1] In January 2023, she was accused of fraud relating to the sale of her company to JPMorgan Chase for $175 million.[2]

Biography

Early life and education

Javice grew up in Westchester County, New York.[3] Her father worked at a hedge fund while her mother is a life coach and former teacher. Her brother, a year younger, is chief digital officer of Popeyes.[4] Javice attended the French-American School of New York, a private school that provides education from Nursery to the 12th grade.

In 2013, Javice graduated from the Wharton School of the University of Pennsylvania after three years with a bachelor's degree in finance and legal studies.[5] As a freshman at Wharton, she founded PoverUp, an online platform to help students learn more about starting micro-finance clubs. During her sophomore year, she became a member of the Board of Overseers for the University of Pennsylvania Hillel organization, associated with Hillel International.[6] She continued in this capacity until 2015. Javice is Jewish.

Career

In 2016, Javice founded Frank, which assists student borrowers in obtaining loans and financial aid.

In 2017, the United States Department of Education accused Frank of potentially misleading customers to believe that it was affiliated with the U.S. government, forcing the company to change its website. Frank settled with the Department of Education in 2018.[7]

In 2018, she was sued by Adi Omesy, a co-founder of Frank, over wage theft in Israel.[8] In 2021, she was ordered to pay $35,000.[3]

In September 2021, she sold the company to JPMorgan Chase for $175 million and was appointed managing director at JPMorgan, overseeing student-focused products at Chase. She was suspended in September 2022 following a lawsuit by her employer, and was terminated for cause in November 2022.[1]

Lawsuit and criminal charges

In 2022, JPMorgan filed a lawsuit for fraud claiming that the data reported by Frank was largely a fabrication, and alleges that Javice paid a data science professor $18,000 for a list of more than four million fake student names to convince JPMorgan to purchase Frank.[9][10] Javice countersued JPMorgan claiming that she was being scapegoated for their own faulty due diligence.[11] On April 4, 2023, federal prosecutors in Manhattan charged Javice with wire fraud affecting a financial institution, securities fraud, bank fraud and conspiracy.[12] The same day, she was also charged with fraud by the U.S. Securities and Exchange Commission.[13] She was released on a two million dollar bond, on condition that she surrender her passports and restrict her travel to New York City and southern Florida, and agreeing not to contact witnesses who are involved in the case.[14][15]

Awards and recognition

Personal life

Javice lives in Miami, where she purchased a condominium for $1.4 million.[3]

References

  1. ↑ 1.0 1.1 Alexandra S. Levine, Iain Levine (2023-02-27). "JP Morgan Is Still Cleaning Up Its 'Disastrous' $175M Frank Acquisition". Forbes magazine. https://www.forbes.com/sites/alexandralevine/2023/02/27/jp-morgan-charlie-javice-frank. 
  2. ↑ 2.0 2.1 Lieber, Ron (January 21, 2023). "How Charlie Javice Got JPMorgan to Pay $175 Million for … What Exactly?". The New York Times. https://www.nytimes.com/2023/01/21/business/jpmorgan-chase-charlie-javice-fraud.html. 
  3. ↑ 3.0 3.1 3.2 Levine, Alexandra S.; Martin, Iain (January 19, 2023). "'Fake It 'Til You Make It': Meet Charlie Javice, The Startup Founder Who Fooled JP Morgan". Forbes. https://www.forbes.com/sites/alexandralevine/2023/01/19/charlie-javice-jp-morgan-frank-lawsuit/. 
  4. ↑ "Charlie and Elie Javice". American City Business Journals. December 30, 2011. https://www.bizjournals.com/philadelphia/print-edition/2011/12/30/charlie-and-elie-javice.html. 
  5. ↑ Commuri, Meheer (January 16, 2023). "Wharton graduate, startup founder Charlie Javice sued by JP Morgan". The Daily Pennsylvanian. https://www.thedp.com/article/2023/01/charlie-javice-wharton-graduate-frank-sued-jp-morgan. 
  6. ↑ Drake, Diane (2011-07-20). "Generation Microfinance: Charlie Javice Believes in the Power of Students to Alleviate Poverty". https://globalyouth.wharton.upenn.edu/articles/videos/generation-microfinance-charlie-javice-believes-in-the-power-of-students-to-alleviate-poverty/. 
  7. ↑ Long, Katherine (January 12, 2023). "Frank start-up founder Charlie Javice, accused of defrauding JPMorgan with fake users, previously settled with Department of Education over allegations she misled students". Business Insider. https://www.businessinsider.com/charlie-javice-frank-jpmorgan-settlement-department-education-2018-2023-1. 
  8. ↑ Siegal, Tobias (January 23, 2023). "Young entrepreneur accused of conning America's largest bank out of $175m". The Times of Israel. https://www.timesofisrael.com/young-jewish-entrepreneur-accused-of-conning-americas-largest-bank/. 
  9. ↑ Picchi, Aimee (January 13, 2023). "JPMorgan paid $175 million for a hot startup. Now it claims its CEO faked four million clients.". CBS News. https://www.cbsnews.com/news/charlie-javice-frank-jpmorgan-chase-lawsuit-alleges-4-million-fake-customers/. 
  10. ↑ Son, Hugh (January 12, 2023). "JPMorgan shutters website it paid $175 million for, accuses founder of inventing millions of accounts". CNBC. https://www.cnbc.com/2023/01/12/jpmorgan-chase-shutters-student-financial-aid-website-frank.html. 
  11. ↑ Feeley, Jef (February 27, 2023). "JPMorgan Is Scapegoating Her With Its Fraud Suit, Frank Founder Says". Bloomberg News. https://www.bloomberg.com/news/articles/2023-02-27/jpmorgan-s-frank-fraud-suit-is-massive-cya-founder-claims. 
  12. ↑ Long, Katherine; Newsham, Jack (April 4, 2023). "Frank founder Charlie Javice, who allegedly defrauded JPMorgan out of $175 million, hit with federal charges". Business Insider. https://www.businessinsider.com/charlie-javice-frank-criminal-charges-financial-fraud-jpmorgan-chase-2023-1. 
  13. ↑ Levine, Alexandra S.; Martin, Iain (April 4, 2023). "SEC And DOJ Charge Frank Founder Charlie Javice With Fraud". Forbes. https://www.forbes.com/sites/alexandralevine/2023/04/04/sec-doj-sdny-charge-frank-founder-charlie-javice-arrested/. 
  14. ↑ Neumeister, Larry (April 4, 2023). "Student aid startup founder arrested on fraud charges". Associated Press. https://apnews.com/article/frank-javice-fraud-schools-f6058d4e84354456af44714f3828d592. 
  15. ↑ Van Voris, Bob; Dolmetsch, Chris (April 4, 2023). "Frank Founder Javice, Who Says JPMorgan Scapegoated Her, Is Charged With Fraud". Bloomberg News. https://www.bloomberg.com/news/articles/2023-04-04/frank-founder-javice-sued-by-sec-for-defrauding-jpmorgan. 
  16. ↑ "99. Charlie Javice". Fast Company. https://www.fastcompany.com/3018504/99-charlie-javice. 
  17. ↑ "Charlie Javice". Forbes. https://www.forbes.com/profile/charlie-javice/. 
  18. ↑ "40 Under 40 - Charlie Javice". March 19, 2019. https://www.crainsnewyork.com/awards/40-under-40-2019-charlie-javice. 
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