Charlie Javis, the founder of Frank, a quasi-startup in the fintech industry, was sentenced to seven years in prison this week.
Charlie Javis, the founder of Frank, a quasi-startup in the fintech industry, was sentenced to seven years in prison this week.
According to ABC News, she received this sentence for a $175 million fraud that affected financial giant JPMorgan Chase, which bought the fake startup.
The publication reports that before the sentencing, Javis stood up to express remorse and apologize.
«At 28, I did something that went against my upbringing. I made a choice that I will regret for the rest of my life. I failed to be a source of pride for my family,» she said, tearfully apologizing to her mother and father.
dev.ua wrote about the Javis case back in 2023. Then it became known that JPMorgan Chase was suing the founder of the high-profile fintech startup Frank, which it acquired for $175 million in 2021. The reason for this was that Javis falsified a huge list of her startup’s users in order to tempt the financial giant to buy it.
Frank, the company founded by Javis in 2016, offered software aimed at improving the student loan application process for young Americans seeking financial aid.
By the way, the co-founder of the pseudo-startup Theranos, which defrauded investors of billions, also ended up in prison in 2023. Elizabeth Holmes was supposed to spend 11 years in prison for her crime.
