Charlie Javice was once hailed as a young innovator, earning a coveted spot on Forbes’ “30 Under 30” list for her work in financial technology. Her startup, Frank, was celebrated as a groundbreaking platform that simplified the daunting process of applying for financial aid for colleges—a mission that resonated with students and parents across the nation. Once, she was seen as the epitome of youthful ambition and determination. Now, the entrepreneur’s journey has taken a turn.
Federal prosecutors allege that Javice misled JPMorgan Chase during the $175 million acquisition of Frank by tremendously inflating the company’s user data. According to the government, she fabricated a database of millions of fake student accounts to convince JPMorgan that Frank was far more successful than it actually was. In doing so, it contended, she convinced the bank to pay far more than the company was worth. Internal communications later revealed that Javice had even hired data scientist Adam Kapelner to create the falsified list, complete with four million fake names, birthdays, and other personal details. According to Bloomberg, Kapelner admitted that “Javice never told him why she needed the ‘synthetic data’ but stressed that she needed it fast and was willing to pay a premium for it.”
Javice no longer seemed like the confident entrepreneur who graced magazine covers. When she appeared in court for sentencing, she directly stated to the judge, “At my core, I still believe I am a good person.” She also expressed remorse, assuring the court that “whatever sentence is imposed, I will accept with dignity and humility” and conceding that she “made a decision that [she] will spend the rest of her life regretting.”
Judge Alvin Hellerstein spoke sternly, but with empathy, telling her, “You are a good person who has done bad things.” He insisted, however, that her prior reputation could not excuse the conduct: “My job is to sentence people not because they are bad, but because they have done something bad.” The judge also criticized JPMorgan’s role, pointing out that its failure to be diligent had part in the controversy—but he emphasized the core point that “fraud remains a fraud,” according to MSN.
From the prosecution’s side, the US Attorney’s Office framed the case as a bold, carefully planned scheme. In a press release, the government’s lead attorney, Amanda Houle, declared that “Javice … repeatedly [lied] about the success of her startup company … For that, Javice has been sentenced to 85 months’ imprisonment and ordered to pay over $300,000,000.”
Meanwhile, Javice’s defense sought leniency. Her attorneys argued that she was being treated as a scapegoat—“punished for her conduct and not [for] JPMorgan’s stupidity,” they contended, according to ABC Eyewitness News.
The judge ultimately sentenced Javice to more than seven years of prison, along with a forfeiture order exceeding $22 million and restitution obligations of $288 million. However, he made an exception to let her remain free on bail while her appeal proceeds.
