Charlie Javice, the founder of the startup of the Frank student loan application that was bought by JPMorgan for $ 175 million, was convicted on Friday of defrauding the bank by largely inflate the customer count.
After a five -week trial, the jury found Javice guilty, according to the statements of the prosecutors that manufactured the vast majority of Frank’s list of clients to deceive JPMorgan to acquire his start.
When Jpmorgan bought Frank in 2021, the bank thought that the startup had 4 million customers. The bank discovered that the real client count was only 300,000 when it later sent emails to test marketing to the alleged users of Frank and approximately 70% of those messages were recovered.
Javice supposedly hired a mathematics teacher to create fake customer data, which she presented to JPMorgan when the bank was considering buying her company.
Defensor lawyers argued that the demand was the result of the buyer’s regret due to a government change in the way in which financial aid forms are completed. Javice declared himself innocent and did not take the position during the trial.
Javice, who is now 32 years old, could be sentenced to decades in prison. The sentence is expected to take place in August, According to a CNBC report.
Javice founded Frank in 2017 when he was 20 years old. In 2019, it was named for the Forbes 30 Under 30 list.