How a startup CEO was accused of $175M fraud while denying she made up her success
Criminal fraud charges were unsealed this week against Charlie Javice, formerly CEO of the student loan assistance platform Frank. When JPMorgan Chase announced two years ago that it would purchase Frank, a startup college financial planning company for students, the global banking giant said that by acquiring the apparently popular platform for $175 million it hoped to strengthen its relationship with millions of young people. But JPMorgan and federal authorities now believe there was a big problem: Many of the millions of students said to be using Frank never existed. The Department of Justice filed criminal fraud charges, which were unsealed Tuesday, against Javice, Frank's founder and former CEO, alleging she "engaged in a brazen scheme" when she sold her company to JPMorgan Chase in 2021. The Securities and Exchange Commission separately announced its own fraud complaint against Javice on Tuesday, seeking a variety of punishments including civil penalties and a ban...