Charlie Javice who is the former CEO of Frank, a student financial aid application assistance company was arrested on Monday, April 3, 2023, at Newark Airport.
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She was charged with conspiracy to commit bank and wire fraud, wire fraud affecting a financial institution, and bank fraud, after she sold the company to JP Morgan Chase for $175 million.
Javice sold the company to JP Morgan Chase in 2021 after they were duped into believing that Frank had manipulated its user base to 4 million users, meanwhile, it had less than 300,000 users or customers.
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According to the prosecutor, Javice faces decades in prison, after being released on a $2 million personal recognition bond.
“Janice engaged in a brazen scheme to fraud JMPC in the course of $175 million acquisition deal and lied directly to JMPC and fabricated data to support those lies – all in order to make over $45 million from the sale of her company. This arrest should warn entrepreneurs who lie to advance their businesses that lies will catch up to them, and this Office will hold them accountable for putting their greed above the law,” U.S. Attorney Damian Williams said in a statement released on Tuesday, April 4, 2023.
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