A tech start-up CEO once considered a preeminent American entrepreneur has been arrested and charged with fraud for allegedly lying to J.P. Morgan Chase, the Department of Justice says.
. "This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them, and this Office will hold them accountable for putting their greed above the law."Charlie Javice, of Miami Beach, Fla., leaves Manhattan federal court, April 4, 2023, in New York, after signing a $2-million bond to remain free on charges that she duped J.P. Morgan Chase with fake records to acquire Frank, her student loan assistance startup company, for $175-million.
She is charged with one count of conspiracy to commit bank and wire fraud, one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison. She also faces one count of securities fraud, which carries a maximum sentence of 20 years in prison.
Javice enlisted the help of a data scientist to create a fake database that was used to convince JP Morgan Chase the platform had more than 4.25 million users, according to charging documents. The tech CEO also allegedly purchased real data on 4.25 million college students that she tried to pass off as her user data.
Javice made an initial appearance in court on Tuesday, and she was released on a $2 million bond that restricts her to certain parts of New York and southern Florida.
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