Florida Woman Faces Trial for Alleged JPMorgan Fraud
A Florida businesswoman is facing criminal charges for allegedly defrauding JPMorgan Chase & Co. in a $175 million buyout deal.
Prosecutors allege that Charlie Javice, the founder of Frank, lied about her company's customer base to secure the deal. Assistant U.S. Attorney Rushmi Bhaskaran claimed that Javice inflated Frank's user count to over four million, when in reality it had only around 400,000 clients.
Javice's attorney, Jose Baez, defended his client, blaming the criminal investigation on JPMorgan's "buyer's remorse." He asserted that the bank cancelled the deal and sought fraud allegations after government regulations changed.
31-year-old Javice was arrested in April 2023 and charged with conspiracy, wire, and bank fraud. Prosecutors estimate that Javice could have earned $45 million from the alleged fraud.
According to Bhaskaran, JPMorgan requested proof of Frank's customer base shortly before the deal closed. Javice then allegedly purchased data on four million individuals to inflate her company's user count.
However, Baez maintained that Javice acted honestly and was hired by JPMorgan to become the "face of students" for the bank. He argued that JPMorgan rushed into the deal to acquire Frank's access to a lucrative youth market.
"They took a gamble and lost, and now they want to destroy a life for it," said Baez.
Prosecutors objected to Baez's repeated attacks on the bank during his opening statement. Judge Alvin K. Hellerstein reminded jurors that the focus of the trial was on whether Javice misrepresented her company.
A JPMorgan spokesperson declined to comment on the case.