Ex-Frank CEO sentenced to 7 years for JPMorgan fraud
Charlie Javice, the former CEO of fintech startup Frank, has been sentenced to just over seven years in prison for defrauding JPMorgan Chase.
She was found guilty earlier this year after convincing the bank to buy her company for $175 million by massively inflating its user numbers.
Javice's apology and the case's implications
Javice teamed up with a math professor to create millions of fake customer records and even bought real data from brokers so it would pass JPMorgan's checks.
The scheme fooled the bank at first but was eventually uncovered.
At her sentencing, Javice apologized tearfully and admitted responsibility, but despite pleas for leniency—including letters about her personal struggles—the judge handed down a tough sentence.
The case also spotlighted some serious gaps in how big companies vet startups before buying them.