Charlie Javice, the creator of student startup Frank, received an 85-month prison sentence for committing fraud against JPMorgan Chase & Co during the bank’s $175 million acquisition of the company.
Federal Judge Alvin Hellerstein issued the verdict in Manhattan’s federal court on Monday. The prosecutors had sought a 12-year prison term for Javice, who is 33 years old, but the judge took into account favorable character testimonies.
Hellerstein told Javice that she was a good person but had made a mistake that required punishment, including a loss of $22.4 million in addition to a prison sentence.
A New York jury found Javice guilty in March for deceiving the largest bank in the country by lying and manipulating user data. She misled the bank into thinking her website had over 4.25 million users, when in reality it had less than 300 thousand.
Founder urges repentance, while supporters insist on severe punishment.
Javice expressed heartfelt remorse and asked for forgiveness, stating that she would not repeat the same mistakes for any reason, even if given the chance. Her family in the front row of the court was also moved to tears during her speech.
Prosecutors requested a severe punishment for the crime known as “discarded fraud,” committed to making JPMorgan pay more than the company was worth in the September 2021 agreement. Javice’s attorneys proposed a penalty of around 18 months, arguing that their client’s actions were a mistake in judgment and that the loss was not significant for a bank the size of JPMorgan.
- Business operations
- Business operations
- United States of America
- JPMorgan
