Entrepreneur and founder of tech startup Frank Charlie Javice was convicted on March 28, 2025 for defrauding JPMorgan Chase – one of the world’s largest banks – out of $175 million in July 2021. She, along with her co-defendant Oliver Amar, who was Chief Growth Officer at Frank, were convicted on all four counts they faced: bank fraud, conspiracy, securities fraud, and wire fraud.
Javice founded Frank – an online tool for helping US college students apply for financial aid – in 2016. The company was acquired by JPMorgan Chase in September 2021 for $175 million after Javice and Amar had exaggerated their customer base over ten-fold. By greatly inflating her company’s user data, she was able to convince the banking giant to go ahead with the acquisition.
Ahead of Javice’s arrest, evidence emerged of her enlisting the help of a data scientist to fraudulently alter Frank’s user data, allowing her to claim that the platform had over four-million users when the real number was approximately 300,000. The deception was revealed when JPMorgan Chase tried to engage with Frank’s purported user base only to discover the enormous discrepancy. Frank itself was declared defunct by its purchasers in January 2023.
An oversight in due diligence?
Cases like these highlight the urgent need for a robust due diligence process, especially during mergers and acquisitions. This latest case in particular demonstrates that no organization – not even one of the biggest banks in the world – are immune from major fraud schemes, in this case at the hands of a minor tech startup.
However, while Javice’s case was clearly one of fraudulent intent, it’s also a cautionary tale for honest fintechs. With investors and major multinationals rapidly buying up innovative fintech startups, it has never been more important to prioritize transparency and integrity. Specifically, all business metrics and user data must be clearly vetted under a robust circle of accountability ahead of negotiations. Any misrepresentation – whether intentional or not – can lead to reputational damage and severe legal consequences.
Nonetheless, mitigating such risks isn’t just a people challenge – it’s also a technical one. While ethical leadership is, of course, crucial, fintechs must establish strong internal controls and auditing processes to maintain data integrity and safeguard themselves from fraudulent activities – whether they come from outside or within. Engaging independent third parties to carry out evaluations and uncover any potential discrepancies is also highly advisable, since it provides demonstrable proof of your efforts. This also makes companies far more attractive to potential investors – who themselves are becoming increasing risk-adverse.