Startup Founder Charlie Javice Sentenced to Seven Years for Fraud

Thu Dec 18 2025 19:29:21 GMT+0200 (Eastern European Standard Time)

Charlie Javice, founder of the financial aid application startup Frank, has been sentenced to over seven years in prison for defrauding JPMorgan Chase of $175 million by lying about the number of customers her company served.

Charlie Javice, a 33-year-old entrepreneur, was sentenced to over seven years in prison for defrauding JPMorgan Chase out of $175 million. Her company, Frank, falsely claimed a client base of over 4 million students, when, in reality, there were fewer than 300,000. Despite arguing that her company provided real services unlike others in the tech space, including Elizabeth Holmes of Theranos, Judge Alvin K. Hellerstein highlighted the scale of the fraud and the need for accountability in Silicon Valley. Javice expressed remorse in court, stating she would regret her actions for the rest of her life.

NEW YORK (AP) — Charlie Javice, the founder of a startup aimed at simplifying financial aid applications for students, was sentenced to more than seven years in prison for defrauding JPMorgan Chase of $175 million. The Manhattan federal court ruling, delivered by Judge Alvin K. Hellerstein, comes after Javice's March conviction for orchestrating a significant fraud in which she overstated her company Frank's customer base from 4 million to less than 300,000.

During the proceedings, Judge Hellerstein condemned Javice for her elaborate fabrications that deceived the banking giant during its acquisition of Frank in 2021. He acknowledged her early charitable efforts, including assisting at soup kitchens from a young age, yet emphasized the severity of her fraudulent actions.

Javice's defense attorney, Ronald Sullivan, sought comparisons with Theranos founder Elizabeth Holmes, arguing that Javice's company truly provided effective solutions unlike Holmes’ defunct enterprise. Nevertheless, prosecutors insisted that Javice’s greed drove her to lie about her company to cash in on a $29 million payout.

In her emotional address to the court, Javice expressed deep regret, acknowledging that her actions transformed something once viewed positively into a notorious scandal. Her journey from a promising entrepreneur to a convicted fraudster reflects the growing scrutiny of startup founders’ integrity in the fast-paced tech environment.

With her conviction, prosecutors aim to underline that fraudulent activities in the startup scene will bear consequences akin to other financial crimes, sending a stark message against deceptive practices in the burgeoning tech sector.