JPMorgan Closes Website They Bought For $175 Million After Claiming Founder Faked Over 90% Of Accounts

JPMorgan Chase Frank, the college financial assistance platform for students, was shut down. Bank acquired for $175 million two years ago, and sued founder Charlie Javice after learning that she allegedly fabricated more than 90% of the website’s accounts.

The Reported JPMorgan filed a complaint against Javice for falsely claiming that Frank had created accounts for more than 4.25 millions students to manage their financial aid applications. After test emails were sent out to thousands of people claiming to be customers, the bank confirmed that 4 million accounts were fake. However, only 28% of those users were able to open the emails. The bank reported that slightly more than 1% of all the emails sent were opened, which is far below the 30% average.

Javice was allowed to choose between the two options in the lawsuit. “revealing the truth about her startup” Or “lying to inflate Frank’s value” She was a part of every interaction with JPMorgan. “Javice chose each time to lie, and the evidence shows that time and again she layered fraud upon fraud,” The bank was closed.

After the $175 million acquisition in 2021, Javice became an employee at JPMorgan. Javice was able to negotiate a $20 million retention bonus as part of her employment contract.

Javice had filed suit against JPMorgan before they filed the complaint. She claimed she was owed millions of Dollars for expenses she incurred in an internal investigation that began last Spring. Report From the Wall Street Journal. Javice’s attorney Alex Spiro told the outlet that JPMorgan had filed the lawsuit. “nothing but a cover.” He claimed that the bank “rushed to acquire” The company was later founded. “they couldn’t work around existing student privacy laws, committed misconduct and then tried to retrade the deal.”

The Website Frank currently believes that the service does not exist. “no longer available.”

JPMorgan claimed Javice refused to give the company a list of customers because of his personal reasons. “privacy concerns.” When analysts insisted, she and Olivier Amar, another executive at Frank, allegedly approached the company’s director of engineering and asked him to create fake customers using computer algorithms. Javice and Amar paid a data scientist to create millions upon millions of customer profiles. The email addresses and birthdays were to be provided to JPMorgan after the engineer refused to take part in the scheme.

Javice, who was especially concerned about the email addresses, asked the professor whether they would. “look real with an eye check.”

Frank was founded by Javice in 2017 and has since earned an a Spot Forbes 30 Under 30 list was published two years later. According to a report, Apollo Global Management CEO Marc Rowan as well as Chegg, an education technology company, were other investors in the company. Press release JPMorgan.

A glowing Profile of Javice published by Forbes noted the entrepreneur’s selfless desire to help students attain higher education. She stated that she “sounds like an eager data analyst when she talks about the matching problem and how it triggers other issues of equity and access.”

After users filed for bankruptcy, FTX, the cryptocurrency trading platform created by Sam Bankman Fried, is now facing legal action Learned Their deposits were mixed with Alameda Research which was a trading company also owned by the young entrepreneur. Bankman-Fried, his associates also did the same. Received After giving millions of dollars to various outlets, they have gushing profiles in mainstream media. Self-described: “effective altruist,” Later, Bankman-Fried admitted that his generosity was a ploy for trust. “woke westerners.”