Founder of Frank Charlie Javice has increased 3.8 million fake accounts and repeatedly lied to JPMORGAN to close the $ 175 million contract, says the plaintiff
The young executive director of the startup whichclaimed to have helpedMillions of students at college are applied for financial assistance to a “brave fraud” to sell the company Jpmorgan chase & Co. For $ 175 million, a prosecutor said in a final debate in New York on Wednesday.
Charlie Javicethat appeared on Forbes list “30 Under 30” in 2019He is charged with dramatic exaggeration of his company’s user base, which operated under the name Frank. She and another former top -notch executive face conspiracy costs and fraud.
Jagava’s lawyer, Jose Baez, invited the jury to release his 32-year-old client, calling the case against her “incredibly flawed”. He quoted the lack of evidence.
As he spoke, Javice smiled from time to time and turned the chair to face the jury.
Frank was created to simplify the fulfillment of free application for federal student assistance, the complex government form used by students for financial assistance for college or graduate school.
Javica founded the company when it was in the mid-1920s and was the subject of numerous media profiles that praised it to build a system that would help financially needed students to move in the crowds and requests for acceptability to get help in tuition.
The company once seemed like a pioneer among students who are engaged in college students who encourage banks to open invoices for checks or credit cards in the hope that they will become lifelong customers.
Access to Frank’s client’s list is one of the things that JPMORGAN Chase was after that when he began talking about the purchase of the company 2021.
At the time, Javica claimed that Frank had over 4.25 million clients. In reality, he had about 400,000, said US lawyer Nicholas Chiuchiolo jury.
Quoting E -Stimin, text messages and other evidence, Chiuchiolo said that Javice had been lied to JPMORGAN in the summer of 2021 in the summer of 2021 to provide a bounce that would earn $ 45 million.
When JPMORGAN Chase sought to check the client’s list, Javice first addressed the head of her company, asking if she could produce “synthetic information” to show that the company had over 4 million customers, the prosecutor said.
But the employee refused, saying that “he will do nothing illegal,” Chiuchiolo said.
Javica eventually hired an external data scientist for $ 105,000 to create a set of data displaying over 4.2 million students, prosecutors said.
Javice did not testify during the five -week trial. Resident Miami Beach, Floridaarrested in April 2023And it is free with bail. The jury was expected to start discussions on Thursday.
This story is originally shown on Fortune.com
