JPMorgan Chase says it was scammed by a 30-year-old entrepreneur who lied in regards to the number of scholars using Frank – a financial planning site that the mega-bank bought for $175 million.
JPMorgan Chase claims Charlie Javice who appeared on the show Forbes’ “30 Under 30” list. in finance for 2019, led the bank to consider that Frank “was an organization deeply involved in a segment of the school age market with 4.265 million customers,” in line with the lawsuit filed December 22, we read.
“As an alternative, he got a business with lower than 300,000 customers,” in line with a blast lawsuit filed in federal court in Delaware.
Frank’s backers include Mark Rowan, the billionaire CEO of Apollo Global Management, who has been listed as a significant investor in the positioning, in line with Crunchbase.
The lawsuit alleges that Javice and one other Frank executive, Olivier Amar, hired an information analyst who was paid $18,000 to fabricate a listing of pretend names and addresses that passed off as customers. The researcher used computer-generated data to create a fake user database that included information equivalent to clients’ names, dates of birth and the universities they attended, the lawsuit claims.
![Charlie Javice, 30, was sued by JPMorgan Chase for allegedly lying about the number of customers registered on her Frank site before it was acquired by the bank in 2021.](https://nypost.com/wp-content/uploads/sites/2/2023/01/Charlie-J-63.jpg?w=1024)
Javice and Amar, who served as chief executive of growth, allegedly received $26 million because of this of the bank’s takeover of Frank – money that JPMorgan said “wouldn’t have received had it not been for his or her misconduct.”
Frank advertised itself as a site to assist prospective students fill out federal financial aid forms.
JPMorgan claimed that when Javice approached the bank in the summertime of 2021 a couple of potential acquisition, she greatly overestimated the number of shoppers who used the positioning.
![Javice and another Frank executive, Olivier Amar, allegedly paid a data scientist $18,000 to fabricate a list of fake customers.](https://nypost.com/wp-content/uploads/sites/2/2023/01/Olivier-Amar-69.jpg?w=1024)
“As an alternative of unveiling the reality, Javice withdrew first [JPMorgan’s] request, arguing that it couldn’t share its customer list as a result of privacy concerns,” the bank said in its legal filing.
“After [JPMorgan] insisted, Javice decided to give you several million Frank’s customer accounts from scratch.”
Days after JPMorgan filed the lawsuit, Javice countered, claiming the bank owed her tens of millions of dollars in legal costs that had gathered from an internal investigation last spring.
Javice says she was fired by the investment bank as head of student solutions in November. She claims she was fired by JPMorgan so he could get around a $20 million bonus she owed her.
Her attorney, Alex Spiro, claimed that JPMorgan’s lawsuit was “just a canopy up.”
![](https://nypost.com/wp-content/uploads/sites/2/2023/01/frank-logo.jpg?w=1024)
“After JPM unexpectedly acquired Charlie’s rocket company, JPM realized it couldn’t get around existing student privacy laws, committed a misdemeanor, after which tried to sell the deal again,” Spiro said in an email to The Post.
“Charlie blew the whistle after which sued.”
Spiro also represented Elon Musk in his lawsuit alleging that Twitter misrepresented the variety of user accounts on its platform when Musk agreed to purchase the corporate for $44 billion last 12 months.
![Javice deactivated her Twitter account.](https://nypost.com/wp-content/uploads/sites/2/2023/01/Charlie-J-64.jpg?w=1024)
A spokesperson for JPMorgan mocked Spiro’s claims, telling the Post that Javice “was not and will not be a whistleblower.”
“Our legal claims against Ms Javica and Mr Amar are set out in our grievance together with the important thing facts,” the spokesman said.
Javice and Amar deleted their Twitter accounts. They weren’t immediately available for comment.
Within the “40 under 40” profile. by Crain’s Recent York BusinessJavice likened Frank to the coed loan website TurboTax does for Form 1040.
Javice said she was inspired to begin Frank after her experience collecting scholarships, help and family support to attend the celebrated Wharton School on the University of Pennsylvania.