Charlie Javice, Frank Founder, Faces Fraud Charges and Ban from Public Companies
Charlie Javice, the founder of college-aid firm Frank, faces serious charges. The SEC seeks civil penalties and a permanent ban from serving as a public company officer. The Justice Department has charged her with multiple fraud counts.
Javice stands accused of misrepresenting Frank's user base to secure a $175 million deal with JPMorgan. The bank discovered the deception when only 1.1% of marketing materials sent to the larger user list were opened. Javice initially asked Frank's director of engineering to create a synthetic data set to inflate user numbers, but he refused. Later, Javice and a second executive, Olivier Amar, hired a data science professor to create fake student accounts.
Javice was released on a $2 million bond, but she must observe a curfew, surrender her passports, and limit her travel to New York City and South Florida. U.S. Attorney Damian Williams has stated that Javice's lies will catch up to her, and the DOJ will hold her accountable for prioritising greed over the law.
Javice's legal troubles began when JPMorgan uncovered her fraudulent activities. The SEC and DOJ have since taken action, charging her with multiple offences. Her future in the business world remains uncertain, with the SEC seeking to permanently bar her from serving as a public company officer.
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