Charlie Javice Sentenced to 7 Years in Prison for $175 Million Frank Acquisition Fraud

Liputan6.com, Jakarta Young entrepreneur Charlie Javice, founder of the student financial aid startup Frank, was sentenced to 85 months, or approximately seven years, in prison on Monday, September 29, 2025.

The sentence was handed down by U.S. District Judge Alvin K. Hellerstein in Manhattan federal court, following a major fraud case involving the $175 million acquisition of his company by JPMorgan Chase (JPMC).

In addition to the prison sentence, 31-year-old Javice was also ordered to serve three years of supervised release and pay restitution of more than $300 million.

Prosecutors initially recommended a 12-year prison sentence, but Judge Hellerstein deemed that recommendation too harsh.

The judge said Javice's crimes "required a great deal of duplicity," but that she was "a good person who has done good deeds."

Charlie Javice sobs in court as she’s sentenced to 7 years in prison for swindling JPMorgan out of $175 million: ‘I am no longer a source of pride for my family’ https://t.co/mb1fy0m7qS pic.twitter.com/hMSJMYYrNy

— New York Post (@nypost) September 29, 2025

In 2021, Charlie Javice began seeking potential buyers for Frank, hoping to sell the company to a larger financial institution.

In the process, he repeatedly claimed to banks, including JPMorgan Chase (JPMC), that Frank had 4.25 million active customers or "users."

These claims turned out to be false.

In fact, Frank only had around 300,000 customers, far below the figure he presented.

To support this lie, Javice even hired a data scientist to create fake data and purchased real names and email addresses from commercial data brokers, then presented them as Frank's customer base.

Lured by the claims of a fantastic customer base, JPMC ultimately acquired Frank in September 2021 for $175 million.

This acquisition was expected to expand JPMC's financial services reach to the student segment.

However, after the acquisition was completed, JPMC discovered significant irregularities.

They were unable to contact the majority of Javice's claimed customer base, ultimately revealing that the customer list was the result of data manipulation and falsification.

On April 4, 2023, Charlie Javice and his co-defendant, Olivier Amar, who served as Frank's Chief Growth Officer, were indicted in Manhattan federal court.

They faced four serious charges: securities fraud, wire fraud, bank fraud, and conspiracy.

Javice's trial began in February 2025.

After a six-week jury trial filled with evidence and testimony, Javice and Amar were found guilty on all charges on March 28, 2025.

The legal process occurred again at the verdict hearing on September 29, 2025.

Judge Alvin K. Hellerstein sentenced Javice to 85 months in prison, plus three years of probation.

She was also ordered to pay substantial restitution, exceeding $300 million, as restitution for the fraud.

Fighting back tears at Monday's sentencing hearing, Javice, who is 32, said she wishes she could tell her younger self to take a different path.

"At 28, I did something that runs against the grain of my upbringing and every lesson I once claimed to have learned," she said in the courtroom.

"Not a day goes by that I do not replay my mistakes, searching for meaning," Javice said.

"Not a day passes that I do not feel profound remorse."

Although prosecutors had recommended a 12-year sentence, the judge decided on a slightly lighter, but still significant, sentence.

"I don't think you will be committing any crimes, and I think you will be devoting your life to service," Hellerstein told Javice in the lower Manhattan courtroom.

"But others need to be deterred."

Charlie Javice, born around 1992 or 1993, is an American entrepreneur who founded Frank, a company aimed at assisting students with financial aid applications.

She graduated from the prestigious Wharton School of Business at the University of Pennsylvania.

In 2019, Javice achieved widespread recognition and was named to Forbes magazine's "30 Under 30" list, an achievement that marked her as a promising young star in the financial world.

Her initial reputation was built on Frank's innovation and potential to simplify the financial aid application process.

With a strong educational background and recognition from leading media outlets, Javice was seen as having a bright future in the startup industry.