On March 28, 2025, Charlie Javice, the founder of the financial aid startup Frank, was found guilty of defrauding JPMorgan Chase out of $175 million. The verdict came after a five-week trial in New York, and she is now facing the possibility of a lengthy prison sentence.
Founded in 2016 by Javice, Frank aimed to simplify the financial aid application process for students by aiding them with the U.S. government’s Free Application for Federal Student Aid (FAFSA). Prior to launching Frank, Javice displayed her entrepreneurial spirit as a freshman at the Wharton School of the University of Pennsylvania, where she created PoverUp, an online platform aimed at educating students on how to start microfinance clubs.
In 2023, JPMorgan Chase alleged that Javice was involved in a series of fraudulent activities, including securities fraud, wire fraud, and conspiracy. The bank accused her of falsifying the user numbers for Frank, which ultimately persuaded JPMorgan Chase to proceed with the $175 million acquisition.
According to NBC News, prosecutors argued that Javice engaged a third party to artificially inflate Frank’s reported customer base to an eye-catching 4.25 million users, despite having only around 300,000 legitimate accounts. The acquisition occurred in 2021, as JPMorgan Chase was looking to enhance its outreach to college students. Olivier Amar, Frank’s Chief Growth Officer, was also implicated, although his defense team shifted responsibility to Javice.
As the conviction stands, Javice could be facing a maximum of 30 years in prison for conspiracy, bank fraud, and wire fraud, with securities fraud potentially adding another 20 years to her sentence according to NBC.
Delving into the Life of Charlie Javice
Born on March 14, 1993, in Westchester County, New York, Charlie Javice grew up in a family with a financial focus—her father worked in hedge funds and her mother was a former teacher and life coach. After attending the French-American School of New York, she enrolled at the University of Pennsylvania, graduating with a degree in finance and legal studies just three years later. During her sophomore year at Wharton, she established PoverUp and served on the Board of Overseers for Penn Hillel.
In 2021, she launched Frank, with the aim of helping students secure loans and financial aid, later selling it to JPMorgan Chase for a substantial sum. Following the acquisition, she became a managing director, overseeing student-focused products within the bank. However, her tenure ended with a suspension in September 2022 after legal troubles commenced, culminating in her dismissal two months later.
Despite being heralded as one of Forbes’ 30 Under 30, this recognition was later regretted, and she was subsequently included in Forbes’ “Hall of Shame.”Additionally, she earned accolades such as a spot in Crain’s New York Business 40 Under 40 and rank 99 on Fast Company’s list of Most Creative People.
Frank’s Mission: A Vision for Educational financial Equity
In a 2020 interview with AOL, Javice articulated her vision for Frank, emphasizing its mission to make college more accessible and the FAFSA process more user-friendly. Her goal was to streamline applications to a time commitment of less than four minutes.
“Everything that deals with student debt is very corrupt … it’s not honest. We wanted something that stood for respect, dignity and honesty and Frank meant honest as well, and it’s super easy to remember…it just seemed to be a good name that was approachable, friendly, simple and honest,” she stated.
Reflecting on her challenges with FAFSA, Javice shared insights from her experiences working in banking, which contributed to her determination to create Frank. She stressed that traditional avenues like banks and universities often failed to serve students effectively.
“I spent a lot of time on the banking side trying to figure out how to lend money in a more responsible way, and have banks give a sh*t. it always came back to the one thing which was here was no ally for students.”
Javice further expressed the essence of cultivating a diverse workforce, asserting that her early hiring practices prioritized individuals from various socioeconomic backgrounds who brought valuable perspectives to the startup. She highlighted the significance of building a team representative of the customer base.
“I think it reflects in our team from the standpoint … i think that’s super important as you build something, to build something that’s representative of the product you’re selling,” she underscored.
Finally, when discussing the future aspirations of Frank, she envisioned the company becoming the leading service in financial aid, targeting a user network of between 2.5 million to 5 million by year-end. However, following her conviction, Javice’s future remains uncertain, and she faces a potential maximum jail sentence of 30 years.