The founder of Fintech Frank, Charlie Javice, a platform that sought to streamline the process for students to tap into available funds for college, has been sentenced to seven years in prison for fraud. According to reports, Javice is also reportedly required to return $22.4 million.
Javice, a graduate of Wharton, founded Frank in 2017 as a 24-year-old entrepreneur, creating the company based on her own experience of struggling to navigate the process of garnering financial aid for university. In 2020, Frank reported that it had enabled about $12 billion in funding for over 400,000 students seeking scholarships, loans, and grants.
In 2021, Frank was acquired by JP Morgan (NYSE:JPM) for approximately $175 million, with plans for Javice to remain as a managing director at the bank. At that time, JPM believed Frank presented an opportunity “for deeper engagement with students.”
Soon, the wheels fell off the deal as it became apparent that Frank had overinflated the number of actual users. The SEC filed civil charges, and the DOJ joined with criminal charges of fraud in 2023.
Javice was eventually convicted of fraud earlier this year.
According to multiple reports, Javice expressed her regret over her decisions at the sentencing. WSJ.com reported that Javice said, “Not a day goes by that I do not feel remorse. I am deeply sorry, and I am asking with all my heart for forgiveness.”
The report also stated that Marc Rowan, an investor in Frank and the Chief Executive of Apollo, requested leniency from the court.
Javice, who is free on bail, is expected to appeal the decision.