Charlie Javice, the founder of Frank, a Fintech that was purchased by JPMorgan (NYSE:JPM) in 2021, only for the bank to regret the transaction, is seeking a pardon from President Trump, according to reports.
Frank, a platform that helped aspiring college students tap into scholarships and grants to pay for their education, was acquired by JPMorgan for $175 million. At the time, a JP Morgan spokesperson stated:
“Frank offers a unique opportunity for deeper engagement with students. Together, we’ll be able to expand our capabilities for students and their families, helping them financially prepare for college and other major moments in their future.”
Javice, recognized as a young, talented Fintech executive, was expected to join the firm as Head of Student Solutions on the Digital Products team and continue managing the Frank platform.
Soon, JP Morgan determined that the number of registered users had been inflated. The Securities and Exchange Commission and the US Department of Justice filed fraud charges in 2023. A guilty verdict was reached, and Javice was sentenced to 7 years in prison.
WSJ.com reports that Javice is being considered for a pardon with support from people close to President Trump. Javice, who is working on an appeal, believes there is exculpatory evidence that JP Morgan is hiding. Additionally, the appeal challenges the dual case where she was prosecuted alongside a Frank executive, which prejudiced the jury’s decision.
Javice may have a good chance of receiving a pardon, as it has also been reported that Trump is planning 250 pardons to celebrate the nation’s birthday. Meanwhile, JPMorgan is seeking payment for legal bills incurred in defending Javice. Perhaps it would have been better for JPM to have just taken a write-down on the asset.