Charlie Javice, the founder of student financial aid startup "Frank," has been sentenced to over seven years in prison for lying to JPMorgan Chase about how many customers her company had before selling it for $175 million.
Javice, 33, was found guilty in March of conspiracy, bank fraud, and wire fraud. On Monday, Judge Alvin K. Hellerstein gave her 85 months in prison, along with three years of supervision, and ordered her to pay $287 million in restitution to JPMorgan and forfeit $22.36 million.
"I sentence people not because they're bad, but because they do bad things," said Judge Hellerstein.
JPMorgan bought "Frank" in 2021 to help more students access financial aid tools. According to AP News, Javice had claimed her company had over 4 million users, but the real number was under 300,000.
She was accused of creating fake records with help from a data scientist to make the company look more successful.
Before her sentencing, Javice cried as she spoke to the court. "I will spend my entire life regretting these errors," she said. "I ask your Honor to temper justice with mercy."
🚨🇺🇸CHARLIE JAVICE GETS 7+ YEARS FOR $175M STARTUP FRAUD AGAINST JPMORGAN
— Info Room (@InfoR00M) September 29, 2025
Charlie Javice, 33, founder of the college financial-aid startup Frank, was sentenced to over seven years in prison for defrauding JPMorgan Chase by inflating user numbers to sell her company for $175M.… pic.twitter.com/lUsmwhaiN1
Prosecutors: Javice Fueled by Greed in JPMorgan Fraud
The judge said her words were "very moving," but emphasized that the sentence was about deterring others from doing the same, CNBC reported.
After the sale, JPMorgan discovered the user data was fake. Prosecutors said Javice made up millions of fake names to boost the company's value.
Assistant US Attorney Micah Fergenson told the court: "JPMorgan didn't get a functioning business. They acquired a crime scene."
He said Javice acted out of greed, knowing she could walk away with nearly $29 million from the sale.
Javice's lawyer, Ronald Sullivan, argued that "Frank" was a working product that helped students.
He compared the case to "Theranos" founder Elizabeth Holmes, who received more than 11 years in prison for medical fraud.
"Ms. Javice's sentence should be nowhere near Elizabeth Holmes'," Sullivan said.
Still, prosecutors pointed to a message Javice once sent calling Holmes' sentence "ridiculous," using it to show she didn't take the risks of fraud seriously.
Join the Conversation