Charlie Javice, once celebrated as a rising star of the tech world, is set to stand trial this week in New York, accused of orchestrating a multimillion-dollar fraud that saw her sell her student finance startup, Frank, to JP Morgan Chase for $175 million (£141 million).
Javice, 31, joins the growing ranks of high-profile entrepreneurs tainted by what some have dubbed the “Forbes 30 Under 30 curse”—a list of once-promising figures, including Martin Shkreli, Sam Bankman-Fried, and Caroline Ellison, who have faced legal troubles after achieving early acclaim.
The case, which carries echoes of Elizabeth Holmes and the Theranos scandal, centres on allegations that Javice massively inflated the number of Frank’s student users to convince JP Morgan to acquire the business. Prosecutors claim she misrepresented data, claiming the platform had 4.25 million users when it had fewer than 300,000.
The alleged deception unravelled when JP Morgan attempted to contact Frank’s customers, only to receive a fraction of the expected responses. The bank fired Javice, shut down Frank in early 2023, and sued her for fraud. She countered by suing JP Morgan for legal costs and for terminating her before she could receive a $20 million retention bonus.
A trial that could reshape startup due diligence
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