Charlie Javice, the founder of student finance startup Frank, was sentenced on Monday, September 29, 2025, to more than seven years in prison.
A federal judge in Manhattan sentenced Charlie Javice to 85 months in prison, which is a little over seven years, for deceiving JPMorgan Chase during the sale of her company. The ruling marks the end of a high-profile case involving one of the most talked-about startup frauds in recent years.
Javice was found guilty of lying about the number of users her startup had.
Investigators revealed that Javice inflated Frank’s user count from under 300,000 to more than 4.25 million. This large exaggeration played a major role in convincing JPMorgan to buy the company for $175 million back in 2021. By presenting Frank as a much larger platform than it truly was, she misled the bank into believing it was acquiring access to a huge student user base.
Judge Alvin Hellerstein gave the sentence.
During the hearing, the judge acknowledged her potential but made it clear that her actions came with serious consequences. He told her plainly that wrongdoing must be punished. His comments reflected both disappointment and the importance of accountability in financial dealings.
Before sentencing, Javice spoke in court.
Javice addressed the court with an emotional apology. She said she regretted the choices she made and asked for forgiveness. She also emphasized that she had learned from the experience and would not repeat the mistakes that led her to this point.
Javice was convicted in March 2025.
Her conviction included several charges: bank fraud, wire fraud, securities fraud, and conspiracy. Prosecutors pushed for a harsher sentence of 12 years, but the judge settled on a shorter term after reviewing her personal background and hearing her apology in court.
Along with prison time, Javice must pay a large amount of money.
The judge ordered her to forfeit $22.4 million and pay $287.5 million in restitution to JPMorgan. These financial penalties reflect the scale of the damage caused by the misleading information used during the acquisition.
Javice’s co-defendant, Olivier Amar, was also found guilty.
Amar, who served as Frank’s chief growth officer, was implicated in the same scheme. His sentencing is scheduled for October 20, 2025, where he will face his own set of consequences related to the fraud.
Javice founded Frank in 2017.
Frank was created to help students navigate financial aid forms and make the FAFSA process easier. The platform quickly gained attention, and Javice was highlighted as an up-and-coming entrepreneur. Her recognition included a spot on the Forbes 30 Under 30 list in 2019, which boosted her public image.
JPMorgan bought Frank in September 2021.
The bank believed it was purchasing access to millions of engaged student users. However, once the deal closed, attempts to contact those users failed, with the majority of emails bouncing back. This raised internal alarms and led JPMorgan to uncover the falsified data.
Javice had hired a data scientist to create synthetic user data.
To support the false claims, Javice brought in a data scientist who produced the fabricated student information. He was paid $18,000 for the work, which was then used to support the inflated user numbers during the acquisition process.
JPMorgan CEO Jamie Dimon later called the deal a “huge mistake.”
The bank filed a separate lawsuit against Javice after learning the truth. Dimon publicly acknowledged that the acquisition should have been more carefully reviewed, calling the situation a costly error.
Javice’s lawyers argued that she was young and made a poor decision.
Her legal team said she acted under pressure and made severe misjudgments, while also pointing out that JPMorgan rushed the deal without deeper checks. The judge agreed the bank was careless but clarified that her punishment reflected her role in the wrongdoing, not the bank’s lack of caution.
Javice remains free on bail while she appeals the conviction.
She is now working with appellate attorney Alexandra Shapiro, known for representing high-profile clients. Javice hopes to overturn the decision, although the appeal process may take considerable time.
This case has drawn comparisons to the Theranos scandal.
Much like Elizabeth Holmes, Javice was once viewed as a rising star in the startup world. Her downfall has become another cautionary tale about inflated promises, limited oversight, and high-stakes deals gone wrong.
