The student loan company founder accused of tricking Chase has been charged with fraud

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Frank founder Charlie Javice hit with charges by SEC, feds

, Charlie Javice stands accused of using an elaborate scheme to inflate Frank's customer base, thus landing a multimillion deal with the biggest name on Wall Street.Javice faces three criminal fraud charges — including conspiracy to commit bank and wire fraud — and civil fraud charges for allegedly tricking JPM "into believing that Frank had access to valuable data on 4.25 million students who used Frank’s service," the SEC said in a statement.

The SEC's Division of Enforcement director, Gurbir S. Grewal, on Tuesday called it "an old school fraud," saying Javice "lied about Frank’s success in helping millions of students navigate the college financial aid process by making up data to support her claims, and then used that fake information to induce JPMC to enter into a $175 million transaction.

Chase discovered that the customer list was bogus when a marketing campaign targeting the borrowers "reached few of the intended recipients," the SEC said."Charlie denies the allegations," spokesperson Josh Ginsburg tells Axios in an email.

 

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Millennial app founder arrested, charged with defrauding JPMorgan Chase | CNN BusinessCharlie Javice, founder of the buzzy student financial assistance startup Frank, was arrested Monday night and charged by the US Securities and Exchange Commission for allegedly defrauding JPMorgan Chase in the $175 million acquisition of her company.
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