JP Morgan Says Startup Founder Used Millions Of Fake Customers To Dupe It Into An Acquisition

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JP Morgan is suing the founder of a Mark Rowan-backed startup it acquired, claiming the fintech, Frank, had sold the financial giant on a “lie.”

The financial giant is suing the founder of a Mark Rowan-backed startup it acquired, claiming the fintech, Frank, had sold the financial giant on a “lie.”

The lawsuit, which was filed late last year in U.S. District Court in Delaware, claims that Javice pitched JP Morgan in 2021 on the “lie” that more than 4 million users had signed up to use Frank’s tools to apply for federal aid. When JP Morgan asked for proof during due diligence, Javice allegedly created an enormous roster of “fake customers – a list of names, addresses, dates of birth, and other personal information for 4.265 million ‘students’ who did not actually exist.

“After JPMC rushed to acquire Charlie's rocketship business, JPMC realized they couldn't work around existing student privacy laws, committed misconduct and then tried to retrade the deal,” Javice’s lawyer, Alex Spiro, said in a statement emailed to Forbes. “Charlie blew the whistle and then sued. JPMC’s newest suit is nothing but a cover.”

 

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Due dil. Don’t rush to buy.

Anybody that scams a scammer is a hero of mine.🦸‍♀️

Buying followers and claiming fake customers are real go hand in hand.

One would think jpmorgan would be smart enough to do some due diligence before spending $$$hundreds of millions… That’s definitely a bad look that JP’s may have been duped that easily

Still haven't forgotten about that cocaine

I say if she duped JPM, hire her. They run anal microscopes en masse. Ooooops

…and Charlie Javice was in the Forbes 30 under 30 list.

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JPMorgan Says Startup Tricked It Into an Acquisition by Cooking Up Millions of Fake UsersJPMorgan says it was tricked to pay $175 million for a startup that had fabricated millions of users. File under: nothing's real anymore! Damn.
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