'Is this real?’ JPMorgan court filing shows Frank employees questioned stats before acquisition

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Employees of a startup purchased by JPMorgan Chase expressed disbelief when the company's founder directed them to boost their customer count ahead of the acquisition.

The founder, Charlie Javice, instructed employees to change "public-facing numbers" of college aid platform Frank to 4.25 million customers in January 2021, JPMorgan alleged in the filing. Frank had fewer than 300,000 real customers when JPMorgan bought it in September 2021, the bank has"Is this real?" another asked.

The release of private staff messages is part of the latest salvo in the legal dispute between Javice and JPMorgan, which paid $175 million for the startup. JPMorgan, the biggest U.S. bank by assets and a steady acquirer of fintech startups, sued Javice in December 2022, alleging that the founder had lied about her company's scale to close the deal.

In its original suit, JPMorgan alleged that Javice hired a data science professor to concoct fake accounts after an employee refused to do so.criminally charged

 

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