Jamie Dimon Says Frank Acquisition ‘Was A Huge Mistake’ After JP Morgan Alleges Millions Of Fake Customers

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The Chase chief executive faced questions from analysts over the bank’s due diligence after it launched a fraud lawsuit against the founder of a student financial aid startup it acquired for $175 million.

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase, faced questions from analysts over its $175 million acquisition of fintech Frank.

Dimon defended JP Morgan’s record on financial discipline, adding that Chase, the U.S. consumer and commercial arm of the bank was responsible for the deal, but a centralized acquisitions team had done “extensive due diligence” on the startup. “We are very disciplined and you see that in a lot of different ways: You see that in our leveraged lending book, the success of our investments, the quality of our products and services, and it’s no different for acquisitions,” says Dimon.

The suit alleges that Javice and Amar asked Frank’s director of engineering to create fake customer details after JP Morgan requested details on users as part of the takeover talk. After the engineer refused, Javice was then alleged to have paid a data science professor $18,000 to create millions of fake accounts using “synthetic data.” JP Morgan opened an investigation after test marketing campaigns to Frank’s users following the acquisition were “a disaster,” the suit says.

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Next time just submit your 30u30 directly to the Feds to start fraud investigations 😂 😂

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