2013 Wharton graduate Charlie Javice is set to go to trial in October of 2024.
2013 Wharton graduate and Frank startup founder Charlie Javice, who JPMorgan is suing for fraud, is set to go to trial in October 2024.
Javice was indicted in May on four charges of wire fraud, securities fraud, bank fraud, and conspiracy to commit bank and wire fraud. In a court order filed in November, U.S. District Judge Alvin Hellerstein set the trial date for fall 2024. He also ruled that federal prosecutors must require JPMorgan Chase to produce more evidence concerning company employees referred to in the complaint.
In 2016, Javice founded Frank, a startup designed to make higher education more affordable, drawing inspiration from Javice’s personal struggles with financial aid at Penn. She was recognized for her accomplishments in the 2019 Forbes 30 under 30 list. JPMorgan bought the company for $175 million in 2021, and Javice was appointed managing director at JPMorgan after the bank acquired Frank in 2021.
Federal prosecutors alleged that Javice exaggerated the actual number of Frank users to raise its purchase price, claiming over four million users when the platform only had a few hundred thousands. Prosecutors said she reportedly received a combined $41 million from a retention bonus and selling her equity stake.
Javice pleaded not guilty and was released on a $2 million bond in April.
In October, Javice alleged in a court filing that JPMorgan failed to produce “likely thousands” of documents that could support her defense. These documents included JPMorgan’s internal assessment of Frank and communications between employees, according to Javice.
“The government’s response has been deliberate inaction, making clear that although JPMC holds highly relevant, potentially exculpatory, readily available materials that are responsive to the government’s subpoenas, the government does not intend to collect them,” the filing stated.
This is not the only time Javice has dealt with federal scrutiny over Frank’s practices. She previously settled with the federal government in 2018 over misrepresenting Frank’s connections to the Department of Education.
Recently, Javice was named to the Forbes 30 Under 30 Hall of Shame, which lists 10 people who made previous 30 Under 30 lists.
Javice will appear in court with prosecutors and defense in January for a status conference.
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