NEW YORK, NY – A former rising star in the business world, once celebrated on the Forbes 30 Under 30 list, has now been sentenced to seven years in prison. The former CEO was convicted of defrauding a major investment bank out of $175 million.
Charlie Javvis, the founder of the startup Frank, sold her company to JP Morgan Chase in 2021. Frank was designed to simplify the financial aid process for low-income college students, and Javvis asserted that it had millions of users. However, following the acquisition, JP Morgan discovered that the actual number of users was closer to 300,000, with much of the user data having been fabricated.
Javvis, now 33, was found guilty in March. Prosecutors pushed for a 12-year sentence, while her defense sought leniency, arguing against comparisons to Elizabeth Holmes, the disgraced founder of Theranos. Javvis’s lawyer contended that unlike Theranos, Frank was a legitimate company and suggested the bank had some responsibility due to their eagerness to finalize the acquisition.
The judge acknowledged that the bank bore some responsibility but emphasized that the sentencing focused on Javvis’s actions, not the bank’s oversight. In addition to the prison term, Javvis was ordered to pay nearly $300 million in restitution. The judge remarked, “I don’t think you’ll be committing other crimes, but others have to be deterred.”
Javvis remains free on bail as she appeals the conviction, continuing to challenge the court’s decision.