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☆ Forbes built a hall of shame for all the questionable people on its 30 Under 30 lists
▼ + stars: | 2023-11-29 | by ( Pete Syme | ) www.businessinsider.com time to read: +5 min

Plenty of people on the Forbes 30 Under 30 lists have turned out to be not quite so shiny. AdvertisementThe Forbes "30 Under 30" lists celebrate the achievements of young people making a mark in a range of sectors. Its "hall of shame" starts – appropriately enough – with Sam Bankman-Fried, the FTX cofounder who was on the 30 Under 30 finance list in 2021. Caroline Ellison was on the Forbes 30 under 30 list last year. Outside the 30 Under 30 finance class, the gun rights activist Cody Wilson also makes the hall of shame.

Persons: Forbes, Sam Bankman, Martin Shkreli, —, Mark Zuckerberg, FTX, Fried, Caroline Ellison, Eduardo Munoz Alvarez Martin Shkreli, Craig Ruttle, Charlie Javice, Frank, JP Morgan Chase, Javice, Morgan, She's, Nate Paul, Lucas Duplan Clinkle, Lucas Duplan, Peter Thiel, Andreesen Horowitz, Cody Wilson, Kelly West, Steph Korey, James O'Keefe, Prendergrast, she's Organizations: Forbes, Service, Prosecutors, Justice, TechCrunch, Business, Reuters, Project Veritas, The City Magazine Locations: Alameda

☆ Charlie Javice's fraud trial prosecutors must press JP Morgan for more evidence, judge rules
▼ + stars: | 2023-11-02 | by ( Nate Schweber | ) www.businessinsider.com time to read: +4 min

The judge sided in part with the defense, ordering the government to force JP Morgan to release more evidence. AdvertisementAdvertisementA federal judge on Thursday ruled that prosecutors must compel JP Morgan to find more evidence that could help Charlie Javice, the founder of the financial aid startup Frank, in her defense in her criminal fraud trial. On Thursday, inside U.S. Federal Court in Manhattan, lawyers for Javice and a co-defendant argued for more documents from JP Morgan Chase. AdvertisementAdvertisementMeanwhile, a Delaware judge ruled that JP Morgan Chase is violating a commitment that it made upon acquiring Frank to pay a significant portion of Javice's legal bills. Her lawyers say that JP Morgan Chase owes them $835,000 of the around $3.8 million they have so far charged.

Persons: Charlie Javice, Frank founder's, JP Morgan, —, JP Morgan Chase, Frank, Javice, Alex Spiro, Spiro, Dina McLeod, Alvin K, Hellerstein, Morgan Chase, Judge Hellerstein, Olivier Amar, Sean Buckley Organizations: Service, U.S, Federal, Javice Locations: Manhattan, Delaware

☆ Charlie Javice says JPMorgan is trying to use 'red tape' to avoid paying her legal bill of $3.8 million and growing
▼ + stars: | 2023-10-26 | by ( Jack Newsham | ) www.businessinsider.com time to read: +3 min

JPMorgan and prosecutors claim Charlie Javice fraudulently inflated the value of her startup. But JPMorgan was ordered to pay her legal fees – totaling almost $3.8 million, new filings show. AdvertisementAdvertisementLawyers for indicted startup founder Charlie Javice say JPMorgan Chase is defying a court order to pay almost a fifth of the nearly $3.8 million in legal bills they've racked up. But a Delaware judge said JPMorgan still had to honor its commitment to advance Javice's legal fees under agreements it made when it acquired Frank. AdvertisementAdvertisementThe bank's unpaid tab totals more than $835,000, Javice's lawyers claimed, amounting to about 22% of the total amount they've sought.

Persons: Charlie Javice, —, JPMorgan Chase, they've, Olivier Amar, Frank, Abrams, Bayliss, Quinn Emanuel Urquhart, Sullivan, Michael Barlow, Mintz Levin, wasn't Organizations: JPMorgan, Service, Javice, Securities and Exchange Commission Locations: Delaware

☆ Charlie Javice, who faces charges after JP Morgan said she defrauded them out of $175 million, says US prosecutors are using 'cherry-picked' evidence to help their case
▼ + stars: | 2023-10-15 | by ( Katie Hawkinson | Jack Newsham | ) www.businessinsider.com time to read: +3 min

Charlie Javice says JP Morgan is withholding thousands of documents that could help her case. Javice is facing federal charges after JP Morgan claimed she defrauded them out of $175 million. Now, the 31-year-old claims JP Morgan has failed to produce "likely thousands" of documents that could help her defense. In April, the federal prosecutors charged Javice with making false claims and submitting false data to JP Morgan after the bank acquired Frank for $175 million. AdvertisementAdvertisementProsecutors said Javice lied to JP Morgan about the number of people relying on her company.

Persons: Charlie Javice, Morgan, Javice, JP Morgan, —, Frank, Slack, Damian Williams, Prosecutors, Mark Kantrowitz, Kantrowitz Organizations: Service, Department of Justice, JP, Federal Student Aid, Justice

☆ Bankman-Fried trial poses biggest test to date for crypto's top cop
▼ + stars: | 2023-09-29 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +6 min

Bankman-Fried's will be the first of Williams' blockbuster white collar cases to go to trial. The cases Williams, 43, has brought so far show he has been a "steward" of the SDNY's longstanding priorities, said Kan Nawaday, who overlapped with Williams at the office. Prosecutors had described the cases as the first insider trading cases brought involving digital assets. Williams' charges against Bankman-Fried came just one month after FTX's collapse, which former prosecutors say is very fast for a complex white collar case. WILLIAMS HAS STRUGGLED WITH SELF-DOUBTBankman-Fried's trial comes after some setbacks and amid ongoing challenges for Williams' office.

Persons: Damian Williams, Mike Segar, Sam Bankman, Williams, Charlie Javice, Bill Hwang, Joe Lewis, Javice, Hwang, Lewis, Kan Nawaday, He's, Venable, Prosecutors, Alex Mashinsky, WILLIAMS, SDNY's, John Paul Stevens, General Merrick Garland, Garland, Joe Biden, Bob Menendez, Menendez, Fried, Joshua Naftalis, Pallas, Brian Benjamin, haters, Luc Cohen, Noeleen Walder, Daniel Wallis Organizations: Attorney, Southern, of, REUTERS, U.S, Yale Law School, Archegos Capital Management, Supreme, Allianz's U.S, Allianz, Bankman, New, Columbia Law School, Thomson Locations: Manhattan, New York City , New York, U.S, of New York, English, Jersey, Bahamas, Caribbean, New York, Bronx, Georgia

☆ A.I. startup founder charged with defrauding investors, manipulating documents
▼ + stars: | 2023-08-15 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +2 min

The fraud ground to a halt, prosecutors alleged, after Brackett was unable to attract further investors and simply ran out of funds. It shopped documents claiming $3.7 million in annual revenue around to investors and various short-term lenders, prosecutors allege. Brackett allegedly "transferred Firm-1's funds out of the account," and the company soon collapsed. Centricity's tale echoes the fraud allegedly perpetrated by Charlie Javice, the troubled startup founder of the fintech Frank. Similar to the allegations against Brackett, Javice allegedly manipulated her metrics to convince JPMorgan to acquire her startup.

Persons: Damian Williams, Martin Luther King Jr, Michael Brackett, Brackett, Centricity, Charlie Javice, Frank, Javice Organizations: Attorney, Southern, of, National Action Network House, Justice, Wall Street, JPMorgan, Vision Fund Locations: Manhattan, U.S, Switzerland, Maine

☆ Frank founder Charlie Javice gave JP Morgan millions of names and emails for college students she said were customers, but 'it was all fake,' prosecutor says
▼ + stars: | 2023-07-13 | by ( Nate Schweber | ) www.businessinsider.com time to read: +4 min

Javice is accused of grossly exaggerating the numbers of customers she had before her sale to JP Morgan. After hat after the initial deception to JP Morgan Chase, Javice and Amar pivoted to another, Fergenson said. Javice and Amar presented it all in a spreadsheet to JP Morgan Chase, representing all of the names to be Frank users, Fergenson said. Javice's attorney, Alex Spiro, who has alleged that JP Morgan Chase is retaliating against his client for her exposure of their violating of privacy laws, objected. "The government is just regurgitating to the court JP Morgan Chase's civil lawsuit," he said.

Persons: Frank, Charlie Javice, Javice, JP Morgan, Olivier Amar, JP Morgan Chase, Mr, Amar, Micah F, Fergenson, Morgan Chase, Alvin K, Hellerstein, nodded, —, Alex Spiro, Morgan, Judge Hellerstein Organizations: University of Pennsylvania's Wharton School of Business, Forbes, Fast Company, of, Securities and Exchange Commission Locations: Manhattan, Pennsylvania, Southern, of New York

☆ US charges second Frank college aid executive with defrauding JPMorgan
▼ + stars: | 2023-07-12 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +1 min

Companies JPMorgan Chase & Co FollowNEW YORK, July 12 (Reuters) - U.S. prosecutors on Wednesday unveiled an indictment charging Olivier Amar, who helped run college financial aid startup Frank, with defrauding JPMorgan Chase (JPM.N) into buying their company for $175 million. Amar, who was Frank's chief growth officer, was charged with wire fraud, bank fraud, securities fraud and conspiracy, becoming the second company official indicted in the case. Lawyers for Amar, whose whereabouts were not immediately known, did not immediately respond to a request for comment. A spokesman for the U.S. Attorney's office in Manhattan also did not immediately respond to a request for comment. The bank shut down Frank in January, and Chief Executive Jamie Dimon branded the acquisition a "huge mistake."

Persons: Olivier Amar, Amar, Frank, Charlie Javice, Javice, Jamie Dimon, counterclaims, Luc Cohen, Bill Berkrot Organizations: JPMorgan Chase, U.S, JPMorgan, Thomson Locations: Manhattan, U.S, Amar, Delaware, New York

☆ Charlie Javice is accused of defrauding JPMorgan Chase. Her classmates were shocked she didn't immediately flee the country.
▼ + stars: | 2023-06-15 | by ( Grace Eliza Goodwin | ) www.businessinsider.com time to read: +2 min

The allegedly inflated numbers helped her sell her startup to JPMorgan Chase for $175 million. Classmates of Charlie Javice told Fortune they were shocked by allegations she defrauded JPMorgan Chase for $175 million – and one wondered why she didn't immediately flee the country. In January 2022, JPMorgan Chase realized that the subscriber numbers were inflated, and Javice was fired by the end of the year. If I sold a company to JPMorgan Chase, I would explain everything, everything [that] I expensed including that salad that I bought at Sweetgreen that one time. She is being charged with securities fraud, wire fraud, bank fraud, and conspiracy.

Persons: Charlie Javice, didn't, Fortune, Frank, —, JPMorgan Chase, Javice Organizations: JPMorgan Chase, Morning, JPMorgan, Wharton School, University of Pennsylvania

☆ One of Charlie Javice's classmates was shocked she defrauded JPMorgan Chase and didn't immediately flee the country
▼ + stars: | 2023-06-15 | by ( Grace Eliza Goodwin | ) www.businessinsider.com time to read: +2 min

Persons: Charlie Javice, didn't, Fortune, Frank, —, JPMorgan Chase, Javice Organizations: JPMorgan Chase, Morning, JPMorgan, Wharton School, University of Pennsylvania

☆ 'Is this real?’ JPMorgan court filing shows Frank employees questioned stats before acquisition
▼ + stars: | 2023-06-15 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

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 alleged. one Frank employee asked in a January 2021 Slack thread. According to Thursday's filing, Javice justified the change in user stats by telling employees that website visitors counted as customers, the bank alleged. Javice has said in court filings that JPMorgan knew how many users Frank had and that the bank sought to blame her for its mistakes.

Persons: Charlie Javice, JPMorgan Chase, Frank, Slack, Charlie, Javice, Javice didn't Organizations: JPMorgan Chase, Co, United States Court, JPMorgan, Department of Justice, Securities and Exchange Commission, & $ Locations: Manhattan, New York City, Javice

☆ The future of AI in finance might be about accepting what we don't know
▼ + stars: | 2023-06-08 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Such a suggestion is blasphemy — and potentially illegal — on Wall Street. But as AI tech continues to advance, one Wall Street executive is wondering if there isn't some wiggle room on those types of policies. But what really caught my eye was Friedman's comments around having to fully understand how the AI works. That's a fascinating thought exercise, and one worth having with how quick AI tech seems to be evolving these days. Wall Street is getting fed up with Amazon.

Persons: Dan DeFrancesco, we've, Adena Friedman, shouldn't, Simon Berlyn, Robert Kindler, Morgan Stanley, Paul, Weiss, Garrison, Marc Lasry, Frank, Charlie Javice, Sam Altman, Bernstein, Rod Stewart, We've, Jeffrey Cane, Nathan Rennolds Organizations: PE, Disney, Pixar, . Finance, Nasdaq, Bloomberg Invest, Milwaukee Bucks, JPMorgan, Amazon, Communist Party, LinkedIn Locations: NYC, Point72, Rifkind, Wharton, New York, London

☆ Charlie Javice, the founder of student loan assistance company Frank, appears in court over allegations she bought or invented email addresses to claim millions of users
▼ + stars: | 2023-06-06 | by ( ) www.businessinsider.com time to read: +4 min

Javice is accused of inflating the number Frank's users before she sold it to JPMorgan Chase. The charges represented a significant fall for one of the much-lauded young fintech founders. But within a year of selling Frank to JPMorgan Chase, the bank cried foul, claiming that the number of users had been wildly inflated. The complaint alleges that Javice bought names and email addresses from third parties and then represented them as Frank customers. Fergenson explained that Javice had made JPMorgan Chase, "believe that Frank had been an extremely successful start up."

Persons: Charlie Javice, Frank, Javice, JPMorgan Chase, Jarvis, Micah F, Fergenson, octogenarian, Alvin K, Morgan Chase, Judge Hellerstein, Alex Spiro Organizations: JPMorgan, Manhattan, Frank's, Forbes, U.S, Southern, of, Securities and Exchange Commission Locations: of New York

Companies JPMorgan Chase & Co FollowNEW YORK, May 22 (Reuters) - Entrepreneur Charlie Javice pleaded not guilty on Monday to charges of defrauding JPMorgan Chase & Co (JPM.N) into buying her now-shuttered college financial aid startup Frank, according to a spokesman for the U.S. Attorney's office in Manhattan. She was indicted last week on charges of securities fraud, wire fraud, bank fraud and conspiracy. JPMorgan, the largest U.S. bank, bought Javice for $175 million in 2021. Javice has been free on $2 million bail since her first court appearance on April 4. Reporting by Luc Cohen in New York; editing by Grant McCoolOur Standards: The Thomson Reuters Trust Principles.

Companies JPMorgan Chase & Co FollowNEW YORK, May 18 (Reuters) - Charlie Javice, who has been accused of defrauding JPMorgan Chase & Co (JPM.N) through her now-shuttered college financial aid company Frank, has been indicted over her relationship with the bank. A four-count indictment made public on Thursday in Manhattan federal court charges Javice with securities fraud, wire fraud, bank fraud and conspiracy. Reporting by Jonathan Stempel and Luc Cohen in New York; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

Companies JPMorgan Chase & Co FollowNEW YORK, May 18 (Reuters) - The young entrepreneur Charlie Javice has been indicted on charges of defrauding JPMorgan Chase & Co (JPM.N), the largest U.S. bank, into buying her now-shuttered college financial aid startup Frank. A four-count grand jury indictment made public on Thursday in Manhattan federal court charges Javice with securities fraud, wire fraud, bank fraud and conspiracy. In connection with that, prosecutors were granted more time to have Javice indicted by a grand jury. JPMorgan separately sued Javice and former Frank chief growth officer Olivier Amar in December in Delaware federal court for fraud, saying they inflated Frank's customer base to induce the bank's purchase. Javice countersued JPMorgan, saying it owes millions of dollars after firing her "without valid cause" in November.

☆ JPMorgan's dealmaking flurry being scrutinized by US regulator - FT
▼ + stars: | 2023-04-07 | by ( ) www.reuters.com time to read: +1 min

JPMorgan had sued Javice and Olivier Amar, who was Frank's chief growth officer, in Delaware federal court in December. The OCC audit was scheduled before JPMorgan's lawsuit, the report said. Javice filed counterclaims in February, accusing JPMorgan of having "compromised her reputation" and wrongfully withheld $28 million of retention payments and equity. JPMorgan and the OCC did not immediately respond to Reuters request for comment. Reporting by Baranjot Kaur in Bengaluru; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ Frank's founder just got hit with federal charges, but questions remain about JPMorgan's handling of the deal
▼ + stars: | 2023-04-05 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

Drop any Wall Street (or non-Wall Street) questions you have for me here. A quick refresher: JPMorgan accused Javice of juicing Frank's customer numbers in a lawsuit filed at the end of last year. Prosecutors charged Javice with wire fraud affecting a financial institution, securities fraud, bank fraud, and conspiracy. I've joked about it before, but Taylor Swift really should teach a class on this stuff for Wall Street. It's not the president or Wall Street or Congress that's to blame.

Companies JPMorgan Chase & Co FollowNEW YORK, April 4 (Reuters) - The U.S. government on Tuesday filed criminal charges accusing Charlie Javice, the founder of the now-shuttered college financial planning company Frank, of defrauding JPMorgan Chase & Co (JPM.N) into buying the startup for $175 million in 2021. Prosecutors said that when JPMorgan asked for a list of names, Javice paid an unnamed data science professor $18,000 to concoct a sham list of names. JPMorgan shut down Frank in January, and Chief Executive Jamie Dimon branded the acquisition a "huge mistake" in a Jan. 13 conference call with analysts. In December, JPMorgan sued Javice and Olivier Amar, who was Frank's chief growth officer, in Delaware federal court. Javice filed counterclaims in February, accusing JPMorgan of having "compromised her reputation" and wrongfully withheld $28 million of retention payments and equity.

☆ Frank founder Charlie Javice, who allegedly defrauded JPMorgan out of $175 million, hit with federal charges
▼ + stars: | 2023-04-04 | by ( Katherine Long | Jack Newsham | ) www.businessinsider.com time to read: +4 min

Charlie Javice, who sold her student-aid startup Frank to JPMorgan Chase, was charged with fraud. The bank claimed Javice faked millions of customers to convince it to buy Frank for $175 million. Federal prosecutors in Manhattan charged Javice with wire fraud affecting a financial institution, securities fraud, bank fraud and conspiracy on Tuesday. JPMorgan acquired Frank in 2021 for $175 million, but began to question the authenticity of the startup's purported 4 million users after an email marketing campaign ended in "disaster," according to the bank's lawsuit and a filing by prosecutors. Out of 400,000 emails sent to Frank users, more than 70% bounced back and only 103 were opened, the bank claimed.

☆ U.S. SEC sues Frank founder, accuses her of defrauding JPMorgan
▼ + stars: | 2023-04-04 | by ( ) www.cnbc.com time to read: +1 min

People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., May 12, 2021. The U.S. Securities and Exchange Commission on Tuesday sued Charlie Javice, the founder of the Frank college financial planning platform, accusing her of defrauding JPMorgan Chase & Co into buying her startup for $175 million in 2021. The SEC said Javice concocted a sham list of real names that they passed off as Frank customers, and that JPMorgan discovered the con when marketing materials it sent to some of those people reached only a few intended recipients. A lawyer for Javice could not immediately be reached for comment. The bank shut down Frank in January, after suing Javice the previous month.

Organizations: & $

☆ Frank founder criminally charged with fraud over $175 million JPMorgan deal
▼ + stars: | 2023-04-04 | by ( Annika Kim Constantino | ) www.cnbc.com time to read: +1 min

The Justice Department on Tuesday charged Charlie Javice, founder of college financial planning platform Frank, with defrauding JPMorgan Chase of $175 million. The one-rising tech star – who was once named as one of Forbes' 30 Under 30 – was arrested Monday night in New Jersey and is expected in court Tuesday afternoon. They include one count of conspiracy to commit bank and wire fraud, one count of wire fraud affecting a financial institution, one count of bank fraud and one count of securities fraud. The Securities and Exchange Commission on Tuesday also sued Javice for fraud in connection with the alleged scheme. The charges come months after JPMorgan filed a lawsuit against Jarvice alleging she duped the bank into believing Frank had more than four million customers.

☆ Frank Founder Says JPMorgan Knew How Many Users Her Firm Had in $175 Million Deal
▼ + stars: | 2023-02-28 | by ( David Benoit | Melissa Korn | ) www.wsj.com time to read: 1 min

The woman who sold financial-aid startup Frank to JPMorgan Chase & Co. for $175 million said the bank understood how big the company was before going through with the deal and that its fraud claims are unfounded. Charlie Javice said the bank is trying to blame her for a failed strategy in a lawsuit it filed in federal court in December. In her reply to that suit Monday, Ms. Javice said JPMorgan’s claim that she invented 4 million customers out of whole cloth with a professor and some artificial intelligence is an effort to hide the reality that the biggest bank in the country just flopped on the transaction.

☆ Potential buyers are leveraging high-profile blowups like Frank and FTX to get better terms. Insiders detail how dealmaking is changing in 2023.
▼ + stars: | 2023-02-07 | by ( Paige Hagy | Bianca Chan | Carter Johnson | ) www.businessinsider.com time to read: +10 min

We don't want to look like JPMorgan,'" Jason Mikula, fintech analyst and writer behind Fintech Business Weekly, told Insider. How closely they adhere to it matters greatly in terms of if a deal is on the line," Mandelbaum told Insider. Investors pumped $132 billion globally into fintechs in 2021 and there were more than 900 fintech M&A exits, according to CB Insights. "It's now a buyer's market," Rob Brown, CEO of Lincoln International, a global investment-banking advisory firm, told Insider. One way companies might optimize the due-diligence process without cutting corners is by leaning on machines to help with the heavy lifting.

☆ The dealmaking boom meant fast timelines and loose due diligence. But high-profile implosions like FTX and Frank mean would-be sellers can expect more scrutiny, insiders say.
▼ + stars: | 2023-01-27 | by ( Paige Hagy | Bianca Chan | Carter Johnson | ) www.businessinsider.com time to read: +10 min

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