A woman from Florida is facing trial for allegedly deceiving JPMorgan Chase & Co. in a significant $175 million acquisition related to her financial aid assistance company, Frank. The trial commenced on Thursday, with prosecutors asserting that Charlie Javice executed a substantial fraud by falsely claiming that her company had millions of customers, while in reality, the figure was around 400,000. This deception reportedly occurred as the deal was nearing completion in the summer of 2021, according to Assistant U.S. Attorney Rushmi Bhaskaran during her opening statement addressing the jury.
Javice’s defense attorney, Jose Baez, argued that the charges stemmed from JPMorgan’s so-called “buyer’s remorse.” He claimed the bank sought to withdraw from the deal after changes in federal regulations rendered the acquisition less viable. Baez contended that JPMorgan’s only strategy to backtrack on the buyout was to accuse Javice of fraud.
The 31-year-old Javice, based in Miami Beach, was taken into custody in April 2023 on multiple charges, including conspiracy, wire fraud, and bank fraud. Prosecutors indicated that Javice, listed in Forbes 2019’s “30 Under 30,” could have profited up to $45 million through the alleged fraudulent activities.
During the proceedings, Bhaskaran highlighted that JPMorgan requested validation for the claimed customer base just before finalizing the acquisition. She stated, “They were very close to a deal that would make them millionaires. The only obstacle was the truth,” emphasizing the seriousness of the allegations against Javice. The prosecutor further indicated that Javice contacted a former college acquaintance to acquire “off-the-shelf data on four million people,” suggesting deceptive practices facilitated the completion of the deal.
Despite the accusations, Baez maintained that Javice conducted herself with integrity throughout the negotiations with JPMorgan. He noted she was offered a three-year contract, complete with substantial bonuses, intending for her to serve as JPMorgan’s representative to attract young banking clients. Baez criticized the bank’s swift decision-making to secure the startup, emphasizing the competition from other banks vying for similar market access.
“The bank took a risk and has ended up losing; now they want to ruin her life for it,” Baez declared. Throughout his address, prosecutors raised objections to Baez’s narrative, prompting Judge Alvin K. Hellerstein to remind the jurors that the crux of the trial revolved around whether Javice misrepresented information to negotiate the buyout.
A spokesperson for JPMorgan declined to provide further comments regarding the trial.
