JPMorgan’s Costly Mistake: Fraud Allegations Surface in $175M Deal
Charlie Javice, a data scientist and graduate of the prestigious Wharton School at the University of Pennsylvania, is accused of orchestrating a scheme that convinced JPMorgan Chase to invest millions in a fraudulent company she founded.
In 2016, at just 24 years old, Javice started a financial aid company called “Frank” and later persuaded the banking giant to purchase it for $175 million in 2021. Following the acquisition, she was appointed as a managing director at JPMorgan, but her tenure was short-lived, lasting only about a year before fraud accusations led to her dismissal.
In 2022, JPMorgan filed a lawsuit against Javice, claiming she falsified user numbers for her app and even paid a friend, Adam Kapelner, $18,000 to fabricate the data. Kapelner, a data scientist and professor at Queens College, testified during Javice’s fraud trial that he had unknowingly created fake user data by adding over four million lines of code to make the app appear more popular than it actually was.
READ MORE: Bank of Korea Dismisses Bitcoin as FX Reserve, Citing Volatility
Kapelner explained that Javice had sent him a file showing the app had fewer than 300,000 legitimate users, and when he asked her about the purpose of the project, she refused to explain. After taking a role at JPMorgan, Javice allegedly asked Kapelner to merge customer data from a marketing firm into Frank’s database, purportedly to cover her tracks.
Now 32, Javice is facing serious charges including securities fraud, wire fraud, and conspiracy, with the possibility of up to 20 years in prison if convicted.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
