Frank founder Charlie Javice arrested in New Jersey on fraud charges

Published

2 years ago

April 6, 2023

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NEW YORK – The founder of Frank, a student loan assistance startup company that J.P. Morgan Chase acquired for $175 million two years ago, was arrested on charges that she duped the financial giant by dramatically inflating the number of customers her company had, authorities said.

Charlie Javice, 31, of Miami Beach, Florida, was arrested Monday night in New Jersey on conspiracy, wire and bank fraud charges.

A charging document in Manhattan federal court said she claimed her company had over four million users when it had fewer than 300,000 customers.

“This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them.” US Attorney Damian Williams

Authorities said Javice, who appeared on the Forbes 2019 "30 Under 30" list, would have earned $45 million from the fraud.

Javice and her lawyer declined to comment as they left court after Javice signed a $2 million bond and agreed to curfew and possible electronic monitoring if court officers decide it is necessary.

She also agreed not to contact key figures in the case — including investors — except for her mother and her mother's boyfriend.

In a release, U.S. Attorney Damian Williams said Javice "engaged in a brazen scheme" to defraud the acquiring financial company by fabricating data to support lies she told in a bid to make tens of millions of dollars from the sale of her company.

"This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them," he said.

According to a criminal complaint, Javice in 2017 founded TAPD Inc., which operated under the name Frank, to provide an online platform to simplify the process of filling out the Free Application for Federal Student Aid, a free federal government form used by students to apply for financial aid for college or graduate school.

In 2021, Javice sought to sell her company in her role as its chief executive to a large financial institution, the complaint said.

When JPMC sought to verify that her company had 4.25 million customers, Javice asked her company's director of engineering to create an artificially generated data set, but the individual declined, it said.

She then hired an outside data scientist to create the synthetic data set as she purchased for $105,000 on the open market real information for over 4.25 million students, the complaint said. But it added that the data she purchased did not contain all of the information she had told JPMC was maintained by Frank.

“Rather than help students, we allege that Ms. Javice engaged in an old school fraud.” Gurbir S. Grewal, director of the SECs Division of Enforcement

In a civil complaint filed by the Securities and Exchange Commission, the regulatory agency alleged that Javice made numerous misrepresentations about Frank's alleged millions of users to entice JPMC to purchase the now shuttered Frank.

Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said in a release that "even non-public, early-stage companies must be truthful in their representations."

He added: "Rather than help students, we allege that Ms. Javice engaged in an old school fraud: she lied about Frank’s success in helping millions of students navigate the college financial aid process by making up data to support her claims, and then used that fake information to induce JPMC to enter into a $175 million transaction."

LARRY NEUMEISTER, with the Associated Press, helped contribute to this report.

US

‘Immigration is killing Europe’: Donald Trump issues warning to leaders as he arrives in Scotland

Published

3 hours ago

July 26, 2025

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'Immigration is killing Europe': Donald Trump issues warning to leaders as he arrives in Scotland

Donald Trump has landed in Scotland ahead of a four-day trip, which includes high-level meetings, praising Sir Keir Starmer as “a good man” but also calling illegal migration a “horrible invasion” that was “killing Europe”.

Crowds gathered at Prestwick Airport in Ayrshire amid a major security operation for the US president’s visit.

Mr Trump told reporters: “I like your prime minister. He’s slightly more liberal than I am… but he’s a good man… he got a trade deal done. It’s a good deal for the UK.”

Trump latest: Donald Trump arrives in Scotland

The pair are expected to discuss potential changes to the UK-US trade deal which came into force last month.

Trump left Air Force One to head to Turnberry, one of his Scottish golf courses. Part of the trip will include the opening of another course in Aberdeenshire, billed as “the greatest 36 holes in golf”.

“There’s no place like Turnberry. It’s the best, probably the best course in the world. And I would say Aberdeen is right up there,” the US president said.

“Sean Connery helped get me the [planning] permits. If it weren’t for Sean Connery, we wouldn’t have those great courses,” he added.

During the trip, President Trump will also hold discussions with Scotland’s First Minister John Swinney and EU Commission President Ursula von der Leyen, who is keen to secure a trade deal with the US.

Mr Trump told reporters there was “a good 50-50 chance” of an agreement with the EU but added there were “maybe 20 different” sticking points.

EU diplomats say a deal could result in a broad 15% tariff on EU goods and half of the 30% Trump is threatening to impose by 1 August.

The US president touched on illegal immigration and gave European leaders a stark warning.

“You better get your act together or you’re not going to have Europe anymore. You got to get your act together,” he said.

“But you’re allowing it to happen to your countries and you got to stop this horrible invasion that’s happening to Europe. Immigration is killing Europe,” he told reporters.

He was also scathing about the installation of wind turbines across Europe.

“Stop the windmills. You’re ruining your countries,” he said. “It’s so sad. You fly over and you see these windmills all over the place, ruining your beautiful fields and valleys and killing your birds.”

Domestically, President Trump faces the biggest political crisis of his second term in office over his administration’s handling of files linked to disgraced financier and sex offender Jeffrey Epstein, who died in prison in 2019.

He faced another round of questions after stepping off Air Force One. “You’re making a big thing over something that’s not a big thing. I’m focused on making deals, not on conspiracy theories that you are,” he said.

Mr Trump added that “now’s not the time” to discuss a pardon for Ghislaine Maxwell, Epstein’s imprisoned accomplice.

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While the president’s visit did attract some enthusiastic flag-waving supporters at Prestwick Airport, he is also likely to trigger a number of protests, prompting Police Scotland to call in support from other forces in the UK.

The Stop Trump Scotland group has planned demonstrations on Saturday in Edinburgh, Aberdeen and Dumfries.

About 70% of Scots have an unfavourable opinion of Trump, while 18% have a positive opinion, an Ipsos poll in March found.

President Trump is staying at his Turnberry property on Scotland’s west coast this weekend, before travelling to Aberdeenshire on Monday, where he will open a second 18-hole course.

He is due to return to the UK in September for a state visit hosted by the King – the first world leader in modern times to undertake two UK state visits.

UK