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.

Sports

Mets sit banged up McNeil, Nimmo vs. Nationals

Published

28 mins ago

August 21, 2025

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Mets sit banged up McNeil, Nimmo vs. Nationals

Associated Press

Aug 21, 2025, 03:26 PM ET

WASHINGTON — Jeff McNeil has a sore right shoulder, the latest nagging injury for the New York Mets as they try to recover from a late-summer swoon.

McNeil was out of the lineup for Thursday’s series finale at Washington, with Brett Baty starting at second base. One of the Mets’ most consistent hitters, McNeil went 4 for 8 with a homer, two doubles and five RBI in the previous two games against the Nationals.

“It doesn’t bother him to swing the bat. It’s just more the throwing,” manager Carlos Mendoza said.

The shoulder problem began late last week, Mendoza said, which is why McNeil started at designated hitter on Saturday and Sunday.

Brandon Nimmo was also out of the lineup Thursday with the stiff neck that forced him to leave Wednesday night’s game in the second inning. Tyrone Taylor started in left field.

“We didn’t see much improvement overnight,” Mendoza said of Nimmo.

McNeil has experience in left, but the shoulder problem means he’s not an option there for now.

New York’s series at Washington began Tuesday with the news that catcher Francisco Alvarez has a sprained ligament in his right thumb that will require surgery. Alvarez is hoping he can play through the pain after a stint on the injured list.

Backup catcher Luis Torrens had a rough night Wednesday that included getting hit in his receiving hand by a bat on a catcher’s interference play, but Mendoza said Thursday that Torrens was “fine.”

The Mets had a three-game winning streak before Wednesday night’s loss, but the team with the biggest payroll in the majors is just 5-15 since July 28. New York entered Thursday trailing Philadelphia by 6 1/2 games in the NL East and was one game ahead of Cincinnati for the final wild-card spot.

Science

Rice University Scientists Confirm Flatband Discovery in Kagome Superconductor

Published

28 mins ago

August 21, 2025

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flatband states in CsCr₃Sb₅, a kagome superconductor. This experimental validation connects lattice geometry with emergent superconductivity, opening new pathways for engineered quantum materials, superconductors, and advanced electronics.

World

Israel maintains pressure on Gaza City as ‘first stages of attack begin’

Published

28 mins ago

August 21, 2025

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Israel maintains pressure on Gaza City as 'first stages of attack begin'

Gaza City residents say Israel carried out intense overnight bombardments as it prepares a controversial offensive to take control of the area.

Sixty-thousand reservists are being called up after Benjamin Netanyahu‘s security cabinet approved the plan earlier this month.

UN chief Antonio Guterres has warned of more “death and destruction” if Israel tries to seize the city, while France’s Emmanuel Macron said it would be a “disaster” that would lead to “permanent war”.

Live – UN warns of ‘forcible transfer’ as forces advance on Gaza City

Hundreds of thousands of people could end up being forcibly displaced – a potential war crime, according to the UN’s human rights office.

Gaza’s health ministry said at least 70 people had been killed in Israeli attacks in the past 24 hours, including eight people in a house in the Sabra suburb of Gaza City.

Israel currently controls about 75% of the Gaza Strip, but Prime Minister Netanyahu has said Israel must take Gaza City to “finish the job” and defeat Hamas.

Mr Netanyahu and his ministers are due to meet on Thursday to discuss the plans, according to Israeli media.

Military spokesperson Effie Defrin said earlier that “preliminary operations and the first stages of the attack” had begun – with troops operating on the outskirts of Gaza City.

Israel has said it will order evacuation notices before troops move in but satellite images show thousands of people have already left.

Residents said shelling has intensified in the Sabra and Tuffah neighbourhoods and that those fleeing have gone to coastal shelters or to central and southern parts of the Strip.

The decision to stay or leave is an agonising choice for many.

“We are facing a bitter-bitter situation, to die at home or leave and die somewhere else, as long as this war continues, survival is uncertain,” said father of seven Rabah Abu Elias.

“In the news, they speak about a possible truce, on the ground, we only hear explosions and see deaths. To leave Gaza City or not isn’t an easy decision to make,”

Most of the Israeli reservists being summoned are not expected to be in a frontline combat role and the call-up is set to take a while.

The window could give mediators more time to convince Israel to accept a temporary ceasefire.

Hamas has already agreed to the proposal – envisaging 10 living hostages and 18 bodies being released in return for a 60-day truce and the freedom of about 200 Palestinian prisoners.

Israel hasn’t officially responded, but insists it wants all 50 remaining hostages released at once. Only 20 of them are still believed to be alive.

The war started nearly two years ago when a Hamas terror attack killed about 1,200 people and kidnapped around 250.

More than 62,000 Palestinians have been killed in the war, according to Gaza’s health ministry.

The figure doesn’t break down how many were Hamas members, but it says women and children make up more than half.

Two more people also died of starvation and malnutrition in the past 24 hours, the ministry said on Thursday, taking the total to 271, including 112 children.

COGAT, the body controlling aid into Gaza, said 250 aid trucks entered on Wednesday, with 154 pallets air-dropped.