Posted: April 4, 2023 at 10:43 am ET
The Securities and Exchange Commission charged Charlie Javice with fraud in connection with the $175 million sale of his Frank student loan assistance company to JPMorgan Chase JPM.
The SEC alleges that Javice misled JPMorgan into thinking that his company had 4.25 million customers, when it had less than 300,000. Javice received $9.7 million in shares and a $20 million retention bonus, among other compensation, following the sale.
“Quite…
The Securities and Exchange Commission charged Charlie Javice with fraud in connection with the $175 million sale of his Frank student loan assistance company to JPMorgan Chase.
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The SEC alleges that Javice misled JPMorgan into thinking that his company had 4.25 million customers, when it had less than 300,000. Javice received $9.7 million in shares and a $20 million retention bonus, among other compensation, following the sale.
“Instead of helping students, we allege that Ms. Javice engaged in old-school fraud: She lied about Frank’s success in helping millions of students navigate the college financial aid process by fabricating data to back up her claims. claims and then used that false information. to induce JPMC to enter into a $175 million transaction,” SEC chief compliance officer Gurbir Grewal said in a statement.
JPMorgan made similar allegations in a January lawsuit.
Javice also sued the bank, alleging that the bank launched baseless investigations and fabricated a termination for cause to deny him millions in compensation.
