Posted: April 4, 2023 at 10:43 a.m. ET
The Securities and Exchange Commission has charged Charlie Javis with fraud in connection with the $175 million sale of its student loan assistance firm Frank to JPMorgan Chase GPM.
The SEC alleges that Javis misled JPMorgan into believing her firm had 4.25 million customers, when it had fewer than 300,000. Javice received $9.7 million in stock proceeds and a $20 million retention bonus, among other compensation, after the sale.
“instead of…
The Securities and Exchange Commission charged Charlie Javis with fraud in connection with the sale of $175 million of her firm’s Student Loan Aid Frank to JPMorgan Chase
JPM
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The SEC alleges that Javis misled JPMorgan into believing her firm had 4.25 million customers, when it had fewer than 300,000. Javice received $9.7 million in stock proceeds and a $20 million retention bonus, among other compensation, after the sale.
Instead of helping students, we allege that Ms. Javis engaged in old-school fraud: she lied about Frank’s success in helping millions of students navigate the college financial aid process by creating data to support her claims, and then used that fake information to induce JPMC to enter. in a $175 million deal,” SEC Chief Law Enforcement Gurbir Grewal said, in a statement.
JPMorgan made similar allegations in a lawsuit in January.
Javis also sued the bank, alleging that the bank launched baseless investigations and manufactured a cause-effect termination to deny her millions in compensation.
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