"A lot of math has to happen before a judge arrives at the two most important numbers in any sentence for a financial crime: how much time the defendant must serve, and how much money they must repay. These calculations are being heatedly argued over in the case of Charlie Javice, due to be sentenced in Manhattan on Monday after being found guilty of fraud for using bogus user data to trick JPMorgan Chase into paying $175 million for her student financial aid startup, Frank."
"Federal prosecutors say the sentencing math - how much time, how much money - is simple. Javice, they argue, should serve 12 years in prison and pay $300 million in restitution - $283 million to JPMorgan Chase and $17 million to the bank's insurer. It's a sum, they say, that reflects the "enormous victim loss" suffered by JPMorgan Chase, the country's largest bank."
Judicial sentencing for financial crimes requires calculating imprisonment and repayment amounts based on victim loss. Charlie Javice was convicted of fraud for using fabricated user data to induce JPMorgan Chase to pay $175 million for Frank. Prosecutors urge sentencing based on the bank's $175 million gross loss and seek 12 years in prison plus $300 million in restitution, citing projected revenue over $500 million. The defense contends the court should subtract Frank's legitimate value and potential to determine a net loss. Frank actually had about 300,000 user records rather than the claimed 4 million.
Read at Business Insider
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