Charlie Javice, the founder of the startup Frank aimed at simplifying FAFSA applications, was found guilty of fraud in a federal court. Accused by JPMorgan Chase of fabricating customer data, she could face decades of imprisonment. The scandal erupted shortly after Frank was acquired by JPMorgan for $175 million, when it was revealed that a significant portion of the company's claimed customer base was fictional. JPMorgan's investigation recounted disastrous results, where only 28% of outreach emails reached inboxes, ultimately prompting legal actions from both the bank and federal authorities.
After being accused by JPMorgan Chase of falsifying her startup's customer list, Charlie Javice was found guilty of fraud in federal court, facing severe penalties.
Ms. Javice, once celebrated for her achievement in simplifying FAFSA, now stands as a stark reminder of the potential pitfalls in startup valuations and due diligence.
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