""Fraud remains a fraud," Hellerstein explained, "whether you outsmart someone who is smart or someone who is a fool.""
""punishing her conduct and not JPMorgan's stupidity.""
""That's nothing," trial evidence had shown one bank executive scoffing about the sale price."
Charlie Javice used fabricated user data to secure a 2021 sale of her startup Frank to JPMorgan Chase for $175 million. A year after the acquisition, JPMorgan discovered that about 4 million users were fraudulent. U.S. District Judge Alvin K. Hellerstein sentenced Javice to seven years in prison and ordered $287.5 million in restitution. Approximately 300 in-house diligence officers had vetted the deal before the purchase. Defense arguments pointed to alleged poor bank due diligence and the relative size of the loss to JPMorgan, but the court emphasized that fraudulent conduct warranted punishment.
Read at Business Insider
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