Charlie Javice, founder of the student-finance startup Frank, was convicted of defrauding JPMorgan Chase after falsely claiming the platform had 4.25 million users. The reality was fewer than 300,000 users. Following JPMorgan's acquisition of Frank for $175 million in 2021, discrepancies arose when an offer sent to the supposed user base yielded only 10 new customers, prompting an investigation. The trial revealed that Javice enlisted the help of a data scientist to create fake user data, further illuminating the fraudulent practices at Frank.
Javice's claims about Frank's user base were grossly exaggerated, leading to her conviction for fraud after JPMorgan discovered the discrepancy post-acquisition.
Kapelner's process created fake users for Javice, indicating a deeper orchestration of deceit within the company's accounting and data practices.
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