Charlie Javice Sentenced to 7 Years in Prison for $175 Million JPMorgan Fraud—4 Years After Buying $1.4 Million Luxury Miami Home

Disgraced tech mogul Charlie Javice broke down in tears as she was sentenced to seven years behind bars for "swindling" JPMorgan Chase out of $175 million by falsifying information about the success of her fintech startup, Frank.

Javice, 33, sold her company to the banking giant in 2021—however it was later revealed that she had inflated its customer base by millions ahead of the acquisition, according to the Associated Press, in a case that drew many comparisons with the downfall of Elizabeth Holmes and her startup, Theranos.

The former Forbes "30 Under 30" honoree, who appeared on the illustrious list in 2019, was convicted in March on charges of securities fraud, wire fraud, bank fraud, and conspiracy after a judge ruled that she had fabricated more than 3.5 million Frank user accounts, alongside her defendant and former Chief Growth Officer Olivier Amar.

JPMorgan ultimately shut down the business—which was meant to change the way college students apply for financial aid—less than two years after buying it.

Speaking in a Manhattan federal court room on Sept. 29, Javice, who was raised in Westchester County, NY, fought back tears as she apologized to those impacted by her crimes, while pleading with Judge Alvin K. Hellerstein for leniency.

"I feel nervous, to plead before God and before you, Your Honor," she began. "At 28, I did something that goes against my grain. I let down those who trusted me. These errors, this complete collapse of character, is its own sentence.

"I still believe I am a good person. My parents taught me that charity is justice. Frank was the culmination."

She added: "I miss being a source of pride for my family."

In response, Judge Hellerstein noted that it was not his job to sentence bad people but rather to punish those who had done bad things, adding that he found her personal statement "very moving" and her "record of good deeds compelling."

"My job is to sentence people not because they are bad, but because they have done something bad," he said. "You are a good person who has done bad things. I have to punish you. Markets require honesty. It’s Biblical. Yours was not an honest measure."

Prosecutors had initially called for the judge to sentence Javice to 12 years behind bars; however, he stated that this request was "too high," before handing down an 85-month sentence.

The judge also imposed a forfeiture judgment of $22.4 million and ordered that Javice and Amar pay $287.5 million in restitution, according to the U.S. Attorney's Office.

"Javice perpetrated a $175 million fraud—repeatedly lying about the success of her startup company and even hiring a data scientist to create fake data to back up her lies," U.S. Attorney Amanda Houle said in a statement. 

"For that, Javice has been sentenced to 85 months’ imprisonment and ordered to pay over $300,000,000. Today’s sentence sends a clear message that brazen frauds will be met with serious penalties. Our Office will continue to work tirelessly to hold accountable those who seek to profit through fraudulent schemes and lies."

Javice's case began in March 2023, when she was sued by JPMorgan for "falsely and dramatically inflating the number of customers."

She was arrested in New Jersey in April of that same year—when authorities claimed that she would likely have earned around $45 million from the fraudulent sale of her company.

"Rather than help students, we allege that Ms. Javice engaged in an old school fraud: she lied about Frank’s success in helping millions of students navigate the college financial aid process by making up data to support her claims, and then used that fake information to induce JPMC to enter into a $175 million transaction," Gurbir S. Grewal, the director of the SEC's Division of Enforcement, said at the time of her arrest.

The disgraced entrepreneur was released on a $2 million bond and is understood to have returned to her Miami Beach condo—which she purchased for $1.42 million in June 2021, according to records.

It is unclear what will happen to the two-bedroom, two-bathroom unit while Javice is in prison.

In a previous listing, the property was described as offering "breathtaking" views out over the Biscayne Bay, courtesy of its corner spot inside one of Miami Beach's "most sought-after five-star buildings."

The dwelling offered "a semi-private elevator lobby, walk-in closets" and a "custom" kitchen, according to the description.

Meanwhile, the building itself boasts a number of high-end amenities, including a "beautiful bay-front pool, exclusive outdoor restaurant, tennis, state-of-the-art gym, elite concierge service, and 24-hour valet."

The high-rise building is perched right on the water in one of Miami Beach's most desirable neighborhoods, offering picturesque views of Biscayne Bay, Fisher Island, and Star Island—as well as the marina.