Founder of Student Loan Startup Charged in $175 Million Fraud Case

Authorities on Monday arrested and charged Charlie Javice, former CEO of a student loan startup, accusing her of falsely portraying the size of her company in a $175 million fraud case.

Javice, 31, was charged with one count of conspiracy to commit bank and wire fraud, one count of bank fraud, one count of wire fraud and one count of securities fraud for “falsely and dramatically” increasing the number of customers at her startup company, Frank, according to the Justice Department. She inflated the number of customers so that she could attempt to persuade J.P. Morgan Chase (JPMC) to purchase the firm for $175 million, the department said, where she would have made $45 million from the fraud.

The count of conspiracy to commit bank and wire fraud, count of bank fraud and count of wire fraud each carry a prison sentence of up to 30 years in prison. The count in securities fraud carries up to 20 years, according to the Justice Department.

Read the source article at thehill.com