JPMorgan sues start-up founder Charlie Javice for faking user growth and account details before selling the unicorn company. Charlie was the owner of the unicorn, Frank, which was sold to JP Morgan for $175 million after faking the user growth numbers and the active user count. Charlie has now been arrested and is in prison awaiting trial for fraud and conspiracy charges.
JPMorgan sues start-up founder – The details
Charlie Javice, the founder of the start-up named, Frank was arrested by US law enforcement on Monday on charges of fraud and conspiracy. JPMorgan sues start-up founder for fabricating information on the user accounts on her platform during the sale of the company to JP Morgan Chase for $175 million. The youngster had also featured in the Forbes List of 30 under 30 in 2019 and was regarded as a promising entrepreneur.
Javice made a brief appearance on Tuesday before US Magistrate Judge Barbara Moses in Manhattan, who set bail at USD 2 million. The Securities and Exchange Commission filed related civil charges on her after JPMorgan sues start-up founder.
JPMorgan sues start-up founder – Statement of Attorneys
US Attorney Damian Williams, in a statement, elaborated on the reason behind the arrest. Williams said, “As alleged, Javice engaged in a brazen scheme to defraud JPMC in the course of a USD 175 million acquisition deal. She lied directly to JPMC and fabricated data to support those lies — all in order to make over USD 45 million from the sale of her company. This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them, and this Office will hold them accountable for putting their greed above the law.”
Javice had received over USD 21 million for selling her equity stake in Frank and, as per the terms of the deal, was to be paid another USD 20 million as a retention bonus.
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