SEC accuses Frank founder Charlie Javis of defrauding JPMorgan Chase

Charlie Javis, the 31-year-old start-up founder who was sued by JPMorgan Chase in December, now has even bigger problems.

US Attorney for the Southern District of New York He accused her Along with wire, bank and securities fraud, Frank said Tuesday that his college financial planning firm “falsely and artificially” inflated the number of clients he had in a scheme to “fraudulently induce the acquisition of JPMorgan Chase.” – up to $175 million.

JPMorgan has made similar allegations in its own lawsuit after acquiring the company, which it said would make it easier for students and families to file for financial aid.

Ms Javis was arrested on Monday and the three charges she faces carry a maximum sentence of 30 years in prison. He denied the allegations, a spokesman said. His attorney, Alex Spiro, declined to comment.

Filed by the Securities and Exchange Commission Its own complaint Also on Tuesday. “Even non-public, early-stage companies must be truthful in their representations,” Gurbir S. Grewal, director of the SEC’s enforcement division, said in a statement. “If they fall short, we will hold them accountable, just like in this case.”

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