On Friday, a jury in Manhattan issued a guilty ruling against Charlie Gavis, 33 -year -old CEO who deceived. Jpmorgan Chase To buy a student loan start, I was accused of a series of fees related to fraud. Fees bear the 30 -year -old penalty, and Javis will be sentenced in the coming weeks.

The ruling came against Gavis, who did not take the situation during the trial, about four hours after the jury’s deliberations.

The referee concluded nearly five weeks of certificates, as the prosecutors claimed that Javis, and the co -defendant Olivier Ammar, lied and established fake customer data to sell the Financial Aid Company Frank in 2021.

In 2017, Javice Frank, who was aimed at helping students fill out the complex free demand for federal students’ assistance models. Four years later, Javis Darling was 28 years old, which often appeared on CNBC and made Forbes 30 under 30 lists, when Frank sold Jpmorgan Chase for $ 175 million.

JPMorgan Chase claimed that he bought Frank believing that he had four million customers, but later discovered that it had approximately 300,000. The bank realized its mistake in January 2022 when he sent marketing emails to a group of 400,000 supposed customers Frank. Only 28 % of emails were delivered, and only 1.1 % have been opened, according to JPMorgan Chase’s suit Against Javis.

The bank claimed that Javice, along with Codefndant Olivier Amar, chief growth employee in Frank, used a data world to create millions of fake customer accounts that he used to deceive JPMorgan Chase. The bank ended with the closure of the Frank website in January 2023, just weeks prosecution Javis in the Dilayer Provincial Court.

In April 2023, the case took a more serious turn when the Ministry of Justice and SEC prosecution Javis, who receives criminal charges separate from conspiracy to commit fraud and bank fraud, fraud in wires, and bank fraud, each holds a 30 -year prison sentence, according to the case. She was also accused of securities fraud, which carries a 20 -year prison sentence.

Trial

The Javice and Amar trial lasted for six weeks and included a star showed by Mark Rawan, CEO and co -founder of Global Administration Apollo. Rawan invested in Frank and even sat on the company’s board of directors. Rowan, a defensive witness, said he invested in Frank because he believed that Gavis and her team “seemed excellent”, ” Bloomberg I mentioned.

Rawan also supported defense claims about user numbers because Frank calculates as customers of anyone who came to the site, according to the story. “Users, customers, site visitors: one and the same”, Rawan, who cited his experience in investing in Yahoo and AOL. He said, “I am used to using these terms by exchange.”

The jury began to circulate the fate of Javis and Amar late Thursday. Prosecutor Nicholas Chetuchiolo told the jurors on Wednesday that Gavis and Amar sold Frank for $ 175 million “of lies. Repeated and repeated, they succeeded in achieving the success of their business in obtaining more than 4 million participating clients,” according to a copy of the court.

Chatciolo stated that Frank is the four million customers “was created. It was literally created by a computer program. Frank was not four million customers.” He added that after the sale of Frank in September 2021, Javis and Amar became millions of millions, while “JPMorgan got a spreadsheet with fake names.”

Jose Bayes, Javis’s lawyer, responded that the contract signed by JPMorgan to buy Frank did not specify the customer’s data, but it did not include any promises about the number of users that Frank will make, Bloomberg He said.

Paes claimed that JPMorgan Chase had other reasons for buying startup. During the summer of 2021, the bank spent several weeks in due care in studying financial statements and users in Frank. The bank is believed to have rushed the deal because it believes that Bank of America He was looking to buy Frank.

Jimmy Damon, Chairman and CEO of JPMorgan Chase, also concerned with Frank’s acquisition and met Javice about three weeks before the bank scored the deal. Damon was “very excited” about transactions and told Javis in July 2021 that JPMorgan “should make the deal”, ” luck He has I mentioned.

“Included in an incredibly defective,” Bayz said in the government’s case against Javis. “They knew exactly what they were buying. They negotiated for it. They knew exactly those who wanted it exactly, and sometimes the reasons they wanted for it was not necessarily what they said to them.”

This story was originally shown on Fortune.com

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2025-03-28 19:15:00