The criminal trial of fintech startup founder Charlie Javice commenced on Friday, as lawyers presented their opening arguments, according to a Reuters report. The case stems from a lawsuit filed by JPMorgan Chase against Javice in December 2022. The bank accuses her of fabricating millions of customers to persuade JPMorgan to acquire her company, Frank, a student financial planning aid startup, for $175 million. This accusation also formed the basis of an SEC complaint, which alleged that Javice misrepresented Frank’s user base to entice the financial giant. JPMorgan reportedly uncovered the alleged fraud when over 70% of marketing test emails sent to Frank’s customer list bounced back. Javice’s legal team argues that JPMorgan conducted thorough due diligence and that the lawsuit is a consequence of buyer’s remorse triggered by a government policy change affecting financial aid forms. They contend that claims of fraud were used as a tactic to exit the deal. If convicted of deception and falsifying data, Javice, 32, could face several years in prison. — news from TechCrunch
