Student aid startup founder Charlie Javice lied to – Business News
A Florida girl deployed a “brazen fraud” to sell her scholar aid startup to JPMorgan Chase for $175 million after dramatically exaggerating its buyer base, a prosecutor informed jurors Wednesday in a prison trial’s closing argument.
Assistant US Attorney Nicholas Chiuchiolo urged a Manhattan federal courtroom jury to convict Charlie Javice and one other former prime govt at her company, which operated beneath the identify Frank, of conspiracy and fraud expenses.
Defense legal professional Jose Baez urged an acquittal of his 32-year-old consumer, calling the proof “incredibly flawed.” He urged the jury to “look at evidence, lack of evidence and the conflict of the evidence” to exonerate Javice.
Prosecutors accused Charlie Javice of deploying a “brazen fraud” to sell her scholar aid startup to JPMorgan Chase for $175 million. Javice in 2023, above. AP
As he spoke, Javice smiled at occasions and turned her chair to face the jury.
Prosecutors mentioned the Miami Beach, Fla., resident who appeared on the Forbes 2019 “30 Under 30” record would have earned $45 million from the fraud.
The protection presentation got here after Chiuchiolo cited emails, textual content messages and telephone calls to persuade jurors that Javice repeatedly lied to JPMorgan in the summertime of 2021 to secure a buyout that might earn her tens of millions of {dollars}.
The company Javice based as soon as appeared like a pioneer amongst companies that cater to college-age college students, who banks encourage to open checking or credit card accounts within the hopes they’ll grow to be lifelong clients.
Frank, established in 2017 as TAPD Inc., was created to simplify filling out the Free Application for Federal Student Aid, a federal authorities kind utilized by college students to apply for financial aid for faculty or graduate college.
Prosecutors say Javice claimed Frank had over 4.25 million purchasers, however as a substitute had about 400,000 clients. Alec Tabak
Chiuchiolo mentioned Javice, who was arrested in April 2023 and is free on bail, sought to sell the company in 2021, when it had about 400,000 clients, claiming it had over 4.25 million purchasers.
When JPMorgan Chase sought to confirm the consumer record, Javice first approached her company’s head of engineering, asking if he may produce “synthetic data” to show the company had over 4 million clients, the prosecutor mentioned.
But the worker refused, saying he “would not do anything illegal,” Chiuchiolo mentioned.
“They’re going to call him a liar,” he predicted of the protection’s characterization of his testimony. “Because if you believe him, the defendants are guilty.”
The jury was anticipated to start deliberations on Thursday Christopher Sadowski
Javice ultimately employed an exterior knowledge scientist for $105,000 to create a artificial knowledge set displaying over 4.2 million college students, prosecutors mentioned.
Javice didn’t testify during the five-week trial. The jury was anticipated to start deliberations on Thursday.
