JP Morgan Duped by Start-up Founders’ Fake Customers
JPMorgan Chase prosecuted the 30-year-old creator of Frank, a fintech firm it bought for 175 million dollars, for purportedly lying about its growth and performance. The United States District Court of Delaware argues that Javice sold JP Morgan to 4 million customers in 2021 for a reasonable share price and then subscribed to use Frank’s tools to request federal help. When JP Morgan requested a proof, Javice allegedly generated a massive list of false clients with names, dates of birth, addresses, and other private details for 4.265 million students who did not exist. According to the lawsuit, Frank had less than 300,000 customer records at the time.
Javice first objected to JPMC’s request, claiming they could not provide the customer list owing to privacy concerns as per the complaint. After JPMC was pushed, Javice made up several million Frank client accounts from scratch. The complaint included images of presentations Javice delivered to JP Morgan demonstrating Frank’s development and stating it had over 4 million clients. According to the former Frank CEO’s complaint, the bank started a series of baseless investigations into Ms Javice’s conduct and worked to push Ms Javice out of the organization.
As per the complaint, JP Morgan falsely charged Ms Javice with misbehavior during the Frank acquisition as part of those investigations. Javice’s lawyer, Alex Spiro, told Forbes in an email that after JPMC hurried to obtain Charlie’s rocketship firm, JPMC realized they couldn’t navigate current student privacy rules, committed misbehavior, and then attempted to retrade the deal. Charlie revealed the truth and then filed a lawsuit.
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