Charlie Javice, the disgraced founder of college-finance startup Frank, broke down in tears Monday as she begged for forgiveness before being sentenced to seven years for swindling JPMorgan Chase in a $175 million acquisition.
“I feel nervous, to plead before God and before you, Your Honor,” Javice told US District Judge Alvin K. Hellerstein, her voice shaking as she stood in Manhattan federal court on Monday before learning her fate.
Javice’s comments to the judge were first reported by the independent journalist and author Matthew Russell Lee, whose Patreon newsletter Inner City Press is devoted to coverage of Manhattan federal cases.
“At 28 I did something that does against my grain. I let down those who trusted me. These errors, this complete collapse of character, is its own sentence,” Javice said.
The onetime fintech star, 33, said she was devastated that Frank had become “infamous,” admitting she was “no longer a source of pride for my family” and haunted by the damage her deception caused.
At one point she sobbed as she recalled watching her father during her trial: “I saw the fear in my father’s eyes at trial. It will forward be with me (sobs). I know you would trade places with me.”
Javice also addressed her mother, calling her “my North star,” and pleaded with the court to show leniency.
“Brokenness is the end and grace is within reach,” she said.
“I ask your Honor to temper justice with mercy. Whatever sentence is imposed I will accept with dignity.”
She apologized directly to JPMorgan shareholders, former Frank employees and investors, and the students who once relied on her startup.
“If it were in my power I would never make the same mistake again, not for recognition or money,” she said.
“I still believe I am a good person. My parent taught me that charity is justice. Frank was the culmination.”
“I am asking forgiveness from the shareholders of JPMorgan Chase. To every Frank employee or investor who was stained by proximity to me, I ask forgiveness. To every student or family that depended on Frank, I ask for your forgiveness,” she said.
“I am haunted that Frank has become infamous. I am no longer a source of pride for my family. Brokenness is the end and grace is within reach. If I could look that young girl in the mirror and tell her that the shortcuts are not worth it.”
“I ask your Honor to temper justice with mercy. Whatever sentence is imposed I will accept with dignity. Thank you.”
Hellerstein said Javice’s words in court were “very moving” and noted that her “record of good deeds is compelling.”
“My job is to sentence people not because they are bad, but because they have done something bad,” the judge said. “You are a good person who has done bad things. I have to punish you. Markets require honesty. It’s Biblical. Yours was not an honest measure.”
Hellerstein added that while prosecutors’ request for 12 years was “too high,” the defense’s push for leniency was “too low.” He then sentenced Javice to 85 months in custody.
Javice was convicted in March on charges of bank fraud, securities fraud, wire fraud and conspiracy after a jury found she inflated Frank’s customer base by millions of fake accounts ahead of its 2021 acquisition.
Prosecutors said Javice and a co-defendant, Olivier Amar, fabricated records showing more than 4 million student users when the platform actually had only about 300,000.
JPMorgan shuttered Frank just over a year after buying it, and the case became one of the most closely watched white-collar trials since Theranos founder Elizabeth Holmes.
Federal prosecutors had pushed for a 12-year prison term, calling Javice’s actions “audacious” and driven by greed. They also sought restitution and financial penalties to cover JPMorgan’s losses and legal costs.
Ahead of sentencing, Javice pleaded for mercy in a letter to Hellerstein, writing that “there are no excuses, only regret—I am truly sorry.”
She cited her family background, including her grandmother’s survival of the Holocaust, and argued for a chance to rebuild her life and start a family.
Her lawyers told the court that JPMorgan’s $175 million loss was “negligible” compared with the bank’s $4 trillion in assets and that a long sentence would serve no purpose.
They asked the judge to weigh her prior charitable work and potential for rehabilitation.
Prosecutors dismissed those arguments, noting Javice expressed remorse only at the last minute.
“Her self-serving assertions ring hollow when measured against her conduct,” they wrote in their sentencing memo.
The case has been compared to the downfall of Holmes and Theranos because of its high-profile nature and the scrutiny it drew to startup culture and investor due diligence.
Her co-defendant Amar, Frank’s former chief growth officer, is also awaiting sentencing in a separate case.
The Post has sought comment from JPMorgan Chase and Javice’s attorneys.
