Serious allegations: JP Morgan sues founder

JP Morgan acquired a fintech from the young entrepreneur for 175 million US dollars.

The major bank JP Morgan Chase has sued the young founder of the fintech Frank, according to Finance Forward reports. Charlie Javice is apparently accused of creating a list of alleged fake customers so that the financial firm JP Morgan Chase would invest with her.

In 2021, the bank acquired the startup for 175 million US dollars, after which Javice continued to work for JP Morgan Chase. Frank had offered a tool to simplify the student loan application process. Studying in the USA is often extremely expensive, so the potential user base was considered huge.

And then Javice also allegedly advertised that he had four million customers. According to the indictment, however, there were only 300,000 users: less than ten percent of the number that was apparently initially stated.

JP Morgan Chase is then said to have dismissed Javice in November. She herself has a different view of what happened - and is said to have sued JP Morgan Chase first, according to her lawyer. "JP Morgan Chase's retaliation lawsuit is nothing but a pretext," he is quoted as saying.