Serious accusations: JP Morgan sues founder

JP Morgan had acquired a fintech from the young entrepreneur for $175 million.

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

In 2021, the bank had acquired the startup for $175 million, 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 U.S. is often extremely expensive, so the potential user base was considered huge.

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

In November, JP Morgan Chase then allegedly fired Javice. 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 suit is nothing but a pretext," he is quoted as saying.