Fintech star gets 7 years for defrauding JPMorgan Chase out of $175M — why it took the bank 1 year to figure it out

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At the time, it was believed Frank had more than four million customers, and around 300 bankers at JPMorgan Chase vetted the purchase before it was finalized. (1)Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPI'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast)However, Javice was convicted on charges of conspiracy, bank fraud and wire fraud after she was caught falsifying records in order to boost her customer base. In reality, Frank had fewer than 300,000 customers. (2)Javice’s lawyers argued that her sentence should be as little as 18 months, claiming that a major bank like JPMorgan Chase could easily afford to lose $175 million, and that 300 analysts had approved the sale without raising red flags.The sale, according to Javice’s lawyers, pitted “a 28-year-old versus 300 investment bankers from the largest bank in the world.” However, U.S. District Court Judge Alvin K. Hellerstein had little mercy for Javice, even if she managed to con hundreds of bankers."Whether you outsmart someone who is indifferent or someone who is careful, it's the conduct," said Judge Hellerstein. "Fraud remains a fraud, whether you outsmart someone who is smart or someone who is a fool."Before completing the sale, Javice had spreadsheets that contained details on Frank’s alleged four million customers. These spreadsheets reportedly included falsified phone numbers, home and email addresses, personal financial data and Social Security numbers.As Business Insider reports, JPMorgan Chase asked for access to the spreadsheets before completing the purchase, but Javice had issues with the bank’s request and didn’t agree to deliver them. Javice reportedly cited privacy concerns over sharing the personal data of Frank’s users. (1)But that didn’t stop JPMorgan Chase from finalizing the purchase. One year after the bank spent $175 million to acquire Frank, analysts at JPMorgan Chase finally discovered that Javice’s data had been falsified.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,664.01 +34.94 (+0.53%)Dow 3046,190.61 +238.37 (+0.52%)Nasdaq22,679.98 +117.44 (+0.52%)Russell 20002,452.17 -14.84 (-0.60%)VIX20.78 -4.53 (-17.90%)Gold4,213.30 -91.30 (-2.12%)PortfolioSign in to access your portfolioSign inTop gainersLBRT Liberty Energy Inc. 15.32 +3.38 (+28.31%)IRON Disc Medicine, Inc. 89.94 +15.58 (+20.95%)PRAX Praxis Precision Medicines, Inc. 189.99 +27.28 (+16.77%)RVMD Revolution Medicines, Inc. 54.10 +4.42 (+8.90%)KVUE Kenvue Inc. 15.29 +1.18 (+8.36%)Top losersHIMS Hims & Hers Health, Inc. 49.78 -9.37 (-15.84%)RSI Rush Street Interactive, Inc. 17.30 -2.99 (-14.74%)SBSW Sibanye Stillwater Limited 11.38 -1.44 (-11.23%)DGNX Diginex Limited 14.80 -1.87 (-11.22%)EXK Endeavour Silver Corp. 9.06 -1.09 (-10.74%)Most activeBITF Bitfarms Ltd. 5.01 -0.27 (-5.11%)NVDA NVIDIA Corporation 183.22 +1.41 (+0.78%)BBAI BigBear.ai Holdings, Inc. 7.42 -0.28 (-3.64%)INTC Intel Corporation 37.01 +0.17 (+0.46%)RGTI Rigetti Computing, Inc. 46.38 -1.59 (-3.31%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 107,551.29 +394.95 (+0.37%)ETH-USD Ethereum USD 3,916.59 +35.08 (+0.90%)XRP-USD XRP USD 2.37 -0.01 (-0.50%)SOL-USD Solana USD 188.61 +2.36 (+1.27%)DOGE-USD Dogecoin USD 0.19 +0.01 (+2.80%)Top economic events