In the U.S., Charlie Jevis, the founder of the fintech startup Frank, which helped students apply to colleges in the U.S., was sentenced to seven years in prison. She was found guilty of fraud amounting to $175 million.
In the summer of 2021, during the sale of Frank to the American bank JPMorgan Chase, Jevis significantly exaggerated the number of students to whom the company allegedly provided services. She forged documents to create the impression that Frank had over 4 million clients, whereas in reality, there were fewer than 300,000.
Jevis's lawyer requested the court to show leniency, arguing that in the negotiations for the sale of Frank, the then 28-year-old woman faced "300 investment bankers from the largest bank in the world," but the judge rejected these arguments.
The judge acknowledged that the bank was largely at fault for not conducting proper due diligence before the deal, but added that he was punishing Jevis for her actions, "not for JPMorgan's stupidity."
The prosecution insisted that Jevis's actions were driven by greed when she realized she could make $29 million from the sale of her company. "Ms. Jevis had that amount hanging right in front of her eyes, and she lied to get it," the prosecutor said.
Jevis stated in court that she would regret her actions "for the rest of her life."
Frank claimed that its product, similar to online tax preparation services, helps students simplify the process of applying for financial aid.
Jevis regularly appeared on cable television broadcasts to raise awareness of Frank and even made it to the Forbes 30 Under 30 list before JPMorgan acquired the startup in 2021.
