Bank JPMorgan Chase accused Charlie Javice, the founder of fintech startup Frank it bought in September 2021 of fraud, Kommersant reports, citing Bloomberg.

In the lawsuit filed in Delaware federal court, JPMorgan said it paid $175 million for what it believed was a business deeply engaged with the college-aged market segment with 4.265 million customers. But the internal investigation revealed later that Charlie Javice’s company used fake accounts to show a large number of Frank’s customer base.

“Instead, it received a business with fewer than 300,000 customers,” the lawsuit says.

In her turn, Charlie Javice filed a separate lawsuit against JPMorgan demanding it cover the legal bills she has incurred during all of the bank’s internal investigations. She claims that the bank failed to do proper due diligence, and the lawsuit is an attempt not to pay her compensation for dismissal.

Startup Frank was founded by Charlie Javice in 2016. The company aimed to simplify the student loan application process. In 2019, Charlie Javice was named to the Forbes “30 Under 30” list in the finance industry.

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