Charlie Javice, founder of startup Frank, sentenced to over 7 years for defrauding JPMorgan Chase of $175 million. She exaggerated customer numbers, leading to conviction in March. Javice expressed regret in court, highlighting her mistake. Judge criticized bank’s due diligence but focused on punishing her actions, not bank’s missteps.

Javice is among young tech executives whose companies collapsed due to fraud allegations. Her case draws comparisons to Elizabeth Holmes’ Theranos scandal. Javice, on $2 million bail, plans to appeal. She faces charges of conspiracy, bank fraud, and wire fraud. Prosecutors argue JPMorgan targeted her due to buyer’s remorse.

Frank, backed by venture capitalist Michael Eisenberg, aimed to simplify financial aid applications for students. Javice touted the software to help students maximize aid faster. Defense claims Javice’s company actually worked, unlike Holmes’. Prosecutors argue JPMorgan acquired a “crime scene,” accusing Javice of greed.

Prosecutors push for long prison sentence, citing a text where Javice criticized Holmes’ 11-year term. They warn of a trend of startup fraud. Javice’s case sheds light on founders misrepresenting core products to attract investors.

Read more at Yahoo Finance: Charlie Javice sentenced to 7 years in prison for fraudulent $175M sale of financial aid startup