The jury trial for Charlie Javice, the founder of fintech startup Frank, commenced Friday with both sides presenting their opening arguments. The charges stem from a lawsuit filed by JPMorgan Chase in December 2022, accusing Javice of fabricating customers to induce the bank to acquire Frank for $175 million. The Securities and Exchange Commission (SEC) also filed a complaint, alleging Javice misled JPMorgan about Frank’s purported vast user base.
JPMorgan asserts that it discovered the alleged fraud when over 70% of test emails sent to a list of Frank’s customers were undeliverable. Javice’s defense claims JPMorgan conducted thorough due diligence and that the lawsuit reflects buyer’s remorse caused by a shift in government financial aid form regulations.
Javice, currently 32, faces potential imprisonment if convicted of the charges of deception and falsifying data.
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