This is Charlie Javice.
At 28, she sold her company to JP Morgan for $175M.
The problem: her company was a big fat lie.
Here's the crazy story of how she tried to scam Wall Street biggest bank: 🧵
At 28, she sold her company to JP Morgan for $175M.
The problem: her company was a big fat lie.
Here's the crazy story of how she tried to scam Wall Street biggest bank: 🧵
Charlie was born into privilege in New York.
She attended an elite French-American private school.
Her first "venture" came after a volunteer experience in Thailand.
A great start for young Charlie.
She attended an elite French-American private school.
Her first "venture" came after a volunteer experience in Thailand.
A great start for young Charlie.
She created a platform called "PoverUp".
The mission: help underprivileged communities access credit.
People could contribute small amounts to offer low-interest loans.
She claimed PoverUp raised $300K and had active partnerships.
This put her in the spotlight.
The mission: help underprivileged communities access credit.
People could contribute small amounts to offer low-interest loans.
She claimed PoverUp raised $300K and had active partnerships.
This put her in the spotlight.
She was 19 when:
• Ink Magazine featured PoverUp as "one of the coolest college startups"
• Fast Company named her among the "100 most creative people"
She also claimed she rejected the prestigious Peter Thiel Fellowship ($100K grant)
But her biggest idea was still to come
• Ink Magazine featured PoverUp as "one of the coolest college startups"
• Fast Company named her among the "100 most creative people"
She also claimed she rejected the prestigious Peter Thiel Fellowship ($100K grant)
But her biggest idea was still to come
After graduation, Javice spotted a genuine problem.
The FAFSA (Federal Student Aid) system:
• Composed of 108 questions, 3x longer than a standard tax form
• Complex paperwork
Bill Gates said it was a roadblock to higher education.
And she found a way to address this
The FAFSA (Federal Student Aid) system:
• Composed of 108 questions, 3x longer than a standard tax form
• Complex paperwork
Bill Gates said it was a roadblock to higher education.
And she found a way to address this
Her solution? "Frank":
• Streamlined FAFSA completion in about 4 minutes
• Aid appeal assistance for students to get better financial packages
• Financial planning tools and scholarship guidance
• Cash advances up to $5K while waiting for aid disbursement
She struck gold
• Streamlined FAFSA completion in about 4 minutes
• Aid appeal assistance for students to get better financial packages
• Financial planning tools and scholarship guidance
• Cash advances up to $5K while waiting for aid disbursement
She struck gold
By 2021, Frank claimed incredible success:
• 4.5M users in 4 years
• $20M in funds raised
• Partnerships with major institutions
This got Charlie featured on Forbes 30 Under 30
And it didn't go unnoticed.
• 4.5M users in 4 years
• $20M in funds raised
• Partnerships with major institutions
This got Charlie featured on Forbes 30 Under 30
And it didn't go unnoticed.
The meteoric rise caught JP Morgan's attention.
Javice pitched Frank as an "acquisition machine."
She claimed Frank knew "more about their students than any lender, college, or employer."
JP Morgan was sold.
Price tag: $175M
Javice pitched Frank as an "acquisition machine."
She claimed Frank knew "more about their students than any lender, college, or employer."
JP Morgan was sold.
Price tag: $175M
Javice's payday:
• $10M upfront
• $20M retention bonus
• Managing Director position at JP Morgan
She called it her "fairy tale new beginning."
But every fairy tale has an ending...
• $10M upfront
• $20M retention bonus
• Managing Director position at JP Morgan
She called it her "fairy tale new beginning."
But every fairy tale has an ending...
During due diligence, JP Morgan wanted to verify Frank's 4.5M user base.
Javice refused, citing "privacy concerns."
The real reason? Frank had fewer than 300,000 users.
How could she overcome this?
Javice refused, citing "privacy concerns."
The real reason? Frank had fewer than 300,000 users.
How could she overcome this?
Desperate to close the deal, Javice:
• Paid $18K to create millions of fake accounts
• Spent $105K on backup fake data
• Destroyed evidence minutes after verification
Was this enough to fool JP Morgan?
• Paid $18K to create millions of fake accounts
• Spent $105K on backup fake data
• Destroyed evidence minutes after verification
Was this enough to fool JP Morgan?
When JP Morgan tried using the customer database:
• 28% of emails delivered (compared to JPMorgan's usual 99%)
• 1.1% open rate (compared to JPMorgan's typical 30%)
The house of cards collapsed...
• 28% of emails delivered (compared to JPMorgan's usual 99%)
• 1.1% open rate (compared to JPMorgan's typical 30%)
The house of cards collapsed...
Investigation revealed the fraud.
And there were earlier signs:
• Her 2017 NYT opinion piece on FAFSA required 8 major corrections
• In 2020, the FFTC warned about misleading marketing of CARES Act grants
• Frank's website used stock photos as actual users
But there's more
And there were earlier signs:
• Her 2017 NYT opinion piece on FAFSA required 8 major corrections
• In 2020, the FFTC warned about misleading marketing of CARES Act grants
• Frank's website used stock photos as actual users
But there's more
Remember PoverUp?
• The company was never registered.
• Not a single loan was distributed.
And the Peter Thiel Fellowship?
• Michael Gibson, who ran the program, confirmed she was never offered one.
She fabricated every success in her story
• The company was never registered.
• Not a single loan was distributed.
And the Peter Thiel Fellowship?
• Michael Gibson, who ran the program, confirmed she was never offered one.
She fabricated every success in her story
Former employees paint a dark picture:
• Unpaid wages
• Broken equity promises
• Lawsuits
• Culture of deception
• Obsession with user growth over sustainability
It was all part of her philosophy
• Unpaid wages
• Broken equity promises
• Lawsuits
• Culture of deception
• Obsession with user growth over sustainability
It was all part of her philosophy
"This is how it works - you fake it till you make it."
Oh Charlie... That's not how it works.
She is about to pay the price for her web of lies.
Oh Charlie... That's not how it works.
She is about to pay the price for her web of lies.
In April 2023, she was arrested:
• 4 counts of fraud
• SEC charges
• Criminal charges by DOJ
• Faces up to 110 years in prison
She pleaded not guilty to all charges.
The trial will be held February 10, 2025
• 4 counts of fraud
• SEC charges
• Criminal charges by DOJ
• Faces up to 110 years in prison
She pleaded not guilty to all charges.
The trial will be held February 10, 2025
Her story joins Elizabeth Holmes and Sam Bankman-Fried in a cautionary trilogy.
Young founders who chose:
• Deception over authenticity
• Marketing over substance
• Shortcuts over real solutions.
The lesson?
Young founders who chose:
• Deception over authenticity
• Marketing over substance
• Shortcuts over real solutions.
The lesson?
"Fake it till you make it" works until it doesn't.
And when it doesn't, it doesn't just end careers - it ends lifes.
Truth always comes knocking.
And when it doesn't, it doesn't just end careers - it ends lifes.
Truth always comes knocking.
I hope you enjoyed this thread.
Follow @iamluismalheiro for more stories like this.
And don't forget to share.
Follow @iamluismalheiro for more stories like this.
And don't forget to share.
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