NEW YORK (Reuters) – Entrepreneur Charlie Javice pleaded not guilty on Monday to charges of defrauding JPMorgan Chase & Co into buying her now-shuttered college financial aid startup Frank, according to a spokesman for the U.S. Attorney’s office in Manhattan.
Federal prosecutors said Javice, 31, repeatedly lied about her company to JPMorgan, including by claiming Frank – marketed as a tool to help simplify college financial aid for students and parents – had lined up 4.25 million student customers though the number was closer to 300,000.
She was indicted last week on charges of securities fraud, wire fraud, bank fraud and conspiracy. JPMorgan, the largest U.S. bank, bought Javice for $175 million in 2021.
Javice has been free on $2 million bail since her first court appearance on April 4.
(Reporting by Luc Cohen in New York; editing by Grant McCool)
