JPMorgan Defrauded with 4 Million Fake Users for a $175M Acquisition 🤯
This whole story is absolutely insane.
The lawsuit, which was filed late last year in U.S. District Court in Delaware, claims that Javice pitched JP Morgan in 2021 on the “lie” that more than 4 million users had signed up to use Frank’s tools to apply for federal aid. When JP Morgan asked for proof during due diligence, Javice allegedly created an enormous roster of “fake customers – a list of names, addresses, dates of birth, and other personal information for 4.265 million ‘students’ who did not actually exist.” In reality, according to the suit, Frank had fewer than 300,000 customer accounts at that time.
Upon the devs at the company refusing to create these fake users, the CEO of Frank, Charlie Javis told employees that they shouldn't worry about ending up in an "orange jumpsuit" over this project.