SEC Charges Founder of Student Loan Assistance Company with Fraud Over $175 Million Acquisition

The Securities and Exchange Commission has charged the founder of the now closed student loan assistance company, Frank, Charlie Javice with fraud related to a $175 million sale to JPMorgan Chase Bank in 2021. The SEC alleges that Javice deceived JPMC into believing that Frank's customer base was significantly larger than it actually was, providing false data to bolster the acquisition value. In pursuing this transaction, Javice made millions in stock proceeds and a $20 million retention bonus through JPMC. The SEC is seeking injunctive relief, restitution, an officer and director bar, disgorgement, prejudgment interest, and civil penalties in response to these actions. The SEC also appreciates the assistance from the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation in the investigations.