JPMorgan vs. Frank: Charlie Javice Says Jamie Dimon Had Personal Interest in Acquisition Javice, who founded the fintech startup that Morgan acquired for $175 million, is accused of fabricating 4 million customer accounts.

By Steve Huff

Lewis Tse | Shutterstock

The JPMorgan Chase case against a fintech startup accused of misrepresenting its user base with millions of fake accounts is heating up. In court papers filed Monday, Charlie Javice — who allegedly colluded with Frank exec Olivier Amar and an unnamed data scientist to make up 4.25 million customers — stated that billionaire Morgan CEO Jamie Dimon was personally interested in acquiring her company.

Fortune reports Dimon allegedly told Javice he thought his company should "get the deal done" prior to the $175 million acquisition. The founder also argues that JPMorgan knew her financial aid company's true size and did the deal anyway. As a result, she is reportedly demanding the case go to trial.

In response to questions filed in a Delaware court, Javice wrote that JPMorgan's lawsuit against Frank amounts to a "massive CYA effort by those responsible inside JPMC (JPMorgan Chase) to shift the blame for a failed and now-regretted acquisition to someone they viewed as an easy target: its young female founder."

Here's more from Fortune by way of Yahoo Finance:

Javice contends JPMorgan Chase knew exactly what it was getting when it bought Frank, which claimed to simplify the financial aid process, in 2021. The bank only needed to look at public information, valuations for comparable companies at the time, and its own diligence to get an accurate picture of Frank, the court filing said. By its own admission, JPMorgan Chase conducted several weeks of due diligence on Frank during the summer of 2021, Fortune has reported, citing JPMorgan's December lawsuit. Javice, in her initial complaint against JPMorgan for expenses, said the bank committed considerable resources to the deal, involving hundreds of its employees in diligence of Frank

JPMorgan Chase spokesman Pablo Rodriguez responded that the company's "legal claims against Ms. Javice and Mr. Amar are set out in our complaint, along with the key facts. We stand behind our allegations, and this dispute will be resolved through the legal process."

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Inflation Unexpectedly Rose in January. Here's What That Means for Rate Cuts.

The U.S. Bureau of Labor Statistics released its January Consumer Price Index on Wednesday.

Business News

Elon Musk's xAI Is Reportedly Set to Hire Thousands of 'AI Tutors' With Pay Up to $65 an Hour

Employees told Business Insider the company is expanding hiring soon.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Growing a Business

How to Break Free From Your Comfort Zone and Start Fueling The Growth of Your Company

Have you ever found yourself stuck in a pattern, circling the same solutions without finding your way forward? Here's how to break free from our self-imposed limitations.

Growing a Business

The 10 Best Podcasts Every Entrepreneur Should Listen to for Growth, Strategy and Success

Unlock your potential with the 10 must-listen podcasts for entrepreneurs, offering expert insights on growth, strategy and success.

Side Hustle

This 31-Year-Old Spends 2 Hours Per Week On His $3,000-a-Month Passive Income Side Hustle: 'Trust Your Vision'

Hansel Moore's home office "wasn't cutting it" — so he found another place to be creative.