Frank Startup Executive Sentenced to Over Five Years in JPMorgan Chase Fraud Case

A former executive at the financial aid startup Frank was sentenced to over five years in prison today for his role in defrauding JPMorgan Chase during the company’s $175 million acquisition in 2021.

Olivier Amar received a sentence of five years and eight months in Manhattan federal court, following a jury conviction in March. Judge Alvin K. Hellerstein stated Amar was “intimately involved in the fraud,” specifically citing the creation of falsified documents that inflated Frank’s customer base to over 4 million, when the actual number was fewer than 400,000. This case highlights the increasing scrutiny of due diligence in high-profile tech acquisitions.

The sentencing comes just a month after Frank founder Charlie Javice was sentenced to seven years in prison for the same crime. Witnesses testified during the trial that JPMorgan Chase was heavily influenced by the projected customer numbers, anticipating those users would adopt the bank’s financial services. Before the sentence was announced, Amar expressed remorse, stating he was “deeply saddened” by the company’s failure and the harm caused to his family, saying the pain “will haunt me forever.” For more information on financial fraud, see the U.S. Department of Justice’s Criminal Fraud Section.

In addition to the prison term, Judge Hellerstein ordered Amar to pay $223 million in restitution, including $54 million in legal fees JPMorgan Chase was contractually obligated to cover. The collapse of Frank leaves a gap in services aimed at simplifying the complex process of college financial aid.

Prosecutors indicated they expect to finalize restitution details in the coming weeks and will continue to pursue accountability in cases of corporate fraud.