The multinational institution purchased the startup company in 2021, believing it had more than 4 million users. It alleges 30-year-old founder Charlie Javice created a slew of fake accounts to embellish the company's credentials and capabilities and close the sale.
"After JPMC insisted, Javice chose to invent several million Frank customer accounts out of whole cloth," the complaint obtained by Forbes said.
A spokesperson for
Javice filed a countersuit against
"After JPMC rushed to acquire Charlie's rocketship business, JPMC realized they couldn't work around existing student privacy laws, committed misconduct and then tried to retrade the deal," said
Spiro said
In 2020, the
"It is unlawful to make representations that are likely to deceive consumers. This includes express or implied representations, whether made directly or indirectly," the complaint said.
The
The Frank website is no longer operational. Visitors are met with a message that reads, "Frank is no longer available. To file your Free Application for Federal Student Aid (FAFSA®), visit StudentAid.gov."
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