JPMorgan Paid $175 Million for a Business It Now Says Was a Scam - The New York Times

A young founder promised to simplify the college financial aid process. It was a compelling pitch. Especially, as now seems likely, to those with little firsthand knowledge of financial aid. Credit... Kiersten Essenpreis Supported by By Ron Lieber Ron Lieber was filling out financial aid forms before the FAFSA even existed. When JPMorgan Chase paid $175 million to acquire a college financial planning company called Frank in September 2021, it heralded the “unique opportunity for deeper engagement” with the five million students Frank worked with at more than 6,000 American institutions of higher education. Then last month, the biggest bank in the country did something extraordinary: It said it had been conned. In a lawsuit, JPMorgan claimed that Frank’s young founder, Charlie Javice, had engaged in an elaborate scheme to stuff that list of five million customers with fakery. “To cash in, Javice decided to lie,” the suit said. “Including lying about Frank’s success, Frank’s size and the

A young founder promised to simplify the college financial aid process. It was a compelling pitch. Especially, as now seems likely, to those with little firsthand knowledge of financial aid. Credit... Kiersten Essenpreis Supported by By Ron Lieber Ron Lieber was filling out financial aid forms before the FAFSA even existed. When JPMorgan Chase paid $175 million to acquire a college financial planning company called Frank in September 2021, it heralded the “unique opportunity for deeper engagement” with the five million students Frank worked with at more than 6,000 American institutions of high