Business
$175-Million Scam: How This 28-Year-Old Woman Fooled The World’s Biggest Bank
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A Forbes ’30 Under 30′ entrepreneur sold a startup on the promise of millions of users, until investigators said much of the data was fake, triggering a major fraud scandal
The bank launched an internal probe, which concluded that the user database supplied during the acquisition process had been largely fabricated.
In 2021, amid the gleaming towers of the global financial capital, a blockbuster business deal was quietly taking shape. On one side was 28-year-old entrepreneur Charlie Javice, founder of a college-aid startup named Frank. On the other was JPMorgan Chase, the world’s largest bank, eager to tap into a new generation of young customers.
The bank believed it had discovered a rising star. Javice claimed her platform was simplifying the complex process of applying for US federal student aid and had already attracted more than 42 lakh users. Convinced by the numbers and the promise of instant access to millions of potential future customers, JPMorgan agreed to acquire Frank for $175 million (roughly Rs 1,400 crore).
Javice’s credentials only strengthened the bank’s confidence. Raised in an affluent New York neighbourhood and educated at the prestigious Wharton School, she was widely profiled as a visionary young founder. She had already been featured on Forbes’ “30 Under 30″ list, celebrated as a champion of students struggling with tuition costs.
But beneath the glossy image, Frank was reportedly not performing at the level Javice projected. According to later investigations, the user base she claimed simply did not exist.
When JPMorgan sought verification of the 42 lakh users, Javice allegedly turned to a data science professor and commissioned a synthetic database containing millions of fabricated names, email addresses and birth dates. Investigators say this falsified data was then presented to the bank as genuine.
The acquisition went through, and Javice received a senior role and significant financial benefits as part of the deal. However, doubts surfaced soon after. When JPMorgan’s marketing team emailed what they believed were Frank’s millions of users, only about 1% of recipients engaged. A vast majority of the messages reportedly bounced back, indicating that the accounts were non-existent.
The bank launched an internal probe, which concluded that the user database supplied during the acquisition process had been largely fabricated. JPMorgan subsequently terminated Javice’s employment and filed a lawsuit, accusing her of fraud and misleading the bank.
Javice denied wrongdoing and countersued, alleging the bank was attempting to avoid contractual payments. The dispute quickly escalated into a global headline-maker, casting a harsh spotlight on the pressures and ethical lapses within the startup ecosystem.
The case has fuelled debate around the “fake it till you make it” culture that often rewards hype over fundamentals. Prosecutors allege that in the pursuit of rapid success and investor confidence, basic trust between companies, investors and the public was compromised.
Javice now faces multiple fraud-related charges in US courts. If convicted, she could face significant prison time.
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January 07, 2026, 19:32 IST
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MUMBAI: Bajaj Group on Thursday completed the acquisition of a 23% stake in its insurance joint ventures from Allianz SE for Rs 21,390 crore, marking the largest transaction in India’s insurance sector and bringing the group closer to full ownership of Bajaj General Insurance and Bajaj Life Insurance.The stake purchase involved Bajaj Finserv, Bajaj Holdings & Investment and Jamnalal Sons acquiring Allianz’s shares for Rs 12,190 crore in the general insurance arm and Rs 9,200 crore in the life insurance arm. The transaction raises the Bajaj Group’s ownership in both insurers to 97% from 74%, with Bajaj Finserv holding 75.01%, giving it management control.Bajaj’s purchase values the general insurance venture at Rs 53000 crore and the life jv at Rs 40,000 crore. This is much lower than what analyst reports from Jefferies, Avendus and Kotak which have valued the non-life company between Rs 85700 crore and Rs 54600 crore while the life company has been valued between Rs 56,800 crore and 56,200 crore.Allianz said it received a gross consideration of around 2.1 billion euros for the divestment of the first major tranche and expects to sell the remaining 3% stake by the second quarter of 2026. The German insurer said the decision followed constructive and amicable discussions, noting that its ability to operate in India had remained limited due to its minority position.“This transaction is transformative for the Bajaj Group, enabling us to contribute even more strongly to the Govt’s vision of ‘Insurance for All’ that is Made in India, Made for India and Made by India,” Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, said. He said the acquisition provides strategic flexibility to expand markets, launch new products and build scale as insurance penetration is set to rise over the next two decades.Bajaj Finserv said the transfer of Allianz’s remaining 3% stake is expected to be completed over the next few months through a proposed buyback, subject to approvals. If completed, Bajaj Finserv’s stake could rise to around 77.3%.Allianz said India remains a market of high strategic priority and that it intends to stay invested in the country’s insurance growth. The company pointed to its recently announced plans with Jio Financial Services to form a 50:50 domestic reinsurance joint venture and explore new general and life insurance ventures.Allianz said it expects to recognise a non-operating IFRS gain of around 1.1 billion euros from the transaction in its first-quarter 2026 results and anticipates a positive impact of around five percentage points on its group solvency ratio, with proceeds to be redeployed in line with its strategic priorities, including investments in new India ventures.
Business
Gas market push: NSE in talks with IGX to launch Indian natural gas futures; aim to deepen price discovery and hedging – The Times of India
The National Stock Exchange (NSE) is in discussions with the Indian Gas Exchange (IGX) to develop and launch Indian natural gas futures, an initiative aimed at strengthening the country’s natural gas market ecosystem, PTI reported.The proposed futures contract is expected to provide market participants with a transparent, efficient and robust risk management tool aligned with India’s evolving natural gas pricing framework, the exchange said.The collaboration seeks to combine NSE’s experience in the derivatives market with IGX’s role in spot natural gas trading, price discovery and physical market development. Once launched, the contract is expected to benefit gas producers, city gas distribution companies, power generators, fertiliser manufacturers, industrial consumers, traders and financial participants by enabling effective hedging against price volatility and supporting long-term planning.“The proposed collaboration with IGX marks a significant step in NSE’s efforts to deepen India’s commodity derivatives markets,” said Sriram Krishnan, Chief Business Development Officer of NSE.According to him, natural gas is emerging as a critical transition fuel in India’s energy mix, and a domestic futures contract would enhance price transparency, strengthen risk management capabilities and help build a credible gas price benchmark aligned with Indian market fundamentals.“By leveraging NSE’s market infrastructure and IGX’s physical market expertise, we aim to create a futures product that is relevant, liquid and trusted by the entire gas value chain,” Krishnan added.Subject to regulatory approvals, NSE and IGX will work with stakeholders to ensure a smooth launch of the proposed derivatives contract. Further details on contract design and timelines will be announced in due course, the exchange said.
Archie MitchellBusiness reporter
Getty ImagesA series of concessions on Labour’s flagship workers’ rights reforms will cut the cost to firms adopting them by billions of pounds, a government impact assessment shows.
An initial analysis by officials found that implementing the party’s measures to bolster workers’ rights would cost firms up to £5bn a year.
However, an updated analysis on Wednesday, which took into account major concessions made by ministers, said it will now cost companies £1bn a year.
The concessions were welcomed by business groups, but faced fierce criticism from some left-wing Labour MPs and union leaders.
The Employment Rights Act will give workers access to sick pay and paternity leave from the first day on the job and introduce new protections for pregnant women and new mothers.
In November, Labour dropped plans to give all workers the right to claim unfair dismissal from their first day in a job. Instead, it will bring in enhanced protections after six months in employment, the bill’s most significant measure.
Alongside concessions on unfair dismissal, the government will phase in the overall package over several years, with many of the measures still subject to consultation and secondary legislation.
The revised impact assessment also said the lower cost estimate reflected “clearer implementation timelines” and more available evidence about the policies.
But the British Chambers of Commerce said the £1bn figure “is likely to be a massive underestimate”.
Policy director Kate Shoesmith said: “The impact figure doesn’t adequately account for the harder to quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues.
“Concessions such as introducing the six-month qualifying period will reduce costs – but not on the scale this latest assessment suggests.”
The shadow business and trade secretary, Andrew Griffith, said: “The government spent a whole year denying it, but even after they fudged the figures to favour them, the truth is clear: their Unemployment Act will cost businesses billions.
“They have also been forced to admit it will cost young and vulnerable people their jobs – just as we always warned.”
The latest impact assessment also said the Employment Rights Act would have a small positive impact on employment, boosting the amount of people in work by 0.1%.
It also said the new measures could have a “small, positive direct impact on economic growth”.
Meanwhile, stronger workers’ rights could benefit about 18 million workers, up from an earlier estimate of around 15 million, the analysis showed.
Trade unions welcomed the latest impact assessment, saying it would bring “significant benefits to UK workers, our economy and wider society”.
The Trades Union Congress (TUC) said stronger rights at work are “good for workers and employers – driving up labour market participation, improving health, raising productivity and boosting demand”.
Its general secretary Paul Nowak called for ministers to “finish the job as soon as possible”, warning that secondary legislation to bring in the measures must be “watertight”.
Mike Clancy, general secretary of the Prospect trade union, said: “This impact assessment is clear that the Employment Rights Act is good for workers, good for growth, and good for wider society.
“The sensible compromises agreed between Government, businesses, and trade unions were intended to make this legislation more workable for all parties, while still delivering robust protections for workers, and this report clearly demonstrates the success of that approach.”
The Department for Business and Trade (DBT) said the Employment Rights Act will “transform the world of work, delivering stronger protections and higher living standards”.
A spokesperson said: “By making work pay, and more secure, this new analysis demonstrates how it will boost productivity, cut staff turnover, and put more money in the pockets of working people.”
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Bajaj deal with Allianz values insurance arms at Rs 93000 crore – The Times of India
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