Business
Startup founder Charlie Javice sentenced to 7 years in prison for defrauding JPMorgan Chase
US businesswoman Charlie Javice (L), founder of Frank, arrives for her sentencing hearing at federal court in Manhattan on Sept. 29, 2025, in New York City.
Timothy A. Clary | AFP | Getty Images
Charlie Javice, founder of a startup acquired by JPMorgan Chase in 2021 for $175 million, was sentenced to just over seven years in prison Monday for defrauding the bank by overstating how many customers the fintech firm had.
In March, a 12-person jury found Javice and her chief growth officer Olivier Amar guilty on three counts of fraud and one count of conspiracy to commit fraud. Prosecutors had sought a sentence of 12 years.
Javice, 33, cried as she delivered an emotional statement to the court Monday. Standing to address the judge, Javice said she felt profound remorse for her actions and asked for forgiveness from JPMorgan, employees of the startup, shareholders and investors.
At one point, Javice turned and directly addressed her family, sitting in the front row, to apologize and thank them for what she called unwavering support.
“I will spend my entire life regretting these errors,” Javice said.
“I’m asking with all of my heart for forgiveness,” she said. “I ask your Honor to temper justice with mercy … I will accept your judgment with dignity and humility.”
Judge Alvin Hellerstein told Javice her words were “very moving” and that the way she’s devoted her life is “highly commendable,” but that he couldn’t give her the forgiveness she sought.
“I sentence people not because they’re bad, but because they do bad things,” Hellerstein told Javice before delivering the 85-month prison sentence. “I don’t think you’ll be committing other crimes and that you’ll be devoting your life to service, but others have to be deterred.”
In addition to prison, Javice was sentenced to three years of supervision, along with $22.36 million in forfeiture and $287 million in restitution to JPMorgan. She will remain out on bail while she appeals the ruling.
JPM acquisition
JPMorgan bought the startup, called Frank, to help the biggest U.S. bank by assets market its financial products to students. Frank was a digital platform that helped students apply for financial aid. In September 2021, JPMorgan told CNBC in an exclusive interview on the deal that the fintech firm had served more than five million students since Javice founded it.
But months after the deal closed, JPMorgan discovered that Frank had fewer than 300,000 real customers; the rest were synthetic identities created by Javice with the help of a data scientist.
Javice was arrested in 2023 on charges that she defrauded JPMorgan in the deal. Details that emerged later showed that Frank employees expressed disbelief when Javice directed them to boost their customer roster before the acquisition.
The week before selling her company to JPMorgan, Javice directed an employee to fabricate millions of users. When the employee declined, Javice reassured him, according to testimony given earlier this year.
“She said: ‘Don’t worry. I don’t want to end up in an orange jumpsuit,'” the employee testified.
Not Theranos
On Monday, Javice’s attorney Ronald Sullivan argued for a lighter sentence for his client, making the case that Frank helped customers. He contrasted the case against that of Elizabeth Holmes of Theranos infamy, whose fraud he said had “dangerous medical consequences,” and who was sentenced to 135 months in prison.
“Ms. Javice’s sentence should be nowhere near Elizabeth Holmes,'” Sullivan told Judge Hellerstein.
Assistant U.S. Attorney Micah Fergenson disagreed, arguing that Javice’s crime was fueled by greed.
“JPMorgan didn’t get a functioning business, they acquired a crime scene,” Fergenson said.
A courtroom sketch of Charlie Javice at her sentencing at court on Sept. 29, 2025 in New York City.
Elizabeth Williams | CNBC
The episode was embarrassing for JPMorgan, which was thought to be one of the most sophisticated of corporate acquirers. Concerned about threats from fintech and big tech firms, the bank, led by CEO Jamie Dimon, went on a shopping spree of smaller fintech firms starting in 2020.
But JPMorgan, eager to edge out rivals bidding for the startup, failed to confirm that Frank actually had millions of customers before shelling out $175 million for the company.
Business
BrewDog owners say craft beer company could be sold off
Craft beer brand BrewDog could be sold off after the company started the process to find new investors.
The Scottish beer brand recently announced plans to close all of its distilling brands, meaning it would no longer produce any of its spirits, including Duo Rum, Abstrakt Vodka, and Lonewolf Gin, at its distillery in Ellon, Aberdeenshire.
The company, which was founded in 2007, said it made the decision to focus on its beer brands, including the highly-popular Punk IPA, Elvis Juice, and Hazy Jane.
Now, in a statement, a spokesperson for BrewDog said the company had appointed Alix Partners to “support a structured and competitive process to evaluate the next phase of investment for the business.”
The statement said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.
“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business. This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.”
Although no decisions have been made, a sale is under consideration.
In a statment BrewDog added: “BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the No.1 independent brewer in the UK, and with a highly engaged global community. We believe that this combination will attract substantial interest, though no final decisions have been made.”
According to reports by Sky News, AlixPartners had begun sounding out prospective buyers in the last few days.
The company, which has 72 bars worldwide and four breweries in Scotland, the US, Australia, and Germany, said its breweries, bars, and venues will continue to operate as normal. It employs 1400 people across the organisation.
BrewDog’s founders James Watt and Martin Dickie are the company’s major shareholders alongside private equity company TSG, which invested £213 million in 2017, making it a 21 per cent shareholder.
In 2024, the beer brand grossed £357 million in sales, and it is a major independent brewer with 4 per cent market share in the UK grocery market.
Business
Craft beer brewer BrewDog could be broken up as sale process begins
Beermaker BrewDog could be broken up after consultants were called in to help look for new investors.
The Scotland-based brewer, which makes craft beer such as Punk IPA and Elvis Juice, has appointed consultants AlixPartners to oversee a sale process.
Last month, BrewDog announced it was closing its distilling brands, sparking concerns for jobs at its facility in Ellon, Aberdeenshire.
The company, which was founded in 2007, said it made the decision to focus on its beer products.
No decision has been made in respect of the sale process.
A spokesperson for BrewDog said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.
“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business.
“This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.
“BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the number one independent brewer in the UK and with a highly engaged global community.
“We believe that this combination will attract substantial interest, though no final decisions have been made.
“Our breweries, bars, and venues continue to operate as normal. We will not comment on any further speculation.”
Brewdog operates 72 bars around the world as well as four breweries.
Business
‘Better to abolish RERA’: Supreme court says law helping defaulting builders
New Delhi: The Supreme Court has raised serious concerns over how real estate regulatory authorities are functioning across the country. Taking a sharp view, the top court said it may be “better to abolish” these bodies, suggesting they have failed to protect homebuyers and instead appear to benefit defaulting builders. The court added that states should reconsider the very need for such authorities if they are not serving their intended purpose.
A Bench led by Chief Justice of India Surya Kant and Justice Joymalya Bagchi said states should rethink the original purpose behind introducing RERA. The court observed that instead of protecting homebuyers, the law appears to be helping defaulting builders and not serving its intended role.
Expressing strong concern, CJI Surya Kant said states should reflect on the purpose for which RERA was created. He suggested the institution is failing to serve homebuyers and instead appears to benefit defaulting builders. “All states should now think of the people for whom the institution of RERA was created. Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution,” CJI Kant said, quoted by Bar and Bench.
Last year, the High Court had stayed the state government’s decision to shift the RERA office, pointing out that the move was taken “without even identifying an alternative office location”. The court also noted that transferring 18 outsourced employees to other boards and corporations, as requested, “would render the functioning of Rera defunct”.
The Supreme Court, however, set aside the High Court’s order and allowed the state government to shift the RERA office to Dharamshala. It also permitted the relocation of the appellate tribunal to the same location. “With a view to ensure that persons affected by Rera orders are not inconvenienced, the principal appellate is also moved to Dharamshala,” the apex court said.
What Is RERA And Why It Matters
RERA, introduced in 2016, was aimed at addressing project delays, improving transparency and safeguarding homebuyers’ interests. Earlier, each state and union territory operated its own RERA website. However, in September 2025, the Ministry of Housing and Urban Affairs launched a unified RERA portal that brings together data from across states and UTs on a single platform.
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