In a stunning turn of events, Olivier Amar, a key executive at the firm Frank, which was set up to simplify financial aid applications for students, has been sentenced to 5 years and 8 months in prison for defrauding JPMorgan Chase during a $175 million acquisition. This penalty comes on the heels of a similar sentence handed to Frank’s founder, Charlie Javice, who received seven years for her involvement in the scheme. Judge Alvin K. Hellerstein highlighted Amar's significant role in crafting false documents that exaggerated Frank’s customer base, claiming over four million users versus the less than 400,000 they had. During his tearful sentencing, Amar lamented the pain caused by the scandal, emphasizing the impact on families relying on the financial aid services his company once provided. Alongside imprisonment, Amar faces a staggering restitution payment of $223 million, including legal fees attributed to his and Javice’s fraudulent actions following the acquisition.
Startup Fraudster Sentenced: 5 Years for Financial Aid Deception
Olivier Amar, a former executive at Frank, a financial aid assistance startup, has been sentenced to 5 years and 8 months in prison for defrauding JPMorgan Chase in a $175 million acquisition. This marks another significant case in a broader financial fraud scandal.
Olivier Amar, involved in the fraudulent activities of the startup Frank, has been sentenced to over five years in prison after misleading JPMorgan Chase about the company's customer base during a $175 million acquisition. Judge Alvin K. Hellerstein noted Amar's deep complicity in the fraud, which falsely inflated Frank’s customer count from less than 400,000 to over 4 million. The incident follows the sentencing of Frank’s founder Charlie Javice to seven years for her role in the same scheme. Amar expressed deep regret over the negative impact of the scandal on his family and students who relied on the financial aid services provided by Frank. In addition to his prison term, he is ordered to pay $223 million in restitution.
