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{{a|disaster|{{disaster roll|Frank}}}}What happened, according to JP Morgan’s own complaint.<ref>[https://www.documentcloud.org/documents/23570243-frank_suit read at leisure].</ref>
{{a|disaster|{{disaster roll|Frank}}}}What happened, according to JP Morgan’s own complaint.<ref>[https://www.documentcloud.org/documents/23570243-frank_suit read at leisure].</ref>
*In 2017, Charlie Javice, a photogenic<ref>JPMorgan’s complaint does not ''specifically'' allege that Javice was photogenic but she was, so we are going with this.</ref> 24 year-old founds “Frank” : an online tool to help students apply for federal student aid. Not clear how Frank proposed to make money from this, but okay.
 
*In early 2021 Javice claimed to have helped ''millions'' of students obtain ''billion'' dollars of loans. (emphasis JP Morgan’s)
==== The start-up business ====
*In July 2021 Javice offered to flog the business to JPMorgan. She claimed to have 4.25 million “users”, being individuals who created an account on Frank’s website and supplied a first and last name, email address and phone number.  
*In 2017, Charlie Javice, a photogenic<ref>JPMorgan’s complaint does not ''specifically'' allege that Javice was photogenic but she was, so we are going with this.</ref> 24 year-old founded “Frank”, an online tool to help students apply for federal student aid.  
*This appears to have been a bare-faced lie.
*It is not clear how Frank proposed to make money from this, but okay.
*As part of its “critical confirmatory due diligence” JPM asked to see the account data.
*By early 2021 Frank was publicly claiming to have helped ''millions'' of students obtain ''billion'' dollars of loans (emphasis JP Morgan’s).
*After a bit of hesitation and dissembly, Javice engaged an as yet unnamed data science professor, whom we will call the “''dodgy'' data science professor” for reasons that will become obvious, to ''make up'' some plausible sounding data, using “synthetic data techniques”.
 
*She couldn’t ''make'' it, so she ''faked'' it. She paid the dodgy data science professor $18,000 for his trouble.
==== Enter the house of Morgan ====
*Frank’s Chief Growth Office simultaneously bought a list of 4.5m actual high school students, college students and young people from a marketing firm for $105,000.
*In July 2021 Javice tried to flog the business to JPMorgan, claiming to have 4.25 million “users”, who had created an account on Frank’s website with a first and last name, email address and phone number.
*This appears to have been a bare-faced lie. JP Morgan called her bluff.
 
==== Due dilly and the dodgy dossier ====
*As part of its “critical confirmatory [[due diligence]]”, on 1 August 2021 JPM asked to see the account data.  
*Frank engaged an as yet unnamed data science professor, whom we will call the “''dodgy'' data science professor” for reasons that will become obvious, to ''make up'' some plausible sounding data, using “synthetic data techniques”.  
*Memorable quote from JP Morgan:
<blockquote>“Synthetic data, in plain English, is fake information.”</blockquote>
* Frank paid the dodgy data science professor $18,000 for his trouble, first unilaterally doubling his hourly rate, then adding $4,500 to his bill to persuade him to be discrete on his invoice.
*Frank’s Chief Growth Officer Olivier Amar simultaneously bought a list of 4.5m actual high school students, college students and young people from a marketing firm for $105,000.
 
*On Thursday 5 August 2021, Frank agreed to share some data (but with email and physical addresses substituted for unique identifiers) with a third party vendor to validate it.
====The deal closes====
*On August 8, relying on the Fake Customer List and Amar and Javice’s representation and warranties, JPMorgan acquired Frank for $175m, and hired Javice and Amar as employees to run the business.
*On August 8, relying on the Fake Customer List and Amar and Javice’s representation and warranties, JPMorgan acquired Frank for $175m, and hired Javice and Amar as employees to run the business.
====About that customer list====
*In January 2022, to test the quality of the customer list, JPMC asked Javice to send the list to the JPMC client outreach team. Javice sent botch up of the actual young people data list they bought.
*In January 2022, to test the quality of the customer list, JPMC asked Javice to send the list to the JPMC client outreach team. Javice sent botch up of the actual young people data list they bought.


Revision as of 16:06, 14 January 2023

Chez Guevara — Dining in style at the Disaster Café™

Extract from the JC’s financial disasters roll of honour
Scandal Date Where Loss Reason Firings Jail-Time?
Frank 2023 US $175m Fraud, unfeasible gullibility Javice got fired. Surely more to come Not yet clear

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What happened, according to JP Morgan’s own complaint.[1]

The start-up business

  • In 2017, Charlie Javice, a photogenic[2] 24 year-old founded “Frank”, an online tool to help students apply for federal student aid.
  • It is not clear how Frank proposed to make money from this, but okay.
  • By early 2021 Frank was publicly claiming to have helped millions of students obtain billion dollars of loans (emphasis JP Morgan’s).

Enter the house of Morgan

  • In July 2021 Javice tried to flog the business to JPMorgan, claiming to have 4.25 million “users”, who had created an account on Frank’s website with a first and last name, email address and phone number.
  • This appears to have been a bare-faced lie. JP Morgan called her bluff.

Due dilly and the dodgy dossier

  • As part of its “critical confirmatory due diligence”, on 1 August 2021 JPM asked to see the account data.
  • Frank engaged an as yet unnamed data science professor, whom we will call the “dodgy data science professor” for reasons that will become obvious, to make up some plausible sounding data, using “synthetic data techniques”.
  • Memorable quote from JP Morgan:

“Synthetic data, in plain English, is fake information.”

  • Frank paid the dodgy data science professor $18,000 for his trouble, first unilaterally doubling his hourly rate, then adding $4,500 to his bill to persuade him to be discrete on his invoice.
  • Frank’s Chief Growth Officer Olivier Amar simultaneously bought a list of 4.5m actual high school students, college students and young people from a marketing firm for $105,000.
  • On Thursday 5 August 2021, Frank agreed to share some data (but with email and physical addresses substituted for unique identifiers) with a third party vendor to validate it.

The deal closes

  • On August 8, relying on the Fake Customer List and Amar and Javice’s representation and warranties, JPMorgan acquired Frank for $175m, and hired Javice and Amar as employees to run the business.

About that customer list

  • In January 2022, to test the quality of the customer list, JPMC asked Javice to send the list to the JPMC client outreach team. Javice sent botch up of the actual young people data list they bought.

Belief Suspenders

Tough one. Javice has great hair and sparkly blue eyes? Young millennial? Instagrams well? Made it to the Forbes “30 under 30 lis”t?

Oh, come on ref

2

Captive advisors

Nope, apparently none.

This time it’s different

Kinda maybe you could say this is the young creatively uising the world wide web in a productive way, but no bitcoin, AI or DLT or anything like that.

Hiding in plain sight

Charlie Javice was pretty? Does that count?

Any ... actual money?

No actual money. Just a mailing list. That they made up!

Nothing to see here

No-one would listen!

Yeah, right

Cloaking devices

Got a bad feeling about this

Control defeat devices

Federal Trade Commission warned student aid platform Frank that it "may be unlawfully misleading consumers" about student COVID relief.[3]

Settled allegations of misrepresenting its ties to the Department of Education.[4]

Fundamental Interconnectedness

See also

References

  1. ↑ read at leisure.
  2. ↑ JPMorgan’s complaint does not specifically allege that Javice was photogenic but she was, so we are going with this.
  3. ↑ https://www.ftc.gov/system/files/warning-letters/covid-19-letter_to_frank.pdf
  4. ↑ https://www.businessinsider.com/charlie-javice-frank-jpmorgan-settlement-department-education-2018-2023-1?
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