NEW YORK (AP) — A top executive from the startup Frank, which facilitated financial aid applications for college students, has been sentenced to over five years in prison. Olivier Amar's sentencing on Wednesday stemmed from his involvement in the fraudulent acquisition of Frank by JPMorgan Chase for $175 million four years ago.
The sentence of five years and eight months was handed down by Judge Alvin K. Hellerstein, who noted Amar's active role in the fraud, which included creating misleading documents. These documents falsely portrayed the company's customer base as exceeding 4 million when it was actually fewer than 400,000.
Amar's co-founder, Charlie Javice, was previously sentenced to seven years for her part in the scheme. Both were convicted of presenting fake records to convince JPMorgan Chase to proceed with the acquisition.
During the trial, testimonies highlighted how the inflated customer numbers were essential for JPMorgan's strategy to attract new clientele through their banking services. Before the sentencing, an emotional Amar expressed remorse for the impact of the scandal on his family, stating, This pain will haunt me forever.”
Amar continued by reflecting on the positive contributions of Frank, stating his heartbreak over its downfall, which had previously helped students navigate the complexities of financial aid to pursue higher education.
The court also demanded Amar pay $223 million in restitution, which includes $54 million in legal fees linked to the fraudulent activities post-acquisition.
