JP Morgan Says Startup Founder Used Fake Customers to Dupe It into Acquisition | Hacker News Reader

JP Morgan Says Startup Founder Used Fake Customers to Dupe It into Acquisition

forbes.com

46 pointscoloneltcb16 comments

> “After JPMC rushed to acquire Charlie's rocketship business, JPMC realized they couldn't work around existing student privacy laws, committed misconduct and then tried to retrade the deal,” Javice’s lawyer, Alex Spiro, said in a statement emailed to Forbes.

Is this the Alex Spiro? Elon’s lawyer in the Twitter case? Not good.

Yet another "30 under 30" success story.

Your honour I would like you to dismiss the charges on the basis that my client carefully and faithfully deployed the time honoured entrepreneur grind set and faked it till they made it.

According to the article, not only did Charlie Javice scam JP Morgan, but her company, Frank, did not really help students with loans in any meaningful way, and was essentially a data gathering operation disguised as a service.

according to Linkedin Charlie Javice is currently still employed as managing director at JP Morgan?!

https://www.linkedin.com/in/cjavice/

Maybe she's doing time somewhere?

Just out of curiosity what would be the best way to update your LinkedIn in this case? "On sabbatical" does not seem to quite cut it.

Some people just leave the timer running, they only bother to update it when they already have a new job. I would do that. A senior exec could do consulting for a foundation, an engineer just put the freelance practice. I wouldn't be bothered to fill in the gaps there, that's just for the HR drones during the first-pass filter.

The article does state that she was fired.

> Amar was fired in October and Javice, in November.

LinkedIn says a lot of things

"Fooled us into acquiring your company"

Just to clearly see how much assholes are JP Morgan, buying a startup for its users data to send them unsolicited crap:

  Once the deal went through, JP Morgan asked Frank for its customer list so the bank could begin marketing its products and services to those students, the suit says.

I guess sometimes due diligence just means take their word for it?

I can imagine JP Morgan will update their due diligence procedure after this. I'm surprised this hasn't happened more in the past, actually.

The fraud was pretty thorough, they paid a data scientist $20k to falsify data and paid another business $100k for their list. They also performed third party validation on it as a test. It was only upon Chase marketing to the full list that the statistics became apparent. Random sampling may not have been enough.

DoJ investigating the alleged fraud?

It’s growth hacking!

Reply on news.ycombinator.com