NEW YORK — Olivier Amar, a senior executive at the startup Frank, has been sentenced to over five years in prison for his involvement in defrauding JPMorgan Chase during a $175 million acquisition four years ago. The sentencing took place in Manhattan federal court, marking a significant consequence for the dishonest practices surrounding the financial aid application process.
Amar was sentenced to five years and eight months, reflecting his integral role in the fraud that included the fabrication of documents claiming Frank had more than 4 million customers, when in fact, it had fewer than 400,000. Judge Alvin K. Hellerstein noted Amar's key involvement, stating, Although you were not the instigator of the fraud or the person who made the most misrepresentations, you were a key part of it.
Earlier, Charlie Javice, the founder of Frank, was sentenced to seven years in prison for her role in the same fraudulent activities. Both were convicted of providing falsified records to persuade JPMorgan Chase about the imaginary customer base during negotiations in the summer of 2021. Bank officials testified that the reported customer numbers were critical in their decision to acquire the company.
At his sentencing, a visibly emotional Amar addressed the court, expressing profound regret over the pain inflicted on his family due to the scandal and lamenting the downfall of a company designed to assist students in accessing financial aid. I’m heartbroken by the suffering caused in the aftermath of Frank’s downfall, he stated.
In addition to his prison sentence, Amar was ordered to pay $223 million in restitution, which includes $54 million in legal fees that prosecutors argued JPMorgan was contractually obligated to pay on his behalf due to their employment after the acquisition.
