Financial Technology start-up Frank was founded in 2016. It was portrayed as a financial platform that helped college students. It provided loans to college students for their higher education and their educational needs. Frank founder Charlie Javice had the aim to build the startup into an “Amazon for higher education”.
A proud member of the Forbes 30 under 30 lists, Javice once said that the biggest challenge At Frank was scale. So she made it up!
She first asked the top engineer at Frank to create the fake customers list. When the engineer refused to create a fake customer list, Javice approached the data science professor to help. The Data Science professor created 4 million fake customer accounts for which Javice paid him $18000.
JP Morgan noticed irregularities with the list. JP Morgan employees observed that the list contained 1,048,576 rows, the maximum number of rows allowed by MS Excel. A banking Giant JPMorgan chase and Co rushed to acquire it. The start-up company Frank paid $175 million for a lie. They found that customers were manufactured after the bank spammed the 4 million fake accounts with cross-marketing opportunities. All bounced back.
JP morgan chase is shutting the site down and suing the 30-year-old founder Frank.