Frank founder Charlie Javice took money out of JPMorgan Chase and put it in Signature Bank

Things have apparently gone from bad to worse for Frank founder Charlie Javice, who withdrew millions from JPMorgan Chase after the institution fires her for alleged fraud, only to find her new lender caught in a bank run.

Javice withdrew her funds from JPMorgan Chase after the institution accused her of falsifying client data for its college funding site, Frank.

JPMorgan had bought the platform for $175 million in September 2021 on the assumption that Frank had access to 4.2 million students and graduates.

The bank alleges Javice paid teacher $18,000 to create four million student profiles with a computer generated algorithm.

Javice denies the allegations and sued the bank in December, claiming the bank used an investigation of Frank as an excuse to fire her from her job at the company. Bloomberg reported.

Federal filings submitted to Delaware courts on Friday and seen by Fortune now reveal that in the days following the September 2022 fallout, Javice moved his millions to new accounts at Signature Bank.

The University of Pennsylvania graduate confirmed the transition in response to JPMorgan’s inquiries about three Nevada shell companies that held the Signature accounts.

The amount transferred to Signature is not disclosed in the documents, but Javice’s attorney points out that funds previously held at JPMorgan had been its proceeds from the sale of Frankabout $28 million.

The document says that of Javice’s three accounts with JPMorgan, including two irrevocable trusts, approximately $21.4 million was deposited.

It is unclear how much of Javice’s JPMorgan balance was transferred to the side Signature accounts. Javice’s attorney says it was the “majority” of his funds, although a balance was left with JPMorgan.

Speaking of the move to Signature, Javice’s attorney writes, “In this case, that timing was unfortunate.

“To the surprise of even the most seasoned players in the banking industry, on or about March 10, depositors at Signature Bank began a ‘run’ on the bank, increasing the fear and likelihood of what has actually resulted: the third largest failed bank in US history.

Signature Bank was closed on March 12 by the New York State Department of Financial Services, appointing the Federal Deposit Insurance Corporation (FDIC) as receiver.

The lawyer adds that Javice took the step because she feared JPMorgan “would abuse the nature of his banking relationship with her” in light of the fraud allegations.

JPMorgan did not immediately respond to The wealth request for comment.

Extract funds

Javice withdrew her funds the day she feared the bank could collapse, with her lawyer confirming she had transferred the money to other ‘major national institutions’.

Those accounts have now been seized by the U.S. Attorney’s Office for the Southern District of New York.

JPMorgan previously hinted that Javice was withdraw his money from the bank in order to hide his assetswhat his lawyer Alex Spiro denied.

The fact that Javice’s assets are now in US hands renders JPMorgan’s argument “moot”, his attorney added.

“Whatever argument JPMC might have had for the discovery to prevent the dissipation of the assets is now moot,” the document adds.

Javice’s attorney did not immediately respond to Fortune when contacted for comment.

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