JP Morgan Says Startup Founder Used Millions Of Fake Customers To Dupe It Into An Acquisition

JP Morgan is suing the founder of a Mark Rowan-backed startup it acquired, claiming the fintech, Frank, had sold the financial giant on a “lie.”

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Hasnain says:

This is amazing.

“It alleges that Javice and Amar first asked a top engineer at Frank to create the fake customer list; when he refused, Javice approached “a data science professor at a New York City area college” to help. Using data from some individuals who’d already started using Frank, he created 4.265 million fake customer accounts—for which Javice paid him $18,000—and had it validated by a third-party vendor at her direction, JP Morgan alleges. The complaint includes screenshots of the professor’s invoices and claims that Javice went to notable lengths to ensure documentation of this work was either destroyed or altered to avoid raising eyebrows. Amar, meanwhile, spent $105,000 buying a separate data set of 4.5 million students from the firm ASL Marketing, per the complaint. Amar and ASL Marketing did not yet respond to a request for comment.”

Posted on 2023-01-12T06:41:25+0000