Key Points
- A famous business magazine Forbes To the point of placing “Jeviz” in the position of “a young businessmanFor more than 30 years, it has been strong.”
- bank JPMorgan Agree to buy the business Franc In September 2021 with more than 6,000 million baht
- JPMorgan Test the system Franc By trying to send promotional information to the emails of 400,000 customers, it appeared that 70% of the emails sent were bounced.
175 million dollars or about 6,200 million baht is the amount that “JPMorgan Chase” The largest bank in the United States. lost on purchaseFraudulent businessIn the year 2021 called “Franc“Educational service platform”Charlie Jevic” (Charlie Javice) A young woman who at the time was not yet 30 years old.
– Charlie Jeviz managed to trick JPMorgan into buying her (Credit: LinkedIn/Charlie J) –
Many people may have heard a story Elizabeth Holmes (Elizabeth Holmes) Company founder Theranos who produce blood testing machines that claim to be able to detect all kinds of diseases But the results showed that it could not really be used. and caused investors to lose a lot of money I didn’t think the story seemed to repeat itself. And it happened with a huge first class bank like JPMorgan
What doesNumber 1 biggest bank from the US and has many great analysts. Decided to buy Jeviz’s fraudulent business.
- “Jeviz” is on the Forbes list of hottest businessmen.
The story begins with “Jeevis” who recently graduated in finance from the Wharton School, one of the business faculties of the University of Pennsylvania, United States, has seen the problems of American students. Dreaming of studying at university But there are problems with money. Moreover, the process of requesting various funds is also complicated.
For this reason Jeevisand thus establishedStart a businessnamed “Franc” created a platform that makes it easier for students to access scholarships from the public and private sectors. Along with various useful online courses, Frank started providing services in 2017. I didn’t think that almost 4 years would pass until 2021. This startup would have as many as 4 million customers from more than 6,000 educational institutions .
A famous business magazine Forbes To the point of providing it.”Jeevis” among the “hottest business people under 30” as well as various news agencies interviewing her about her success at a young age.
– “Jeviz” is among the “hottest businessmen under 30” (Credit: Forbes) –
Until Jevic’s popularity caught his eye.JPMorgan Bank who want to expand their growth, considering that Jeviz has a database of millions of students If these students and parents become new customers for the bank It will help to create a considerable amount of profit for the bank.
So JPMorgan started negotiations with Jeviz. to request a business acquisition This deal will bring Frank Company under the umbrella of this huge bank. But Jeviz is still the supervisor of the platform. In the end, this agreement seemed to be successful. JPMorgan Agree to buy the business Franc In September 2021 with a price 6,200 million baht leading toJeevisBecome a millionaire overnight
“We aim for long-term relationships with our clients,” said Jennifer Roberts, head of corporate banking at JPMorgan. Jevicz and her team have already built great relationships with students. We now have a network of more than 300 universities, so Frank will help us reach a wider audience of students.”
- The difference! Become a fake startup
Months have passed. The issue turned red when the bank tested the system. Franc By trying to send promotional information to the emails of 400,000 customers, it appeared that 70% of the emails sent were bounced. That means Entered the wrong email address Or another reason is that those emails don’t exist!
when JPMorgan I know that I have been deceived. So, he went to investigate in detail and found that the company Franc ohJeevisClaiming to have 4 million customers, it actually had less than 300,000. The bank closed the Frank platform even though it had already spent 6,200 million baht on the purchase and filed a lawsuit against Jeviz on the basisbank fraud
JPMorgan also said Jeviz paid data scientists to falsify customer details. This has become a question for many people: The bank has a team to examine the value and status of the business (Due Diligence Team), but why was it allowed to get away until the business transaction was completed?
Jamie Dimon, Chief Executive Officer (CEO) of JPMorgan said about this incident: The acquisition of Frank was a “huge mistake” by the bank.
– Jamie Dimon, CEO of JPMorgan (Credit: AFP) –
Jevicz denies the allegations and has hired a lawyer to sue JPMorgan, claiming the bank fabricated a story to fire her. and ruined her reputation
For now, in addition to JPMorgan Bank as the plaintiff in the lawsuit against Jeviz, There are also prosecutors from the United States joining the lawsuit. When all his cases are combined, there are 4 charges as follows:
1. Securities Fraud
2. Fraud by electronic communication (Wire Fraud)
3. Bank Fraud
4. Conspiracy to commit a crime (Conspiracy)
Right now, the case is in the middle of a battle. If Jevicz is found guilty of all charges, he will be punished by imprisonment for up to 30 years.
- JPMorgan is not Jeviz’s only victim.
Before selling Frank, Jevic had a history of falsely claiming the name of a government agency on his website. In 2017, the US Department of Education filed a complaint against Jevic for using the name “FAFSA” (Free Application for Federal Student Aid) listed on her business website as frankfafsa.com was removed because government agencies and her business were not cooperating. I fear viewers will misunderstand. Jevic agreed to remove the word FAFSA following the official application.
In addition, the company Franc 448 university courses are offered. Keizer University in the state of Florida and 317 university courses Lee University in tennessee But it appears that when inquiring about the origin Both universities explained that She had no relationship with Frank Company and was surprised that the organization’s courses were listed on her platform.
From all these stories it becomes a lesson. Invest in any company, even if it has incredible innovations, Known by famous people as Elizabeth Holmes He once sat on a panel with Bill Clinton, former president of the United States. JeevisIf you’ve ever been on the Forbes list of hottest young businessmen or had reliable analysts quote price targets for various risky assets, don’t rush to invest just yet. But you should study it yourself carefully first. Because if there is a risk or a scandal arises It is possible that the person who will be harmed will not be the person who gives the advice. But it is the investors themselves.
refer to: apnews, bloomberg, bloomberg(2), cnbc, nytimes, fastcompany
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