Founder of startup Frank accused of ‘old school fraud'

[@streamingtv6506]

JP Morgan got fooled because they wanted to be, she was from an affluent background and wasn't scrutinized because the "narrative fits" who they think a founder should be.

[@soulie1971]

I agree, like with Sam Brinkman-Fried the parents pulled some “strings” and she was made.. I also remember interviews with George Schulz‘s grandson Tyler, who turned into whistleblower, and therefore lost the close relationship with his grandfather…. George Schulz vouched for Elisabeth Holmes and opened the doors to influential people in business and serious investors..

[@jirenthegray]

Exactly! It's racial ignorance. This would have never happened if this was a person of color. JP Morgan would have gone through serious due diligence upon due diligence upon due diligence and lowballed the founder for maybe half the price. This goes for Bankman-Fried and Elizabeth Holmes of Theranos. Silicon Valley has always praised itself to be meritocratic, but it's not. Only 1% of venture capital goes to minorities. When 99% goes to Whites and Asians (particularly those from India), you get a 90% failure rate of exits that VCs are looking for.

[@MattAnders-bx9le]

You can't con an honest man, is a time served saying!

[@PakiNewsNetwork]

Frank did more than that. Lets not sympathize.

[@nohmadinc]

FFFFFFFFFFFFFFAAAAAAAAACCCCCCCTTTTTTTTSSSSSSSSS

[@drg8687]

30 people under 30 doing 30 to life.

[@atomic66]

Hahaha, i think you win! But unfortunately, they'll probably be out in 30 months and then try to run a new grift, like fyre 2

[@larslover6559]

​@@atomic66 booked ticket yet to fyre2?

[@safetythirdified]

1 bed! 1 Pillow! All day!

[@GrownManGames]

Lol

[@islandpersuasion4690]

😂😂

[@adatshhc]

So Chase didn't do their due diligence before forking over 200 million dollars??? 😂😂😂

[@SmithMrCorona]

Because of her dad.

[@luke_skywanker7643]

Apparently not.

[@TS-1267]

...DOH! ...

[@SunnyDiegoProduction]

@@henlohenlo689moral of the story, steal millions! If you go for peanuts you’ll be locked up.

[@Naturefan354]

​@@henlohenlo689 Fraud is a criminal act

[@L9MN4sTCUk]

Don't steal from rich people. Strip the poor bare and you'll be celebrated as a visionary. Rip the rich and that's embarrassing

[@TheAnonapersons]

Don't do both?

[@colico14]

@@TheAnonapersons You're missing the point.

[@falloutmentalist]

@anidiotmakesthings no you are, the statement is clear. The justice system doesn’t mind the rich robbing the poor, they even called it a K shape economy to justify stealing people. When the average person gets an advantage, then it’s a crime. Look at GameStop Stock, trading became a crime for certain after that!

[@jourdansarpy4935]

@AnIdiotMakesThings you’re just unable to understand sarcasm.

[@fdm2155]

Steal from the rich and they will com after you because they have the resources band connections.

[@tuoms]

If you're on the Forbes 30 under 30 list, there is a 90% chance you're a fraud or an investment banker. The other 10% are people who inherit their money

[@maxwells2602]

Creating fake statistics out of thin air just sounds unintelligent. And it makes you sound like a fraud. At the very least you should use the word "probably" so that you have an excuse to fall back on. You can say you never meant your statistics to be interpreted as fact.

[@kenbob1071]

@@maxwells2602 Dude, 99.9% of people who say there's a 90% chance of this or that, are simply trying to make a point that the odds are pretty good.

[@holitinne]

@@maxwells2602 the real tragedy here is you’re taking a KZbin comment seriously.

[@maxwells2602]

@@holitinne I do not think he was joking, he was trying to sound more credible with those statistics.

[@maxwells2602]

@@kenbob1071 99.99999% of people who make up statistics have an IQ of less than 1. The other 0.00001% have an IQ in the top 0.00001%.

[@datuminformatics2847]

Rich folks stay scamming

[@Roadtoconsciousness]

Naah it’s hard work that makes you rich. Everyone knows that 😂

[@Broyale26]

@@Roadtoconsciousness Right? Like, how DARE these poors assume I didn't work hard for everything I stole?

[@jiubboatman9352]

If a massive financial organisation like JPM fails to do it's due diligence. I think the management involved at JPM should be held accountable. This is not some vulnerable elederly person getting a call from "Amazon". ANd I mean criminally accountable. These people are supposed to be responsible for millions of peoples money and are clearly incompetant.

[@mamia9659]

Thinking the same…

[@mesmartgnome]

Should you be held criminally responsible when you mess up at work? That’s what you’re advocating for. Not to say it isn’t a huge mess up but, in no way criminal. If stupidity and being bad at your job was criminal… a lot of people would be in jail.

[@jiubboatman9352]

@@mesmartgnome There is a difference between screwing up and failing to do your job. Clearly human factors play a pivotal role in many accidents or errors of judgement. No pilot wants to crash a plane but failing to adhere to flight checks, safety protocols, and best practices are cause for dire outcomes or if caught in time, sanction. Air accident reports will almost always refer to these human factors, but will delineate between human error and incompetence. Likewise, a person in acquisitions whose job it is to ensure a prospectus, bid or tender, etc, is accurate. Should be held accountable if it can be found they did not perform due diligence. Too many times executives get a bye despite their total inability to perform their job.

[@mesmartgnome]

@@jiubboatman9352 the recourse would be civil action, not criminal. You’re comparing money to human lives. Way to have your priorities straight. You can want criminal penalties all you want but, criminal activities didn’t occur. There’s a difference between civil and criminal penalty.

[@royaltyblessed2454]

​@Jiub Boatman I don't think you read into the story. They did their diligence but didn't have the full story of what Javice did until after they acquired. This is due to what Javice had hid the lie. This is all on her not on JPMorgan. Sure they can do more diligence but she def was being tricky based on engineers she had involved.

[@pequodexpress]

They didn't catch her early on because she was using a grift similar to what JPMorgan does on the daily. It's very difficult for JPMorgan to root out something that is an integral part of its own DNA.

[@shawnmurray9964]

Give them a break man, they’ve been grifting since the 1800s

[@zakmendoza8817]

In the eternal words of Homer Simpson: “Yea, but when I do it, it’s cute!”

[@sangeet9100]

They get bailed-out with tax$

[@adrianconnell7143]

Very true

[@hiveship1]

Bingo!!!

[@DavidS94938]

JPM also made zillions in bad mortgage loans and nearly crashed the world economy (along with others) in 2008. Why is this surprising?

[@scotttaylor9133]

That's what I don't get, it's speculative investing, if they didn't look under the hood, or when the hood was opened didn't understand what they were looking at, then that's on them.

[@goldenstar_1007]

Eye for an eye.

[@wiseup8729]

Assumed loans they had no right to through Washington Mutual and stole in house assets. Free and clear theft.

[@thepeff]

Note to self: short the 30 Under 30 list

[@patrickcunniff5936]

Having had to produce synthetic data for test purposes for loads of systems, representing both vendor and purchaser, I was aware that the data was sometimes used inappropriately and as a misrepresentation of customer base. I am recently retired and can tell you this went on through my 30 years in IT. So this is really an old trick and why JPMorgan didn't catch it is beyond me.

[@AtillatheFun]

Maybe they gave in to fomo. They saw an untapped market and wanted to be first movers. They deserve this situation.

[@RoadTripzz14]

NY Times did a piece on how common lying or call it fraud if you want is among startups. Good news is the Biden Administration is calling a few on it.

[@harveybarvey5080]

Charlie Javice (founder of Frank) and Elizabeth Holmes (founder of Theranos) and Sam Bankman-Fried are all Jewish.

[@DIDYOUSEETHAT172]

Because the fake database was created by a computer wiz professor. Just looking at a cleverly designed database does not tell you if it is genuine. You can run it internally until the cows come home, but you won't know it is fake until you actually put it to work. And they could not put it to work until they owned it. Part of the deal was she joined JPM, so a certain amount of faith was allowed, as who would be so totally stu!d and inept, to join a company bringing a fake database, which would be discovered as fake, as soon as they put it into real world use?

[@giovannisynthesis]

Chase wanted her list of contacts so they can sell them products 😂

[@km2766]

duh and the seller wasn't going to hand that over before the check cleared. toss her in the comfy clink

[@untouchable360x]

"Behind every great fortune lies a great crime." Godfather

[@sirjudge5055]

One word... SOCIOPATH!!!

[@Roadtoconsciousness]

They are everywhere.

[@parkerbolt4233]

You have to love how they only highlight women in tech when they’re fraudulent

[@stevecharman8420]

Both she and Elizabeth Holmes were all over the covers of major magazines BEFORE they were found out.

[@jnewcomb]

A fool and his money are easily parted.

[@wiseup8729]

Taxpayers get to bail them out again

[@pedroportillo1585]

While I don’t support what this woman did, I also don’t feel bad for JPM. When people steal from banks, it’s a crime. But when banks steal from people, it’s called business.

[@harveybarvey5080]

Charlie Javice (founder of Frank) and Elizabeth Holmes (founder of Theranos) and Sam Bankman-Fried are all Jewish.

[@harveybarvey5080]

So was Bernie Madoff

[@JETWTF]

Her only mistake was ripping off a multitrillion dollar bank rather than milk all the poor and desperate customers for all the small change per customer rip-offs that are legal she could get out of them. Or she could have just became a gold digger and marry a decade from dying of old age billionaire. Greedy is as greedy does I guess.

[@djdedan]

Nope she ripped off her costumers too but for those you just get stern warnings lol she did it at least twice, masquerading as an affiliate to a governing institution, and misrepresenting Covid pay outs by having hidden fees.

[@JaneticsInk]

Why aren’t these companies completing their “due diligence”?! Have we not learned from Holmes and that fake heiress?

[@vinceely2906]

You mean you wouldn't buy a list of email addresses for $175,000,000? 😄

[@roc7880]

the guys from JPM who did not check whether the clients of CJ were real by sending them an email should be fired.

[@wiseup8729]

All responsibilities goes to the top. Jamie Dimon

[@troygaspard6732]

Forbes, so good at putting criminals on the cover.

[@rademfam6856]

Ooh, the ladies of Theranos and Frank should share a cell and do OF together to repay the fraud 😂😂

[@itomba]

That’s going to take a boatload of beauty products. Maybe they can get a loan.

[@jackpalmer6253]

It should be legal to scam a scammer. Unfortunately, it's not

[@ryanjohnson3615]

Sounds like JP Morgan were the bigger fools.

[@tarikhusseini867]

JPMorgan got the company for nothing now and arrested the CEO simple.

[@ianreed9571]

She did the same crime as Trump did when he inflated property values to get bigger loans, then deflated the values to pay less in taxes!😅

[@johnbrattan9341]

No.

[@Mosaickool]

Lenders must have proffessional appraisals done before make the loans

[@leagarner3675]

@@Mosaickool Yes and no, market value can can be supplied by the client/borrower.

[@maddfinn11]

@@johnbrattan9341 yes

[@randomdude5938]

@@johnbrattan9341 lol you’re like toddlers with your fingers in your ears. Just pathetic.

[@AskMiko]

When big money commits fraud… 😂😂😂 when big money gets scammed… 🤬🤬🤬

[@falloutmentalist]

JP Morgan should have done a better job researching this person before buying from them. It’s their stupidly, not fraud!

[@wiseup8729]

They are fraud

[@xAA7]

Rich white girl? JP Morgan: Take our money!

[@mavericky1543]

Props to her. She scammed the scammers. J.P. Morgan has been fined 2.7 billion dollars.

[@pedroportillo1585]

Exactly! When people steal from the banks, it’s a crime. But when the banks steal from the people, it’s called business.

[@wiseup8729]

How many felonies against Chase already? 7? Why haven't they been dissolved and prosecuted?

[@VinnyWilk]

J.P. Morgan didn’t do basic due diligence. Why do we vilify young people for taking out student loans or signing up for credit cards.

[@greggreg2263]

We’ll see how good she can fight once she gets in jail😂😂😂

[@matthew3136]

Nobody wants slow and steady returns. Chase the cash. They get what they deserve.

[@spicymayo623]

I thought they were talking about the Frank coffee scrub 😂 I love that stuff.

[@ane-louisestampe7939]

So we should feel sorry for JP Morgan because someone manage to manipulated money out of them?

[@johnbrattan9341]

No kidding.

[@henrygvidonas9573]

Straw man. Nobody said that.

[@karlcarlsen9664]

​@@henrygvidonas9573 Rich Kids gonna defend their Rich Kids own. I wonder what start up Scam Ane-Louise is working on.

[@wiseup8729]

I hope that jury all experienced JP Morgan fraudclosures. It's so unfortunate people can't grasp math and understand the enormous scam they run

[@SexyRexy08]

Them: "Her dad was on Wallstreet for 3 decades" Me: "Oh! So theft runs in the family?"

[@robertmuckle2985]

Daddy taught her all she knows....now she pays for it, and his karma played out nicely👌

[@wiseup8729]

Playing the game

[@FreemanVashier]

Why is it Buyer Beware when it's applied to us yet if big business makes a bad buy... THEY SCAMMED MEEEEEEEEEEE!

[@paulgates4083]

meanwhile the 25 billion dollar bailout JP Morgan received in 2008 and never paid back, with the 16 million dollar bonus paid to its CEO in 2009 is absolutely fine.

[@irineovelasquez1964]

She should go to prison for full term.

[@scotttaylor9133]

I don't think so, based on what was presented. She gave them what they asked for in a reasonable manner, they just didn't specify something that was useful to them. My guess is that the disparity between 4 mil and 300k came from a redefinition (clarification) of exactly what they wanted. So they actually likely got two different metrics, the first one was correct, as was the second one, they just didn't clearly ask for what they wanted the first time, and waited until after the deal was done before they clarified the definitions. That should be on them.

[@lealmelisa]

Yet another fraud we will be all obsssed with for a while, i was just recently rewatching the Elisabeth Holmes scandal, i still can't believe the audacity 🤯🤯🤯

[@vedocapp]

Active users vs downloads/visits vs sign ups. Anyone doing corporate due diligence should understand the difference between them all lol

[@QuickStix26]

I think the scariest parts is JP Morgan is a top financial institution and they got finessed, bad! Ya'll trust this company with your money?

[@riogrande5761]

JP Morgan didn't do their due diligence and got totally scammed.

[@jamesl9371]

J P Morgan didn’t do the research. Too bad.

[@wiseup8729]

50 billion in gifts from taxpayers again for their theft of First Federal. No problem.

[@petermarshall6577]

How can JPM not do the DD ? Sounds like she used a Jedi Mind Trick.

[@wiseup8729]

Only good at being completely dishonest

[@denzil040709]

JP Morgan, that bastion of truth and fairness. Fantastic when scammers get scammed.

[@wiseup8729]

She's a hero

[@neill392]

Did JP Morgan not do any due diligence?

[@decaprio7421]

Your suppose to run and hide after stealing! What are you doing! "User" does not mean users with accounts. J.P. Morgan is at fault for not giving and listing the correct requirements. Once someone is in your website they become a "user" of the website. They did not mention whether they have accounts or not.

[@bunyipdragon9499]

What happened to buyer beware 😂

[@marycollins1631]

I can not believe JP Morgan fell for this young woman who is a criminal. Due diligence should be extreme in any investment company! This is people's money and livelihood the workers are responsible for protecting.

[@dirtyboypdx]

Steal a loaf of bread, you go to jail. Steal the bread factory, you get a bailout.

[@MyFatherIsTryingToKillMe]

A lady accidentally forgot to scan a $5 bag of baking chips to make her daughter a birthday cake, she was handcuffed, booked & issued a fine. She was also banned for the store for life.

[@alexlifeson8946]

As she should be

[@IMGreg..]

Banks defraud average Americans every single day. I'm having a hard time feeling bad that their Ivy League Educated staff got dupped. Is she guilty probably but no more than the used car finance and repo industry or the entire subprime mortgage and loan industry, the drug and vitamin industry, the televangelist industry, and the political industry. The difference here is, they wrote the laws to protect and shield them from doing and receiving the same.

[@shawnmurray9964]

Self checkout is kinda tricky. It’s quicker, but it leaves the customer open to accusation. Some folks never use them, for good reason.

[@jamesnash6101]

Ok... There is a huge difference between a mistake like the one at the grocery store. And the one in this video.

[@SciDOCMBC]

@@alexlifeson8946 I hope you never get distracted while shopping (especially with kids by your side) or you might find yourself in jail quicker than you'd like (as you should be).

[@DavidSmith-fr1uz]

Associates of this woman claim she habitually lies about or grossly exaggerates the success of her companies. For example, a company she created which supposedly provides micro loans to people in 3rd world raised 10 million in start up capital. It never made the first loan. Like a lot of crooks, con men and sociopaths, she is a genius only at marketing herself and her scams.

[@JavierBonillaC]

That this didn’t come up in due diligence makes me want to stay away from JP Morgan. How unprofessional.

[@mesmartgnome]

Had to be one of George Santos’ clients when he worked there.

[@drivebygrapes]

Seems like anyone that is hailed as "the next [insert genius here]" should immediately be scrutinized. Same happened with SBF and others. Their companies often seemed too amazing to be true, and often they turned out to be just that

[@scotttaylor9133]

I think it's darker than that I think. I think the grift is like this, JP Morgan makes a wildly speculative (VC style) buy. It doesn't make them a lot of money, they then retroactively send in their legal team to see if they can claim ANY type of fraud on the seller side. If they can get the criminal sanction against her they slam dunk the civil case and recover more of their money. So they make a buy where they only expect 1 in 10 to come through (or whatever, high risk), then when it goes south they use their resources to try and get the SEC to criminally charge, at which point they go back after the individuals to try and recoup the losses from their crap investment. It's essentially the big boys dangling a carrot in front of a tiny fish, taking what it has, not liking it, and then extracting their carrot back from the tiny fish using the SEC and the courts. It's super dirty.

[@sojiogungbesan5547]

What kind of due diligence did JP Morgan do? Someone should be getting fired for this.

[@chrisrolandsoundbath]

I shouldn't say it, but I will - JP Morgan has defrauded the public so many times, it's hard to feel empathy for them being defrauded. Heck, look how inept they were doing a simple due diligence on the company that defrauded them.

[@bobsanders2145]

Yea you just can't lie about your business's financial records and how many people use it.

[@mamatrain100]

When will they ever learn? When will they ever learn?🎵🎶🎵

[@cappiece3786]

LOL that's on JPMorgan not her

[@shawnmurray9964]

Stephanie looks fantastic, happy & healthy!!!

[@susannefoort6606]

@shawnmurray9964 ... Indeed Stephanie Ruhle is impressingly beautiful & very smart !

[@artoffderidikulous3009]

Hardly a fraud, more like an embellishment, and the fact that JPMorgan fell for it is a reflection of their inability to do the mere basics of due diligence. The wrong side is in the dock here.

[@TonyStark-wr7ob]

Jp Morgan shorts companies to the ground. They are evil af.

[@ronstallworth9421]

Forbes sure knows how to pick winners….

[@introvertsrock9843]

She & Holmes should be cellmates for 11yrs Holmes bought a one way ticket to Mexico.....she deserves zero leniency

[@johnbrattan9341]

Why?

[@wiseup8729]

Because she actually exposed what fools Chase Bank really is? I applaud her.

[@willlazenby1050]

JP Morgan got hoodwinked at their own game...sounds a lot like synthetic CDOs.

[@ConstantGardener-q9q]

No sympathy for these would-be tech overlords.

[@ChromeLuxx]

She is responsible for her crimes and needs to pay dearly. It’s time to hold criminal’s feet to the fire literally!

[@JeremAl]

JP Morgan can’t do due diligence… They lost. But Wall St hates accountability…

[@kenbob1071]

"That's a great question." No. That's an obvious question.

[@chiangweytan5937]

Forbes 30 under 30 not doing too well huh...

[@tonytrott6318]

she should get 30 years in jail.

[@enishalihoward8119]

Note for life….don’t believe Forbes 30 under 30 😂😂😂

[@elianadosreis3025]

Wow how this people scam so easy

[@Sheizerinho]

I’ve gone through a lot of due diligence processes with big investments banks and also with tech companies. From my experience, for relatively small amounts like $175M, major investment banks tend to do mostly standardized and simple due diligence on non-financial topics (such as data/users), whereas strategic acquirers will take months and many iterations of due diligence. So I’m not surprised this type of thing happens to JP Morgan. I don’t think they’ll particularly care that much about $175M though.

[@22221mm]

Crazy

[@Sheizerinho]

To add to this, if Frank CEO’s father is a Goldman Sachs veteran, I’m sure the bankers will be even more compelled to make a quicker deal. The world of bankers is largely based on trust and friendship and it wouldn’t be the first time I would see quick deals being made because of personal networks. Still keep in mind though that what I mean by simple due diligence is still having a team of people spend weeks going through due diligence documents, so it’s still bad they didn’t catch it. Just not entirely surprising.

[@jamesoblivion]

Amazing that an amount of money that could provide financial security for thousands of people is considered trivial. Makes you think, if you're inclined to thinking.

[@paulajayi5696]

Ofcourse JP doesn't care about 175 million when it's probably not their own assets used to purchase the company

[@Emation7]

You are quoting your experience but it’s not logical for most people because to even get a Chase mortgage in certain areas consumers have to produce a ton of collateral, proof of income etc. It seems she got funded because of who she knew and who she was. Just like SBF, Billy McFarland, Elizabeth Holmes.

[@garykentigian3675]

They should do an in deep investigation of black lives matter.

[@NextToToddliness]

It turns out get rich quick schemes are usually just that: a scheme. Don't buy into the hype; literally.

[@BraveJustDefend]

Where is Child protective Services? Having two kids before you go to prison is just crazy but A fraudster will always be a fraudster

[@Xinterp]

Probably was her only chance to have kids. 20 years in jail will bring her past female reproductive age? Hence why she probably did that.

[@iandelmore8376]

Shes so brave

[@ed6658]

Send her to the gulag. 1000 years of hard labor

[@joedennehy386]

Its not fraud, its greedy j p morgan not doing their due dilegence

[@brianjamds6617]

Not how the law works, you have to act in good faith

[@JohnnyPeacenic]

Chasing money will consume your life.

[@bernadettebohan5822]

Karen Song was shady back in the day same story, Stanford grad ugh so sick of it.

[@blazingstar9638]

….was this person on the cover of Forbes? Cause they all end up capping 😂😂

[@danielt.3152]

JPM should be more careful doing due diligence

[@SunnynPhilly]

She’s gonna look cute in orange 😅

[@luciboras]

Having little to no resource do individual citizens, do citizens get a day in court when they been scammed?

[@OIOcellOIO]

And not that new FANGLED fraud thats so popular with young people today.

[@Blackbeegirl]

JP Morgan can't do due diligence anymore??? Please 😒

[@publiozinj4882]

Has to do with her being a girl and her being from a rich family. That's it.

[@Ad-Lo]

JP Morgan don’t learn. Can’t they do KYC or even basic DD?

[@xys7536]

She was throwing around vitamin P 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

[@Arcwol]

JP Morgan didn't catch it because of Affluenza.

[@MrMjolnir009]

Both Elisabeth Holmes and Charlie Javice have those CrAzY EyeS!!! They say the eyes are the windows to the soul... and they ain't lyin' sister!!!

[@theunspeakable24]

innocent until proven guilty.

[@spike238]

Cooking the books , with the secret sauce , ...

[@apollothirteen9236]

She is so beautiful, extremely intelligent & wealthy. She should not be sent to prison. She is a winner. Let someone who is a poor looser like a average worker or a homeless person serve in her place.

[@izzyoriaku8306]

I want to marry her, I could take her place 😁😁

[@tw3638]

Disappointing brother 🤦🏽‍♂️

[@apollothirteen9236]

@@tw3638 Are you saying that she is not genetically superior?

[@markmilan8365]

🤢

[@olivierpire8311]

What about annual audits? Are they fake too?

[@ripley059]

Their thieves themselves!

[@MrJuvefrank]

They're the ones who hate being robbed the most.