NEW YORK (AP) — Olivier Amar, a top executive at the startup Frank, which facilitated financial aid applications for college students, was sentenced Wednesday to five years and eight months in prison for fraud in connection with the company's $175 million acquisition by JPMorgan Chase.
This sentence, handed down by Judge Alvin K. Hellerstein in Manhattan federal court, was part of a broader saga that also included the case against Frank's founder, Charlie Javice, who received a seven-year sentence last month for her role in the scheme.
Judge Hellerstein highlighted Amar's significant participation in the fraud, particularly noting his involvement in fabricating documents that misrepresented the company's customer base, stating Frank had over 4 million customers, whereas the actual number was less than 400,000.
“Although you were not the instigator of the fraud or the person who made the most misrepresentations, you were a key part of it,” the judge said during the sentencing.
Amar and Javice were found guilty by a jury in March of presenting false information to JPMorgan, crucial for the bank's decision to proceed with the acquisition, believing they were gaining a company with a significant customer base.
Before the sentencing, Amar expressed deep regret for the repercussions of the fraud, stating that it caused immense suffering for his family and others, and adding that he was heartbroken by the downfall of a company that aimed to help students navigate the financial aid process.
Alongside his prison term, Amar was ordered to pay $223 million in restitution to the bank, which includes $54 million in legal fees linked to the case. The fraudulent activities have catalyzed discussions surrounding ethics in financial technology startups and accountability for corporate misconduct.
