JPMorgan closes $175 million website, accuses founder of fraud.
By The Exchange Team
JPMorgan Chase took down the website for a college financial aid firm it bought for $175 million on Thursday
After charging the founder established nearly 4 million false client accounts.
A Chase CEO told CNBC in September 2021 that the nation's largest bank bought Frank to strengthen its relationships with college students.
JPMorgan called the deal the "fastest-growing college financial planning tool" utilized by over 5 million students at 6K institutions.
It also gave the startup's creator, Charlie Javice, access to the New York-based bank as part of the deal.
JPMorgan discovered the fact after sending marketing emails to 400,000 Frank customers months after the acquisition completed.
According to a lawsuit filed last month in federal court, around 70% of the emails bounced.