The former CEO of Frank, Mina Javice, has been charged in connection with a fraudulent $175 million purchase of the company by J.P. Morgan Chase. Javice and her co-conspirators had sought to cover up misrepresentations by buying real data of over 4.25 million college students. The fraudulent acquisition allowed Javice to gain over $45 million and additional payment worth $20 million as a retention bonus.

Javice was charged with four separate crimes, consisting of conspiracy to commit bank and wire fraud, wire fraud affecting a financial institution, bank fraud and securities fraud. Each one has its own penally, with a maximum sentence of 30 years in prison for the first crime, and 20 years for the rest.

Damian Williams, the United States Attorney for the Southern District of New York, affirmed Javice's arrest as a warning for other entrepreneurs who use lies to boost their businesses against the law. Williams declared “This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them, and this Office will hold them accountable for putting their greed above the law.”

This news has sparked a discussion on possible irregularities in big monetary transactions, with digital currency as an ambassador of reliability and security in validating financial transactions. Cryptocurrency operations are based on peer-to-peer buying and selling models. Because every transaction is validated by each of the network nodes, frauds as the one that occurred with Javice have no chance of being approved. Each of the nodes in the network must consent to the transaction for it to be approved. J.P. Morgan Chase could have found refuge in such a system.

The current scandal is a reminder of the importance of following proper procedures for any kind of financial operations. While cryptocurrency works as a secure system of trade and validation, it is still important to check the source of the assets, as well as its origin. The biggest lesson of this case is that any fraud should be reported immediately and required actions should be taken. Furthermore, it is not enough to be careful with the assets used, but being safe in the opposite party is equally important.



Other News from Today