Acquisition Due Diligence Fraud Story JP Morgan OVERPAYS $175 Million

professional profile

January 13, 2023

by a professional from Northern Arizona University in Tucson, AZ, USA

Acquisition Due Diligence Fraud Story

In 2021, JPMorgan Chase paid $175m for Frank, a college financial aid platform.

Founder Charlie Javice claimed Frank had 4.25m customers, per The Wall Street Journal.

But when JPMorgan sent emails to 400k users, only 28% were delivered.

Now, JPMorgan is suing Javice and Frank exec Olivier Amar, alleging they faked 4m+ accounts to bolster the startup’s value when, in reality, it had less than 300k customers.

How would find this in Due Diligence? test email?

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Reply by an admin
from Stanford University in Honolulu, HI, USA
Most cloud based mailing systems I have used will provide bounce rate and/or engaged user metrics. The purpose is to be able to help you clean up your mailing list so that you don't get blacklisted as junk/spam. I think it would be fair to ask for a report.
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