Startup Executive Sentenced in $175M JPMorgan Fraud Case

A former executive of a promising startup has been sentenced to over five years in prison for his involvement in a fraudulent $175 million deal with JPMorgan Chase. Olivier Amar, who served as the chief growth and acquisition officer for the college financial aid company Frank, was sentenced prior to the trial's conclusion.

Manhattan federal court Judge Alvin K Hellerstein sentenced Amar to five years and eight months behind bars, citing his substantial involvement in the creation of false customer records to inflate Frank's viability during acquisition negotiations. Judge Hellerstein noted that although Amar wasn't the mastermind, his role was crucial to the fraud.

Amar expressed deep regret for the scandal's impact on both his family and the company, lamenting that the once-helpful platform for college students is now defunct. Besides serving time in prison, Amar must pay $223 million in restitution, including $54 million for legal fees the bank covered due to the fraudulent activities.