When Charlie Javice offered her monetary help startup Frank to JPMorgan Chase for $175 million in 2021, she gave the impression to be dwelling each 20-something founder’s dream.

However the acquisition has since became a nightmare for Javice, who was arrested in April and charged by the U.S. Securities and Trade Fee for allegedly defrauding JPMorgan Chase, CNN Enterprise reported.

Now, Javice is pleading not responsible to the costs of conspiracy, wire fraud and financial institution fraud; the plea was entered by way of her lawyer late final week, AP Information reported.

Associated: 4 Sorts of Fraud That Might Destroy Your Enterprise | Entrepreneur

The financial institution filed a lawsuit in opposition to Javice in December; it accused her of fabricating a listing of 4 million customers with the assistance of a professor and synthetic intelligence. However Javice claimed the financial institution was making an attempt to cowl up its personal failed technique and countersued for damages and $27.9 million in compensation she says she’s owed, The Wall Avenue Journal reported.

In a grievance filed to a New York District Courtroom, the SEC acknowledged that Javice satisfied JPMorgan Chase her app had 4.25 million customers — when it really had fewer than 300,000. The SEC’s investigation discovered that Javice pilfered “$9.7 million instantly in inventory proceeds, thousands and thousands extra not directly by way of trusts, and a contract entitling her to a $20 million retention bonus” through the 2021 sale.

“Fairly than assist college students, we allege that Ms. Javice engaged in an old style fraud: she lied about Frank’s success in serving to thousands and thousands of scholars navigate the school monetary help course of by making up knowledge to help her claims, after which used that faux info to induce JPMC to enter right into a $175 million transaction,” mentioned Gurbir S. Grewal, director of the SEC’s division of enforcement.

Associated: Find out how to Shield Your self and Your Enterprise From Fraud | Entrepreneur