Charlie Javice was arrested recently in New Jersey and charged in federal court with conspiracy, wire, and bank fraud. Javice is the founder of Frank, which is a startup that provided student loan assistance. It was sold to JP Morgan two years ago for $175 million. The charges against her indicate that she lied about the number of customers Frank had and created false data to support those numbers. Javice claimed that Frank had over 4 million users when in reality, it had fewer than 300,000. To support this claim, she hired a data scientist to create false data sets and purchased real information for 4.25 million students on the open market.

She earned $45 million from this fraudulent transaction.

When Does a Crime Become a Federal Crime?

There are specific legal guidelines that determine whether a crime is charged in state court or in federal court. Certain charges fall under federal jurisdiction and are tried in federal court, including crimes that cross state lines, crimes against the government, and crimes that occurred on federal property. In addition, crimes including treason, terrorism, piracy, securities fraud, violations of interstate commerce, and attacks on federal agencies are almost always prosecuted by the federal government.

There are many other crimes that can sometimes be charged as federal crimes, including wire fraud (like in the Charlie Javice case), antitrust violations, and white-collar crimes like fraud and money laundering.

Consequences for Federal Fraud

Federal fraud charges are very serious matters with major penalties. The consequences are typically more serious when charged at the federal level than if the same crime were charged in state court. If you are convicted of a federal fraud crime, the penalties can include being sentenced to serve time in federal prison, having to forfeit any profits earned through the crime, being ordered to pay fines and restitution, and probation.

For Charlie Javice, this could mean that she has to forfeit the entire $45 million that she received as a result of her fraudulent transaction. She might also have to pay restitution and fines and will almost certainly spend a significant amount of time in federal prison. Clearly, the risks involved in committing federal fraud are not worth the potential payoff.

What Should I Do if I'm Charged with a Federal Crime?

Being charged with a federal crime is a very serious matter, and if you are in trouble, you need Attorney Joseph D. Lento to guide you through this process and protect your rights. Don't risk your future. The Lento Law Firm Team can help you fight fraud charges in federal court in New Jersey. If you are facing federal fraud charges, you should contact our Criminal Defense Team right away at (888) 535-3686 today to discuss your options, or contact us online.