Forbes magazine is known for its annual lists of the richest and most influential people in the world, but one of its most popular features is the 30 Under 30 list, which showcases young entrepreneurs who are making waves in various fields. However, in recent years, some of these rising stars have turned out to be falling stars, as they have been exposed for fraud and other crimes.
One of the latest examples is Charlie Javice, the founder of Frank, a startup that helped students with financial aid. Javice was featured on the 2019 list for her work on Frank, which she described as “Amazon for higher education”. She claimed that Frank had over 5 million customers and over 6,000 colleges on its platform, and that it was acquired by JPMorgan Chase for $175 million in 2021.
However, on Tuesday, Javice was charged by the justice department with “falsely and dramatically inflating the number of customers of her company” in order to get JPMorgan Chase to buy it. According to the lawsuit, Frank only had about 300,000 clients and fabricated data to show a larger customer base. Javice has been charged with separate counts of conspiracy to commit wire and bank fraud, each of which carries a maximum sentence of 30 years in prison. Javice has denied all the allegations against her.
Javice is not the first Forbes 30 Under 30 alum to face jail time. In fact, she joins a growing list of young founders who have been accused or convicted of fraud and other crimes. Some of the most notorious cases include:
– Sam Bankman-Fried, the founder of FTX, a crypto exchange that collapsed amid allegations of money laundering, bribery and illegal donations. Bankman-Fried was included on the 2021 list and also placed on the cover of the Forbes 400 issue that same year. He is currently under house arrest while awaiting trial on charges that he bilked FTX customers out of billions of dollars, some of which was used to fund a lavish lifestyle. He faces more than 100 years in prison.
– Martin Shkreli, the “Pharma Bro” who hiked up drug prices and defrauded investors. Shkreli was named to the list in 2012 and was sentenced to seven years in prison in 2018. He also received a lifetime ban from working in the pharmaceutical industry.
– Elizabeth Holmes, the founder of Theranos, a blood-testing company that turned out to be a scam. Holmes was sentenced to more than 11 years in prison last year after being convicted of defrauding investors. She also headlined the Forbes Under 30 Summit in 2015.
Forbes has faced criticism and mockery for its lack of credibility and due diligence in selecting and honoring young entrepreneurs who have been involved in fraud and other crimes. As tech entrepreneur Chris Bakke tweeted on Tuesday: “The Forbes 30 Under 30 have collectively raised $5.3B in funding. The Forbes 30 Under 30 have also been arrested for frauds and scams worth over $18.5B. Incredible track record.”
The magazine did not respond to requests for comment on this story. However, it seems that its readers may want to take its lists with a grain of salt, or perhaps a whole salt shaker.
Relevant articles:
– 30 under 30-year sentences: why so many of Forbes’ young heroes face jail, The Guardian, Fri 7 Apr 2023
– Forbes mocked as another ’30 Under 30′ honoree accused of fraud: ‘Incredible track record’, New York Post, April 5, 2023
– Charlie Javice Joins List of Forbes ’30 Under 30′ Alumni Who’ve Allegedly Committed Fraud, MSN, April 5, 2023
– Forbes ’30 Under 30′ honoree’s charity accused of mistreating refugees, ABC News, April 11, 2023