Charlie Javice, the founder of student loan start-up Frank, is reportedly standing trial this week for allegedly defrauding JP Morgan Chase & Co. in a $175 million acquisition deal.

Her defense team claims that the bank is using its influence over prosecutors to turn a commercial dispute into a criminal case, The Financial Times reports.

Javice was arrested in 2023 for fraud, accused of misleading JPMorgan ( JPM ) into believing her company had 4.25 million users, when it had only about 10% of that number.

In 2021, JPMorgan ( JPM ) paid $175 million for Frank, a company designed to help students apply for financial aid. Javice and her co-defendant, Olivier Amar, are accused of hiring a data scientist to falsify user numbers, the report adds.

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This trial has drawn attention to JPMorgan’s decision, which CEO Jamie Dimon called a “huge mistake,” despite the bank’s massive profits, The Financial Times adds.

The case has parallels to other high-profile fraud cases, such as Elizabeth Holmes and Sam Bankman-Fried.

The prosecution also noted that Javice had previously discussed convicted fraudsters like Holmes with her co-defendant, reflecting her awareness of the consequences.

Javice’s defense may focus on a distinction about what counts as a “signed up” student, and the trial is expected to last four weeks.

Price Action: JPM shares are trading higher by 0.89% to $279.06 at last check Tuesday.

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