JP Morgan: Startup Founder Used Millions Of Fake Customers To Dupe It Into An Acquisition

  • JPMorgan Chase is suing the founder of a fintech start-up it acquired for $175 million, alleging that the founder lied about the company’s scale and success by creating a fake list of users to entice the bank to buy it.
  • The bank claims that during due diligence, the founder created a list of fake customers, falsely claiming 4.265 million students existed, when in reality the company had fewer than 300,000 customer accounts.