I agree.
I got this second-hand from your article. Charlie Javice claimed she would have ten million clients in a short time. I did a quick check. All the undergrads and grads in the U.S. right now amount to just shy of twenty million students. That seems ridiculous to expect that kind of market penetration.
I don't know the product, but I can see where JP Morgan Chase would have been very excited to tap into that market. Banks are always trying to sign-up college students in hopes of gaining long-term bank customers.
Charlie should have been hit with a light sentence and certainly a financial clawback. There's a biased and opinionated attorney out here that should see this. The American system of justice is not always blind. Punishments aren't always handed down equitably. (This harks back to convicted Governor Blagojevich so people please don't go all TDS on me.)
PS- How many shitty mortgages did Chase process in the 2000s and sell to other investors?
Good points. The due diligence on liar loans was simple and nonexistent. There were few, if any, criminal charges.
The due diligence on fake names is simple and apparently was not done.
You get them to agree to giving you say 7 percent of actual and prospective names of your choosing. You then pick a letter where about 7 percent of last names end with that letter.
Let’s say it is N. If they can’t give it to you right away, that is a red flag. Just alphabetize the list and print the N’s.
If they produce it, and it is 2 percent of the total, instead of around 7 percent, that is a red flag.
If it is close to 7 percent of the total, and 20 percent of high school kids have an account with Chase, you expect to find 20 percent of those kids with a last name beginning with an N to be on the Chase customer list. If it isn’t close to that, you give the list to your youngest people in your due diligence group and tell them to find as many of them as possible on social media with strict orders not to contact them. If your due diligence kids report back that most of these people are nowhere to be found, you definitely walk away from the potential deal because you are being duped.
But they didn’t do that, and after they found out they bought mostly a list of fake names, they said Help, Police, Police.
