Marc Rowan’s Testimony Highlights User Definition Dispute in Fraud Trial of Javice and Amar

The fraud trial of Charlie Javice and Olivier Amar, former executives of the college financial aid platform Frank, continued this week with testimony from Marc Rowan, CEO of Apollo Global Management and a former investor and board member of Frank. Rowan’s appearance on Wednesday addressed a key issue in the case: how Frank defined its “users,” a point central to the government’s allegations that Javice and Amar misled JPMorgan Chase prior to its $175 million acquisition of Frank in 2021. Judge Alvin K. Hellerstein’s rulings during the proceedings have shaped the presentation of evidence, often favoring the prosecution’s procedural requests.

Rowan’s Testimony on “Users” and Website Traffic

The government contends that Javice and Amar misrepresented Frank’s user base, specifically the claim of 4.25 million users, to inflate the company’s value during negotiations with JPMorgan Chase. Marc Rowan, called as a witness by Javice’s defense, testified on direct examination by attorney Chris Tayback about his understanding of Frank’s user metrics. Rowan described the 5 million “users” figure as tied to website traffic, not necessarily registered accounts, aligning with industry norms.

Amar’s defense team sought to introduce an email from Frank’s general counsel, Matt Glazer, to Rowan and other investors, sent just before due diligence began, stating Frank had “over 5 million users” in reference to website traffic. Defense attorney Jonathan D. Cogan argued this email was relevant to Olivier Amar’s state of mind, suggesting the term “users” was openly understood as traffic, not a deceptive figure. However, the government, represented by Nicholas Chiuchiolo, objected under Rule 403, asserting the email was prejudicial and could mislead the jury without extensive context. Judge Hellerstein sustained the objection, ruling the email inadmissible.

Judicial Rulings Consistently Favoring the Prosecution

Judge Hellerstein’s decisions have regularly supported the government:

• Cross-Examination Order: Before Rowan’s testimony, the government requested that it cross-examine defense witnesses after both defendants’ attorneys, arguing this was customary to prevent the defense from limiting its challenges. Despite Mr. Cogan’s contention that the reverse order was standard and more logical, the Judge sided with the prosecution.

• Time Allocation for Closing Arguments: The Judge initially proposed 1.5 hours per defendant and 2.5 hours for the government, including rebuttal. After objections from Javice’s lead attorney Jose Baez and Amar’s attorney Sean Buckley, who requested 2 hours each due to the case’s complexity, and the government’s request for 3 hours, a tentative agreement emerged for approximately 2 hours per side, with the government reserving an hour for rebuttal.

• Evidence Exclusions: Beyond barring a key exhibit for the defense, the Judge limited other defense efforts to contextualize user definitions.

Cookies and Their Role in Tracking Users

Jennifer Zeitler, a former Frank marketing employee, testified that in 2021, Frank didn’t let visitors turn off cookies—small tracking tools websites use to log who’s visiting. This meant all 4.25 million reported “users” could be tracked as they browsed, boosting the count of people Frank could claim as users. The defense argues this was just normal website traffic, not a fake number, supporting their case that there was no fraud. Had Frank let people opt out of cookies, fewer visitors could’ve been tracked, possibly lowering the user tally and making the 4.25 million figure look less believable.

Case Progress and Next Steps

As of March 20, 2025, the trial remains in Javice’s defense phase. On Monday, March 24, the government plans to offer a final document, followed by two brief witnesses from Javice’s team. Amar’s counsel anticipates up to three witnesses his team chooses to offer a case. Judge Hellerstein expects evidence to conclude by Tuesday morning, March 25, followed by motions and a charging conference, with summations beginning Wednesday, March 26.