Capital One Pulled Out as JPMorgan Pushed Ahead on Javice Deal

A Capital One Financial Corp. executive told a New York jury why his bank withdrew its $125 million bid for Charlie Javice’s student-finance startup, Frank, on the same day that JPMorgan Chase & Co. offered a price $50 million higher.

Mason Young, head of corporate development at Capital One, took the stand Thursday at Javice’s trial on charges that she defrauded both banks by greatly inflating the number of Frank users from fewer than 300,000 to more than 4 million. Young testified that, based on discussions with Javice, he thought Frank had millions of customers.