Feds, Sec Charge App Maker with fraud, which says ‘AI’ services are Philippine workers
US authorities will be charged by a Tech App founder with fraud, which claims that his advertised artificial intelligence-enabled by the E-Commerce app really relied on human workers in the Philippines.
Albert Saniger of Barcelona, Spain, founder and former CEO of the company Nate, was charged with a number of security fraud and wire fraud, the Department of Justice Says In a statement on April 9, while the Securities and Exchange Commission Filed A parallel civil action.
Documents in court said Saniger established Nate around 2018 and launched an app of the same name in July 2020, Marketing it as an AI-powered Universal shopping cart that offers users the ability to complete online retail transactions, including filling out shipping and sizing details, without human input.
The Justice Department said that, in fact, “Saniger used the way -contractors, or ‘buying assistants,’ at a call center located in the Philippines to manifest complete purchases that take place in the Nate app.”
Investors gave Saniger more than $ 40 million, Feds says
The US attorney for New York Matthew Podolsky is said to have duplicated investors by “exploiting the promise and attraction of AI’s technology to develop a false narrative about a change that never existed.”
Under the Guise of Investment in the AI-Powered App, Sangier allegedly demanded more than $ 40 million in investments from Venture Capital Firms And the employees were told to hide Nate’s true source of automation.
“This kind of deception is not only a victim of innocent investors, it transfers capital from legitimate startups, it makes investors skeptical of real breakthroughs, and ultimately prevent the development of AI’s development,” Podolsky said.
The company was obtained AI technology from a third party And there was a team of data scientists who developed it, but authorities claimed that the app did not achieve the ability to continue to complete e-commerce purchases, and that the actual automation rate was effective zero.
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In a busy holiday season in 2021, Sanger is said to have appointed Nate’s Engineering team To produce bots to automatically Some transactions to the app include human workers.
Nate stopped operations in January 2023, and Saniger concluded all Nate’s employees after media reports began to doubt the app’s capabilities, according to the SEC court.
Security and wires fraud charge each other carrying a maximum sentence of 20 years behind the bars. The SEC suit is being asked in courts to ban Saniger from handling office to any similar company and restore investor funds.
Cointelegraph contacted Nate for the comment. Information to Saniger’s lawyers is not immediately available.
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