The former CEO of fintech app Nate has been charged with fraud for making misleading claims about the app’s artificial intelligence technology — or lack thereof.
In a bizarre twist from the usual AI narrative, the FBI alleges that this time human beings were doing the work of AI, and not the other way around.
According to a press release from the U.S. Attorney’s Office, Southern District of New York, Albert Saniger has been indicted for a scheme to defraud investors. “As alleged, Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed,” Acting U.S. Attorney Matthew Podolsky said in the release.
Government attorneys say Nate claimed to use AI technology to complete the e-commerce checkout process for customers. In reality, they allege the company hired a team of human contractors in the Philippines to do the work. In total, Saniger raised more than $40 million from investors.
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