According to the federal crime, a tech CEO who claimed to create a sophisticated AI for e -commerce was in fact working behind human workers behind the scenes, according to a federal person.
Federal prosecutors in New York Charge Albert Senator, 35, allegedly lied to investors, with security fraud, could do his AI.
In 2018, Senator founded an e -commerce company Net that claimed that it was developing an AI program that could complete the online purchase online with a tap for the user. AI was designed to handle things like adding shipping address and billing information.
The Department of Justice says that “Senator repeatedly told investors and the public that the company’s app has used proprietary AI technology to complete consumers’ sovereignty online purchases.” This included the claim that AI could complete orders at 93 % to 97 % completion rate without human intervention, According to For the individual offense.
In addition, Serger distinguished his technology with automatic boats, saying that the Net relied on nervous networks to complete human measures. He collected more than 40 million Million from investors and hired a team of data scientists to help the development of AI. However, federal prosecutors alleged that Senator knew his technology was a shame.
The Department of Justice says, “As Senator knew, the net was claiming to use AI to automatically make the Net online purchases, at which time the app’s actual automation rate was effectively zero percent.” “Senator hid this fact from investors and most net employees: he asked employees to keep the net automation rate secret.”
Instead, Senigar allegedly hired hundreds of humanitarian workers, many of whom are based in the Philippines, so that they can manually implement their company’s AI program transactions transactions. The DOJ says in 2021, Senator instructed his company to produce automatic boats, “despite its numerous pre -representatives that the net did not use boats (or ‘mute boats”, as they cited them), “says DOJ.
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The alleged fraud came out after information Reported About exaggerated claims about the Net’s AI program in June 2022. “In or near, the net was out of money in or near January 2023, and the company was forced to sell its assets. Net investors were left with a close loss.”
Singer did not immediately respond to the request for comment. According to his LinkedIn profile, he was the CEO of the Net by 2023 before becoming a partner in the venture capital firm Butterkor. If the security of the security and the wire is found guilty, he faces a maximum of 40 years in prison.
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