SEC Charges Alfi Inc. ($ALFIQ) Co-Founder with Fraud Leading to Bankruptcy

Paul A. Pereira, the former CEO and co-founder of Alfi Inc. ($ALFIQ), a Miami-based company, has been charged by the SEC with making materially false statements on social media, including using a burner account to inflate the company's stock price. Alfi Inc., which went public in September 2021, was known for installing tablets loaded with special AI in Uber vehicles, claiming the technology could detect emotions. However, the SEC's investigation revealed Pereira posted overly optimistic and false statements about Alfi's financial health, including a claim that the company had revenues between $10-20 million, whereas it was actually set to report only $17k in revenues. This led to Alfi Inc.'s bankruptcy.