The founder of a shopping app called Nate was charged today in federal court for faking the AI functionality in their app. Allegedly they were using human labor behind the scenes, and told investors it was AI. The founder could go to jail for 20+ years.
Bernhard Fritsch, 63, of Malibu was found guilty by a jury of defrauding investors out of $20 million+ by lying about his technology company’s financials related to an application designed to help celebrities & influencers monetize endorsements. Details: https://t.co/qDyQ2Rz2OX https://t.co/xGLDNDLg0r
Hoan Ton-That, who served as company president, had stepped down as CEO in December. (Photo: Patrick Mcmullan via Getty Images) https://t.co/YLqDMZRtFv https://t.co/wxRQOIy38m
A series of legal actions have unfolded involving prominent figures in the tech industry. Hoan Ton-That, co-founder and former CEO of Clearview AI, has been removed from the company's board amid ongoing scrutiny of its facial recognition practices. Meanwhile, Bernhard Fritsch, a 63-year-old from Malibu, was found guilty by a jury of defrauding investors out of over $20 million by misrepresenting his technology company's financials related to an application aimed at helping celebrities and influencers monetize endorsements. In a separate case, a former Qualcomm executive was convicted on charges of fraud and money laundering, specifically for creating a fake company and selling it to Qualcomm for $180 million. Additionally, the founder of a shopping app called Nate has been charged in federal court for misleading investors about the app's AI capabilities, potentially facing over 20 years in prison for these allegations.