Feds, SEC charge app maker with fraud, saying ‘AI’ service was Philippine workers

US authorities have charged a tech app founder with fraud, alleging that his advertised artificial intelligence-powered e-commerce app actually relied on human workers in the Philippines. Albert Saniger of Barcelona, Spain, founder and former CEO of the company nate, was charged with one count of securities fraud and wire fraud, the Justice Department said in an April 9 statement, while the Securities and Exchange Commission filed a parallel civil action. Court documents said Saniger founded nate around 2018 and launched an app of the same name in July 2020, marketing it as an AI-powered universal shopping cart that offered users the ability to complete online retail transactions, including filling in shipping details and sizing, without human input. The Justice Department alleged that, in reality, “Saniger used hundreds of contractors, or ‘purchasing assistants,’ in a call center located in the Philippines to manually complete purchases occurring over the nate app source: https://cointelegraph.com/news/feds-sec-charge-app-maker-fraud-ai-service-was-philippine-workers?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound