Albert Saniger, the founder and former CEO of the AI shopping app Nate, has been charged with defrauding investors.

This announcement was made by the United States Department of Justice (DOJ) on Apr. 9.

The app claimed to enable one-click purchases from any ecommerce site using AI.

However, the DOJ alleges that many of these transactions were carried out manually by human contractors in a call center in the Philippines.

The indictment claims that Saniger misled investors by asserting that Nate’s technology could function with minimal human intervention.

Although the company acquired some AI tools and hired data scientists, the DOJ states that the app’s automation rate was effectively 0%.

🔗 Source: TechCrunch