Uncle Sam accuses Aussie AI startup boss of financial fakery that duped investors

The former CEO of an AI startup that promised to replace humans with "digital employees" has been accused by the US Department of Justice and Securities and Exchange Commission of raising $40 million from investors, including venture capitalists, after showing them deliberately falsified financial records. Australian Baba …

[hoofie2002]

It sounds like he has buggered off back to Melbourne.

Unfortunately that won't protect him and I suspect the Vic police or Feds will be banging on his door very soon.

If he has another citizenship [his surname is Indian] I would imagine he will be off there asap

[Pascal Monett]

For all the good that will do him.

I'm guessing that India will be fine with shipping his ass to the Feds.

I would.

[W.S.Gosset]

We've had a hell of a time trying to extradite a murderer, so I'd say he'd be pretty safe as a mere fraudster.

[Rikki Tikki]

Nadimpalli is an Australian - India does not allow full dual citizenship. It is possible to have 'Overseas Citizenship of India' (OCI), which gives some rights such as visa free travel, but without being considered a citizen.

But not sure why anyone would be surprised about the terms 'AI' and 'fraud' being closely connected.

[TReko]

Probably not the first of these in AI

So much money has been dumped on AI startups that I suspect there will be more of these in the next year.

[Ian Johnston]

Re: Probably not the first of these in AI

Are there any AI companies which are not, in some sense, frauds? Starting with the word "intelligence" ...

[collinsl]

Re: Probably not the first of these in AI

That's an argument to be had under the terms of the Trade Descriptions Act in the UK at least.

[Anonymous Coward]

For the record

Nobody in Australia drinks that vile shite “Fosters”.

Thank you.

[collinsl]

Re: For the record

It's all XXXX isn't it?

Hence Fourecks

[Sampler]

Re: For the record

But would international readers know what a VB is? Or a Coopers for that matter..

[Mark Exclamation]

Re: For the record

VB is even worse than Fosters - horrible stuff!

[Jack3000]

No one in Australia drinks that dreck Foster's

[trevorde]

Big Black Hole

If he only stole $0.5M, where did the rest of the $40M go? Cloud hosting? Software engineers? Marketing? C-suite bonuses?

[Anonymous Coward]

AI is the new cryptocurrency

Fad/scam of the moment