back to article AI chatbot startup founder, lawyer wife accused of ripping off investors in $60M fraud

The co-founder and former CEO of AI startup GameOn is in a pickle. After exiting the top job last year under a cloud, he's now in court – along with his wife – for allegedly bilking his company and its investors out of more than $60 million. Federal prosecutors in California announced this week a 25-count indictment of …

  1. elDog

    Sounds like a meeting at Mar-a-Iago would solve their problemo.

    The new capo of the US feds is known to provide pardons for federal crimes if the terms are right.

    "You say you stole around $60M from investors? You're my type of guy. How about I get half of that and you can walk away as if this never happened."

    1. Yet Another Anonymous coward Silver badge

      Re: Sounds like a meeting at Mar-a-Iago would solve their problemo.

      $60M, you are a crook. Come back when you stole $60B and we can talk

    2. Omnipresent Silver badge

      Re: Sounds like a meeting at Mar-a-Iago would solve their problemo.

      60 mill gets you inspectors general of California. Another 60 mill will get you "Office of Internet Integrity".

      1. blu3b3rry
        Coat

        Re: Sounds like a meeting at Mar-a-Iago would solve their problemo.

        Given the way everything in the US government needs to have an acronym , the "OoII" doesn't exactly roll off the tongue.

        How about the Commissioners Office (for) Computing Correctness? It's no worse than having a government "department" called DoGE.

        I have a feeling we'll be seeing many more of these reports as time goes on and the bubble bursts....

    3. katrinab Silver badge
      Unhappy

      Re: Sounds like a meeting at Mar-a-Iago would solve their problemo.

      Somehow I don't think The Orange One would be interested in 37 cents though.

  2. Yet Another Anonymous coward Silver badge

    They are presumed innocent unless

    They started an Ai company

    1. Bebu sa Ware
      Coat

      Re: They are presumed innocent

      My first thought was "is that not a thing now in those parts?" but the penny dropped that not being black or undocumented probably helps.

      Ok Valérie didn't exactly disembark from the Mayflower.

  3. An_Old_Dog Silver badge

    Fiscal Reporting

    I wonder whether or not a business can get read-only, computerised access to their bank accounts. It would make this sort of fraud more-difficult if the company's bookkeepers could run reports against the bank's records, rather than the business' own, more-easily-diddled records.

    But, given how banks implement computer security for their customers, it would be like jumping out of the frying pan and into the fire.

    1. Len

      Re: Fiscal Reporting

      In Europe you could do that thanks to the PSD2 directive. Under PSD2 banks are required to allow their customers to give read-only access to their own bank accounts to other parties in the interest of reducing the stranglehold banks have over their customers and to increase innovation and competition in financial services.

      But, as so often, the technology is the easy part. The problem is that bookkeepers/accountants/auditors are paid by the company whose books they keep or audit. They lack incentives to pick fights with the management of the hand that feeds them.

      1. Richard 12 Silver badge

        Re: Fiscal Reporting

        That isn't necessarily a problem.

        The problem is that auditors almost never suffer consequences for accepting cooked books.

      2. katrinab Silver badge

        Re: Fiscal Reporting

        Most accounting software allows you to set up bank feeds so that the bank transactions get directly imported in, and that works with most banks.

    2. katrinab Silver badge

      Re: Fiscal Reporting

      Depends on the bank, but sometimes, yes. I have read-only access to a lot of company bank accounts at work.

  4. Great Southern Land

    >Lau earned the obstruction charge by allegedly deleting files related to her work with the San Francisco-based GameOn from her employer's records while a grand jury was investigating the matter.

    Why weren't her files copied as part of the investigation, prior to referral to a Grand Jury? The article implies that the files were deleted AFTER the Grand Jury commenced.

    While I'm not promoting deliberate deletion of records, this smells of entrapment.

  5. Pascal Monett Silver badge
    WTF?

    "an enterprise-grade AI chat service"

    What the hell is that ?

    Something that only answers with quarterly result quotes ?

    1. blu3b3rry

      Re: "an enterprise-grade AI chat service"

      Enterprise grade means it costs five times as much as the standard grade with most of the functions hidden behind a paywall. You do get far more buzzwords with it though to impress manglement.

  6. Ian Johnston Silver badge

    Fraud in the world of AI? Surely not.

    1. cyberdemon Silver badge
      Angel

      Shocked, SHOCKED I am!

  7. gnasher729 Silver badge

    Since there is more money missing, maybe they are not the only ones? Or not the bugged ones? Or did they stash another 11 million into an account that hasn’t been found yet?

    1. Anonymous Coward
      Anonymous Coward

      That other account called “Vacation fund” that states to have $0.62 in it, actually has $15million

  8. Anonymous Coward
    Anonymous Coward

    Mind blowing investment idea !!!

    Combine an 'AI Startup' with a Crypto Exchange ... say target the 'AI' with making money out of Crypto !!!

    Within a matter of days, it will be nigh impossible to identify exactly how much money you should have and where it is !!!

    If say a few $million should go 'missing' it would be very hard to prove/find !!!

    BINGO !!!

    Instant Millionaire !!!

    :)

    P.S.

    What do you mean it would never work !!!

    Are you sure ... ???

  9. Wang Cores

    Did they steal any rich people's money?

    1. gnasher729 Silver badge

      Did they steal any rich peoples money?

      There was 60 million invested, and disappeared, so the victims will most be reasonably well off, and a significant number will be rich. Rich enough to get you if you steal four million.

      (Lots of money wasnt legally “stolen” but just disappeared through stupidity, incompetence and carelessness).

      1. katrinab Silver badge

        But was it 600,000 people investing $100 each, or 60 people investing $1m each?

        1. gnasher729 Silver badge

          We don’t know, but you have to actively look for investors and you won’t have the capacity to convince 100,000 people. I bet no investor under $10,000, and at least 30 millions with > 1 million investors.

  10. John Smith 19 Gold badge
    Coat

    ChatGPT

    Write me some convincing looking company accounts that show my company is doing business with a list of companies I will name.

  11. JRStern Bronze badge

    Which is worse?

    Stealing $60m

    or spending $500b on new AI data centers?

    1. Zoopy

      Re: Which is worse?

      Yes.

  12. Anonymous Coward
    Anonymous Coward

    Silly Con Valley

    Fake it till you make it.

    Get rich or sell it on trying.

    Emperor's New Clothes.

    Greater Fool.

    Tulip Mania.

    Don't be left holding the baby.

    I must be intelligent because I'm rich.

    All aboard the hAIpe train...

  13. Anonymous Coward
    Anonymous Coward

    AI

    Assholes Incorporated

    1. Anonymous Coward
      Anonymous Coward

      Re: AI

      AI stands for Actually Indians. In a sweatshop. For $2 an hour.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like