DOJ and SEC Send Warning on “AI Washing” with Charges Against Technology Startup Founder

The US Department of Justice (DOJ) announced a criminal indictment and the Securities and Exchange Commission (SEC) announced a civil complaint against the founder and former CEO of an e-commerce technology startup. DOJ and SEC alleged on April 9, 2025 that Albert Saniger, the founder and former CEO of Nate, Inc., made materially false and misleading statements about the startup’s artificial intelligence (AI) capabilities, which allowed Nate, Inc. to raise approximately $42 million from…
By: DLA Piper