Tech founder charged with fraud for...

The US Department of Justice has indicted Albert Sangier for defrauding investors with misleading statements about his Nate financial technology platform. Founded by Sangier in 2018, Nate claimed it could offer shoppers a universal checkout app thanks to artificial intelligence. However, the states that the so-called AI-powered transactions in Nate were actually completed by human contractors in the Philippines and Romania or by bots. Sangier raised more than $40 million from investors for the app.

This case follows reporting by in 2022 that cast light on Nate’s use of human labor rather than AI. Sources told the publication that during 2021, “the share of transactions Nate handled manually rather than automatically ranged between 60 percent and 100 percent.”

Many ambitious and ethically challenged entrepreneurs have attempted to make their fortunes by human actions as a mechanical or technological innovation over the centuries. Claiming the results as AI work is just the most digital age application of the idea.

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