Albert Sangier, the founder of the Nate financial technology platform, has been indicted by the US Department of Justice for defrauding investors with deceptive claims. Sangier founded Nate in 2018, promoting it as an AI-powered platform that could offer a universal checkout app for shoppers. The platform allegedly used artificial intelligence to handle transactions, but the indictment reveals that human contractors in the Philippines and Romania, or bots, actually carried out the work instead.
The indictment states that Sangier misled investors by falsely representing that Nate’s operations were driven by advanced AI technology. Instead, the platform’s transactions were largely handled manually. In total, Sangier raised over $40 million from investors, relying on these deceptive claims to secure funding.
Nate Founder Indicted for Falsely Claiming AI-Powered Tech While Relying on Human LaborThe case follows a 2022 report from The Information, which revealed that in 2021, between 60% and 100% of Nate’s transactions were processed by humans rather than AI, contradicting the company’s promotional claims.
Deceptive Practices in Tech History Involving Misleading Claims of AI and Innovation
Sangier’s actions are part of a broader historical trend where entrepreneurs have used misleading tactics to present human labor as technological innovation. Throughout history, ambitious individuals have tried to present their operations as more advanced or automated than they truly were, often to attract investment or attention. In this case, the claim that Nate’s technology was powered by AI is a modern, digital-era example of this long-standing tactic.
The indictment of Albert Sangier highlights both the legal and ethical implications of misleading investors and the public. By falsely claiming that Nate’s technology was driven by AI, Sangier not only misrepresented the capabilities of his platform but also potentially harmed the trust in the tech industry. The case is a reminder of the need for transparency and honesty in the tech world, especially as more companies make bold claims about cutting-edge technologies like artificial intelligence.
