SEC settles with Rimar Capital over $4 million "AI whitewashing" scheme
2024-10-11 09:43:03
The SEC said in an Oct. 10 statement that Rimar Capital LLC, Rimar Capital USA CEO Itai Liptz, and Rimar USA board member Clifford Boro jointly paid a $310,000 civil penalty to settle fraud-related charges - which they did not admit or deny.
Andrew Dean, co-head of the SEC's asset management division, claimed that Liptz and Boro raised $3.73 million from potential investors by using AI "buzzwords" to describe Rimar's "AI-powered" platform allegedly used to trade cryptocurrencies, stocks and futures.
Andrew Dean, co-head of the SEC's asset management division, claimed that Liptz and Boro raised $3.73 million from potential investors by using AI "buzzwords" to describe Rimar's "AI-powered" platform allegedly used to trade cryptocurrencies, stocks and futures.
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