Lesson of the month: following the money
Here’s the latest instalment of the I’m-not-calling-it-fraud-of-the-month series. This lesson actually derives from two separate exempt offerings where financials that looked legit at the outset turned out to reflect a different reality. Company A presented financials that showed substantive revenues. However, those revenues were derived from related companies (a fact that was not disclosed) and […]
Beware of Overhyping AI: The SEC Is Watching
Powered by CrowdCheck human intelligence* Companies hyping their AI capabilities should tread carefully—especially when investors are involved. The SEC recently charged Presto Automation Inc. for misleading claims about its AI-powered drive-thru ordering system. The company touted fully automated voice ordering, but in reality, human intervention was often required. This kind of “AI washing” can lead […]