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SEC and SDNY signal eyes on AI-washing fraud as AI firm founder charged

Image of US Attorney Damian Williams, SDNY.
US Attorney Damian Williams outlined the charges. Photo: Alexi J. Rosenfeld/Getty Images

Julie DiMauro

2 min read
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The SEC is eying bold claims made by AI startups and investors about AI capabilities, and this AI-washing case is a prime example.

The founder of a now-bankrupt artificial intelligence (AI) recruitment start-up called Joonko is facing charges from both the SEC and the United States Attorney’s Office for the Southern District of New York (SDNY).

The agencies announced their fraud charges against Ilit Raz in separate press release this week. The

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