Ramsey has appointed Jina Choi to lead a team focused on corporate crime such as securities and accounting fraud. The team is currently prosecuting a high-profile case against a UK tech entrepreneur. Additionally, Ramsey has created a team dedicated to cybersecurity and intellectual property theft. This move comes as the U.S. government increases scrutiny of AI, with the Securities and Exchange Commission recently fining two investment advisers over their statements related to AI.
Key takeaways:
- The U.S. Justice Department’s top prosecutor in San Francisco, Ismail Ramsey, is targeting artificial intelligence (AI) and other tech startups that defraud investors before they go public.
- Ramsey's office is focusing on tech startups that mislead investors on the path to initial public offerings (IPOs), especially those that exaggerate key information such as customer reach, revenue base, and product readiness.
- High-profile examples of such frauds include Theranos and uBiome Inc, both of which deceived investors about their respective technologies.
- Ramsey has appointed Jina Choi to lead a team focused on corporate crime such as securities and accounting fraud, and has also created a team dedicated to cybersecurity and intellectual property theft.