PUBLIC-RECORD CASE FILE · AI washing
Nate: criminal charges over AI shopping claims and hidden manual work
Criminal charges · Record dated 2025-04-09 · Sources checked 11 October 2026
What the public record shows
On April 9, 2025, federal prosecutors charged former Nate CEO Albert Saniger with securities fraud and wire fraud. The indictment alleges that he raised more than $40 million while misrepresenting an app as capable of completing online purchases autonomously through proprietary AI.
Where the promise broke
According to prosecutors, its actual automation rate was effectively zero during the relevant claims, with contractors manually handling purchases and later bots assisting. These are allegations attributed to the indictment.
What this record does not establish
Saniger is presumed innocent unless proven guilty. The linked charging announcement does not establish a later trial result; this article does not claim one.
The buyer lesson
For an autonomous agent, ask what percentage of tasks finishes without any human intervention, who performs exceptions, and whether the demonstration matches production conditions.