US Tech CEO Indicted for Faking AI and Secretly Using Philippine Manpower

Albert Saniger, former CEO of U.S.-based fintech startup Nate, Inc., is facing federal charges for allegedly deceiving investors by falsely claiming the company used proprietary artificial intelligence (AI) to power its app—while actually relying on human workers in the Philippines.

Saniger raised over $40 million by promoting Nate’s app as an AI-driven tool that could autonomously complete online purchases. However, U.S. prosecutors revealed that the app’s actual automation rate was near zero.

Instead of AI, Nate secretly employed hundreds of manual workers—dubbed “purchasing assistants”—in a Philippine call center to handle transactions. Saniger is accused of hiding these details from investors and even his own staff, restricting access to the app’s internal “automation dashboard” and justifying the secrecy with claims of protecting “trade secrets.”

The indictment also alleges that while Saniger later added bots to the system, the core operation remained largely human-driven.

Matthew Podolsky, Acting U.S. Attorney for the Southern District of New York, said the deception undermines real innovation and investor trust in AI startups. The FBI echoed this, emphasizing its commitment to investigating tech executives who manipulate investor trust through false claims.