- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2024-03-18T19:48:00
Two investment advisers agreed to pay a total of $400,000 to settle charges by the Securities and Exchange Commission (SEC) the firms each engaged in artificial intelligence (AI) misrepresentations that misled clients about how they were using the technology.
Delphia USA and Global Predictions were fined $225,000 and $175,000, respectively, the SEC announced in a press release Monday. The firms each agreed to a censure and to cease and desist from further violations in reaching settlement.
The penalties follow months of warnings by senior leaders at the SEC regarding the concept of “AI washing,” which includes firms marketing applications of the technology in ways they aren’t using it.
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The former chief executive officer of closed AI recruitment startup Joonko faces up to 40 years in prison and the potential of penalties levied by the Securities and Exchange Commission for allegedly defrauding investors of more than $27 million.
Examiners with the Securities and Exchange Commission found investment advisory firms have generally done well creating processes to comply with the agency’s amended marketing rule but some have fallen short in ensuring compliance.
Gurbir Grewal, director of the Securities and Exchange Commission’s Division of Enforcement, laid out general principles for “proactive compliance” to avoid making false or misleading claims about the capabilities of artificial intelligence products and services.
RTX Corp., the parent company of Raytheon, disclosed in a public filing it has reserved $1.24 billion to resolve legacy legal matters with the Department of Justice, Securities and Exchange Commission, and Department of State.
The U.K. Financial Conduct Authority issued a fine of $4.5 million (3.5 million pounds) against a U.K.-based subsidiary of crypto platform Coinbase for providing services to high-risk customers in violation of FCA rules.
Admera Health agreed to pay more than $5.5 million to resolve allegations first brought by two whistleblowers that it paid kickbacks to third-party contractors, the Department of Justice said.
