By Aaron Nicodemus2024-04-16T19:09:00
The enforcement head at the Securities and Exchange Commission (SEC) laid out general principles for “proactive compliance” to avoid making false or misleading claims about the capabilities of artificial intelligence (AI) products and services.
In a speech delivered Monday at a compliance conference, Gurbir Grewal, director of the SEC’s Division of Enforcement, predicted a “storm of risk” is brewing around AI use, fueled by intense interest among investors and the market. This interest, he said, could lead to elevated investor risk as firms race to roll out new AI-driven products and services to improve financial decision-making, make better bets on the market, enhance productivity and growth, and attract and retain investors.
The pressure is encouraging some firms to overstate the capabilities of their AI products and services, he said.
2024-10-11T13:44:00Z By Jeff Dale
The Securities and Exchange Commission ordered the owner of Rimar Capital and a board member of its holding company to pay nearly $524,000 in penalties for defrauding investors with false and misleading statements about its use of artificial intelligence.
2024-10-03T13:00:00Z By Aaron Nicodemus
Gurbir Grewal, director of the Securities and Exchange Commission’s Division of Enforcement, will step down from his post Oct. 11. Grewal, who had served as the division’s director since 2021, will be replaced by Sanjay Wadhwa, currently the division’s deputy director, the SEC said.
2024-06-12T22:14:00Z By Adrianne Appel
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.
2025-10-08T18:28:00Z By Adrianne Appel
Charlie Javice, a former CEO who duped JPMorgan Chase into purchasing her start up company for $175 million, has been ordered to forfeit more than $22 million by the Department of Justice (DOJ) and to spend 7 years in jail.
2025-10-07T16:08:00Z By Adrianne Appel
Georgia Tech Research Corp. (GTRC) has agreed to pay $875,000 to settle allegations first raised by two compliance officers that its cybersecurity protocols violated acceptable standards for defense contractors, the Department of Justice (DOJ) said.
2025-10-06T17:12:00Z By Adrianne Appel
Tractor Supply Company has agreed to get into compliance with California’s consumer privacy law and to pay a $1.35 million fine—the largest yet by California—to settle allegations it violated the privacy rights of customers and job applicants.
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