Former PROMAI CEO Accused of Elaborate Corporate Fraud: forged contracts with Boeing

In a dramatic turn of events, Israeli tech startup PROMAI has filed a NIS 10 million lawsuit against its former CEO, Erez Ben Yishai, accusing him of fabricating a vast web of lies and forgeries that misled the company, its employees, and investors. The civil suit, filed yesterday in the Tel Aviv District Court, outlines a staggering scheme involving forged documents, fake contracts with global corporations, impersonation of military personnel, and the use of AI tools such as ChatGPT to bolster the fraud.

According to the lawsuit, Ben Yishai falsely presented himself as a retired lieutenant colonel and test pilot in the Israeli Air Force. PROMAI, a Tel Aviv-based startup employing around 40 people and having raised $7 million in private funding, alleges that Ben Yishai used this fabricated identity to build credibility and secure his role as CEO.

The core of the lawsuit accuses Ben Yishai of creating fraudulent contracts with multinational corporations, including:

• Medtronic – A 35-page forged contract supposedly signed in February and June 2024, promising a $500,000 milestone payment by May 2025.

• Boeing – Falsified framework agreements and signatures, including that of CEO David L. Calhoun. A digital file with Calhoun’s signature sample was found on Ben Yishai’s computer.

• Tesla – A forged RFI (Request for Information) on company letterhead, complete with a fake signature from a manager named “Dan Hong” and fabricated email threads.

The lawsuit also claims that Ben Yishai forged documents supposedly from Pratt & Whitney, Lockheed Martin, GE, Airbus, and even DARPA, the US Department of Defense’s advanced research arm. He allegedly created fake emails and meeting minutes with the Federal Aviation Administration (FAA) and US Department of Justice (DOJ).

The Role of AI in Fraud

Strikingly, the lawsuit alleges that Ben Yishai used ChatGPT to draft forged agreements, raising new questions about how AI tools can be misused in white-collar crime.

The company hired the Weizmann Yaar Investigation Office, which obtained a written statement from Ben Yishai, reportedly attached to the lawsuit. In the statement, he admits:

“I forged and invented contracts for customers... there was no correspondence with these companies. I created false representations to mislead potential investors and shareholders.”

He also admitted to lying about his military service, revealing that he served as a counter clerk in the Air Force for five years and held no officer rank.

Personal Deceptions and Corporate Consequences

Dr. Dina Goren Bar, the founder of PROMAI and a lecturer at Afeka College, is also a plaintiff in the case. According to the lawsuit, Ben Yishai deceived her personally, falsely claiming military absences while secretly maintaining a relationship with another woman. Based on his misrepresentations, Dr. Goren granted him 12% of the company’s shares and appointed him CEO when the company was registered in Delaware.

Defense Responds: “Baseless Allegations”

Attorneys Ariel Shmul and Avital Kidron, representing Ben Yishai, issued a firm denial of the allegations:

“Our client denies all the allegations attributed to him. These are baseless allegations and a complete fabrication… Our client acted legally in his capacity as CEO and suffered great personal and financial harm.”

The defense suggests the case stems from a “business dispute” and argues Ben Yishai is being wrongfully implicated.

While PROMAI seeks NIS 10 million in damages, the company acknowledges that the full extent of financial and reputational harm remains incalculable. The case is likely to become a legal landmark in Israeli corporate governance and cybersecurity, highlighting how new technologies can be weaponized in white-collar fraud.

The Tel Aviv District Court will hear the case in the coming weeks.