Israeli Ilit Raz was indicted for defrauding investors in the amount of at least 21 million dollars

The American Securities and Exchange Commission filed an indictment against Israeli Ilit Raz, the founder and CEO of the artificial intelligence startup Joonko. The lawsuit filed in the District Court of the Southern District of New York accuses Raz of defrauding investors regarding the company's financial condition and performance indicators. When the scope of the fraud was at least 21 million dollars.
According to the indictment Junco received financing from more than 100 business clients, including organizations from the list of Fortune 500 companies. The company was also accused of presenting fake investor reviews and fake contracts.
These scams went so far as to inflate the company's income and the number of active candidates on the platform, when Raz claimed that it was more than a million dollars and 100 thousand respectively. The charges against Raz relate to violations of securities laws.
Securities Authority documents show that Raz previously presented fake bank statements to one of the investors in order to sway his opinion. When the investor insisted, Raz admitted to using fake documents in order to embellish the company's data.
Raz, who was presented in Junco messages as an 8200 ex with extensive experience in high-tech, left the company along with many senior executives after the suspicions of fraud and the discrepancy between the reported numbers and the real ones were revealed. Last January, she sued the company in a Delaware court in order to finance her legal defense.
According to the Attorney General, artificial intelligence terms were used to commit "old school fraud". At the same time as the filing of the indictment, the New York District Attorney's Office opened a criminal case against Raz, which indicates the serious way in which it views the accusations.