TLDR

• Albert Saniger charged with fraud for falsely marketing Nate app as AI-powered
• The app actually used human workers in the Philippines to complete online purchases
• Saniger raised over $40 million from investors based on false AI claims
• The app’s actual automation rate was “effectively zero percent” according to authorities
• Nate ceased operations in January 2023 after media scrutiny

The founder and former CEO of e-commerce app Nate has been charged with fraud by U.S. authorities. Albert Saniger, 35, of Barcelona, Spain, allegedly misled investors by claiming his shopping app used artificial intelligence when it was actually powered by human workers in the Philippines.

The Justice Department and Securities and Exchange Commission (SEC) filed charges on April 9, 2025. Saniger faces one count of securities fraud and one count of wire fraud, each carrying a maximum sentence of 20 years in prison.

Founded around 2018, Nate was marketed as an AI-powered universal shopping cart that allowed users to complete online purchases with a single tap. The app promised to handle all checkout steps automatically, including entering shipping details and sizing information.

Tech CEO charged in artificial intelligence investment fraud schemehttps://t.co/UyoYN6lrtN

— US Attorney SDNY (@SDNYnews) April 9, 2025

Human Workers, Not AI

According to court documents, the reality was very different. Instead of using AI, Saniger employed “hundreds of contractors, or ‘purchasing assistants,’ in a call center located in the Philippines to manually complete purchases occurring over the nate app.”

While Saniger had acquired some AI technology from a third party and hired data scientists to develop it, authorities claim the app never achieved the ability to consistently complete e-commerce purchases. The app’s actual automation rate was “effectively zero percent,” according to the indictment.

Saniger allegedly went to great lengths to hide this fact. He told employees to keep the automation rate secret, restricted access to the company’s “automation rate dashboard,” and provided false explanations for his secrecy, claiming the automation data was a “trade secret.”

Millions Raised on False Claims

Under the guise of investing in an AI-powered app, Saniger solicited more than $40 million from venture capital firms. Some reports indicate the total funding may have reached $50 million, with investors including Coatue, Forerunner Ventures, and Renegade Partners.

Acting U.S. Attorney for New York Matthew Podolsky alleged Saniger duped investors by “exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed.”

During the busy holiday season in 2021, Saniger reportedly directed Nate’s engineering team to develop bots to automate some transactions, working alongside the human workers. This decision came despite his previous statements to investors that the company did not use “dumb bots.”

Company Collapse

Nate’s practices came under scrutiny following a 2022 investigation by The Information that revealed the company’s heavy usage of human contractors. According to the DOJ, Nate ran out of money and was forced to sell its assets in January 2023, leaving investors with “near total” losses.

Saniger terminated all of Nate’s employees after media reports began casting doubt on the app’s capabilities. His LinkedIn profile indicates he was no longer CEO as of 2023. He is currently listed as a managing partner at New York VC Buttercore Partners.

The SEC’s civil action seeks to ban Saniger from holding office in any similar company and return investor funds. FBI Assistant Director in Charge Christopher G. Raia said, “Saniger allegedly abused the integrity associated with his former position as the CEO to perpetuate a scheme filled with smoke and mirrors.”

The case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Complex Frauds and Cybercrime Unit.

Nate is not the only startup accused of exaggerating AI capabilities. Other companies, including an “AI” drive-through software startup and legal tech unicorn EvenUp, have also reportedly used humans to do much of the work claimed to be done by artificial intelligence.

The charges against Saniger highlight growing concerns about misrepresentation in the tech sector, particularly around artificial intelligence claims, as investors pour money into the booming AI space.