The SEC charged investment adviser, its parent, CEO, and a director and consultant, for making false and misleading statements about the use of artificial intelligence (AI) to perform automated trading for client accounts and other material misrepresentations. The case represents an egregious fraud against investors in an offering in Simple Agreements for Future Equity (SAFEs) by the parent company. However, it also highlights the SEC's emphasis on material misstatements regarding the use of AI, a practice referred to as “AI washing,” as a relevant focus area for enforcement investigations.