A Miami AI company’s CEO will pay $64,000 to settle accusations of lying to investors
The SEC says there were “misrepresentations” and “misused funds” by the CEO.
The CEO of an AI robotics company that she ran out of a Miami apartment was better at hiding truths about the company’s progress, herself and where investor money got spent than guiding the company to produce the service robot it promised investors.
The first prototype AI robot Destiny Robotics presented to the public was “a far cry from the socially intelligent “humanoid” robot represented to investors,” the SEC stated. Securities and Exchange Commission Complaint vs. Destiny Robotics and Megi Kavtaradze
The CEO of an AI robotics company that she ran out of a Miami apartment was better at hiding truths about the company’s progress, herself and where investor money got spent than guiding the company to produce the service robot it promised investors.
At least, that’s what an Securities and Exchange Commission complaint against Destiny Robotics and CEO Megi Kavtaradze claimed. Kavtaradze, legally, neither admits nor denies the accusations. And she refused comment when reached Sunday by phone.
However, money talks. The case settlement approved Thursday by Miami federal court Judge K. Michael Moore says Kavtaradze agreed to pay the SEC a total of $64,384: $12,990 disgorgement, representing how much she profited from the “misrepresentations” in the SEC complaint; interest of $1,394; and a civil penalty of $50,000.
Though also listed as a defendant in the civil action, Destiny Robotics is a defunct company, so it faced no penalty or disgorgement.
The SEC complaint said in raising $141,000 from investors through crowdfunding, Kavtaradze and Destiny “made material misrepresentations” about:
▪ what Destiny Robotics products could do;
▪ when they would be released;
▪ touted “the completion of the hologram prototype while omitting that it had been abandoned;”
▪ “a major investor’s personal and business relationship with Kavtaradze while using his endorsement and role as stockholder;
▪ Kavtaradze being “an experienced executive from a technology company;”
▪ Kavtaradze misappropriating some investor money for personal use,” including “meals, travel and application fees for MBA programs.”
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