Will Huawei's CEO go to Prison for AI Fraud?

Huawei's CEO has just committed Securities Fraud, allegedly. Securities Fraud carries a maximum penalty of 25 years in prison in the US. The FBI considers every transaction involving dollars like a crime having occurred on US soil. Since Huawei (obviously) are selling products in exchange for dollars, this implies Huawei's CEO could technically be extradited to the US and face 25 years of prison time if found guilty on what his company has now (allegedly) done.

Huawei releasing fake AI

Notice, I don't know if this is true, but one of our partners sent me this on email just now. Since I'm not sure if he wants any credits for it, I'll keep him anonymous.

Doing things such as the above is considered Securities Fraud according to the US Securities Fraud Act from 1933. The reason is because it artificially inflates Huawei's shares, and such is the equivalent of lying to share holders. Securities Fraud carries a maximum of 25 years in prison for Huawei's CEO if found guilty.

Apparently, what Huawei did, was to accidentally show their source code for their "AI image generator product", which demonstrated it would simply wait for 6 seconds, before showing an image already having been created previously. This becomes Securities Fraud because it allows Huawei to lie to their share holders, and claim they're "an AI company", resulting in a fraudulent and fake inflation of Huawei's evaluation. Since CEOs are typically paid a bonus when the company they're working for increases in value, this becomes fraud committed by Huawei's CEO.

My personal opinion

Practically 90% of all Fortune 500 companies are guilty of similar initiatives, and we need to send a clear message to these companies that this is not OK. I suggest that the chairman of the SEC indites a handful of huge CEOs, such as the CEO of Huawei, to simply "send a message" out that this is not OK. The reason is because AI has gone completely bananas the last year because of ChatGPT and OpenAI.

We've uncovered almost a dozen of such cases here at our website, such as SalesForce, Five9, Intercom, Zendesk, etc. These are huge companies, flat out committing fraud due to FOMO and AI hype, and it becomes a real problem - Both for us as a company, and the world at large.

May I boldly suggest the SEC and the FBI takes out an inditement towards the CEO of Huawei? And while you're at it, maybe do the CEO of SalesForce, Five9, and a couple of the other "usual suspects" in the AI scam business ... 😊

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