United States of America: Reached settlement in SEC case against Rimar over alleged fraudulent claims regarding AI use

On 10 October 2024, the United States Securities and Exchange Commission (SEC) announced that it reached a settlement agreement with Rimar USA and its executives over allegations of fraudulent claims about artificial intelligence (AI) use for automated trading. The SEC claims that Rimar Capital misled investors by falsely representing their AI capabilities, inflating their assets under management, and fabricating investment returns. As part of the settlement, the owner and CEO was ordered to pay disgorgement and prejudgment interest totaling USD 213'611 and a civil penalty of USD 250'000 and was also prohibited from serving in certain roles within investment companies. A board member agreed to pay a civil penalty of USD 60'000. Rimar was censured but faced no additional financial penalties.