An order filed in the U.S. District Court for the Southern District of California recently contained a “total monetary judgment of $21,765,902.65.” However, it is now partially suspended. In a case involving AI technology, a lawsuit was filed against John Cresto, Roman Cresto, Andrew Chapman, and the companies they controlled.
The Allegations of Misuse of AI and the Defendants
The FTC revealed a substantial monetary judgment related to a lawsuit filed against John Cresto, Roman Cresto, Andrew Chapman, and their affiliated companies. The Federal Trade Commission (FTC) accused them of misleading consumers with false promises of passive investment income. These promises involved online storefronts powered by AI.
False Promises Using AI and Financial Losses
The FTC asserts that the defendants convinced people to invest in Walmart and Amazon e-stores managed by an AI system. They promised high returns and claimed their proven method would make their clients a lot of money. Unfortunately, most investors lost money instead of making profits.
Violations and Consequences
According to the FTC’s complaint documents, the defendants ran online stores frequently violating Amazon’s and Walmart’s policies. As a result, these stores were often blocked, suspended, or terminated, resulting in losses for those trusting AI-based operations.
Implications for Californian Investors
When investing in California, it’s essential to be vigilant and do thorough research before considering investment opportunities. This is especially true for those related to AI and e-commerce. This case serves as a warning to investors, highlighting the need for caution and careful consideration.
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[Article Note: This piece was originally published on NewsBreak and has been archived and transferred to DOPE Quick Reads to preserve its informational value. Original publication date: 2024-02-27]
