An 'AI-Driven' Trading Platform That Wasn't: Rimar Capital Owner Itai Liptz Settles SEC 'AI-Washing' Case

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

"Artificial intelligence" is one of the most powerful words in a sales pitch right now. In this case, the Securities and Exchange Commission found it was being used to describe something that didn't exist.

On Oct. 10, 2024, the SEC announced settled charges against Rimar Capital USA, Inc., Rimar Capital, LLC, owner and CEO Itai Liptz, and Rimar USA board member Clifford Boro for false and misleading statements about Rimar LLC's purported use of AI for automated trading, along with other misrepresentations [1]. The parties agreed to pay $310,000 in total civil penalties [1].

What the SEC found

This was an administrative settlement, so the SEC's order contains findings rather than allegations awaiting trial. According to the order [1][2]:

• The raise. Liptz, with Boro's help, raised nearly $4 million from 45 investors to develop Rimar LLC, an investment adviser falsely described as having an AI-driven platform for trading securities.
• More misstatements. The Rimar entities, Liptz and Boro also made misrepresentations about Rimar LLC's assets under management and investment returns.
• Clients. Rimar LLC and Liptz obtained advisory clients with misleading statements.
• Personal use. Liptz improperly used company funds for personal expenses.

"Through entities he controlled, Liptz lured investors and clients with multiple fabrications, including with buzzwords about the latest AI technology," said Andrew Dean, co-chief of the SEC's Asset Management Unit. "As AI becomes more popular in the investing space, we will continue to be vigilant and pursue those who lie about their firms' technological capabilities and engage in 'AI washing'" [1].

The settlement

Without admitting or denying the SEC's findings, all four respondents consented to an order finding antifraud violations and directing them to cease and desist [1]. Under the order:

• Liptz agreed to pay $213,611 in disgorgement and prejudgment interest and a $250,000 civil penalty, and to an investment company prohibition and associational bar, with the right to reapply after five years.
• Boro agreed to pay a $60,000 civil penalty.
• Rimar LLC was censured.

The release does not mention criminal charges. This settled order resolved the SEC's case; we found no later SEC action on sec.gov as of Oct. 12, 2026.

What "AI washing" looks like

"AI washing" means overstating or inventing a product's use of artificial intelligence to attract money. The SEC has an investor alert on AI and investment fraud [1]. Ask what the system actually does, who built it, and whether its track record has been audited by someone independent.

What an SEC civil case is (and isn't)

The SEC is a civil regulator. When it "charges" someone, it files a lawsuit in federal court or brings an administrative proceeding asking for remedies such as injunctions, repayment of allegedly ill-gotten gains (disgorgement), civil money penalties and industry bars. It cannot send anyone to prison. Criminal charges, when there are any, are brought separately by federal prosecutors, and a defendant in a criminal case is presumed innocent unless and until proven guilty.

Allegations in an SEC complaint are claims the agency must prove in court unless a defendant settles. When a defendant settles "without admitting or denying" the allegations, the court or the Commission enters an order, but the defendant has not conceded that the allegations are true. Throughout this article, statements about what happened are allegations or findings as described by the SEC, not established facts, unless we say a court entered a judgment or a defendant pleaded guilty.

Red flags in this case

• 'AI-powered' or 'automated' trading claims without independent performance audits.
• Assets-under-management and return figures you can't verify.
• Early-stage companies raising money on technology that isn't built yet.

How to check an investment before you hand over money

• Look up the person and the firm on Investor.gov and FINRA BrokerCheck. A clean search is not proof of legitimacy, but a missing or mismatched record is a reason to stop.
• Read the offering documents yourself, and ask a fee-only professional you found independently to read them too.
• Be skeptical of "guaranteed" or fixed high returns. Real investments carry risk, and promises of safety plus high yield are a classic warning sign.
• Be wary of pressure. Deadlines, "limited allocations" and repeated calls are sales tactics, not investment analysis.
• Don't let trust in a group replace due diligence. Fraud often spreads through churches, ethnic and professional communities, online chat groups and friends-of-friends referrals.

If you think you were affected

1. Keep everything: account statements, emails, texts, wire and payment records, and any marketing material.
2. Report it to the SEC at sec.gov/tcr. If a criminal case is involved, you can also contact the FBI at ic3.gov or the prosecutors' victim-witness office.
3. Watch for a receiver or fair fund. In some SEC cases, money is later returned to harmed investors through a court-appointed receiver or a distribution fund. Notices are posted on sec.gov.
4. Beware of "recovery" offers. People who lost money are often targeted again by scammers promising to recover it for an upfront fee. Legitimate receivers and the SEC do not charge you to file a claim.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status as of Oct. 12, 2026	Source
Itai Liptz, owner and CEO, Rimar Capital	SEC administrative proceeding (Release No. 33-11316)	Settled Oct. 10, 2024, without admitting or denying; $213,611 disgorgement and interest, $250,000 penalty; industry bars with right to reapply after 5 years	[1], [2]
Clifford Boro, Rimar USA board member	SEC administrative proceeding	Settled; $60,000 penalty	[1], [2]
Rimar Capital USA, Inc.; Rimar Capital, LLC	SEC administrative proceeding	Settled; cease-and-desist; Rimar LLC censured	[1], [2]

Statuses can change. SEC allegations are claims, not findings of wrongdoing, unless a court has ruled.

Sources

1. SEC Press Release 2024-167, "SEC Charges Rimar Capital Entities and Owner Itai Liptz for Defrauding Investors by Making False and Misleading Statements About Use of Artificial Intelligence," Oct. 10, 2024. https://www.sec.gov/newsroom/press-releases/2024-167
2. SEC order, Release No. 33-11316, In the Matter of Rimar Capital USA, Inc., et al. https://www.sec.gov/files/litigation/admin/2024/33-11316.pdf

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